Metso Corporation's Interim Review, Janu

Metso Corp.  Stock Exchange Release July 28, 2004 at 12.30 p.m.  1(25)

Metso Corporation's Interim Review, January-June 2004:
OPERATING RESULT MOVED INTO PROFIT AND ORDER BACKLOG STRENGTHENED
SIGNIFICANTLY

- In January-June 2004, Metso Corporation's net sales totaled EUR
  1,953 million (1-6/2003: EUR 2,055 million).
- Metso's operating profit before nonrecurring items and amortization
  of goodwill was EUR 51.6 million (EUR 46.7 million). From continuing
  operations the operating profit before nonrecurring items and
  amortization of goodwill was EUR 40.9 million (EUR 27.6 million).
- The operating profit was EUR 20.5 million (EUR 18.8 million).
  Earnings per share were negative EUR 0.14 (negative EUR 0.13).
- New orders worth EUR 2,539 million (EUR 2,309 million) were
  received. The Corporation's order backlog totaled EUR 1,974 million
  at the end of June (EUR 1,505 million at the end of 2003).
- Gearing was 70.9 percent at the end of June (101.7% on March 31,
  2004).

In April-June, Metso's order intake was significantly up on both the
first quarter of 2004 and the corresponding period of 2003. The
Corporation's order backlog also strengthened further in April-June
compared with both the first quarter of this year and April-June of
last year. Aftermarket operations accounted for 39 percent of net
sales.

Metso's operating result before nonrecurring items and amortization of
goodwill showed a clear improvement in April-June. Metso's operating
profit before nonrecurring items and amortization of goodwill from
continuing operations improved significantly due to the positive
development in April-June. According to Jorma Eloranta, President and
CEO, Metso's operating profit development supports the chosen
strategic direction. The achieved profitability can be regarded to be
in line with expectations, but is still insufficient. The work to
achieve the financial targets and improve profitability continues as
planned.

"Metso Minerals and Metso Automation improved their profitability
especially due to the efficiency improvement measures. Our challenge
in Metso Paper is to reduce fixed costs further, especially in the
Nordic countries and North America, as announced earlier. Now that
Metso's balance sheet has strengthened considerably, we can turn our
full attention to serving our customers and improving operational
profitability," says Eloranta.

Short-term outlook

The market for Metso Paper's products is estimated to remain at its
present level. The demand for new paper and board making lines is
expected to continue in China, while the European and North American
demand is expected to focus on modernizations and rebuilds. Metso
Paper's net sales and operating profit before nonrecurring items for
2004 are not estimated to reach the level of the previous year.

The demand for Metso Minerals' products is expected to remain good in
North America and in the mining industry. In Europe, civil engineering
industry demand is expected to remain at its current level. Metso
Minerals' favorable profit performance of the first half of the year
is estimated to continue.

In Metso Automation's markets, economic growth in North America is not
expected to increase the short-term demand for automation. European
markets are expected to recover with a delay. However, the favorable
profitability development of the first half of the year is estimated
to continue in Metso Automation.

Overall, Metso Corporation's operating profit before nonrecurring
items for 2004 is estimated to be slightly better than that of the
previous year. Income before taxes is estimated to be significantly
better than in the previous year.

For additional information, please contact:
Jorma Eloranta, President and CEO, Metso Corporation,
tel. +358 204 84 3000
Olli Vaartimo, Executive Vice President and CFO, Metso Corporation,
tel. +358 204 84 3010
Eeva Mäkelä, Vice President, Investor Relations, Metso Corporation,
tel. +358 204 84 3253



METSO'S INTERIM REVIEW, JANUARY 1 - JUNE 30, 2004

Corporation's key figures

EUR million              4-6/04   1-6/04    4-6/03    1-6/03      2003
                                                                      
Net sales                 1,025    1,953     1,072     2,055     4,250
                                                                      
Operating profit           51.1     51.6      35.0      46.7     133.2
before nonrecurring                                                   
items and                                                             
amortization of                                                       
goodwill                                                              
                                                                      
   % of net sales          5.0%     2.6%      3.3%      2.3%      3.1%
                                                                      
Operating profit           44.2     40.9      20.4      27.6   (113.8)
(loss) before                                                         
nonrecurring items                                                    
and amortization of                                                   
goodwill from                                                         
continuing operations                                                 
                                                                      
   % of net sales          4.8%     2.3%      2.2%      1.6%      3.0%
                                                                      
Operating profit           32.6     20.5      13.5      18.8   (228.7)
(loss)                                                                
                                                                      
   % of net sales          3.2%     1.0%      1.3%      0.9%    (5.4%)
                                                                      
Earnings/share, EUR        0.04   (0.14)    (0.04)    (0.13)    (1.89)
                                                                      
Orders received           1,412    2,539       884     2,309     4,256
                                                                      
                                 30.6.04             30.6.03  31.12.03
                                                                      
Order backlog                      1,974               1,783     1,505
                                                                      
Equity to assets                   28.5%               32.4%     28.3%
ratio, %                                                              
                                                                      
Gearing, %                         70.9%               92.5%    107.7%


Metso's operating environment in April-June

Economic growth remained slow in Europe. In contrast, the U.S. economy
continued to recover. Economic growth and investment activity
continued to be lively in China.

In the pulp and paper industry markets, the pulp price continued to
rise through the end of June. In Europe, the prices of some paper
grades showed the first signs of increase late in the second quarter.
In the USA, the prices of most printing papers continued the cautious
rise that started in the first quarter.

In the mining industry, the metal prices continued to be high,
although the rise in prices leveled off somewhat in the first half of
the year. In civil engineering markets, construction and the demand
for aggregates continued to be good in North America and Asia.

The stabilization of the exchange rate between the euro and the U.S.
dollar during the first half of the year was one factor bringing
stability to Metso's operating environment.


Demand for Metso's products

The investment outlook of the pulp and paper industry remained
uncertain. Entire production line investments were pending in Europe
and Asia. In other markets, demand focused on maintenance and process
services and small and medium-sized rebuilds. The demand for
aftermarket services was supported by increases in customer mills'
utilization rates.

The demand for Metso Minerals' rock and minerals processing equipment
was good in North America and Asia. The growth of production in the
mining industry strengthened the demand for aftermarket services. The
planning activity for new mining projects continued to be lively. The
demand for metals recycling equipment continued to grow, particularly
in Europe.

Metso Automation's market situation continued to be satisfactory.
Demand remained unchanged in Europe and North America. In the Asian
markets, demand was still active in China.


Orders received and order backlog

The value of new orders received by Metso in January-June totaled EUR
2,539 million, which was 10 percent more than in the comparison
period, January-June 2003. With respect to continuing operations,
orders were 14 percent higher than in the comparison period. Metso's
order backlog increased by 31 percent from the beginning of the year,
totaling EUR 1,974 million at the end of June. With respect to
continuing operations, the order backlog grew by 40 percent. The most
significant order of the second quarter was received by Metso Paper
from Stora Enso's Kvarnsveden mill in Sweden for an SC paper line.

51 percent of orders originated from Europe, 20 percent from North
America, 16 percent from Asia-Pacific, 8 percent from South America
and 5 percent from the rest of the world.


Net sales

Metso's net sales totaled EUR 1,953 million in January-June, which was
5 percent lower than in the comparison period. With respect to
continuing operations, net sales remained at the previous year's
level. Aftermarket operations accounted for 39 percent (1-6/03: 34
percent) of the Corporation's net sales (excluding Metso Ventures).

Of the net sales, 35 percent originated from Metso Paper's, 33 percent
from Metso Minerals', 12 percent from Metso Automation's and 10
percent from Metso Ventures' deliveries. Discontinued operations
accounted for 10 percent of the Corporation's net sales.

43 percent of net sales came from Europe, 22 percent from North
America, 23 percent from Asia-Pacific, 6 percent from South America
and 6 percent from the rest of the world.


Result

The Corporation's operating profit before nonrecurring items and
amortization of goodwill was EUR 51.6 million in January-June, or 2.6
percent of net sales. The profitability of Metso Minerals and Metso
Automation clearly improved on the comparison period. Metso Paper and
Metso Ventures recorded an operating loss. Metso Paper's result was
burdened by the provision for the Papiers Gaspesia paper machine
project and other cost contingencies made in the first quarter for
certain previously delivered projects. Metso Ventures' result was
weakened by Valmet Automotive's loss, which was due to the decrease in
car production.

Net nonrecurring expenses totaled EUR 12 million, with the most
significant reported items being gains from the disposal of shares
amounting to EUR 7 million, a reversal of the gain booked for Valmet
Automotive totaling EUR 5 million, and the loss and expenses related
to the divestiture of Dynapac, part of Metso Minerals, amounting to
approximately EUR 12 million.

In January-June, Metso's operating profit before nonrecurring items
and amortization of goodwill from continuing operations was EUR 40.9
million, or 2.3 percent of the equivalent net sales. The corresponding
figures for January-June 2003 were EUR 27.6 million and 1.6 percent.
Metso's operating profit in January-June was EUR 20.5 million, or 1.0
percent of net sales.

Metso's net financial expenses were EUR 29 million, including dividend
income of EUR 3 million.

Metso's loss before taxes was EUR 8 million. Earnings per share were
negative EUR 0.14. The net loss was EUR 19 million.


Efficiency improvement program

Metso continued the efficiency improvement program commenced in June
2003, which is estimated to create annual cost savings of slightly
over EUR 100 million. Decisions made by the end of June 2004 are
estimated to create annual cost savings of approximately EUR 93
million. In January-June, these measures resulted in cost savings of
some EUR 29 million. Through the efficiency improvement program, Metso
has reduced its personnel by some 1,050, including a reduction of
about 480 employees in January-June.

Metso Automation's efficiency improvement measures have been
concluded. In addition, most of the measures of Metso Minerals' and
Metso Ventures' programs are being implemented or have been
implemented. Most of Metso Paper's efficiency improvement program has
also been implemented, although the program's targets relating to the
planned outsourcing are not expected to be fully met.


Metso Paper's efficiency improvement measures

In addition to the above-mentioned efficiency improvement program, the
target set for Metso Paper in June 2004 is to further reduce annual
fixed costs by a total of EUR 50 million. The measures to reduce costs
are mainly scheduled for 2004-2005 and the arrangements will primarily
affect operations in the Nordic countries and North America. It is
estimated that, in 2004-2005, the efficiency improvement measures will
create nonrecurring expenses whose payback period, on average, is
estimated to be less than a year.


Cash flow and financing

Metso's net cash provided by operating activities was EUR 80 million
during the review period.

Net interest-bearing liabilities totaled EUR 693 million. Gearing,
i.e. the ratio of net interest-bearing liabilities to shareholders'
equity, was 70.9 percent. The divestiture of Dynapac in June lowered
Metso's gearing ratio by approximately 29 percentage points. Following
the divestiture the value of goodwill and other intangible assets on
Metso's balance sheet decreased by EUR 136 million, after which the
goodwill on Metso's balance sheet on June 30, 2004 was valued at EUR
486 million.

Metso's equity to assets ratio was 28.5 percent at the end of June.
The equity to assets ratio does not yet reflect the positive effects
of the divestiture of Dynapac, since the proceeds are included in the
balance sheet under the cash and cash equivalents. Metso's funding
situation remained stable and the ratio of short-term loans in the
corporate funding structure decreased substantially.

Due to investor demand, Metso issued bonds totaling EUR 151 million to
private subscribers within the framework of its EMTN program. The
maturity period varies from 5 to 7 years. At the same time, Metso
redeemed bonds maturing in 2006 for EUR 88 million, after which the
value of the remaining bonds in this program totals EUR 412 million.

In May, Metso and the European Investment Bank (EIB) signed a 10-year,
EUR 135 million loan agreement. The funds may be drawn within 18
months of signing. No funds have been drawn so far. The funds are
intended for use in research and development projects that will
improve Metso's offering to its customers' core processes in pulp and
paper industries, and automation and control technologies.

On March 3, 2004, Standard & Poor's Ratings Services lowered Metso's
long-term corporate credit rating to BB+ and considered the outlook on
ratings to be stable. Additionally, the ratings of Metso's outstanding
bonds and EMTN program were lowered to BB. At the same time, the short-
term rating was lowered to B. On February 17, 2004, Moody's Investors
Services lowered the long-term ratings of Metso Corporation to Ba1 and
considered the outlook on ratings negative.


Capital expenditure

Metso's gross capital expenditure including acquisitions totaled EUR
41 million (EUR 68 million in 1-6/03).


Mergers and acquisitions

At the end of January, Metso divested its Converting Group to the
Bobst Group from Switzerland for approximately EUR 75 million. Metso
and the Bobst Group still have substantially different views on the
value of the transferred balance sheet items. The parties have agreed
to continue negotiations concerning the matter. Metso booked a reserve
in the second quarter results of approximately EUR 3 million for the
balance sheet items transferred.

ThyssenKrupp Automotive AG announced in June that it will not acquire
the shares of Valmet Automotive Oy, and will give up its 10 percent
minority shareholding in the car plant. In accordance with the
original agreement, Metso will reacquire the minority shareholding in
the car plant at a point of time to be decided later. Metso has
reversed in the second quarter result EUR 5 million of the previously
booked gain.

Following the approval of the competition authorities, Metso completed
the divestiture of its compaction and paving equipment group, Dynapac,
to the Nordic private equity investor, Altor. Dynapac was transferred
to Altor on June 30, 2004. The sales price was approximately EUR 294
million net of cash sold. The loss caused by the sale and the related
expenses were adjusted to EUR 12 million at the end of June. The
parties reached an agreement on the sale in April 2004.

In June, Metso announced the outsourcing of its intelligent packaging
and printing development project, to a new joint venture whose owners
will include Hansaprint, a Finnish printing house, and Nokia
Corporation. The company to be established, Avantone Oy, will develop
and commercialize technologies and solutions for packaging and
printing and marketing communications. Metso and Nokia will own equal
shares of the company, and together they will hold the majority of
Avantone's shares.

The joint venture has been approved by the EU competition authorities.
The company's operations will be started when the other necessary
official clearances and the set up procedures have been completed.


Research and development

Metso's research and development expenditure in January-June totaled
EUR 55 million (EUR 68 million in  1-6/03), representing 2.8 percent
of the Corporation's net sales.

In May, Metso Paper launched a new, low-cost tissuemaking concept
entitled Advantage DCT100. The concept is especially designed for
emerging markets, where the consumption of tissue paper is on the
increase. Advantage DCT100 is capable of producing 70-75 tons of
tissue paper per day.

Metso Minerals launched the Chamber Optimi service, based on the
customization of crusher wear parts, in which Metso Minerals' experts
analyze the customer's crushing process and develop wear parts that
are as cost-efficient as possible.


Personnel

At the end of June, Metso employed 24,071 persons, which was 8 percent
less than at the end of 2003. Of these, approximately 700 were
seasonal workers. 39 percent were employed by Metso Paper, 35 percent
by Metso Minerals, 14 percent by Metso Automation, 11 percent by Metso
Ventures and 1 percent by the corporate office and shared service
centers. In January-June, Metso employed 25,224 persons on average,
which was 10 percent, or 2,773 persons, less than in the comparison
period, January-June 2003.

Metso employed 41 percent of its total personnel in Finland, 12
percent in other Nordic countries, 12 percent in other European
countries, 16 percent in North America, 6 percent in Asia-Pacific, 8
percent in South America and 5 percent in the rest of the world.


Corporate management

Jorma Eloranta started as the President and CEO of Metso Corporation
on March 1, 2004. He was also appointed as the Chairman of Metso's
Executive Team and the Chairman of the Boards of Metso's business
areas. Olli Vaartimo, who was the acting President and CEO of Metso
Corporation, continues as Metso's Executive Vice President, CFO,
Deputy to the CEO and Vice Chairman of Metso's Executive Team. Other
members of the Executive Team are Metso's Business Area Presidents
Bertel Karlstedt (Metso Paper), Bertel Langenskiöld (Metso Minerals),
Matti Kähkönen (Metso Automation) and Vesa Kainu (Metso Ventures).
Metso's Extended Executive Team was abolished on April 28, 2004.


Corporate Governance

In April, Metso's Board of Directors decided to renew Metso's
corporate governance principles to improve management's efficiency.
The new corporate governance principles became effective on May 1,
2004.


Shares

At the end of June, the number of Metso Corporation shares was
136,250,545 and the share capital was EUR 231,625,926.50.

The Helsinki Exchanges traded 59.4 million Metso Corporation shares in
January-June, equivalent to a turnover of EUR 630 million. The share
price on June 30, 2004 was EUR 10.40. The highest quotation was EUR
11.72 and the lowest EUR 9.12. The Corporation's market capitalization
on June 30, 2004 was EUR 1,417 million.

2 million Metso ADRs (American Depository Receipts) were exchanged on
the New York Stock Exchange, equivalent of a turnover of USD 26
million. The price of an ADR on June 30, 2004 was USD 12.88. The
highest quotation was USD 14.37 and the lowest USD 11.10.


Stock options

Metso Corporation currently has three options programs, launched in
2000, 2001 and 2003. Originally the programs gave the right to
subscribe for a maximum of 13,800,000 new shares. However, Metso
Corporation's Board of Directors decided on May 26, 2004 to propose to
the 2005 Annual General Meeting the reduction of the size of the year
2003 options program by 4,900,000 options, after which the programs
give the right to subscribe for a maximum of 8,900,000 new shares.

Metso's Board of Directors reserved 100,000 year 2003A options and
100,000 year 2003C options for future needs. The Board also decided
not to distribute the 2,400,000 year 2003A and the 2,500,000 year
2003C options transferred to Metso Capital Oy. In addition, the Board
decided to propose to the 2005 Annual General Meeting that the Meeting
cancels the stock options that were transferred to Metso Capital Oy.

The Board decided on May 26, 2004 that the maximum number of year
2003B stock options that can be distributed to Metso Corporation's key
personnel in spring 2005 would be 2,500,000 options. Stock options can
be distributed to the maximum amount, if the operating profit
percentage for 2004 reaches at least 9 percent, the return on capital
employed (ROCE) reaches at least 20 percent and earnings per share
exceed EUR 1.45. The minimum criteria for a partial distribution of
stock options are an operating profit percentage of at least 4
percent, a return on capital employed of at least 8 percent and
earnings per share of at least EUR 0.40, all these for the year 2004.
An additional criterion for the distribution of stock options is that
the trade-weighted average price of the Metso share on the Helsinki
Exchanges during the period January 1 - March 31, 2005 does not fall
below EUR 10.11.


Decisions of the Annual General Meeting

Metso Corporation's Annual General Meeting held on April 6, 2004
approved the financial statements for 2003 and discharged the members
of the Board of Directors and the President and CEO of Metso
Corporation from liability. The Annual General Meeting approved the
proposals of the Board of Directors relating to authorizations to
decide on the repurchase and disposal of the Corporation's own shares.
The Annual General Meeting also authorized the Board to decide on
increasing the share capital by issuing new shares, convertible bonds
and/or stock options.

The Annual General Meeting decided to establish a Nomination Committee
for the Annual General Meeting to prepare proposals for the following
Annual General Meeting regarding the composition of the Board of
Directors and the remuneration of Board members. The Nomination
Committee consists of the representatives of the four largest
shareholders of Metso Corporation (as registered in the book-entry
system on December 1 preceding the Annual General Meeting) and the
Chairman of the Board of Directors as an expert member.

The Annual General Meeting elected Matti Kavetvuo as Chairman of the
Board and Jaakko Rauramo as Vice Chairman of the Board. Risto
Hautamäki, Satu Huber, Maija-Liisa Friman, Juhani Kuusi and Pentti
Mäkinen were elected as Board members. The firm of
PricewaterhouseCoopers, Authorized Public Accountants, was re-elected
as the Corporation's Auditor.

The Annual General Meeting decided to distribute a dividend of EUR
0.20 per share for the financial year that ended on December 31, 2003.
The dividend was paid on April 20, 2004.


Financial targets

At the end of June, Metso presented the financial targets for 2005. In
2005 Metso aims at an operating profit that is 6 percent of net sales
and a 12 percent return on capital employed (ROCE). The business area
specific operating profit targets for 2005 are: Metso Paper 5 percent,
Metso Minerals 7 percent, Metso Automation 8 percent and Metso
Ventures 6 percent.

In calculating the above operating profit and ROCE targets, Metso's
transfer to IFRS (International Financial Reporting Standards) from
the beginning of 2005 and the consequent end to the practice of
amortizing goodwill has been taken into account.


Short-term outlook

The market for Metso Paper's products is estimated to remain at its
present level. The demand for new paper and board making lines is
expected to continue in China, while the European and North American
demand is expected to focus on modernizations and rebuilds. Metso
Paper's net sales and operating profit before nonrecurring items for
2004 are not estimated to reach the level of the previous year.

The demand for Metso Minerals' products is expected to remain good in
North America and in the mining industry. In Europe, civil engineering
industry demand is expected to remain at its current level. Metso
Minerals' favorable profit performance of the first half of the year
is estimated to continue.

In Metso Automation's markets, economic growth in North America is not
expected to increase the short-term demand for automation. European
markets are expected to recover with a delay. However, the favorable
profitability development of the first half of the year is estimated
to continue in Metso Automation.

Overall, Metso Corporation's operating profit before nonrecurring
items for 2004 is estimated to be slightly better than that of the
previous year. Income before taxes is estimated to be significantly
better than in the previous year.


Helsinki, July 28, 2004

Board of Directors, Metso Corporation



BUSINESS AREA REVIEWS

Metso Paper

EUR million              4-6/04   1-6/04    4-6/03    1-6/03      2003
                                                                      
                                                                      
Net sales                   351      711       402       761     1,651
                                                                      
Operating profit           10.9    (5.5)      11.1      18.9      68.3
(loss) before                                                         
nonrecurring items                                                    
and amortization of                                                   
goodwill                                                              
                                                                      
   % of net sales          3.1%   (0.8%)      2.8%      2.5%      4.1%
                                                                      
Operating profit            9.3    (8.6)       6.1      12.0      24.6
(loss)                                                                
                                                                      
   % of net sales          2.6%   (1.2%)      1.5%      1.6%      1.5%
                                                                      
Orders received             699    1,135       268     1,001     1,710
                                                                      
                                 30.6.04             30.6.03  31.12.03
                                                                      
Order backlog                      1,211                 973       784

Metso Paper's net sales in January-June totaled EUR 711 million, 7
percent lower than in the comparison period. Aftermarket and
maintenance services accounted for 38 percent of net sales (27 percent
in 1-6/03). The increase from the comparison period was affected by
the fact that the scope of aftermarket operations was redefined, and
these operations now include process improvements.

Metso Paper's operating loss before nonrecurring items and
amortization of goodwill was EUR 5.5 million. The operating loss was
EUR 8.6 million. The profitability of the Board Business Line
developed favorably, but the profitability of other business lines was
weaker than in the comparison period a year ago. The weakening of
profitability from the comparison period was due to decreased delivery
volumes, the provision for the Papiers Gasp‚sia paper machine project
and other cost contingencies made in the first quarter for certain
previously delivered projects.

The value of orders received by Metso Paper increased by 13 percent on
the comparison period, and totaled EUR 1,135 million. In the second
quarter Metso Paper received the largest single order in its history,
when Stora Enso ordered a high-quality SC paper line for its
Kvarnsveden mill in Sweden. Metso Paper's order backlog increased by
54 percent from the beginning of the year, totaling EUR 1,211 million
at the end of June.

As part of the efficiency improvement program, Metso Paper's personnel
were reduced by about 250 in January-June. The operations of the
Jyväskylä plate shop will be transferred according to plan, to a new
owner in September. On June 11, 2004, an agreement was made to
outsource selected design operations at Metso Paper's unit at Como,
Italy. The unit manufactures paper and board machines. In addition,
restructuring measures and personnel reductions at Como will continue.
Metso decided not to outsource the Järvenpää component production and
the Turku Works, because the negotiations undertaken did not lead to a
solution that would have been in line with Metso's targets. The
capacities of these units will be adjusted to correspond with the
market situation and the production strategy.

In June 2004, Metso Paper commenced a new program that aims at
reducing annual fixed costs by a total of EUR 50 million. The cost
reduction measures are scheduled mainly for 2004-2005. The measures
will primarily affect Metso Paper's operations in the Nordic countries
and in North America, and, according to preliminary estimates, will
affect approximately 1,100-1,300 persons. One half of the personnel
reductions are estimated to come through downsizing and one half by
outsourcing and comparable actions. Metso Paper plans to improve the
efficiency of its administration and production by combining functions
and focusing on the production and assembly of core components as well
as simultaneously strengthening its presence in new, growing markets.


Metso Minerals

Metso Minerals' figures for both the review period and the comparison
period exclude the divested Dynapac business.
                                                                      
EUR million              4-6/04   1-6/04    4-6/03    1-6/03      2003
                                                                      
Nets sales                  356      654       321       622     1,315
                                                                      
Operating profit           26.4     41.1       8.2      14.2      52.4
before nonrecurring                                                   
items and                                                             
amortization of                                                       
goodwill                                                              
                                                                      
   % of net sales          7.4%     6.3%      2.6%      2.3%      4.0%
                                                                      
Operating profit           21.6     30.9     (4.1)     (5.8)   (185.0)
(loss)                                                                
                                                                      
   % of net sales          6.1%     4.7%    (1.3%)    (0.9%)   (14.1%)
                                                                      
Orders received             395      780       311       657     1,282
                                                                      
                                 30.6.04             30.6.03  31.12.03
                                                                      
Order backlog                        493                 443       363

Metso Minerals' net sales totaled EUR 654 million, 5 percent more than
in the comparison period. Aftermarket and maintenance services
accounted for 54 percent of net sales (51 percent in 1-6/03).

Metso Minerals' operating profit before nonrecurring items and
amortization of goodwill was EUR 41.1 million, representing 6.3
percent of net sales. Profitability improved due to an increase in
aftermarket services, the streamlined cost structure and the
efficiency improvement program measures. The effects of the program
were reflected particularly in improved profitability for the crushing
and screening business line. A factory producing screens in Ketsch,
Germany was shut down in May. In the USA, a factory in Colorado
Springs, Colorado producing process equipment and pumps was shut down
in May, and a factory in Milwaukee, Wisconsin producing crushers was
shut down in June. The operating profit of Metso Minerals was EUR 30.9
million, or 4.7 percent of net sales.

The value of orders received by Metso Minerals increased by 19 percent
on the comparison period, and totaled EUR 780 million. The demand for
crushing and screening equipment was higher in the second quarter than
in the first quarter due to the seasonality of the business and the
improved market situation. Orders for metals recycling equipment also
increased over the previous year. Metso Minerals' order backlog at the
end of June was up by 36 percent from the beginning of the year, and
totaled EUR 493 million.

On June 30, 2004, Metso divested its compaction and paving equipment
manufacturer, Dynapac, part of Metso Minerals, to the Nordic private
equity investor, Altor. In January-June, Dynapac's net sales totaled
EUR 179 million and its personnel numbered approximately 1,800.


Metso Automation

EUR million              4-6/04   1-6/04    4-6/03    1-6/03      2003
                                                                      
Net sales                   135      248       132       258       531
                                                                      
Operating profit           12.9     19.3       6.9       8.6      31.4
before nonrecurring                                                   
items and                                                             
amortization of                                                       
goodwill                                                              
                                                                      
% of net sales             9.6%     7.8%      5.2%      3.3%      5.9%
                                                                      
Operating profit           12.1     17.9       6.0      13.5      28.4
                                                                      
% of net sales             9.0%     7.2%      4.5%      5.2%      5.3%
                                                                      
Orders received             154      294       131       291       531
                                                                      
                                 30.6.04             30.6.03  31.12.03
                                                                      
Order backlog                        193                 182       145

Metso Automation's net sales decreased by 4 percent on the comparison
period and totaled EUR 248 million. Aftermarket and maintenance
services accounted for 24 percent of net sales (25 percent in 1-6/03).

Metso Automation's operating profit before nonrecurring items and
amortization of goodwill was EUR 19.3 million, representing 7.8
percent of net sales. Due to the efficiency improvement measures
implemented, profitability improved substantially from the comparison
period. Operating profit was EUR 17.9 million, or 7.2 percent of net
sales.

The value of orders received approximated that of the comparison
period, and totaled EUR 294 million. During the review period, three
significant orders for pulp and paper industry automation and field
equipment were received from China, Sweden and Brazil. Additionally,
the orders received by the North American unit were up slightly. Metso
Automation's order backlog at the end of June was EUR 193 million,
which is 33 percent more than at the beginning of the year.


Metso Ventures

EUR million              4-6/04   1-6/04    4-6/03    1-6/03      2003
                                                                      
Net sales                   106      197        93       191       370
                                                                      
Operating profit          (0.2)    (1.0)       4.6       4.8     (2.6)
(loss) before                                                         
nonrecurring items                                                    
and amortization of                                                   
goodwill                                                              
                                                                      
   % of net sales        (0.2%)   (0.5%)      4.9%      2.5%    (0.7%)
                                                                      
Operating profit          (0.5)    (1.6)       4.3       5.0     (8.7)
(loss)                                                                
                                                                      
   % of net sales        (0.5%)   (0.8%)      4.6%      2.6%    (2.4%)
                                                                      
Orders received             109      195        77       181       398
                                                                      
                                 30.6.04             30.6.03  31.12.03
                                                                      
Order backlog                        141                 144       175

Metso Ventures' net sales in January-June increased by 3 percent on
the comparison period, and totaled EUR 197 million. Metso Drives'
deliveries to all customer industries increased. Metso Panelboard's
net sales increased, due to strong demand in the Chinese markets and
for maintenance services. The deliveries of the foundries that are
part of Metso Ventures also increased. In contrast, Valmet
Automotive's net sales decreased as expected due to a substantial
reduction in car production volumes. In January-June, 4,595 cars were
produced (14,709 cars in 1-6/03).

Metso Ventures' operating loss before nonrecurring items and
amortization of goodwill was EUR 1.0 million. The profitability of
Metso Drives improved substantially due to new products and higher
production capacity utilization. Metso Panelboard's operating result
weakened slightly from the comparison period, but was positive. Good
capacity utilization increased the foundries' profitability over that
of the comparison period. Automotive's operating result was a loss,
and the operating loss of the whole of Metso Ventures was EUR 1.6
million.

The value of orders received by Metso Ventures increased by 8 percent
on the comparison period, and totaled EUR 195 million. The value of
Metso Drives' orders increased by 30 percent from the comparison
period, while that of Metso Panelboard's increased by 35 percent. The
order backlog of Metso Ventures at the end of June was EUR 141
million, or 19 percent lower than at the end of the year.



It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding
expectations for general economic development and the market
situation, expectations for customer industry profitability and
investment willingness, expectations for company growth, development
and profitability and the realization of synergy benefits and cost
savings, and statements preceded by "expects", "estimates",
"forecasts" or similar expressions, are forward-looking statements.
These statements are based on current decisions and plans and
currently known factors. They involve risks and uncertainties which
may cause the actual results to materially differ from the results
currently expected by the company.

Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange
rates and interest levels which influence the operating environment
and profitability of customers and thereby the orders received by the
company and their margins
(2) the competitive situation, especially significant technological
solutions developed by competitors
(3) the company's own operating conditions, such as the success of
production, product development and project management and their
continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.


                           The Interim Review is unaudited.



CONSOLIDATED STATEMENTS OF INCOME

                               4-6/     4-6/     1-6/    1-6/    1-12/
                               2004     2003     2004    2003     2003
                                                                      
(Millions)                      EUR      EUR      EUR     EUR      EUR
                                                                      
Net sales                     1,025    1,072    1,953   2,055    4,250
                                                                      
Cost of goods sold            (760)    (803)  (1,464) (1,539)  (3,211)
                                                                      
Gross profit                    265      269      489     516    1,039
                                                                      
Selling, general and          (214)    (234)    (437)   (469)    (906)
administrative expenses                                               
                                                                      
Operating profit before          51       35       52      47      133
nonrecurring operating                                                
items and amortization of                                             
goodwill                                                              
                                                                      
  % of net sales               5.0%     3.3%     2.6%    2.3%     3.1%
                                                                      
Nonrecurring operating          (9)      (8)     (12)     (1)    (106)
income and expenses                                                   
                                                                      
Goodwill impairment               -        -        -       -    (205)
                                                                      
Amortization of goodwill        (9)     (13)     (19)    (27)     (51)
                                                                      
Operating profit (loss)          33       14       21      19    (229)
                                                                      
  % of net sales               3.2%     1.3%     1.0%    0.9%   (5.4%)
                                                                      
Financial income and           (18)     (17)     (29)    (35)     (74)
expenses                                                              
                                                                      
Income (loss) before             15      (3)      (8)    (16)    (303)
extraordinary items and                                               
income taxes                                                          
                                                                      
Extraordinary income and          -        -        -       -        -
expenses                                                              
                                                                      
Income (loss) before taxes       15      (3)      (8)    (16)    (303)
                                                                      
Income taxes                    (9)      (1)     (11)     (1)       44
                                                                      
Minority interests                0      (1)        0     (1)        1
                                                                      
Net income (loss)                 6      (5)     (19)    (18)    (258)



CONSOLIDATED BALANCE SHEETS

                                      June 30,    June 30,     Dec 31,
                                          2004        2003        2003
                                                                      
(Millions)                                 EUR         EUR         EUR
                                                                      
Fixed assets and financial assets                                     
                                                                      
Intangible assets                          590         973         760
                                                                      
Tangible assets                            704         862         810
                                                                      
Financial assets                            72          92          94
                                                                      
Current assets                                                        
                                                                      
Inventories                                702         875         743
                                                                      
Receivables                              1,243       1,355       1,286
                                                                      
Cash and cash equivalents                  419         126         130
                                                                      
Total assets                             3,730       4,283       3,823
                                                                      
                                                                      
Share capital                              232         232         232
                                                                      
Other shareholdersï equity                 740       1,048         792
                                                                      
Minority interests                           7           6           6
                                                                      
Long-term liabilities                    1,095       1,165       1,118
                                                                      
Current liabilities                      1,656       1,832       1,675
                                                                      
Total shareholders' equity and           3,730       4,283       3,823
liabilities
                                                                      
Net interest bearing liabilities                                      
                                                                      
Long-term interest bearing                 946       1,001         957
liabilities                                                           
                                                                      
Short-term interest bearing                213         341         312
liabilities                                                           
                                                                      
Cash and cash equivalents                (419)       (126)       (130)
                                                                      
Other interest bearing assets             (47)        (26)        (30)
                                                                      
Total                                      693       1,190       1,109



CONSOLIDATED STATEMENTS OF CASH FLOWS

                                  4-6/    4-6/    1-6/    1-6/   1-12/
                                  2004    2003    2004    2003    2003
                                                                      
(Millions)                         EUR     EUR     EUR     EUR     EUR
                                                                      
Cash flows from operating                                             
activities:
                                                                      
Net income (loss)                    6     (5)    (19)    (18)   (258)
                                                                      
Adjustments to reconcile net                                          
income (loss) to net cash                                             
provided by operating                                                 
activities                                                            
                                                                      
  Depreciation and amortization     39      46      80      93     183
                                                                      
  Provisions / Efficiency          (8)       3     -16       3      60
  improvement program                                                 
                                                                      
  Asset write-downs related          -       -       -       -      25
  to the efficiency improvement
  program
                                                                      
  Goodwill impairment, net of        -       -       -       -     205
  tax effect                                                          
                                                                      
  Other                              6       3       9     (2)    (15)
                                                                      
Change in net working capital       23    (49)      26    (49)    (54)
                                                                      
Net cash provided by (used in)      66     (2)      80      27     146
operating activities                                                  
                                                                      
Cash flows from investing                                             
activities:                                                           
                                                                      
  Capital expenditures on fixed   (21)    (30)    (39)    (66)   (128)
  assets                                                              
                                                                      
  Proceeds from sale of fixed        4       6       9       8      14
  assets                                                              
                                                                      
  Business acquisitions, net of    (1)       -     (2)     (2)     (2)
  cash acquired                                                       
                                                                      
  Proceeds from sale of            294       -     367      30      31
  businesses                                                          
                                                                      
  (Investments in) proceeds         10       0      33       3       5
  from sale of shares and                                             
  marketable securities                                               
                                                                      
  Other                           (19)       -    (19)       -       -
                                                                      
Net cash provided by (used in)     267    (24)     349    (27)    (80)
investing activities                                                  
                                                                      
Cash flows from financing                                             
activities:                                                           
                                                                      
  Dividends paid                  (27)    (82)    (27)    (82)    (82)
                                                                      
  Net funding                     (54)     108   (114)      12    (44)
                                                                      
  Other                              4     (1)     (1)       8       5
                                                                      
Net cash provided by (used in)    (77)      25   (142)    (62)   (121)
financing activities                                                  
                                                                      
Effect of changes in exchange      (1)       0       2     (2)     (5)
rates on cash and cash                                                
equivalents                                                           
                                                                      
Net increase (decrease) in cash    255     (1)     289    (64)    (60)
and cash equivalents                                                  
                                                                      
Cash and cash equivalents at       164     127     130     190     190
beginning of period                                                   
                                                                      
Cash and cash equivalents at       419     126     419     126     130
end of period



CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

             Number Share  Share Legal  Cumul Reser  Other Retai  Total
                 of  capi   prem reser  ative    ve  reser   ned       
             shares   tal    ium    ve  trans   for    ves   ear       
                           reser       lation   own        nings       
                              ve         adju shares                    
                                         stme                          
                                          nts                          
                                                                       
(Millions)    (thou   EUR    EUR   EUR    EUR   EUR    EUR   EUR    EUR
             sands)                                                    
                                                                       
Balance at  136,251   232     14   228   (76)     1    202   423  1,024
Dec 31,                                                                
2003                                                                   
                                                                       
Dividends         -     -      -     -      -     -      -  (27)   (27)
                                                                       
Translation       -     -      -     -    (4)     -      -     -    (4)
differences                                                            
                                                                       
Changes in        -     -      -     -      9     -      -   (9)      0
corporate                                                              
structure                                                              
                                                                       
Other             -     -      -     -      -     -      -   (2)    (2)
                                                                       
Net income        -     -      -     -      -     -      -  (19)   (19)
(loss)                                                                 
                                                                       
Balance at  136,251   232     14   228   (71)     1    202   366    972
June 30,
2004

The distributable funds of Metso Corporation at June 30, 2004 consist
of retained earnings (EUR 366 million) excluding accelerated
depreciation and untaxed reserves (EUR 39 million) and negative
translation differences (EUR 71 million), and other reserves (EUR 202
million), totaling EUR 458 million.
At the end of the period Metso Corporation possessed 60 841 of its own
shares.



ASSETS PLEDGED AND CONTINGENT LIABILITIES

                                       June 30, 2004      Dec 31, 2003
                                                                      
(Millions)                                       EUR               EUR
                                                                      
Mortgages on corporate debt                        4                 1
                                                                      
Other pledges and contingencies                                       

  Mortgages                                        2                 2
                                                                      
  Pledged assets                                   4                 4
                                                                      
Guarantees on behalf of associated                 -                 0
company obligations                                                   
                                                                      
Other guarantees                                  22                 7
                                                                      
Repurchase and other commitments                  33                48
                                                                      
Lease commitments                                188               183

Other guarantees include EUR 18 million guarantees given on behalf of
sold businesses. The respective buyers have indemnified Metso and have
committed themselves to release Metso from its guarantee obligations
within agreed time periods.



NOTIONAL AMOUNTS, CARRYING AMOUNTS AND FAIR VALUES OF DERIVATIVE
FINANCIAL INSTRUMENTS

                    Notional amount  Carrying amount     Fair value
                                                              
                    Jun 30, Dec 31,  Jun 30,  Dec 31, Jun 30,  Dec 31,
                       2004    2003     2004     2003    2004     2003
                                                                      
(Millions)              EUR     EUR      EUR      EUR     EUR      EUR
                                                                      
Forward exchange      1,920   1,567        7       20      14       36
rate contracts                                                        
                                                                      
Interest rate and         3       3        0        0       0        0
currency swaps                                                        
                                                                      
Currency swaps           81      81      (4)      (1)     (4)      (2)
                                                                      
Interest rate           135      60        0      (1)       2        0
swaps                                                                 
                                                                      
Interest rate            15      15        0        0       0        0
futures contracts                                                     
                                                                      
Option agreements                                                     
                                                                      
  Bought                 30      13        0        0       0        0
                                                                      
  Sold                   56      34        0      (1)       0      (1)
                                                                      
Electricity             336     344        0        0       2      (1)
forward contracts
1)

1) Notional amount GWh

Carrying amounts noted in the table above are included in the balance
sheet. The notional amounts indicate the volumes in the use of
derivatives, but do not indicate the exposure to risk. The fair value
reflects the estimated amounts that Metso would receive or pay to
terminate the contracts at the reporting date, thereby taking into
account the current unrealized gains or losses of open contracts.



KEY RATIOS
                                       June 30,    June 30,    Dec 31,
                                           2004        2003       2003
                                                                      
Earnings/share, EUR                      (0.14)      (0.13)     (1.89)
                                                                      
Equity/share, EUR                          7.14        9.40       7.51
                                                                      
Return on equity (ROE), %                 (3.6)       (2.6)     (21.3)
                                                                      
Return on capital employed (ROCE), %        2.6         1.9      (8.7)
                                                                      
Equity to assets ratio, %                  28.5        32.4       28.3
                                                                      
Gearing, %                                 70.9        92.5      107.7
                                                                      
Average number of shares (thousands)    136,190     136,190    136,190



EXCHANGE RATES USED

                       1-6/    1-6/    1-12/  Jun 30, Jun 30,  Dec 31,
                       2004    2003     2003     2004    2003     2003
                                                                      
USD (US dollar)      1.2275  1.1049   1.1309   1.2155  1.1427   1.2630
                                                                      
SEK (Swedish         9.1640  9.1623   9.1244   9.1451  9.2488   9.0800
krona)                                                                
                                                                      
GBP (Pound           0.6736  0.6856   0.6919   0.6708  0.6932   0.7048
sterling)                                                             
                                                                      
CAD (Canadian        1.6430  1.6045   1.5821   1.6343  1.5506   1.6234
dollar)



BY BUSINESS AREA INFORMATION


NET SALES BY BUSINESS AREA

                           4-6/   4-6/    1-6/    1-6/ 7/2003-   1-12/
                           2004   2003    2004    2003  6/2004    2003
                                                                      
(Millions)                  EUR    EUR     EUR     EUR     EUR     EUR
                                                                      
Metso Paper                 351    402     711     761   1,601   1,651
                                                                      
Metso Minerals              356    321     654     622   1,347   1,315
                                                                      
Metso Automation            135    132     248     258     521     531
                                                                      
Metso Ventures              106     93     197     191     376     370
                                                                      
Intra Metso net sales      (25)   (32)    (49)    (57)   (114)   (122)
                                                                      
Continuing operations       923    916   1,761   1,775   3,731   3,745
                                                                      
Discontinued operations     102    156     192     280     417     505
                                                                      
Metso total               1,025  1,072   1,953   2,055   4,148   4,250



OPERATING PROFIT (LOSS) BEFORE NONRECURRING ITEMS AND AMORTIZATION OF
GOODWILL BY BUSINESS AREA

                           4-6/   4-6/    1-6/    1-6/ 7/2003-   1-12/
                           2004   2003    2004    2003  6/2004    2003
                                                                      
(Millions)                  EUR    EUR     EUR     EUR     EUR     EUR
                                                                      
Metso Paper                10.9   11.1   (5.5)    18.9    43.9    68.3
                                                                      
Metso Minerals             26.4    8.2    41.1    14.2    79.3    52.4
                                                                      
Metso Automation           12.9    6.9    19.3     8.6    42.1    31.4
                                                                      
Metso Ventures            (0.2)    4.6   (1.0)     4.8   (8.4)   (2.6)
                                                                      
Corporate office and      (5.8) (10.4)  (13.0)  (18.9)  (29.8)  (35.7)
other                                                                 
                                                                      
Continuing operations      44.2   20.4    40.9    27.6   127.1   113.8
                                                                      
Discontinued operations     6.9   14.6    10.7    19.1    11.0    19.4
                                                                      
Metso total                51.1   35.0    51.6    46.7   138.1   133.2



NONRECURRING OPERATING ITEMS BY BUSINESS AREA

                           4-6/   4-6/    1-6/    1-6/ 7/2003-   1-12/
                           2004   2003    2004    2003  6/2004    2003
                                                                      
(Millions)                  EUR    EUR     EUR     EUR     EUR     EUR
                                                                      
Metso Paper                   -  (3.2)       -   (3.2)  (32.8)  (36.0)
                                                                      
Metso Minerals              0.6  (4.5)     0.6   (4.5)  (60.7)  (65.8)
                                                                      
Metso Automation              -  (0.2)       -     6.3   (6.6)   (0.3)
                                                                      
Metso Ventures                -      -       -     0.8   (5.5)   (4.7)
                                                                      
Corporate office and      (1.8)      -     2.1       -     3.7     1.6
other                                                                 
                                                                      
Continuing operations     (1.2)  (7.9)     2.7   (0.6) (101.9) (105.2)
                                                                      
Discontinued operations   (7.6)      -  (14.6)       -  (14.9)   (0.3)
                                                                      
Metso total               (8.8)  (7.9)  (11.9)   (0.6) (116.8) (105.5)
                                                                      



AMORTIZATION OF GOODWILL BY BUSINESS AREA

                           4-6/   4-6/    1-6/    1-6/ 7/2003-   1-12/
                           2004   2003    2004    2003  6/2004    2003
                                                                      
(Millions)                  EUR    EUR     EUR     EUR     EUR     EUR
                                                                      
Metso Paper               (1.6)  (1.8)   (3.1)   (3.7)   (7.1)   (7.7)
                                                                      
Metso Minerals            (5.4)  (7.8)  (10.8)  (15.5)  (24.3)  (29.0)
                                                                      
Metso Automation          (0.8)  (0.7)   (1.4)   (1.4)   (2.7)   (2.7)
                                                                      
Metso Ventures            (0.3)  (0.3)   (0.6)   (0.6)   (1.4)   (1.4)
                                                                      
Continuing operations     (8.1) (10.6)  (15.9)  (21.2)  (35.5)  (40.8)
                                                                      
Discontinued operations   (1.6)  (3.0)   (3.3)   (6.1)   (7.8)  (10.6)
                                                                      
Metso total               (9.7) (13.6)  (19.2)  (27.3)  (43.3)  (51.4)



OPERATING PROFIT (LOSS) BY BUSINESS AREA

                           4-6/   4-6/    1-6/    1-6/ 7/2003-   1-12/
                           2004   2003    2004    2003  6/2004    2003
                                                                      
(Millions)                  EUR    EUR     EUR     EUR     EUR     EUR
                                                                      
Metso Paper                 9.3    6.1   (8.6)    12.0     4.0    24.6
                                                                      
Metso Minerals             21.6  (4.1)    30.9   (5.8) (148.3) (185.0)
                                                                      
Metso Automation           12.1    6.0    17.9    13.5    32.8    28.4
                                                                      
Metso Ventures            (0.5)    4.3   (1.6)     5.0  (15.3)   (8.7)
                                                                      
Corporate office and      (7.6) (10.4)  (10.9)  (18.9)  (26.1)  (34.1)
other                                                                 
                                                                      
Continuing operations      34.9    1.9    27.7     5.8 (152.9) (174.8)
                                                                      
Discontinued operations   (2.3)   11.6   (7.2)    13.0  (74.1)  (53.9)
                                                                      
Metso total                32.6   13.5    20.5    18.8 (227.0) (228.7)

The operating loss of Metso Minerals and discontinued operations include
a goodwill impairment of EUR 205 million, which was booked in September
2003.



ORDERS RECEIVED BY BUSINESS AREA
                                                                        
                           4-6/   4-6/    1-6/    1-6/ 7/2003-   1-12/
                           2004   2003    2004    2003  6/2004    2003
                                                                      
(Millions)                  EUR    EUR     EUR     EUR     EUR     EUR
                                                                      
Metso Paper                 699    268   1,135   1,001   1,844   1,710
                                                                      
Metso Minerals              395    311     780     657   1,405   1,282
                                                                      
Metso Automation            154    131     294     291     534     531
                                                                      
Metso Ventures              109     77     195     181     412     398
                                                                      
Intra Metso orders         (33)   (30)    (58)    (66)   (113)   (121)
received                                                              
                                                                      
Continuing operations     1,324    757   2,346   2,064   4,082   3,800
                                                                      
Discontinued operations      88    127     193     245     404     456
                                                                      
Metso total               1,412    884   2,539   2,309   4,486   4,256



PERSONNEL BY BUSINESS AREA

                             June 30, 2004 June 30, 2003  Dec 31, 2003
                                                                      
Metso Paper                          9,340         9,776         9,085
                                                                      
Metso Minerals                       8,525         8,816         8,529
                                                                      
Metso Automation                     3,365         3,689         3,314
                                                                      
Metso Ventures                       2,575         2,618         2,482
                                                                      
Corporate office and other             266           166           223
                                                                      
Continuing operations               24,071        25,065        23,633
                                                                      
Discontinued operations                  -         2,661         2,607
                                                                      
Metso total                         24,071        27,726        26,240



QUARTERLY INFORMATION


NET SALES BY BUSINESS AREA

                           4-6/     7-9/    10-12/      1-3/      4-6/
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper                 402      363       527       360       351
                                                                      
Metso Minerals              321      337       356       298       356
                                                                      
Metso Automation            132      120       153       113       135
                                                                      
Metso Ventures               93       76       103        91       106
                                                                      
Intra Metso net sales      (32)     (22)      (43)      (24)      (25)
                                                                      
Continuing operations       916      874     1,096       838       923
                                                                      
Discontinued                156      117       108        90       102
operations                                                            
                                                                      
Metso total               1,072      991     1,204       928     1,025



OPERATING PROFIT (LOSS) BEFORE NONRECURRING ITEMS AND AMORTIZATION OF
GOODWILL BY BUSINESS AREA

                           4-6/     7-9/    10-12/      1-3/      4-6/
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper                11.1     15.3      34.1    (16.4)      10.9
                                                                      
Metso Minerals              8.2     16.8      21.4      14.7      26.4
                                                                      
Metso Automation            6.9      8.1      14.7       6.4      12.9
                                                                      
Metso Ventures              4.6    (1.7)     (5.7)     (0.8)     (0.2)
                                                                      
Corporate office and     (10.4)    (6.2)    (10.6)     (7.2)     (5.8)
other                                                                 
                                                                      
Continuing operations      20.4     32.3      53.9     (3.3)      44.2
                                                                      
Discontinued               14.6      1.7     (1.4)       3.8       6.9
operations                                                            
                                                                      
Metso total                35.0     34.0      52.5       0.5      51.1



NONRECURRING OPERATING ITEMS BY BUSINESS AREA

                           4-6/     7-9/    10-12/      1-3/      4-6/
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper               (3.2)   (33.4)       0.6         -         -
                                                                      
Metso Minerals            (4.5)   (62.5)       1.2         -       0.6
                                                                      
Metso Automation          (0.2)    (6.9)       0.3         -         -
                                                                      
Metso Ventures                -    (4.0)     (1.5)         -         -
                                                                      
Corporate office and          -    (1.2)       2.8       3.9     (1.8)
other                                                                 
                                                                      
Continuing operations     (7.9)  (108.0)       3.4       3.9     (1.2)
                                                                      
Discontinued                  -        -     (0.3)     (7.0)     (7.6)
operations                                                            
                                                                      
Metso total               (7.9)  (108.0)       3.1     (3.1)     (8.8)



AMORTIZATION OF GOODWILL BY BUSINESS AREA

                           4-6/     7-9/    10-12/      1-3/      4-6/
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper               (1.8)    (1.9)     (2.1)     (1.5)     (1.6)
                                                                      
Metso Minerals            (7.8)    (7.6)     (5.9)     (5.4)     (5.4)
                                                                      
Metso Automation          (0.7)    (0.7)     (0.6)     (0.6)     (0.8)
                                                                      
Metso Ventures            (0.3)    (0.3)     (0.5)     (0.3)     (0.3)
                                                                      
Continuing operations    (10.6)   (10.5)     (9.1)     (7.8)     (8.1)
                                                                      
Discontinued              (3.0)    (3.0)     (1.5)     (1.7)     (1.6)
operations                                                            
                                                                      
Metso total              (13.6)   (13.5)    (10.6)     (9.5)     (9.7)



OPERATING PROFIT (LOSS) BY BUSINESS AREA

                           4-6/     7-9/    10-12/      1-3/      4-6/
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper                 6.1   (20.0)      32.6    (17.9)       9.3
                                                                      
Metso Minerals            (4.1)  (195.9)      16.7       9.3      21.6
                                                                      
Metso Automation            6.0      0.5      14.4       5.8      12.1
                                                                      
Metso Ventures              4.3    (6.0)     (7.7)     (1.1)     (0.5)
                                                                      
Corporate office and     (10.4)    (7.4)     (7.8)     (3.3)     (7.6)
other                                                                 
                                                                      
Continuing operations       1.9  (228.8)      48.2     (7.2)      34.9
                                                                      
Discontinued               11.6   (63.7)     (3.2)     (4.9)     (2.3)
operations                                                            
                                                                      
Metso total                13.5  (292.5)      45.0    (12.1)      32.6

The operating loss of Metso Minerals and discontinued operations
include a goodwill impairment of EUR 205 million, which was booked in
September 2003



CAPITAL EMPLOYED BY BUSINESS AREA

                       June 30,  Sep 30,   Dec 31,   Mar 31,  June 30,
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper                 560      537       538       519       460
                                                                      
Metso Minerals              978      777       766       747       722
                                                                      
Metso Automation            173      168       150       152       152
                                                                      
Metso Ventures              169      173       160       150       159
                                                                      
Corporate office and        320      309       340       361       627
other                                                                 
                                                                      
Continuing operations     2,200    1,964     1,954     1,929     2,120
                                                                      
Discontinued                429      356       345       294       (7)
operations                                                            
                                                                      
Metso total               2,629    2,320     2,299     2,223     2,113



ORDERS RECEIVED BY BUSINESS AREA

                           4-6/     7-9/    10-12/      1-3/      4-6/
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper                 268      421       288       436       699
                                                                      
Metso Minerals              311      283       342       385       395
                                                                      
Metso Automation            131      121       119       140       154
                                                                      
Metso Ventures               77       75       142        86       109
                                                                      
Intra Metso orders         (30)     (22)      (33)      (25)      (33)
received                                                              
                                                                      
Continuing operations       757      878       858     1,022     1,324
                                                                      
Discontinued                127      109       102       105        88
operations                                                            
                                                                      
Metso total                 884      987       960     1,127     1,412



ORDER BACKLOG BY BUSINESS AREA

                       June 30,  Sep 30,   Dec 31,   Mar 31,  June 30,
                           2003     2003      2003      2004      2004
                                                                      
(Millions)                  EUR      EUR       EUR       EUR       EUR
                                                                      
Metso Paper                 973    1,031       784       864     1,211
                                                                      
Metso Minerals              443      389       363       461       493
                                                                      
Metso Automation            182      181       145       175       193
                                                                      
Metso Ventures              144      146       175       170       141
                                                                      
Intra Metso order          (69)     (70)      (55)      (58)      (64)
backlog                                                               
                                                                      
Continuing operations     1,673    1,677     1,412     1,612     1,974
                                                                      
Discontinued                110      100        93        54         -
operations                                                            
                                                                      
Metso total               1,783    1,777     1,505     1,666     1,974




Metso Corporation



Olli Vaartimo                       Helena Aatinen
Executive Vice President and CFO    Senior Vice President
                                    Corporate Communications

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About Us

Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability. Metso employs over 14,000 people in more than 50 countries.

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