FINISHING AND ASSEMBLY OF POLE AND FLOORBALL PRODUCTS TO BE TRANSFERRED TO CHINA DURING 2006: PERSONNEL NEGOTIATIONS TO BEGIN AT MÄNTYHARJU FACTORY. EXEL PRELIMINARY RESULT FOR 2005 CLOSE TO FORECASTED

EXEL OYJ STOCK EXCHANGE RELEASE 25.1.2006 at 15.40 FINISHING AND ASSEMBLY OF POLE AND FLOORBALL PRODUCTS TO BE TRANSFERRED TO CHINA DURING 2006: PERSONNEL NEGOTIATIONS TO BEGIN AT MÄNTYHARJU FACTORY EXEL PRELIMINARY RESULT FOR 2005 CLOSE TO FORECASTED Summary: - The Sport Division is responding to increased competition by transferring finishing and assembly of pole and floorball products to China; personnel negotiations will begin at the Mäntyharju factory affecting approximately 60-70 workplaces - Net sales for 2005 (preliminary) rose to EUR 91.3 million, up 8.8 per cent on the previous year’s EUR 83.9 million - Operating profit for 2005 (preliminary) was EUR 12.3 million, down 10.2 per cent on the previous year’s EUR 13.7 million - Profit before tax for 2005 (preliminary) was EUR 12.0 million, down 9.1 per cent on the previous year’s EUR 13.2 million - Demand for Nordic Walking products in Central Europe was quiet in Q4, as retail chains sold off existing stocks - The preliminary result for Industry Division exceeded expectations TRANSFER OF FINISHING AND ASSEMBLY OF POLES AND FLOORBALL PRODUCTS TO CHINA Personnel negotiations at Mäntyharju factory It is assumed that the Sport Division will continue to face tough competition. Efforts are being made to make operations more efficient with the aim of producing a better result in 2006. A central part of improving cost competitiveness will be the subcontracting of surface treatment, assembly and packaging operations for Nordic Walking and floorball products to China. This transfer will take place in phases throughout the year with the goal of having all these operations handled completely in China by the beginning of 2007. This will necessitate the restructuring of operations at the Mäntyharju factory. Accordingly, the factory will focus in the future on the manufacture of composite products and, in terms of sports equipment, on the production of pole and floorball shafts, surfboard masts and laminates. In addition, efforts will be made to increase production for the Industry Division that already takes place at the factory. The restructuring signifies a lower demand for labour amounting to 60-70 workplaces, mostly in production. Personnel negotiations are scheduled to begin in week 5. Depending on the outcome of these negotiations, the new operating model will be phased in during the remainder of the year. The transition is expected to improve clearly the profitability of the businesses in question. PRELIMINARY RESULTS 2005 As Exel’s final financial results for 2005 will be published only on 1 March 2006, Exel hereby publishes preliminary, unaudited results for 2005. Group sales Net sales for the Exel Group grew in 2005 as expected, ending the year at EUR 91.3 million. This represents growth on the previous year of 8.8 per cent. The Group’s main business area, the Industry Division, experienced very strong growth; net sales for 2005 amounted to EUR 57.0 million, up 17.9 per cent on the previous year’s EUR 48.3 million. Most of this growth was organic; the inclusion of Austrian subsidiary Faserprofil as of April 2005 increased net sales for the Industry Division by EUR 3.1 million. Net sales for the Sport Division in 2005 amounted to EUR 34.3 million, falling short of the previous year’s EUR 35.5 million. In the second half of the year, the market for Nordic Walking products in Central Europe was weak, which was reflected quite clearly in the smaller number of deliveries. The primary reason for poor sales in this area was excessive supply among retailers, who made a big effort to sell off stocks, especially in Q4. We forecast that this situation will continue unchanged for the duration of the current model year, until March-April 2006. The total market for Nordic Walking products in the German-speaking markets of Central Europe is expected to remain at the same level as in 2005. Exel’s goal is to maintain and partly increase its strong market share in these markets. Group operating profit The preliminary operating profit for the Exel Group in 2005 was EUR 12.3 (13.7) million. The profit (preliminary) for the Industry Division improved once again clearly over the previous year to EUR 10.7 (7.8) million. Increased volumes, improved efficiency and stringent cost control are the main reasons behind this improvement. The profit for the Sport Division fell noticeably short of the previous year’s, amounting to EUR 1.6 (5.9) million. During 2005 the organisation of the Sport Division was strengthened, and major investments were undertaken in opening new markets (North America, Far East, new European countries). These investments, combined with the selling off of existing stocks by retailers in the main Central European markets, were the main causes for the significant fall in operating profit from the previous year by the Sport Division. The financial statement bulletin for 2005 will be published on 1 March 2006. Mäntyharju, 25 January 2006 EXEL OYJ Ari Jokelainen President Further information: Mr Ari Jokelainen, President, Exel Oyj, tel. +358 50 590 6750 Mr Ilkka Silvanto, CFO, Exel Oyj, tel. +358 50 598 9553 Exel Oyj is a Finnish company specialised in composite technology. The Group’s operations consist of sporting goods and industrial applications. Exel’s best known products include cross-country and Alpine poles, Nordic Walking poles, surfboard masts, floorball clubs and industrial profiles in general. The Group’s seven factories are located in Finland, Germany, Belgium, Austria and Spain. Over 80% of production is exported. In 2004 the Group’s net sales totalled EUR 83.9 million. Exel personnel numbers 450. Exel’s share is listed on the Main List of the Helsinki Stock Exchange. Further information: www.exel.net.