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KCI KONECRANES ACQUIRES SMV LIFTTRUCKS A

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KCI KONECRANES PLC                  STOCK EXCHANGE RELEASE   1 (2)
                                    8 September, 2004 1.00 p.m.


KCI KONECRANES ACQUIRES SMV LIFTTRUCKS AB OF SWEDEN

KCI Konecranes has entered into an agreement to acquire SMV Lifttrucks
AB of Markaryd, Sweden. SMV Lifttrucks has a strong position as a
supplier of container handling equipment. The acquisition strengthens
KCI Konecranes’ leading position as a global supplier to ports and
terminals.

SMV Lifttrucks Ab (SMV) was founded in 1947 and has developed a strong
position in the field of container handling equipment. The product
range consists of heavy-duty reach stackers and forklift trucks with
lifting capacities of 10 to 60 tons. SMV’s main markets are Europe,
Asia, Australia, South America, Middle East and Africa. In 2003, SMV’s
net sales amounted to SEK 374 million. With a record high order
intake, the year 2004 net sales are expected to be significantly
higher. The company is presently owned through a holding company by
the management and a private investor. The company employs 85 people.

SMV’s extensive dealer network will strengthen KCI Konecranes market
position in the ports. KCI Konecranes own sales network is mainly
directed towards the manufacturing industry. Now, the Group’s presence
in ports will increase significantly.

The acquisition price will be a minimum of SEK 180 million and a
maximum of SEK 220 million. The final price will be determined by 31
August 2005, and it will depend on SMV’s business performance until
then. The payment will consist of a cash portion of SEK 164,880,000,
and a transfer of KCI Konecranes shares, presently held by KCI
Konecranes, worth of SEK 15,120,000 and a possible cash bonus of a
maximum SEK 40 million. KCI Konecranes will also assume SMV’s net
debt, at SEK 85 million.

The exact number of shares to be transferred depends on the trade
weighted average closing price for KCI Konecranes share during 20
trading days prior to closing. The transferred shares will be subject
to a 3-year transfer restriction so that one third can be sold after
one year from closing, one third two years from closing, and the rest
three years from closing.

The acquisition is earnings per share (EPS) accretive, adding
approximately 5 cents to KCI Konecranes’ EPS in 2005. The companies
see good opportunities for further EPS enhancement through exploiting
synergies.

The acquisition is subject to, among other things, regulatory
approvals and it is expected to close by the end of the year.

“SMV’s product portfolio is fully complementary with KCI Konecranes’,
and extends our total product rangeö, said Mikko Uhari, President,
Special Cranes Business Area. “The reach stacker and lift trucks
constitute a natural addition to our existing container handling
equipment range consisting of Ship-to-Shore Container Cranes, Rubber
Tyred Gantry (RTG) Cranes, and Rail Mounted Gantry (RMG) Cranes. This
enables us to position ourselves as a complete solution provider in
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harbours, intermodal terminals and in the shipping industry. We will
now cover the entire logistics chain.ö

Reach stackers and forklift trucks are efficient and reliable
container handling equipment for moving container cargo and other unit
loads at ports and intermodal terminals. The machines are also used in
forest products industries and in paper and steel mills. SMV’s latest
generations of reach stackers and heavy load forklifts feature high
cargo handling productivity, advanced environmental protection,
excellent maneuverability, ergonomic comfort, efficient maintenance,
and low overall life-time costs.

SMV’s production plant in Markaryd, in southwestern Sweden features
the latest technology, lean manufacturing methods and employs highly
skilled personnel. The operations of SMV will be incorporated into KCI
Konecranes’ Special Cranes Business Area.

KCI Konecranes. A world leading engineering group specializing in
advanced overhead lifting solutions and maintenance services. Group
activity is organized along three business areas: Maintenance Services
(50% of Group Sales), Standard Lifting Equipment (26 %) and Special
Cranes (24 %). In 2003, Group Sales totalled EUR 665 million with over
4300 employees in 34 countries all over the world.

For further information on SMV Lifttrucks AB, please also visit:
http://www.smvlifttrucks.se


KCI KONECRANES PLC


Franciska Janzon
IR Manager



FURTHER INFORMATION
KCI Konecranes Plc
Stig Gustavson, President & CEO, phone +358-400 411119
Teuvo Rintamäki, Chief Financial Officer, phone +358-20 427 2040




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