METSO CORPORATION?S INTERIM REVIEW, JANUARY-SEPTEMBER 2005

Metso Corporation   Stock Exchange Release October 26, 2005 at
12.00 p.m.

A news conference in Finnish will be held at 1.00 p.m. and in
English at 3 p.m. (GMT + 3 hours) today, Wednesday, October 26,
2005 in Metso’s Corporate Office, Fabianinkatu 9 A, Helsinki. The
English news conference can be followed live on the Internet at
www.metso.com.


METSO CORPORATION’S INTERIM REVIEW, JANUARY-SEPTEMBER 2005

GOOD PROGRESS IN PROFITABILITY AND NET SALES

- Metso Corporation’s operating profit for the third quarter in
  2005 was EUR 95.5 million, or 9.1% of net sales.
- The net sales in January-September increased by 16 percent
  on the corresponding period last year and totaled EUR 2,967
  million (1-9/2004: EUR 2,559 million). The operating profit
  was EUR 233.5 million, or 7.9 percent of net sales
  (EUR 91.8 million and 3.6%).
- Earnings per share were EUR 1.22 (EUR 0.53).
- The order backlog from continuing operations increased by 21
  percent from the year end, and was EUR 2,059 million at the end
  of September (Dec. 31, 2004: EUR 1,705 million). New orders
  worth EUR 3,208 million were received (EUR 3,062 million in
  1-9/04).
- Net cash generated by operating activities was EUR 145 million.
- Return on capital employed (ROCE) was 18.3 percent (6.6%) and
  return on equity (ROE) 21.4 percent (11.0%).
- Gearing was 25.3 percent at the end of September
  (Dec. 31, 2004: 49.7%).

This interim review is prepared in accordance with the recognition
and measurement principles of the IFRS. Metso adopted IFRS at the
beginning of 2005.

“Metso Automation’s and Metso Minerals’ profitability improvement
has previously resulted mainly from internal programs, such as
streamlined cost structure and business concept renewals. Now the
net sales growth, as well, contributes to their profitability. I
am also pleased with the profitability improvement in Metso Paper,
which is now starting to see the benefits of the efficiency
programs undertaken in the past two years,” says Jorma Eloranta,
President and CEO of Metso Corporation. “All and all, the third
quarter was the best ever in Metso’s history. We also estimate
that 2005 will be the best year so far for Metso - but there is
still a lot of development potential in all our businesses.”

Eloranta notes that the current performance level forms a good
basis for the implementation of the new strategy, which targets
profitable growth. “We have significantly enhanced our operational
efficiency. For example, our productivity has improved
substantially. At the same time, we have developed our supply
chain to make the most of the strong demand in the rock and
minerals processing sector as well as in the gas and energy
industries,“ Eloranta continues. In 2006-2008 Metso will seek
annual increase in net sales of some 10 percent through organic
growth and complementary acquisitions.

The growth prospects are supported by good demand for Metso’s
products and services. “In August, when we introduced our new
strategy and the financial targets for 2006, we estimated that the
favorable market situation will continue also next year. Our view
of the market development remains positive and we look confidently
into 2006,” Eloranta says.

Short-term outlook

No material changes are expected in the market situation for Metso
during the last quarter of 2005.

In Metso Paper’s markets, the demand for rebuilds and aftermarket
services is expected to continue to be good. In the markets for
new machinery, there are several tissue machine investments and a
few paper machine and pulping line projects under consideration,
but hardly any board machine investments.

The demand for Metso Minerals’ equipment related to aggregates
production is expected to remain good, especially due to
comprehensive road network development projects and other
infrastructure investments. The demand in the mining industry is
estimated to remain strong, though the shortage of experienced
management and other resources continues to somewhat hold back the
implementation of new investment projects.

Metso Automation’s market situation is expected to be good in the
energy, oil and gas industry and satisfactory in the pulp and
paper industry.

Metso Minerals and Metso Automation are expected to clearly
surpass the operating profit targets set for 2005. Metso Paper’s
result will be burdened by the weak profitability of the Tissue
business and restructuring costs, but the positive performance in
the third quarter gives an improved basis for attaining the
operating margin target set for 2005. It is estimated that Metso
Ventures’ operating margin will be lower than its target because
of structural changes and the weak profitability of Metso
Panelboard.

The financial targets set for Metso Corporation in 2005 are an
operating margin of 6 percent and ROCE of 12 percent. It is
estimated that these financial targets will be clearly exceeded.
Metso's management expects that the Corporation's net sales for
2005 will increase to approximately EUR 4.1 billion and that the
operating profit margin will exceed 7 percent. The improved
competitiveness of all of Metso’s business areas combined with a
mostly positive market outlook support a continuation of favorable
development.

Metso is a global technology corporation serving customers in the
pulp and paper industry, rock and minerals processing, the energy
industry and selected other industries. In 2004, the net sales of
Metso Corporation were approx. EUR 4 billion, and it has some
22,000 employees in more than 50 countries. Metso's shares are
listed on the Helsinki and New York Stock Exchanges.


For further 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
Johanna Sintonen, Vice President, Investor Relations, Metso
Corporation, tel. +358 204 84 3253

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 Corporation's key figures

EUR million                 7-9/05   1-9/05   7-9/04    1-9/04       2004
Net sales                    1,045    2,967      887     2,559      3,602
Operating profit              95.5    233.5     54.4      91.8      199.5
   % of net sales              9.1      7.9      6.1       3.6        5.5
Earnings per share from                                                  
continuing operations,        0.47     1.10     0.60      0.66       1.16
basic, EUR
Earnings per share from                                                  
continuing and                0.47     1.22     0.56      0.53       1.05
discontinued operations,
basic, EUR
Orders received                916    3,208      823     3,062      3,989
                                                                         
                                    30.9.05            30.9.04   31.12.04
Order backlog from                                                       
continuing operations                 2,059              1,852      1,705
Return on capital                                                        
employed (ROCE), %                     18.3                6.6       10.7
annualized
Equity to assets ratio, %              36.3               28.0       30.9
Gearing, %                             25.3               66.1       49.7

Metso adopted the International Financial Reporting Standards
(IFRS) at the beginning of 2005. The transition to IFRS has been
described in the Notes to the Interim Review.

Metso's operating environment

In the pulp and paper industry markets, the price of chemical pulp
was declining in the third quarter. The price development of
printing papers was steady in Europe, while in North America paper
prices were mostly on the rise. The prices of board grades fell in
both Europe and North America.

Demand for metals was good, and the prices of most base metals
increased on global markets. Scrap iron price also rose.
Investments in the mining industry continued at a good level,
although growth was still limited by a shortage of experienced
personnel and other resources. In the construction and civil
engineering industry, the demand for aggregates was generally good
in all markets.

The price of crude oil also continued to rise in the third
quarter, and oil refineries were operating at full capacity.

Demand for Metso's products

Demand for Metso Paper’s rebuilds and aftermarket services
continued to be good, and demand for new machines remained
satisfactory. In Europe, investments in paper machine rebuilds
continued at a good level. The market situation for paper
machinery was satisfactory in Asia and North America. The demand
for new pulping lines and rebuild projects was good especially in
South America.

Demand for Metso Minerals' equipment related to aggregates
production continued to be good in Europe and Asia, and was
excellent in North America. The positive trend of the mining
industry investments continued particularly in Brazil, China and
Australia, and demand for equipment remained excellent. Strong
demand continued for metals recycling equipment as customers
invested to increase their production.

In the energy, oil and gas industry, there was excellent demand
for Metso Automation’s field systems and good demand for
automation systems. In the pulp and paper industry, there was good
demand for field systems and satisfactory demand for automation
systems.

Orders received and order backlog

In January-September 2005, the value of orders received by Metso
Corporation totaled EUR 3,208 million, an increase of 5 percent
from January-September 2004. The Corporation’s order backlog of
continuing operations increased by 21 percent from the end of 2004
and was EUR 2,059 million at the end of September. The order
backlog of continuing operations increased by 11 percent compared
with the order backlog on September 30, 2004.

The largest orders received by Metso Paper in the third quarter
included a tissue machine in the USA, a paper machine
modernization in Finland and a pulp bleaching system in Spain.
Orders received by all the business lines of Metso Minerals
clearly increased on the comparison period. The largest individual
order for metals recycling systems was received from Japan, where
Metso Minerals will deliver a complete metals crushing plant. The
largest orders received by Metso Automation were for paper machine
automation systems in Brazil and control valves for a gas
liquification plant in Japan.

Metso Paper accounted for 38 percent, Metso Minerals 42 percent,
Metso Automation 13 percent and Metso Ventures 7 percent of orders
received.

The orders received from Indonesia, Brazil, Russia and Germany
increased the most compared with January-September 2004. 42
percent (47% in 1-9/04) of orders originated from Europe, 21 (21)
percent from North America, 22 (18) percent from Asia-Pacific, 11
(9) percent from South America and 4 (5) percent from the rest of
the world.


Net sales

Metso’s net sales in January-September increased and totaled EUR
2,967 million, up by 16 percent on the comparison period. Net
sales growth was the strongest in Metso Minerals, where net sales
rose by 26 percent compared with January-September 2004, due to
the good market situation. Aftermarket operations accounted for 38
percent (42% in 1-9/04) of the Corporation’s net sales (excluding
Metso Ventures). The decrease in the relative proportion of
aftermarket business was due to strong growth in project and
equipment sales.

Of the net sales, 39 percent came from the deliveries of Metso
Paper, 40 percent from Metso Minerals, 14 percent from Metso
Automation and 7 percent from Metso Ventures.

Compared with January-September 2004, the relative share of net
sales increased the most in Sweden due to the Kvarnsveden paper
machine delivery and in Brazil and Chile due to several pulp and
mining industry deliveries. 45 percent (41% in 1-9/04) of net
sales came from Europe, 21 (22) percent from North America, 17
(24) percent from Asia-Pacific, 12 (7) percent from South America
and 5 (6) percent from the rest of the world.

Result

The Corporation’s operating profit improved significantly on the
comparison period and was EUR 233.5 million, or 7.9 percent of net
sales (EUR 91.8 million, or 3.6% of net sales in 1-9/04). The
improvement in the profitability of all of Metso’s business
operations continued. Metso Paper’s profitability improved due to
the implemented efficiency improvement measures and good capacity
utilization. Metso Minerals’ increased volumes, good capacity
utilization rates and a streamlined cost structure improved
profitability. Metso Automation’s profitability improved due to
higher delivery volumes, a more efficient supply chain and an
increase in productivity. The improvement in Metso Ventures’
operating profit was due primarily to Valmet Automotive’s higher
delivery volumes.

Metso’s net financial expenses were EUR 33 million including
nonrecurring expenses of EUR 5 million recorded in the second
quarter due to early repayment of loans (EUR 40 million in 1-
9/04).

Metso’s profit from continuing operations before taxes was EUR 200
million. The Corporation’s tax rate is estimated to be around 24
percent in 2005. The result of Metso's U.S. operations has turned
clearly positive this year and consequently Metso will be able to
utilize tax loss-carry forwards from prior years, for which Metso
has not recognized any deferred tax assets. This reduces the
Corporation’s tax rate (see Notes).

The distributable profit, i.e. the net income for the review
period, was EUR 169 million. Earnings per share from continuing
operations was EUR 1.10, while earnings per share from continuing
and discontinued operations was EUR 1.22.

Metso Corporation’s return on capital employed (ROCE) in January-
September was 18.3 percent (6.6% in 1-9/04), and return on equity
(ROE) was 21.4 percent (11.0% in 1-9/04).

BUSINESSES

Metso Paper
EUR million             7-9/05    1-9/05   7-9/04    1-9/04      2004
Net sales                  396     1,192      378     1,089     1,559
Operating profit          25.7      63.2     20.1      14.7      48.0
   % of net sales          6.5       5.3      5.3       1.3       3.1
Orders received            322     1,240      291     1,426     1,726
                                                                     
                                 30.9.05            30.9.04  31.12.04
Order backlog                      1,012              1,124       946

Metso Paper’s net sales in January-September were EUR 1,192
million, up by 9 percent on the comparison period. The growth was
due to an increase in paper machinery deliveries, of which the
most significant is the ongoing delivery of a newsprint line to
Stora Enso’s Kvarnsveden mill in Sweden. Aftermarket and
maintenance services accounted for 34 percent of the net sales
(37% in 1-9/04). The relative proportion of the aftermarket
business decreased due to a clear increase in project and
equipment sales. Measured in euros, the volume of aftermarket
operations was at the level of the previous year.

Metso Paper’s operating profit improved significantly on the
comparison period and was EUR 63.2 million, or 5.3 percent of net
sales. The operating profit includes business restructuring
expenses net of EUR 3 million. Higher delivery volumes, the
efficiency improvement measures and an improved capacity
utilization rate clearly raised profitability. The comparison
period’s operating profit was burdened by certain nonrecurring
costs. The positive profit development of the Paper and Fiber
business lines continued. The Tissue business line’s loss
decreased during the third quarter compared with the two preceding
quarters of 2005.

The remaining decisions concerning the program aimed at renewing
Metso Paper’s business concept and streamlining its cost structure
(MP50) will be made by the end of 2005. In the third quarter,
negotiations were completed to reduce the number of personnel by
40 in the Karlstad unit in Sweden, which is part of the Tissue
business line. The MP50 program’s total costs are estimated to
remain under EUR 35 million, of which approximately EUR 30 million
had been recognized by the end of September. The program is
expected to generate annual savings of over EUR 43 million.

During the review period, Metso Paper established a sales company
in Gurgaon, near New Delhi, in India in order to strengthen its
presence in the emerging Indian pulp and paper industry markets.

In September, Metso Paper decided on a new organization structure,
which will come into effect on January 1, 2006. The new business
lines are: Fiber, Paper and Board, Finishing, Tissue, and Service.
The purpose of the change is to strengthen customer service and
clarify decision-making.

The value of orders received by Metso Paper was 13 percent lower
than in the comparison period and totaled EUR 1,240 million. The
orders received in the comparison period included a large order of
an SC magazine paper line for Stora Enso’s Kvarnsveden mill in
Sweden. At the end of September the order backlog was EUR 1,012
million, which was 7 percent higher than at the end of 2004. In
February 2005, Metso signed a letter of intent with Modern Karton
Sanayi Ticaret AS for the delivery of a board production line in
Turkey. The signing of the final sales contract has been delayed.


Metso Minerals
EUR million              7-9/05     1-9/05   7-9/04    1-9/04       2004
Net sales                   454      1,218      340       968      1,366
Operating profit           53.6      125.0     27.4      66.5      105.2
   % of net sales          11.8       10.3      8.1       6.9        7.7
Orders received             405      1,368      373     1,115      1,566
                                                                        
                                   30.9.05            30.9.04   31.12.04
Order backlog                          801                525        560

Texas Shredder, Inc., a supplier of metal shredder products,
acquired on August 30, 2005, is included in Metso Minerals'
figures from the beginning of September.

The net sales of Metso Minerals increased on the comparison period
by 26 percent and totaled EUR 1,218 million. Due to good demand,
delivery volumes increased in all business lines. Metso Minerals’
aftermarket and maintenance services accounted for 47 percent of
net sales (55% in 1-9/04). As project and equipment deliveries
increased significantly, the relative proportion of the
aftermarket business was lower than in the comparison period.
However, measured in euros, the volume of aftermarket business
increased.

The operating profit of Metso Minerals rose to EUR 125.0 million,
which was 10.3 percent of net sales. Profitability improved
significantly in all business lines due to higher volumes, the
good capacity utilization rate and a streamlined cost structure.

The value of orders received by Metso Minerals increased by 23
percent and totaled EUR 1,368 million. Orders for minerals
processing and metals recycling equipment rose by around one-third
on the comparison period. The intake of orders for mobile crushers
also clearly increased. Metso Minerals’ order backlog strengthened
by 43 percent from the end of 2004 and was EUR 801 million at the
end of September.

Metso Automation
EUR million              7-9/05     1-9/05    7-9/04   1-9/04       2004
Net sales                   148        421       140      388        535
Operating profit           25.8       57.3      19.6     38.4       69.6
   % of net sales          17.4       13.6      14.0      9.9       13.0
Orders received             140        430       146      440        570
                                                                        
                                   30.9.05            30.9.04   31.12.04
Order backlog                          191                198        176

Metso Automation’s net sales rose by 9 percent on the comparison
period and totaled EUR 421 million. In particular, equipment
deliveries to the energy, oil and gas industry increased from the
comparison period. Aftermarket and maintenance services accounted
for 21 percent of net sales (24% in 1-9/04). The decrease in the
relative proportion of aftermarket business was due to an increase
in equipment and project deliveries.

Metso Automation’s profitability remained good and the operating
profit rose to EUR 57.3 million, or 13.6 percent of net sales.
Profitability was improved in particular by field system delivery
volumes, which were higher than in the comparison period,
increased productivity and a more efficient supply chain.

The value of orders received by Metso Automation remained at the
level of the comparison period. Compared with the end of 2004,
Metso Automation’s order backlog strengthened by 9 percent and was
EUR 191 million at the end of September.


Metso Ventures
EUR million              7-9/05     1-9/05    7-9/04   1-9/04       2004
Net sales                    63        196        52      172        230
Operating profit          (0.5)        6.1     (8.8)   (16.6)      (6.2)
(loss)
   % of net sales         (0.8)        3.1    (16.9)    (9.7)      (2.7)
Orders received              66        224        33      144        213
Number of cars            4,160     13,926     1,496   6, 091     10,051
produced
                                                                        
                                   30.9.05            30.9.04   31.12.04
Order backlog                           92                 55         66

The net sales of Metso Ventures were up by 14 percent on the
comparison period and totaled EUR 196 million in January-
September. Net sales rose primarily due to the significant
increase in Valmet Automotive’s production and the higher
deliveries of the Foundries. Metso Panelboard’s net sales fell.

Metso Ventures’ profitability improved and the operating profit
was EUR 6.1 million, or 3.1 percent of net sales. Valmet
Automotive’s profitability improved, and the operating profit was
slightly positive. The result of the Foundries remained good.
Metso Panelboard recorded an operating loss, due to cost overruns
in certain projects.

The value of orders received by Metso Ventures improved by 56
percent on the comparison period and rose to EUR 224 million.
Orders increased in all business groups. Metso Ventures’ order
backlog improved by 39 percent from the end of 2004 and totaled
EUR 92 million at the end of September.

Cash flow and financing

In January-September, Metso Corporation’s net cash generated by
operating activities was EUR 145 million. Increase in net working
capital was EUR 94 million. Due to the growth in business volume,
net working capital increased in the third quarter, especially in
Metso Minerals and Metso Paper. The Corporation’s free cash flow
was EUR 112 million (EUR 111 million in 1-9/04).

Net interest-bearing liabilities decreased by EUR 188 million from
the beginning of the year and totaled EUR 307 million at the end
of September. During the second quarter, EUR 93 million in bonds
and other loans was prematurely repaid. This caused a nonrecurring
addition to financial expenses of EUR 5 million, while
corresponding savings will be achieved later. Dividends of EUR 48
million were paid for 2004.

Gearing, i.e. the ratio of net interest-bearing liabilities to
shareholders’ equity, was 25.3 percent, compared with 49.7 percent
at the beginning of the year. Shareholders’ equity increased, as a
result of both the improved net income and a capital increase of
EUR 72 million arising from the stock option programs in the
second quarter. In addition, the divestiture of Metso Drives
decreased net interest-bearing liabilities. Metso’s equity to
assets ratio was 36.3 percent at the end of September.

Moody's Investors Service confirmed Metso’s existing long-term Ba1
credit rating and changed the rating outlook from negative to
stable on February 25, 2005. Standard & Poor's Ratings Services
has confirmed Metso’s existing long-term BB+ corporate rating, the
BB rating on bonds issued and the EMTN program, as well as the B
rating on short-term credits, and has kept the rating outlook as
stable.


Capital expenditure

Metso’s gross capital expenditure, including acquisitions, totaled
EUR 86 million (EUR 66 million in 1-9/04). Metso Paper commenced
manufacturing of screen baskets in China, invested in the
development of a pulping technology center operating in
Anjalankoski, Finland, and established a service unit in Zaragoza,
Spain. Metso made investments to increase foundry capacity in
Finland, Brazil, South Africa and India. Metso Minerals initiated
investments in a production plant and logistics center in
Columbia, South Carolina, USA. Metso Minerals also launched a
project, expected to last several years, to develop a
comprehensive ERP (enterprise resource planning) system.


Acquisitions and divestitures

On August 30, 2005, Metso Minerals acquired Texas Shredder, Inc.,
a U.S. supplier of metal shredder products located in San Antonio,
Texas. The acquisition price was approximately EUR 13 million. The
transaction strengthened Metso’s position in North America, the
world’s largest metal recycling market. Texas Shredder's net sales
for the financial period ending on June 30, 2005 was EUR 46
million, and the number of personnel was 33. Texas Shredder is
included in Metso Minerals’ figures from the beginning of
September.

In March, Metso reached an agreement on the divestiture of its
mechanical power transmission equipment business (Metso Drives),
to CapMan, a Finnish private equity investor. Metso Drives Oy and
its foreign subsidiaries were transferred to the ownership of
funds managed/advised by CapMan on April 8, 2005. The debt-free
price of the transaction was EUR 97 million and the sales gain was
EUR 17 million.

Research and development

Metso’s research and development expenses in January-September
totaled EUR 68 million (EUR 75 million in 1-9/04), representing
2.3 percent of the Corporation’s net sales.

In August, a board machine containing the first ValFlo headboxes,
representing Metso Paper's cost-efficient Val product range, was
started up in China. In August, a mill that produces bleached
chemi-thermochemical pulp using Metso’s new BCTMP production
technology was started up at Kaskinen, Finland. Metso Paper
launched the FlyMaster fly roll, which utilizes new composite
technology, and is suited for all supercalenders and other
corresponding multinip calenders.

As part of the new Lindemann Innovative Shearing series Metso
Minerals launched the first portable metal shears. These versatile
shears are primarily suited for small metal recycling. The Trellex
screen media product range was expanded by launching modular
screen media that are compatible with almost all the systems on
the market without welding or cutting steel rails.

In September, Metso Automation introduced a new paper caliper
sensor based on very accurate, non-contact optical sensing
technology. Also in September, Metso Automation opened a
technology center at Aracruz, in Espírito Santo state, Brazil, to
further improve its service on the South American markets.


Personnel

At the end of September, Metso Corporation’s continuing operations
employed 21,941 persons, approximately the same number as the end
of 2004.

The Corporation employed 37 percent of its personnel in Finland,
12 percent in other Nordic countries, 13 percent in other European
countries, 16 percent in North America, 7 percent in Asia-Pacific,
9 percent in South America and 6 percent in the rest of the world.


Changes in the top management

Metso Corporation's Board of Directors appointed Risto Hautamäki
as President of Metso Paper and a member of the Metso Executive
Team as of April 1, 2005. Metso Paper’s Executive Vice President,
Bertel Karlstedt, resigned from Metso on August 31, 2005.


Share capital and market capitalization

As a result of the registration of share subscriptions made with
year 2000 and 2001 stock options, Metso’s share capital increased
to EUR 240,812,843.80 on May 11, 2005. A total of 4,538,869 shares
were subscribed with Metso Corporation’s year 2000 stock options
and 865,200 shares with year 2001 stock options during a
subscription period that ended on April 30, 2005. The number of
shares at the end of September was 141,654,614, of which the
Corporation holds 60,841 shares in its treasury. The average
number of outstanding shares in January-September was 138,980,817.

Metso’s market capitalization doubled compared with the
corresponding period of 2004 and was EUR 2,990 million on
September 30, 2005.


Decisions of the Annual General Meeting

Metso Corporation’s Annual General Meeting, held on April 4, 2005,
approved the financial statements for 2004 and voted to discharge
the members of the Board of Directors and the President and CEO
from liability. The Annual General Meeting approved the Board’s
proposals concerning authorizations to repurchase and dispose of
the Corporation's 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.
Furthermore, the Annual General Meeting decided to cancel stock
options as proposed by the Board of Directors.

The Annual General Meeting decided to establish a Nomination
Committee of the Annual General Meeting to prepare proposals for
the following General Meeting concerning the composition of the
Board of Directors and the remuneration of the Directors. The
Nomination Committee comprises representatives appointed by
Metso's four biggest registered shareholders as of December 1,
2005, along with Metso’s Chairman of the Board as an expert
member. Furthermore, the Annual General Meeting decided to amend
the Articles of Association to state that a person aged 68 years
or more is not eligible to be elected to the Board of Directors.

Metso Corporation’s Annual General Meeting re-elected Matti
Kavetvuo as the Chairman of the Board and Jaakko Rauramo, Chairman
of SanomaWSOY Corporation, as the Vice Chairman of the Board.
Svante Adde, Managing Director of Compass Advisers, was elected as
a new member of the Board. The Board members re-elected were Maija-
Liisa Friman, President and CEO of Aspocomp Group Oyj, Satu Huber,
Director of Finance and Head of the Finance Division, State
Treasury, and Juhani Kuusi, D. Sc. (Tech.).

PricewaterhouseCoopers, a firm of Authorized Public Accountants,
was re-elected as the Auditor of the Corporation.

Pentti Mäkinen, who was elected by Metso’s personnel groups in
Finland, will attend the meetings of Metso’s Board of Directors as
a personnel representative invited by the Board, starting from the
Annual General Meeting of April 4, 2005 until the 2006 Annual
General Meeting.

The Annual General Meeting decided to distribute a dividend of EUR
0.35 per share for the financial year that ended on December 31,
2004. The dividend was paid on April 14, 2005.


New management agendas and financial targets

In August, Metso’s Board of Directors accepted management agendas
and financial targets for 2006-2008. The strategic focus of Metso
is shifting towards profitable growth, which will be attained
through improved customer satisfaction and operational excellence.

In 2006-2008 Metso will be targeting annual net sales growth of
some 10 percent to support the sustainable profit development and
to strengthen its market leadership position. The growth will be
attained both organically and through complementary acquisitions.

All Metso business areas will continue their efforts to improve
profitability, productivity and quality and enhance customer
satisfaction. Metso will complement its life cycle offering both
through its own development and through acquisitions. Metso is
also planning to enhance its sales, customer service, sourcing and
production close to the customers, especially in emerging markets
such as China, India and South America.

Financial targets 2006-2008

Metso’s target is to achieve more than 15 percent return on
capital employed (ROCE %), regardless of the business cycle.

Another key target will be an operating profit margin (EBIT %) of
9 percent towards the end of the strategy period. The business
area-specific operating margin targets are: over 8 percent for
Metso Paper, over 11 percent for Metso Minerals and over 12
percent for Metso Automation. As the companies belonging to Metso
Ventures are dissimilar in nature and operate in different
markets, no medium-term operating margin target has been set for
Metso Ventures.

Achieving the corporate-level operating margin target of 9 percent
will require that Metso’s business areas successfully complete the
ongoing development programs and that the market demand is at
least as favorable as in 2005. Metso is continuing measures to
decrease the negative impact of cyclicality on its financial
performance.

Metso’s capital structure target is to be a solid investment grade
company.

Financial targets for 2006

Metso estimates that the favorable market situation in the civil
engineering and in the mining and energy segments will continue in
2006, while the pulp and paper industry demand is expected to be
on par with 2005. Based on this estimate on market environment and
taking into consideration Metso’s development phase, the operating
margin target for Metso Corporation in 2006 is to exceed 7
percent.

Metso Paper will continue its efforts to improve its operational
excellence. Consequently, the business area’s operating margin
target is 6 percent in 2006. It is estimated that Metso Paper will
be able to achieve the over 8 percent target towards the end of
the strategy period.

Due to the good progress achieved to date in operational
excellence together with the continuing high demand in the civil
engineering and mining industries, the operating margin target for
Metso Minerals is 10 percent in 2006.

The market situation for Metso Automation is expected to continue
to be good in the energy, oil and gas industry and satisfactory in
the pulp and paper industry. Metso Automation will scale up its
investments in growth, and the operating margin target for Metso
Automation for 2006 is 11 percent.

Metso Ventures’ operating margin target for 2006 is 6 percent.

New dividend policy

In August, the Board also established a new dividend policy
according to which Metso distributes an annual dividend of at
least 40 percent of earnings per share to its shareholders.
Previously, Metso's objective was to distribute annual dividends
equivalent to at least one third of the average earnings per share
over five years.

Corporate structure

As a part of the 2005 strategy process, Metso also studied various
alternative corporate structures, including a separate listing of
Metso Minerals. The implementation of the ongoing shift towards
profitable growth will require strong commitment and focus from
the management, so, just at this point in time, the benefits of
the current structure outweigh the alternatives. There are,
however, valid arguments for alternative corporate configurations,
and therefore, in August, the Metso Board decided to commission a
more detailed feasibility study to assess these alternatives. The
study is estimated to be completed by the end of the first quarter
in 2006.

Events after the review period

At the beginning of October, Metso Paper agreed with Myllykoski
Corporation to supply a large paper making line, to be located in
the Czech Republic. As the investment is still subject to e.g.
local authority approvals, a dissolution clause is included.
Project engineering has been started on separate terms, in
anticipation of the final confirmation. Myllykoski is scheduling
the line to come on stream in early 2007. The delivery will be
valued at well over EUR 200 million.


Short-term outlook

No material changes are expected in the market situation for Metso
during the last quarter of 2005.

In Metso Paper’s markets, it is expected that the demand for
rebuilds and aftermarket services will continue to be good. In the
markets for new machinery, there are several tissue machine
investments and a few paper machine and pulping line projects
under consideration, but hardly any board machine investments.

The demand for Metso Minerals’ equipment related to aggregates
production is expected to remain good, especially due to
comprehensive road network development projects and other
infrastructure investments. The demand in the mining industry is
estimated to remain strong, though the shortage of experienced
management and other resources continues to somewhat hold back
implementation of new investment projects.

Metso Automation’s market situation is expected to be good in the
energy, oil and gas industry and satisfactory in the pulp and
paper industry.

Metso Minerals and Metso Automation are expected to clearly
surpass the operating profit targets set for 2005. Metso Paper’s
result will be burdened by the weak profitability of the Tissue
business and restructuring costs, but the positive performance in
the third quarter gives an improved basis for attaining the
operating margin target set for 2005. It is estimated that Metso
Ventures’ operating margin will be lower than its target because
of structural changes and the weak profitability of Metso
Panelboard.

The financial targets set for Metso Corporation in 2005 are an
operating margin of 6 percent and ROCE of 12 percent. It is
estimated that these financial targets will be clearly exceeded.
Metso's management expects that the Corporation's net sales for
2005 will increase to approximately EUR 4.1 billion and the
operating profit will exceed 7 percent of net sales. The improved
competitiveness of all of Metso’s business areas combined with a
mostly positive market outlook support a continuation of favorable
development.


Helsinki, October 26, 2005


Metso Corporation’s Board of Directors


The interim review is unaudited

CONSOLIDATED STATEMENTS OF INCOME

                                                             
                              7-9/     7-9/    1-9/     1-9/   1-12/
                              2005     2004    2005     2004    2004
(Millions)                     EUR      EUR     EUR      EUR     EUR
Net sales                    1,045      887   2,967    2,559   3,602
Cost of goods sold           (767)    (645) (2,171)  (1,894)  (2,673
                                                                   )
Gross profit                   278      242     796      665     929
Selling, general and         (186)    (190)   (574)    (589)   (798)
administrative expenses
Other operating income and       3        3      11       16     (7)
expenses, net
Reversal of Finnish              -        -       -        -      75
pension liability
Operating profit                95       55     233       92     199
  % of net sales              9.1%     6.1%    7.9%     3.6%    5.5%
Financial income and           (9)     (13)    (33)     (40)    (59)
expenses, net
Profit on continuing            86       42     200       52     140
operations before tax
Income taxes on continuing    (21)       40    (48)       37      18
operations
Profit on continuing            65       82     152       89     158
operations
Profit (loss) on                 -      (6)      17     (17)    (14)
discontinued operations
Profit (loss)                   65       76     169       72     144
Profit (loss) attributable       0        0       0        0     (1)
to minority interests
Profit (loss) attributable      65       76     169       72     143
to equity shareholders
                                                             
                                                             
Earnings per share from                                             
continuing operations, EUR
 Basic                        0.47     0.60    1.10     0.66    1.16
 Diluted                      0.47     0.60    1.10     0.66    1.16
                                                                    
Earnings per share from                                             
discontinued operations, EUR
 Basic                           -   (0.04)    0.12   (0.13)  (0.11)
 Diluted                         -   (0.04)    0.12   (0.13)  (0.11)
                                                                    
Earnings per share from continuing and                              
discontinued operations, EUR
 Basic                        0.47     0.56    1.22     0.53    1.05
 Diluted                      0.47     0.56    1.22     0.53    1.05


CONSOLIDATED BALANCE SHEETS                                  

ASSETS                                                     
                                                                     
                                                                     
                                       Sep 30,    Sep 30,     Dec 31,
                                          2005       2004        2004
(Millions)                                 EUR        EUR         EUR
Non-current assets                                         
 Intangible assets                                         
  Goodwill                                 496        501         491
  Other intangible assets                   96         98          94
                                           592        599         585
 Property, plant and equipment                                       
  Land and water areas                      59         73          70
  Buildings and structures                 222        262         253
  Machinery and equipment                  279        316         307
  Assets under construction                 23         28          19
                                           583        679         649
 Financial assets                                                    
  Investments in associated                 18         18          17
  companies
  Available for sale financial              14         10          10
  assets
  Treasury stock                             -          1           1
  Loan and other interest bearing           33         11          15
  receivables
  Deferred tax asset                       146        194         159
  Other non-current assets                  13         17          37
                                           224        251         239
                                                                     
Total non-current assets                 1,399      1,529       1,473
                                                                     
Current assets                                                       
 Inventories                               928        724         692
                                                                     
 Receivables                                                         
  Trade and other receivables              880        829         790
  Cost and earnings of projects            136        196         190
  under construction in excess
  of advance billings
  Interest bearing receivables             102         34          53
                                         1,118      1,059       1,033
                                                                     
 Cash and cash equivalents                 340        285         372
                                                                     
Total current assets                     2,386      2,068       2,097
                                                                     
Assets held for sale                         -         47           -
                                                                     
TOTAL ASSETS                             3,785      3,644       3,570




SHAREHOLDERS' EQUITY AND                                          
LIABILITIES

                                       Sep 30,     Sep 30,    Dec 31,
                                          2005        2004       2004
(Millions)                                 EUR         EUR        EUR
Equity                                                               
 Share capital                             241         232        232
                                                                     
 Other shareholders' equity                                          
  Share premium reserve                     77          14         14
  Legal reserve                            228         228        228
  Cumulative translation                  (12)        (41)       (48)
  differences
  Treasury stock                             -           1          1
  Fair value and hedge reserves            (8)           -          -
  Other reserves                           202         202        202
  Retained earnings                        315         214        218
  Net profit (loss) for the period         169          72        143
 Equity attributable to                  1,212         922        990
 shareholders
                                                                     
 Minority interests                          6           7          5
                                                                     
Total equity                             1,218         929        995
                                                                     
Liabilities                                                          
 Non-current liabilities                                             
  Long-term debt                           748         901        885
  Post employment benefit                  163         230        171
  obligations
  Deferred tax liability                    15          30         16
  Provisions                                33          50         31
  Other long-term liabilities                2          10          6
 Total non-current liabilities             961       1,221      1,109
                                                                     
 Current liabilities                                                 
  Current portion of                         3          15         19
  long-term debt
  Short-term debt                           31          27         31
  Trade and other payables               1,138       1,117      1,065
  Advances received                        336         255        227
  Billings in excess of cost and            98          69        124
  earnings of projects under
  construction
 Total current liabilities               1,606       1,483      1,466
                                                                     
 Liabilities held for sale                   -          11          -
                                                                     
Total liabilities                        2,567       2,715      2,575
                                                                     
TOTAL SHAREHOLDERS' EQUITY AND           3,785       3,644      3,570
LIABILITIES
                                                                     
                                                                     
NET INTEREST BEARING LIABILITIES                                     
                                                                     
Long-term interest bearing debt            748         901        885
Short-term interest bearing debt            34          42         50
Cash and cash equivalents                (340)       (285)      (372)
Other interest bearing assets            (135)        (45)       (68)
Total                                      307         613        495




CONDENSED CONSOLIDATED CASH FLOW STATEMENT

                               7-9/     7-9/    1-9/    1-9/   1-12/
                               2005     2004    2005    2004    2004
(Millions)                      EUR      EUR     EUR     EUR     EUR
Cash flows from operating                                     
activities:
Profit for the period            65       76     169      72     143
Adjustments to reconcile net                                  
profit (loss) to net cash
provided by operating
activities
                                                              
  Depreciation                   27       28      76      86     115
  Provisions / Efficiency       (3)     (23)    (10)    (40)    (11)
  improvement programs
  Asset write-downs related       -        9       -       9      10
  to the efficiency
  improvement programs
  Financing expenses, net         9       12      33      38      52
  Income taxes                   21     (40)      48    (37)      29
  Other                           3       19    (17)      45    (58)
Change in net working          (82)      (8)    (94)      14      63
capital
Cash flows from operations       40       73     205     187     343
  Financing expenses,          (10)      (3)    (25)    (17)    (51)
  net paid
  Income taxes paid             (9)      (5)    (35)    (20)    (31)
Net cash provided by (used       21       65     145     150     261
in) operating activities
Cash flows from investing                                     
activities:
  Capital expenditures on      (27)     (24)    (72)    (63)    (89)
  fixed assets
  Proceeds from sale of          11       15      39      24      39
  fixed assets
  Business acquisitions,       (12)        -    (13)     (2)     (2)
  net of cash acquired
  Proceeds from sale              -      (7)      95     360     390
  of businesses
  (Investments in) proceeds    (16)     (17)    (65)       8    (21)
  from sale of financial
  assets
  Other                           0        8     (1)    (11)     (5)
Net cash provided by (used     (44)     (25)    (17)     316     312
in) investing activities
Cash flows from financing                                     
activities:
  Share options exercised         -        -      72       -       -
  Dividends paid                  -        -    (48)    (27)    (27)
  Net funding                   (8)    (178)   (170)   (284)   (293)
  Other                           -        5     (2)     (1)    (12)
Net cash provided by (used      (8)    (173)   (148)   (312)   (332)
in) financing activities
Net increase (decrease) in     (31)    (133)    (20)     154     241
cash and cash equivalents
Effect from changes in          (3)      (1)    (12)       1       1
exchange rates
Cash and cash equivalents at    374      419     372     130     130
beginning of period
Cash and cash equivalents at    340      285     340     285     372
end of period
                                                              
Free cash flow:                                               
                                                              
                               7-9/     7-9/    1-9/    1-9/   1-12/
                               2005     2004    2005    2004    2004
(Millions)                      EUR      EUR     EUR     EUR     EUR
Net cash provided by             21       65     145     150     261
operating activities
Capital expenditures on        (27)     (24)    (72)    (63)    (89)
fixed assets
Proceeds from sale of fixed      11       15      39      24      39
assets
Free cash flow                    5       56     112     111     211



CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY





                Share  Share  Cumu-   Fair    Re-  Equi-  Mino-    To-
                capi-   pre-  lati-  value  tain-     ty   rity    tal
                  tal   mium     ve    and     ed  attri-  inte-  equi-
                         re- trans-  other  earn-  butab-   rest     ty
                       serve    la-    re-   ings  le to
                               tion   ser-         share-
                                ad-    ves          hol-
                              just-                 ders
                              ments
                                                                      
                                                                      
                                                                      
                                                                 
(Millions)        EUR    EUR    EUR    EUR    EUR    EUR    EUR    EUR
Balance at        232     14   (48)    431    361    990      5    995
Dec 31, 2004
Effects of                                                            
adopting IAS
39
 Treasury           -      -      -    (1)      -    (1)      -    (1)
 stock
 Cash flow          -      -      -      4      -      4      -      4
 hedges, net
 of tax
 Available-         -      -      -      2      -      2      -      2
 for-sale
 financial
 assets, net
 of tax
 Other              -      -      -      -      2      2      -      2
Balance at        232     14   (48)    436    363    997      5  1,002
Jan 1, 2005
                                                                      
Dividends           -      -      -      -   (48)   (48)      -   (48)
Share options       9     63      -      -      -     72      -     72
exercised
Translation         -      -     53      -      -     53      -     53
differences
Net investment      -      -   (17)      -      -   (17)      -   (17)
hedge gains
(losses)
Cash flow           -      -      -   (14)      -   (14)      -   (14)
hedges, net of
tax
Other               -      -      -      -      -      -      1      1
Net profit          -      -      -      -    169    169      0    169
(loss) for the
period
Balance at        241     77   (12)    422    484  1,212      6  1,218
Sep 30, 2005
                                                                 
                                                                 
The distributable funds of Metso Corporation at Sep 30, 2005 consist
of retained earnings (EUR 484 million) excluding accelerated
depreciation and untaxed reserves (EUR 4 million) and negative
translation differences (EUR 12 million), and other reserves (EUR 202
million), totaling EUR 670 million. At the end of the period Metso
Corporation possessed 60,841 of its own shares.




ASSETS PLEDGED AND CONTINGENT LIABILITIES               

                                                  
                                    Sep 30, 2005        Dec 31, 2004
(Millions)                                   EUR                 EUR
Mortgages on corporate debt                    3                   2
Other pledges and                                 
contingencies
  Mortgages                                    2                   2
  Pledged assets                               -                   4
Guarantees on behalf of                        -                   -
associated company
obligations
Other guarantees                               8                   9
                                                  
Repurchase and other                          12                  15
commitments
Lease commitments                            124                 142

Other guarantees include EUR 4 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 OF DERIVATIVE FINANCIAL INSTRUMENTS

                                      Sep 30, 2005      Dec 31, 2004
(Millions)                                     EUR               EUR
Forward exchange rate contracts              1,171             1,770
Interest rate and currency swaps                 2                 2
Currency swaps                                   1                73
Interest rate swaps                            183               188
Interest rate futures contracts                 10                10
Option agreements                                   
  Bought                                        24                10
  Sold                                          54                16
Electricity forward contracts 1)               363               329

1) Notional amount GWh

The notional amounts indicate the volumes in the use of
derivatives, but do not indicate the exposure to risk.



KEY RATIOS

                                          1-9/        1-9/       1-12/
                                          2005        2004     2004 *)
Earnings per share from continuing        1.10        0.66        1.16
operations, EUR
Earnings per share from                   0.12      (0.13)      (0.11)
discontinued operations, EUR
Earnings per share from continuing        1.22        0.53        1.05
and discontinued operations, EUR
                                                                      
Equity/share at end of period, EUR        8.56        6.77        7.27
Return on equity (ROE), %                 21.4        11.0        15.9
(annualized)
Return on capital employed (ROCE),        18.3         6.6        10.7
% (annualized)
Equity to assets ratio at end of          36.3        28.0        30.9
period, %
Gearing at end of period, %               25.3        66.1        49.7
                                                           
Free cash flow                             112         111         211
Free cash flow/share                      0.81        0.82        1.55
                                                                      
Gross capital expenditure of                73          63          89
continuing operations (excl.
business acquisitions)
Business acquisitions, net of cash          13           2           2
acquired
Depreciation and amortization of            76          80         105
continuing operations
                                                                      
Average number of shares               138,981     136,190     136,190
(thousands)
Average number of diluted shares       138,939     136,190     136,192
(thousands)

*) 1-12/2004 key figures excluding reversal of Finnish pension
liability are as follows: Earnings per share from continuing
operations 0.75 eur, earnings per share from discontinued and
continuing operations 0.62 eur, return on equity (ROE) 9.5% and
return on capital employed (ROCE) 6.5%.



EXCHANGE RATES USED

                    1-9/     1-9/   1-12/   Sep 30,   Sep 30,   Dec 31,
                    2005     2004    2004      2005      2004      2004
USD               1.2635   1.2257  1.2433    1.2042    1.2409    1.3621
(US dollar)
SEK               9.2162   9.1620  9.1250    9.3267    9.0588    9.0206
(Swedish krona)
GBP               0.6852   0.6731  0.6786    0.6820    0.6868    0.7051
(Pound sterling)
CAD               1.5477   1.6286  1.6170    1.4063    1.5740    1.6416
(Canadian
dollar)
BRL               3.1526   3.6351  3.6350    2.6725    3.5372    3.6177
(Brazilian real)



BY BUSINESS AREA INFORMATION

NET SALES BY BUSINESS AREA

                          7-9/   7-9/    1-9/    1-9/  10/200   1-12/
                          2005   2004    2005    2004      4-    2004
                                                       9/2005
(Millions)                 EUR    EUR     EUR     EUR     EUR     EUR
Metso Paper                396    378   1,192   1,089   1,662   1,559
Metso Minerals             454    340   1,218     968   1,616   1,366
Metso Automation           148    140     421     388     568     535
Metso Ventures              63     52     196     172     254     230
Intra Metso net sales     (16)   (23)    (60)    (58)    (90)    (88)
Metso total              1,045    887   2,967   2,559   4,010   3,602


OTHER OPERATING INCOME(+)AND EXPENSES(-), NET BY BUSINESS AREA

                          7-9/   7-9/    1-9/    1-9/  10/200   1-12/
                          2005   2004    2005    2004      4-    2004
                                                       9/2005
(Millions)                 EUR    EUR     EUR     EUR     EUR     EUR
Metso Paper                0.9  (1.2)   (0.5)     2.2  (19.4)  (16.7)
Metso Minerals             2.4    1.3     4.3     2.6     2.4     0.7
Metso Automation           0.5    0.2     0.0     0.3   (3.6)   (3.3)
Metso Ventures           (0.5)  (0.4)     2.1   (1.8)     1.8   (2.1)
Corporate office and     (0.1)    2.7     5.0    12.0     7.6    14.6
other
Metso total                3.2    2.6    10.9    15.3  (11.2)   (6.8)

OPERATING PROFIT(LOSS)BY BUSINESS AREA                               

                          7-9/   7-9/    1-9/    1-9/  10/200   1-12/
                          2005   2004    2005    2004      4-    2004
                                                       9/2005
(Millions)                 EUR    EUR     EUR     EUR     EUR     EUR
Metso Paper               25.7   20.1    63.2    14.7    96.5    48.0
Metso Minerals            53.6   27.4   125.0    66.5   163.7   105.2
Metso Automation          25.8   19.6    57.3    38.4    88.5    69.6
Metso Ventures           (0.5)  (8.8)     6.1  (16.6)    16.5   (6.2)
Corporate office and     (9.1)  (3.9)  (18.1)  (11.2)  (24.0)  (17.1)
other
Metso total               95.5   54.4   233.5    91.8   341.2   199.5


ORDERS RECEIVED BY BUSINESS AREA

                          7-9/   7-9/    1-9/    1-9/  10/200   1-12/
                          2005   2004    2005    2004      4-    2004
                                                       9/2005
(Millions)                 EUR    EUR     EUR     EUR     EUR     EUR
Metso Paper                322    291   1,240   1,426   1,540   1,726
Metso Minerals             405    373   1,368   1,115   1,819   1,566
Metso Automation           140    146     430     440     560     570
Metso Ventures              66     33     224     144     293     213
Intra Metso orders        (17)   (20)    (54)    (63)    (77)    (86)
received
Metso total                916    823   3,208   3,062   4,135   3,989


PERSONNEL BY BUSINESS AREA                                            

                                   Sep 30,      Sep 30,       Dec 31,
                                      2005         2004          2004
Metso Paper                          8,300        8,891         8,660
Metso Minerals                       8,379        8,113         8,048
Metso Automation                     3,206        3,270         3,267
Metso Ventures                       1,755        1,591         1,637
Corporate office and Shared            301          283           293
services
Continuing operations               21,941       22,148        21,905
Discontinued operations                  -        1,192           897
Metso total                         21,941       23,340        22,802


QUARTERLY INFORMATION

NET SALES BY BUSINESS AREA

                                 7-9/  10-12/    1-3/    4-6/   7-9/
                                 2004    2004    2005    2005   2005
(Millions)                        EUR     EUR     EUR     EUR    EUR
Metso Paper                       378     470     386     410    396
Metso Minerals                    340     398     338     426    454
Metso Automation                  140     147     129     144    148
Metso Ventures                     52      58      62      71     63
Intra Metso net sales            (23)    (30)    (21)    (23)   (16)
Metso total                       887   1,043     894   1,028  1,045


OTHER OPERATING INCOME(+) AND EXPENSES(-), NET BY BUSINESS AREA

                                 7-9/   10-12/    1-3/   4-6/    7-9/
                                 2004     2004    2005   2005    2005
(Millions)                        EUR      EUR     EUR    EUR     EUR
Metso Paper                     (1.2)   (18.9)     0.6  (2.0)     0.9
Metso Minerals                    1.3    (1.9)     4.3  (2.4)     2.4
Metso Automation                  0.2    (3.6)     0.0  (0.5)     0.5
Metso Ventures                  (0.4)    (0.3)   (0.3)    2.9   (0.5)
Corporate office and other        2.7      2.6     1.1    4.0   (0.1)
Metso total                       2.6   (22.1)     5.7    2.0     3.2


REVERSAL OF FINNISH PENSION LIABILITY BY BUSINESS AREA

                                        10-12/
                                          2004
(Millions)                                 EUR
Metso Paper                               39.8
Metso Minerals                             4.9
Metso Automation                          13.7
Metso Ventures                            14.6
Corporate office and other                 2.3
Metso total                               75.3

OPERATING PROFIT (LOSS) BY BUSINESS AREA                                 

                                 7-9/   10-12/    1-3/    4-6/    7-9/
                                 2004     2004    2005    2005    2005
(Millions)                        EUR      EUR     EUR     EUR     EUR
Metso Paper                      20.1     33.3    17.7    19.8    25.7
Metso Minerals                   27.4     38.7    31.2    40.2    53.6
Metso Automation                 19.6     31.2    13.6    17.9    25.8
Metso Ventures                  (8.8)     10.4   (1.2)     7.8   (0.5)
Corporate office and other      (3.9)    (5.9)   (6.6)   (2.4)   (9.1)
Metso total                      54.4    107.7    54.7    83.3    95.5


CAPITAL EMPLOYED BY BUSINESS AREA

                                  Sep     Dec      Mar   June      Sep
                                  30,     31,      31,    30,      30,
                                 2004    2004     2005   2005     2005
(Millions)                        EUR     EUR      EUR    EUR      EUR
Metso Paper                       397     323      275    293      328
Metso Minerals                    698     712      731    780      850
Metso Automation                  131     135      126    146      139
Metso Ventures                     25      39       39     51       61
Corporate office and other        507     642      658    652      622
Continuing operations           1,758   1,851    1,829  1,922    2,000
Discontinued operations           114      80       79      -        -
Metso total                     1,872   1,931    1,908  1,922    2,000


ORDERS RECEIVED BY BUSINESS AREA                                     

                                 7-9/  10-12/    1-3/    4-6/   7-9/
                                 2004    2004    2005    2005   2005
(Millions)                        EUR     EUR     EUR     EUR    EUR
Metso Paper                       291     300     354     564    322
Metso Minerals                    373     451     505     458    405
Metso Automation                  146     130     145     145    140
Metso Ventures                     33      69     101      57     66
Intra Metso orders received      (20)    (23)    (16)    (21)   (17)
Metso total                       823     927   1,089   1,203    916



ORDER BACKLOG BY BUSINESS AREA                                    

                                  Sep    Dec     Mar    June  Sep 30,
                                  30,    31,     31,     30,     2005
                                 2004   2004    2005    2005
(Millions)                        EUR    EUR     EUR     EUR      EUR
Metso Paper                     1,124    946     918   1,082    1,012
Metso Minerals                    525    560     742     826      801
Metso Automation                  198    176     194     199      191
Metso Ventures                     55     66     105      88       92
Intra Metso order backlog        (50)   (43)    (40)    (38)     (37)
Continuing operations           1,852  1,705   1,919   2,157    2,059
Discontinued operations            78     53      70       -        -
Metso total                     1,930  1,758   1,989   2,157    2,059


NOTES TO THE INTERIM REVIEW                           

Adoption of IAS 32 and IAS 39                                   

Consolidated balance sheets                                     

ASSETS                                          Effect of 
                                              adoption of            
                                               IAS 32 and            
                                   Dec 31,         IAS 39 Jan 1, 2005
                                      2004
(Millions)                             EUR            EUR         EUR
Non-current assets                                        
 Intangible assets                     585              -         585
 Property, plant and equipment         649              -         649
 Financial assets                      239           (19)         220
Total non-current assets             1,473           (19)       1,454
                                                                     
Current assets                                                       
 Inventories                           692              -         692
 Receivables                         1,033             13       1,046
 Cash and cash equivalents             372              -         372
Total current assets                 2,097             13       2,110
                                                                     
Assets held for sale                     -              -           -
TOTAL ASSETS                         3,570            (6)       3,564
                                                          

SHAREHOLDERS' EQUITY AND LIABILITIES                            

                                                Effect of  
                                              adoption of             
                                               IAS 32 and             
                                   Dec 31,         IAS 39  Jan 1, 2005
                                      2004
(Millions)                             EUR            EUR          EUR
Equity                                                                
 Share capital                         232              -          232
 Other shareholders' equity            758              7          765
 Minority interests                      5              -            5
Total equity                           995              7        1,002
                                                                      
Liabilities                                                           
 Non-current liabilities             1,109           (22)        1,087
 Current liabilities                 1 466              9        1,475
 Liabilities held for sale               -              -            -
Total liabilities                    2,575           (13)        2,562
                                                                      
TOTAL SHAREHOLDERS' EQUITY AND       3,570            (6)        3,564
LIABILITIES


Tax losses carried forward as of December 31, 2004 (under IFRS)

                                                     
                                                     
Country               Amount    Deferred   Valuation   Deferred tax
                               tax asset   allowance       asset in
                                                      balance sheet
(Millions)               EUR         EUR         EUR            EUR
                                                     
Finland                  269          70           9             61
USA                      189          71          70              1
Germany                  103          36           9             27
Other                    111          33          18             15
Total                    672         210         106            104


NOTES TO THE INTERIM REVIEW

Adoption of International Financial Reporting Standards (IFRS)

Metso adopted the International Financial Reporting Standards
(IFRS) at the beginning of 2005. The principal changes and impact
of IFRS on the 2004 income statement and balance sheet were
described in the releases published on March 31, 2005 and April
19, 2005 (quarterly information). The classification of financial
assets and liabilities and the recognition of derivative financial
instruments used for hedging has been done in accordance with IAS
32 and IAS 39 in the opening balance sheet of January 1, 2005,
which is presented in the tables of the Interim Review.

Since Metso published the press releases on its transition to
IFRS, the comparative information for 2004 has been changed by
separating the power transmission business (Drives), which was
divested in April 2005, from Metso’s continuing operations. The
net result of the Drives business is also reported for the
comparison year in the line 'Discontinued businesses', after
'Continuing operations'.

The operating profit of the IFRS income statement for the
comparison year is improved by a nonrecurring annulment of a
disability pension liability of EUR 75 million (excluding the
divested Drives business) due to amendments of the Finnish
employee pension system (TEL) in December 2004. The reversal of
the pension liability is presented by business area in the tables
of the Interim Review.

The Interim Review has been prepared in accordance with the
recognition and measurement principles of the IFRS and by applying
the same policies as in the above-mentioned releases.

In accordance with IFRS 5, profit or loss on discontinued
operations net of taxes and the gain or loss on their disposal are
presented in the income statement separate from continuing
operations, while assets and liabilities classified as held for
sale are presented separately in the balance sheet. The
discontinued operations reported by Metso were Converting
Equipment, the Compaction and Paving business line (Dynapac) and
the Drilling business line (Reedrill) divested in 2004 which were
part of Metso Minerals, and the power transmission business
(Drives), which was part of Metso Ventures, divested in 2005.


Shares traded on the Helsinki and New York Stock Exchanges

The Helsinki Stock Exchange traded 198.5 million Metso Corporation
shares in January-September, equivalent to a turnover of EUR 3,143
million. The share price on September 30, 2005 was EUR 21.11. The
highest quotation was EUR 21.95 and the lowest EUR 11.31.

The New York Stock Exchange traded 5.7 million Metso ADRs
(American Depository Receipts), equivalent to a turnover of USD
113 million. The price of an ADR on September 30, 2005 was USD
25.45. The highest quotation was USD 26.58 and the lowest USD
14.70.


Disclosures of changes in holdings

The following is a brief account of shareholders’ disclosures,
received by Metso in January-September 2005, of changes in
holdings in the company.

On February 21, 2005, Capital Research and Management Company
announced a decrease in the holding of Metso Corporation under its
management. The holding managed by Capital Research and Management
Company on December 31, 2004 was 6,400,000 Metso shares. This
holding amounts to 4.7 percent of Metso’s paid up share capital
and total votes. Previously, as disclosed on April 17, 2002, the
holding had amounted to 6.29 percent of Metso’s paid up share
capital and 4.97 percent of the total votes.

On March 8, 2005, UPM-Kymmene announced that they had sold their
entire holding of Metso Corporation shares on that day.
Previously, they had owned 14.6 percent of Metso’s paid up share
capital and votes.

On March 11, 2005, Deutsche Bank AG announced an increase in the
Metso Corporation shares held by Deutsche Bank AG and its
subsidiary companies. According to the disclosure, on March 9,
2005 Deutsche Bank AG and its subsidiary companies were in
possession of 9,801,820 Metso shares to which they had the
dispositive rights. This holding amounts to 7.19 percent of the
paid up share capital of Metso Corporation. As part of this
holding Deutsche Bank AG and its subsidiary companies were in
possession of 9,189,802 Metso shares to which they had voting
rights on March 9, 2005. This voting authority represents 6.74
percent of the total votes of Metso Corporation.

On April 15, 2005, Deutsche Bank AG announced an increase in the
holding by Deutsche Bank AG and its subsidiary companies of the
paid up share capital of Metso Corporation. According to the
disclosure, on April 8, 2005, Deutsche Bank AG and its subsidiary
companies were in possession of 15,915,808 Metso shares to which
they had the dispositive rights. This holding amounts to 11.68
percent of the paid up share capital of Metso Corporation. As part
of this holding Deutsche Bank AG and its subsidiary companies were
in possession of 15,569,254 Metso shares to which they had voting
rights on April 8, 2005. This voting authority represents 11.43
percent of the total votes of Metso Corporation.

On April 20, 2005, Deutsche Bank AG announced a decrease in the
holding by Deutsche Bank AG and its subsidiary companies of the
paid up share capital of Metso Corporation. According to the
disclosure, on April 14, 2005, Deutsche Bank AG and its subsidiary
companies were in possession of 10,653,332 Metso shares to which
they had the dispositive rights. This holding amounts to 7.82
percent of the paid up share capital of Metso Corporation. As part
of this holding Deutsche Bank AG and its subsidiary companies were
in possession of 9,898,778 Metso shares to which they had voting
rights on April 14, 2005. This voting authority represents 7.27
percent of the total votes of Metso Corporation.

On May 25, 2005, Harris Associates L.P. disclosed a decrease in
the holding of the accounts managed by Harris Associates L.P. of
the paid up share capital of Metso Corporation. On May 19, 2005,
the accounts managed by Harris Associates L.P. became the
beneficial owners of 6,828,800 Metso shares. This holding amounts
to 4.82 percent of the paid up share capital and the voting rights
of Metso Corporation after being, on the basis of the previous
announcement, 5.07 percent on March 24, 2003.

Franklin Resources, Inc. announced, on June 17, 2005, an increase
in the holding of the mutual funds and separate accounts managed
by Franklin Resources, Inc. of the paid up share capital of Metso
Corporation. On June 14, 2005, Franklin Resources, Inc's holdings
amounted to 3.51 percent of the paid up share capital and 5.36
percent of the voting rights of Metso Corporation after being, on
the basis of their previous disclosure, 2.82 percent of the paid
up share capital and 4.95 percent of the voting rights on January
26, 2005. Mutual funds managed by Franklin Resources, Inc held a
total of 4,971,521 shares on June 14, 2005. This holding amounts
to 3.51 percent of Metso’s paid up share capital and the total
voting rights of Metso Corporation. In addition, Franklin
Resources, Inc. has voting authority representing 1.85 percent of
the total 2,622,053 shares and ADRs.

On June 16, 2005, NWQ Investment Management Company LLC disclosed
an increase in the holding of the accounts managed by NWQ
Investment Management Company LLC of the paid up share capital of
Metso Corporation. On February 23, 2005, the accounts managed by
NWQ Investment Management Company LLC had become beneficial owners
of 431,430 Metso's common shares and 6,415,661 American Depository
Receipts. These holdings amounted to 6,847,091 shares in total and
corresponded to 5.03 percent of the paid up share capital and the
voting rights of Metso Corporation. On February 23, 2005 the total
amount of Metso shares outstanding was 136,250,545. On May 31,
2005, the accounts managed by NWQ Investment Management Company
LLC held 8,100,505 shares in Metso Corporation corresponding to
5.71 percent of the paid up share capital and the voting rights.

On August 29, 2005, Metso Corporation was informed of an increase
in the holdings of mutual funds managed by J.P. Morgan Chase & Co.
On August 23, 2005, J.P. Morgan Chase & Co 's holdings amounted to
5.04 percent of Metso’s paid up share capital. The holding crossed
the five percent threshold on August 23, 2005 when J.P. Morgan
Asset Management (UK) Limited, acting as a discretionary
investment manager for underlying funds, purchased 111,706 Metso
shares. Mutual funds of J.P. Morgan Chase & Co. held a total of
7,133,314 Metso shares on August 23, 2005.

On September 6, 2005, Metso Corporation was informed about a
decrease in the holding of the mutual funds managed by J.P. Morgan
Chase & Co. On September 1, 2005, J.P. Morgan Chase & Co 's
holdings amounted to 4.91 percent of Metso’s paid up share capital
after being, on the basis of their previous announcement, 5.04
percent on August 23, 2005. The holding fell below the five
percent threshold on September 1, 2005 when J.P. Morgan Asset
Management (UK) Limited, acting as a discretionary investment
manager for underlying funds, sold 174,502 Metso shares. According
to their announcement, mutual funds of J.P. Morgan Chase & Co.
held a total of 6,954,768 Metso shares on September 1, 2005.

On September 13, 2005, Metso Corporation was informed about a
change in the holding of the mutual funds and separate accounts
managed by Franklin Resources, Inc. On September 8, 2005, Franklin
Resources, Inc.'s holdings amounted to 4.15 percent of the paid up
share capital and 4.78 percent of the voting rights of Metso
Corporation after being, on the basis of their previous
announcement, 3.51 percent of the paid up share capital and 5.36
percent of the voting rights on June 14, 2005. According to their
announcement, mutual funds of Franklin Resources, Inc. held a
total of 5,884,566 shares on September 8, 2005.  This holding
corresponds to 4.15 percent of the paid up share capital and the
total voting rights of Metso Corporation. In addition, Franklin
Resources, Inc. has voting authority representing 0.62 percent of
the total 882,157 shares and ADRs.

On September 16, 2005, Metso Corporation was informed about an
increase in the holding of the Fidelity International Limited and
its subsidiaries. On September 14, 2005, Fidelity International
Limited and its subsidiaries held a total of 7,082,803 Metso
shares, which corresponds to 5.00 percent of the paid up share
capital and voting rights of Metso Corporation.






Metso Corporation



Olli Vaartimo                       Kati Renvall
Executive Vice President and CFO    Vice President,
                                    Corporate Communications


distribution:
Helsinki Exchanges
New York Stock Exchange
Media
www.metso.com

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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