Metso Launches Debt Exchange Offer

Metso Corporation   Stock Exchange Release October 29, 2004 at 9.00 a.m. 1(3)

Metso Corporation is offering to exchange any and all of  its  Eurobond  6.25  per
cent Notes due 2006 (the 'Existing Notes'), for Euro denominated Fixed Rate  Notes
due 2011 (the 'New Notes').

This transaction demonstrates  the  Company's  commitment  to  managing  its  debt
portfolio with a long-term view. Through the exchange, Metso aims  to  lengthening
its debt maturity  profile,  while  offering  investors  an  opportunity  to  stay
invested in the Company's longer-dated credit. The transaction will  also  further
reduce the refinancing requirements for 2006.

Metso is committed to improving its credit profile and has already taken a  number
of active restructuring steps during  2003  and  2004  to  improve  its  operating
performance. Whilst the restructuring has  had  a  short-term  negative  financial
impact the target has been to create a sustainable profitability improvement.  The
positive impacts of the actions taken are  already  visible  in  most  of  Metso's
business areas. In addition, the recent divestment of its  compaction  and  paving
equipment business, Dynapac, decreased the Company's gearing by  approximately  27
percentage points and hence significantly strengthened Metso's balance sheet.

Holders are offered the opportunity to offer to exchange  any  and  all  of  their
holdings in the Existing Notes at the following indicative spread  range.  Initial
price communication on the New Notes will commence on 3 November, 2004.

 Bond                     Reference Rate           Exchange Spread    
                                                   Range              
 EUR 500mn 6.25% due 11   OBL 4.5% due 18 August   0.60% - 0.50%      
 Dec., 2006 (of which EUR 2006 #138                                   
 412 mn is outstanding)                                               

The Exchange Offer  is  conditional  on  valid  acceptances  being  received  from
holders of Existing Notes representing, in aggregate, a minimum of EUR 175  mn  of
the aggregate principal amount of the Existing Notes. The  Company  may  issue  on
the Settlement Date additional notes off the Programme, which  shall  be  fungible
with the New Notes and listed on the Luxembourg Stock Exchange.  The  sum  of  the
Additional Notes and the New Notes will be targeted to a size of EUR 250mn.
The anticipated transaction timetable is summarized below. The  exchange  will  be
executed via the relevant clearing systems. All information, as  well  as  a  full
description of the conditions  of  the  offer  is  more  fully  described  in  the
Exchange Offer Memorandum.

 Timetable                  Event                                        
 October 29, 2004           Announcement of Exchange Offer               
 November 8, 2004           Announcement of Final Fixed Spreads          
 November 11, 2004, at 3pm  Expiration of Exchange Offer                 
 CET                                                                     
 November 12, 2004, at 1pm  Exchange Pricing                             
 CET                                                                     
 November 19, 2004          Expected Settlement of Exchange Offer        

Deutsche  Bank  and  Merrill  Lynch  are  acting  as  Dealer  Managers   in   this
transaction. Citibank, Nordea and Skandinaviska Enskilda Banken are acting as  Co-
Dealer Managers. Citibank is acting as Exchange Agent.

Metso Corporation is a global supplier of process industry machinery and  systems,
as well as know-how and aftermarket services. The  Corporation's  core  businesses
are fiber and paper technology (Metso Paper), rock and mineral  processing  (Metso
Minerals) and automation and control technology (Metso Automation). In  2003,  the
net sales of Metso Corporation were  EUR  4.3  billion.  Metso  has  approximately
23,000 employees in  over  50  countries.  Metso  Corporation  is  listed  on  the
Helsinki and New York Stock Exchanges.

For further information:
Pekka Hölttä, Senior Vice President, Corporate Treasurer, Metso Corporation, tel.
+358 204 84 3195

Eeva Mäkelä, Vice President, Investor Relations, Metso Corporation, tel. +358  204
84 3253

Further details on the transactions can be obtained from:
Dealer Managers:

 Deutsche Bank AG London        Merrill Lynch International    
 Liability Management Group     Liability Management Group     
 Tel: +44 (0)20 7545 8011       Tel: +44 (0)20 7995 3715       

Exchange Agent:
 Exchange Agent                 Luxembourg Exchange Agent      
 Citibank, N.A.                 Dexia                          
 Tel: +44 (0)20 7508 3867       Tel: +352 4590 1               
                                                               

This announcement is not  for  distribution  in  the  US,  Italy,  Spain,  Canada,
Australia or Japan. The Exchange Offer is  restricted  by  the  laws  of  the  US,
Spain, Italy, France, the  United  Kingdom,  Belgium  and  Germany,  as  described
below.
This press release does not constitute, or form part of, any solicitation  of  any
offer or invitation to sell any securities in any jurisdiction nor  shall  it  (or
any part of it), or the fact of its distribution, form the basis of or  be  relied
on in connection with any contract therefore. No indications of  interest  in  the
solicitation of offers to sell are sought by  this  press  release.  The  Exchange
Offer is not made to, and any offers will not be accepted from, or on  behalf  of,
holders of Existing Notes in any jurisdiction in which the making of the  Exchange
Offer  will  not  be  in  compliance  with  the  laws  or  regulations   of   such
jurisdiction.

OFFER RESTRICTIONS

Neither this Announcement nor the Exchange Offer Memorandum constitutes an
invitation to participate in the Exchange Offer in any jurisdiction in which, or
to or from any person to or from whom, it is unlawful to make such invitation
under applicable securities laws.  The distribution of this Announcement or the
Exchange Offer Memorandum in certain jurisdictions may be restricted by law.
Persons into whose possession this Announcement or the Exchange Offer Memorandum
come are required by each of the Company, the Dealer Managers and the Exchange
Agents to inform themselves about, and to observe, any such restrictions.

United States. The Exchange Offer is not being made and will not be made directly
or indirectly in, or by use of the mails of, or by any means or instrumentality
of interstate or foreign commerce of, or any facilities of a national securities
exchange of, the United States of America.  This Announcement, the Exchange Offer
Memorandum and any related offering documents may not be sent or given to a
person in the United States of America.  Each holder of Existing Notes
participating in this Exchange Offer will represent that it is not located in the
United States of America and is not a U.S. Person (within the meaning of
Regulation S of the Securities Act) and is not giving an order to participate in
the Exchange Offer from the United States of America or on behalf of a U.S.
Person.

Spain.  The Exchange Offer is not available to any resident of Spain.
Accordingly, residents of Spain may not submit for exchange the Existing Notes in
the Exchange Offer nor may the New Notes be offered, sold or delivered in Spain
and neither may this Announcement nor any other offering material relating to the
Exchange Offer, the Existing Notes or the New Notes be distributed or made
available in Spain.

Italy.  The Exchange Offer is not being made in the Republic of Italy and has not
been submitted to the clearance procedure of Commissione Nazionale per le Società
e la Borsa (CONSOB) or the Bank of Italy pursuant to Italian laws and
regulations.  Accordingly, holders of Existing Notes are hereby notified that, to
the extent such holders are Italian residents or persons located in the Republic
of Italy, the Exchange Offer is not available to them and they may not submit for
exchange the Existing Notes in the Exchange Offer nor may the New Notes be
offered, sold or delivered in the Republic of Italy and, as such, any acceptances
received from such persons shall be ineffective and void, and neither may this
Announcement nor any other offering material relating to the Exchange Offer, the
Existing Notes or the New Notes be distributed or made available in the Republic
of Italy.

This press release does not constitute a public offer or solicitation
("démarchage") under French laws and regulations, in the Republic of France.

There are selling restrictions on the Exchange Offer in the United Kingdom,
Belgium and Germany

This Announcement or any other offering material relating to  the  Exchange  Offer
does not constitute an offer to buy or the solicitation of an offer  to  sell  the
Existing Notes and/or New Notes in  any  circumstances  in  which  such  offer  or
solicitation is unlawful.  In those jurisdictions where the securities,  blue  sky
or other laws require the Exchange Offer to  be  made  by  a  licensed  broker  or
dealer, the Exchange Offer shall be deemed to be made  on  behalf  of  the  Dealer
Managers or one or more registered brokers or dealers licensed under the  laws  of
such jurisdiction.

Neither the delivery of this Announcement or any other offering material relating
to the Exchange Offer nor any purchase of Existing Notes shall, under any
circumstances, create any implication that the information contained herein is
current as of any time subsequent to the date of such information or that there
has been no change in the information set out in it or in the affairs of the
Company since the date of the Exchange Offer Memorandum.

Metso Corporation



Olli Vaartimo                            Pekka Hölttä
Executive Vice President and CFO         Senior Vice President,
                                         Corporate Treasurer


distribution:
Helsinki Exchanges
New York Stock Exchange
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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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