EXEL OYJ STOCK EXCHANGE RELEASE     July 22, 2003 at 10 a.m. 1 (6)



- Very strong second quarter; net sales up 10.9%, operating profit up
142.4% on the previous year
- Also January-June 2003 over previous year’s level; net sales up
3.3%, operating profit up 27.3%
- Operating profit improved as a result of the measures aimed at
reducing costs and the breakthrough of Nordic Walking in Central
- Early signs of market recovery can be seen

Operating environment

The markets were still relatively cautious in the beginning of the
review period, but picked up significantly in May. The trend is
expected to continue though it is still difficult to predict the
general market situation for the rest of the year. Both the sports
equipment market and the industry segment are active, and there is
continued demand for new products and product innovations.

The raw material markets have remained stable despite momentary price
hikes affecting oil, and raw material prices are not expected to rise
in 2003.

Industry division

The net sales of the Industry division increased by 1.4% and totalled
EUR 13.2 million (13.0). The division’s profitability also remained on
a good level; the operating profit was EUR 1.5 million (1.4). The
Industry division’s sales remained good, although the market was
extremely cautious. The market has, however, picked up noticeably
towards the summer.

Antenna profile sales experienced a considerable peak in demand during
the period under review. At the moment it is difficult to predict if
demand will continue to increase throughout the rest of the year.

In the paper industry, machine capacity utilisation rates remained
low, which was reflected in the sales volumes of doctor blades.
Together with the Metso Corporation, Exel has developed ValRx, a new
addition to the doctor blade product range. The most important feature
of the new blade is its better impact resistance. The blade holder
range has also been reinforced. Some functional changes were made to
the LiteFit blade holder during the spring and the improved holder was
brought to the market early this summer. Paper machine capacity
utilisation rates are expected to remain low also during the rest of
the year.

Lattice mast sales have proceeded according to plan. The order book
was stronger than ever at the end of the review period. Before the end
of 2003, masts will be delivered to such airports as Chang
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(Singapore), Schipol (Amsterdam) and Luton (London). The product
group’s sales are expected to remain very high throughout the
remainder of 2003.

The profiles product group is carrying out several big product
development projects mainly concentrated on the automobile industry,
offshore, infrastructure construction and wind energy. Leading
automobile manufacturers are currently in the process of replacing
metals with composites in order to make car bodies lighter. Utilising
carbon fibre to strengthen and lighten steel structures is a rapidly
developing area for the utilisation of composite materials. In
addition to making the structures lighter, vibrations can also be
lessened with the use of carbon fibre profiles. Exel actively
participates in the development work.

Sport division

The net sales of the Sport division during the period totalled EUR
12.8 million (12.2), which corresponded to an increase by 5%. The pre-
season sales to Finnish sports equipment stores have been at the usual
level. In Finland, demand remains lower than in 2002. In exports, pre-
sales have been more active than in 2002.

Exel has continued the successful launch of the NFSTM (Nordic Fitness
SportsTM) concept in Central Europe. The new products included in the
concept, Exel skis, Odlo and Björn Dählie sports gear and Tubbs snow
shoes, will reach consumers this autumn in Finland. Nordic Walking was
the only truly new sport introduced at the ISPO sports trade fair in
Germany, and it aroused great interest. Nordic Walking has made its
final breakthrough in the densely populated German-speaking areas of
Central Europe. As the initiator of the sport, Exel’s share of the
market is particularly strong, reflected by the fact that Exel GmbH is
breaking its sales record. In addition to Nordic Walking, Exel will
also be the undisputed market leader in Nordic Blading in the Central
European market in 2003. As a whole, the pole pre-sales and order book
are good and clearly above last year’s level.

Laminate sales remained at the same level as before during this review
period. The negative difference on the previous year created in the
first quarter of 2003 could, however, not be compensated. In addition
to traditional sports applications, the company has also introduced a
laminate used by the furniture industry for e.g. bracing shelves. In
water sports, the demand for windsurfing masts improved and remained
good even after the windsurfing season began.

In the main floorball market areas, i.e. Finland, Sweden and
Switzerland, market shares have remained the same. The International
Floorball Federation and companies active in this field are working on
spreading the sport into new countries. The storage and dispatch
operations of International Gateway AB, which markets floorball
sticks, were transferred from Sweden to the Mäntyharju logistics
centre in Finland at the beginning of June.

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Sales and profits

The Group’s net sales grew slightly compared with the previous year.
The distribution of net sales by division was as follows:

Net sales
(EUR million)     1-6/2003          1-6/2002          Change
Industry          13.2              13.0              1%
Sport             12.8              12.2              5%
Total             26.0              25.2              3%
In the Sport division, growth was mainly concentrated on Nordic
Walking pole sales in Central Europe, which compensated for the low
mast and laminate sales at the beginning of the year. The Industry
division’s sales were stable in different product groups and markets.

The Group’s operating profit was EUR 2.0 million (1.6). Manufacturing
productivity has improved significantly, which has lead to improved
operating profits in both business areas. The successful sales of
Nordic Walking poles in Central Europe was the main reason for the
clear improvement of operating profit in the Sport division. The
distribution of operating profit by division, and change compared to
the previous year, were as follows:

Operating profit
(EUR million)     1-6/2003          1-6/2002          Change
Industry          1.5               1.4               +8.9%
Sport             0.4               0.1               +203.0%
Total             2.0               1.5               +27.3%

Net financial expenses

Net financial expenses totalled EUR 252,000 (305,000). There were no
significant changes or arrangements made in the Group’s financing
during the review period, only small arrangements to balance loans
with fixed and floating rates.

Balance sheet, financing and liabilities

The balance sheet total was EUR 34.6 million (35.4). Interest-bearing
net liabilities decreased to EUR 9.6 million (14.3). Liabilities
remained nearly unchanged.


Group investments totalled EUR 1.0 million (1.2). Investments have
been kept low. New investments were mainly concentrated on moulds and
tools related to product development.


Group personnel totalled 359 employees (385) on June 30, 2003.

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Shares and ownership

Exel Oyj’s share capital is EUR 1,854,755 comprising 5,299,300 shares
each with a nominal value of EUR 0.35. The members of the Board of
Directors and the President held a total of 98,100 shares, i.e. 1.8 %.

The number of shares traded on the Helsinki Exchanges during the
period under review amounted to 8.2% of all Exel shares. During the
period the highest share price quoted was EUR 7.14, and the lowest EUR
5.50. The closing price for the review period was EUR 6.10. Market
capitalisation totalled EUR 32.3 million on June 30, 2003.

Prospects for the rest of 2003

The markets are estimated to be cautious during the remainder of the
year, although early signs of market recovery have been seen during
the second quarter. Ongoing efficiency improvement programmes in the
Finnish and German factories are proceeding as planned and they are
expected to result in further cost reductions. Exel estimates that the
market conditions in the second half of 2003 will be essentially the
same as in the first half of the year. The operating profit is
anticipated to develop positively and exceed that of 2002.

Mäntyharju, July 22, 2003

Exel Oyj                   Ari Jokelainen
Board of Directors         President

                                                               5 (6)

EUR 1,000                           1-6/03   1-6/02   change % 1-12/02

NET SALES                           26,006   25,188   3        51,203
Increase(+)/decrease of finished
goods and work in progress          977      895      9        422
Production for own use              93       109      -15      251
Other operating income              191      272      -30      770

Materials and services              -9,851   -10,415  -5       -20,175

Personnel expenses                  -6,939   -6,560   6        -13,198

Depreciation                        -1,627   -1,562   4        -3,318

Other operating expenses            -6,865   -6,367   8        -12,153

OPERATING PROFIT                    1,986    1,559    27       3,802
Financial income and expenses (net) -252     -305     -17      -655

PROFIT BEFORE EXTRAORDINARY ITEMS   1,734    1,255    38       3,147
Extraordinary items

PROFIT BEFORE INCOME TAXES          1,734    1,255    38       3,147
Income taxes                        -600     -422     42       -921

PROFIT FOR THE PERIOD               1,134    833      36       2,225

The taxes taken into account are based on the profit for the period.

EUR 1,000                           30.6.03  30.6.02  change% 31.12.02

Non-current assets
  Intangible assets                 3,179    3,684    -14      3,521
  Consolidation goodwill            366      437      -16      402
  Tangible assets                   10,389   11,348   -8       10,636
  Investment                        127      127      0        127
Current assets
  Inventories                       9,258    9,297    0        7,962
  Receivables                       8,756    9,825    -11      6,635
  Cash in hand and at bank          2,531    656      286      2,525
Total                               34,607   35,375   -2       31,807

  Share capital                     1,855    1,840    1        1,853
  Other equity                      13,164   11,563   14       13,086
  Deferred tax liability            106      171      -38      106
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Non-current                         5,157    7,306    -29      6,223
  Current                           14,325   14,495   -1       10,538
Total                               34,607   35,375   -2       31,807

EUR 1,000                           1-6/03   1-6/02   change % 1-12/02

Cash flow from business operations  748      -715     205      5,348
Investment in tangible and
intangible assets                   -1,005   -1,211   -17      -1,682
Income from surrender of tangible
and intangible assets                        42       -100     57
Rights issue                                                   147
Withdrawals of non-current loans    30       77       -61      71
Repayments of non-current loans     -1,078   -1,111   -3       -2,205
Withdrawals of/repayments of
current loans                       2,367    3,486    -32      679
Dividend paid                       -1,060   -1,840   -42      -1,840
Other                               4        -6       167
Change in liquid funds              6        -1,278   100      575

EUR 1,000                           30.6.03  30.6.02  change% 31.12.02

Gross investment                    1,005    1,169    -14      2,014
% of net sales                      4%       5%                4%
R&D expenses                        806      619      30       1,113
% of net sales                      3%       2%                2%
Average personnel                   356      380      -6       374
Personnel at end of period          359      385      -7       359
Order book                          10,945   11,192   -2       7,564
Solvency ratio, %                   44%      38%               47%
Return on investment, %             15%      11%               14%
Net gearing, %                      64%      107%              55%
Earnings per share, EUR             0.21     0.16     36       0.42
Equity per share, EUR               2.83     2.53     12       2.82

Consolidated contingent liabilities on June 30, 2003
Corporate mortgages                 12,500   12,500            12,500
Mortgages on land and buildings     2,954    2,954             2,954
Other contingent liabilities        2,536    3,487             2,694

Columns 1-6/03 and 1-6/02 are unaudited.