Babcock Africa (PTY) Ltd. and Ponsse Oyj agree on cooperation

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PONSSE OYJ STOCK EXCHANGE RELEASE 20.11.2006 AT 1:00 PM.

Babcock Africa (PTY) Ltd. and Ponsse Oyj agree on cooperation

Babcock Africa (PTY) Ltd. and Ponsse Oyj have agreed on cooperation
within the Republic of South Africa. The agreement relates to the distribution
and support of PONSSE forest machines, harvester heads and information systems.

Babcock Africa (PTY) Ltd. is a subsidiary of Babcock International Group plc, a
company listed on the London Stock Exchange. The market capitalisation of
Babcock International is ca. 930 million pound. Babcock Africa is a top-rated
distributor of heavy off-road machinery in its operating region, and it has
nearly 115 years of experience in Southern Africa. The company represents
several leading brands such as Volvo, Bomag, Sullair and Winget.

"This agreement is Ponsse's first retail agreement in Africa. The agreement
covers an annual wood harvesting volume of approximately 30 million cubic metres
of which 70 % is eucalyptus. We aim to continue our strategy of expansion into
new geographic territories," says Arto Tiitinen, President and CEO of Ponsse
Oyj.

Vieremä, 20 November 2006

PONSSE OYJ

Arto Tiitinen
President and CEO


FOR FURTHER INFORMATION, PLEASE CONTACT:
President and CEO Arto Tiitinen
Tel. +358 400 566 875

DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.ponsse.com

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