KYRO POWER HAS SIGNED A LETTER OF INTENT CONCERNING THE SALE OF ITS HYDROPOWER PLANT BUSINESS

Kyro Corporation   STOCK EXCHANGE RELEASE  4 November 2005, 8.30 a.m.

KYRO POWER HAS SIGNED A LETTER OF INTENT CONCERNING THE SALE OF ITS HYDROPOWER
PLANT BUSINESS

Kyro Corporation's subsidiary, energy producer Kyro Power, has on 3 November,
2005 signed a letter of intent, according to which it will by the end of the year
sell its hydropower plant to a company founded by an outside buyer. Located in
Hämeenkyrö, the hydropower plant is unmanned, hence no staff is transferred.

Selling the electricity producing hydropower plant is part of the so called
Partner project, started by Kyro in October 2004 and still ongoing. Its purpose
is to find Kyro´s Energy business area partnership or ownership arrangements that
contribute to its competitiveness.

Kyro Power is Kyro Corporations fully owned subsidiary, operating a hydropower
plant as well as a gas-fired power plant, both producing heat, steam and
electricity mainly for industrial use. Furthermore, the company distributes
district heating in the Hämeenkyrö municipal area.

In Helsinki on 4 November, 2005

Kyro Corporation

Further information:
Kyro Corporation, President & CEO Pentti Yliheljo,

tel. +358 3 382 3111.

Investor relations:
Kyro Corporation, IR & Communications Manager Emmi Watkins,
tel. +358 3 382 3010.

IR pages on the Internet address www.kyro.fi.

Distribution: Helsinki Exchanges, key media