EXEL OYJ          STOCK EXCHANGE RELEASE 24.2.2004 AT 11.00    1 (6)


- Net sales grew by 12% to EUR 57.3 (51.2) million
- Operating profit grew to EUR 5.3 (3.8) million, up 41%
- Profit before income taxes grew to EUR 4.9 (3.1) million, up 56%
- Earnings per share EUR 0.64 (0.42)
- Dividend proposal of EUR 0.80 (0.20) per share
- Good outlook at the beginning of the year 2004 in Nordic Walking and
- Acquisition of Bekaert’s pultrusion operations in January 2004.
Growth impact estimated at EUR 13 million in additional sales for

The Group’s net sales during the year under review totalled EUR 57.3
(51.2) million. The Group’s operating profit grew significantly to EUR
5.3 (3.8) million.

Financial expenses decreased from the previous year and amounted to
EUR 0.4 (0.7) million due to a rapid loan repayment programme. This
has been possible due to a strong operative cash flow. Profit after
financial items amounted to EUR 4.9 (3.1) million.

The Industry division’s net sales grew by 15% to EUR 28.9 (25.1)
million. The growth came from an increase in antenna profiles sales,
due to pick-up in the construction of GSM and 3G networks, increased
sales of lattice masts and commercializing of new special profiles.

The Industry division’s operating profit was EUR 3.5 (2.7) million.
Profitability was improved by strong sales at the end of the year,
improved internal efficiency and successful measures aimed at
improving productivity at the Voerde factory.

A preliminary agreement with regard to the acquisition of Bekaert
Progressive Composites S.A.’s pultrusion operations in Belgium was
signed in December. The final agreement was signed in January 2004.
The acquired business also includes production equipment and
subcontracted production by Bekaert Group in Spain. The acquisition is
a significant step in Exel’s plan to become the world’s leading
company developing and marketing products with pultrusion technology.
As a result of the acquisition, Exel reinforced its position as the
leading pultrusion company in Europe.

The Sport division’s net sales grew by 9% to EUR 28.4 (26.1) million.
The market was challenging throughout the year. Sales in the laminate
and water sport groups’ declined, but this was compensated by the
excellent sales figures in Nordic Walking in the German-speaking
countries in Europe.

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The Sport division’s operating profit also improved and amounted to
EUR 1.8 (1.1) million. This was mainly caused by increased volumes in
Nordic Walking products and improved production efficiency.

The Group’s financial position remained strong throughout the year and
was strengthened further during the last few months of the year, when
large deliveries in the Sport division were realized into cash flow.
The Group’s cash flow after investments was EUR 3.9 (4.0) million.

The Group’s net interest bearing liabilities amounted to EUR 5.2 (8.3)
million at the end of the year. The solvency ratio increased to an
excellent 52% level and the gearing decreased to 29% (55%).

The Group’s short and long-term financing was rearranged in December
mainly due to the acquisition of Bekaert’s pultrusion operations. As a
result of the rearrangements a EUR 11 million limit was agreed upon
which covers both short and long-term financing needs.

Investments remained at a low level and amounted to EUR 2.5 (2.0)
million. During 2003, investments in new sports collections and
product development, maintenance investments and upgrading of the
Voerde factory’s production lines were carried out.

R&D expenses amounted to EUR 1.7 (1.1) million or 3.0% (2.2%) of net
sales. The main R&D projects related to the development of new
customer applications and testing of new resin and reinforcement
materials to improve production efficiency.

At the end of 2003 the personnel numbered 355 (359). The average
number of people employed by the Group was 355 (374). The number of
personnel declined in the Finnish factories even though production
volumes increased.

Exel Oyj’s share capital is EUR 1,870,085 divided into 5,343,100
shares each with a nominal value of EUR 0.35. The President and the
members of the Board of Directors own 1.8% of the total share capital.

During 2003, the highest share price quoted was EUR 12.95 and the
lowest EUR 5.50. At the end of the year the share price was EUR 11.90
(6.38). During the period under review 27% of the whole share capital
was traded. During the financial period the average share price was
EUR 8.40, while in 2002 it was EUR 8.00. On December 31, 2003 Exel’s
market capitalization was EUR 63.6 (33.8) million.

Exel has two outstanding warrant programmes issued in 1998 and 2001,
respectively. The subscription of the first part (A) of the 1998
warrant programme commenced on 1 October 2000, whilst the second part
(B) on October 1, 2002. The personnel have the right still to
subscribe a total of 137,800 shares. 83,900 shares had been subscribed
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by the end of 2003. The subscription of the first part (A) of the 2001
warrant programme commenced on June 1, 2002. The personnel have the
right to subscribe a total of 171,500 shares. No shares had been
subscribed by the end of 2003. The subscription of the second part (B)
of the 2002 warrant programme commenced on October 1, 2003 and the
personnel have the right to subscribe a total of 149,000 shares. No
shares had been subscribed by the end of 2003.

As of December 31, 2003, Exel had the following principal

Shareholder                Number of         Percentage of
                           shares            shares and votes

Nordstjernan AB            1,748,253         32.7
Metso Capital Oy           650,000           12.2
Ilmarinen Mutual Pension
Insurance Company          453,600           8.5
Varma Mutual Pension
Insurance Company          231,800           4.3
Aktia Secura Investment
Fund                       189,200           3.5
Matti Suutarinen           136,600           2.6
Suomi Mutual Insurance
Company                    100,000           1.9
Oy Posessor Ab             90,400            1.7
Phoebus Equity Fund        86,000            1.6
Ari Jokelainen             81,700            1.5
Nominee registration       19,300            0.4
Other                      1,556,247         29.1
TOTAL                      5,343,100         100.0

Exel Oyj’s distributable funds are EUR 13,071,949.16. The Group’s
distributable funds are EUR 12,469,786.59. Exel Oyj’s Board of
Directors will propose to the Annual General Meeting that a dividend
of EUR 0.80 (0.20) per share be paid for the year 2003, i.e. EUR
4,306,560 which is 125.7% of the Group’s earnings per share. The
remainder, EUR 8,765,389.16 will be retained and carried forward. The
record date for the payment of the dividend is April 19, 2004 and the
date for the payment of the dividend is April 26, 2004.

Exel began its IFRS preparations during 2003. Outside experts and
auditors have been used for assistance in this project. The IFRS
project is proceeding on schedule and Exel plans to publish its first
set of IFRS-compliant financial statements for the first quarter of

Preliminary studies indicate that the most significant differences
between IFRS and Exel’s current accounting practices relate to

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inventories, financing leases, goodwill, and business acquisitions
completed after 1 January, 2004.

Exel’s inventories are currently valued at variable cost but IFRS
requires the use of full-cost inventory valuation, whereby the value
of inventory also includes an allocated portion of overhead costs.
Exel has certain real estate and equipment rental agreements that will
be deemed financing leases under IFRS, and financing lease assets and
corresponding interest-bearing liabilities will be entered on the
balance sheet with respect to these. Based on the new IFRS business
acquisition rules all of the assets and liabilities of an acquired
business will be marked to market and goodwill (including any acquired
goodwill) will no longer be amortised but tested for impairment on an
annual basis.

The upcoming IFRS transition will also have other effects on Exel’s
accounting principles. Exel will detail these and any transition-
related changes in reported amounts no later than in its 2004 annual

During 2003, the Board of Directors has refined the Group’s corporate
governance and instructions. The new instructions were adopted in
spring 2003. The Board has taken notice of new recommendations for the
corporate governance of listed companies drawn up in December 2003,
and will adopt them on July 1, 2004 at the latest.

The Group will issue quarterly interim reports on April 29, 2004, July
22, 2004 and November 2, 2004.

No significant further recovery in the market as a whole is expected
in the near future. However, the Nordic Walking and certain profile
markets are forecast to be very active during the beginning of the
year. The integration of Bekaert’s pultrusion operations into the Exel
Group requires significant resources. Projects to enhance productivity
will be continued. Cost pressures are growing due to increasing demand
for carbon fibre. The Group’s net sales are expected to grow both
organically and through the acquisition. Operating profit is expected
to improve further in the first half of 2004 compared to the
corresponding period previous year.


(EUR 1,000)                         2003     2002     change %
Net sales                           57,281   51,203   12%
Operating profit                    5,345    3,802    41%
Financial income and expenses       -436     -655     -33%
Profit after financial items        4,910    3,147    56%
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Profit before income taxes          4,910    3,147    56%
Taxes                               -1 537   -921     67%
Profit for the year                 3,373    2,225    52%
BALANCE SHEET (EUR 1,000)           2003     2002     change %
Intangible assets                   3,456    3,922    -12%
Tangible assets                     10,470   10,636   -2%
Investments                         95       127      -25%
Inventories                         8,747    7,962    10%
Receivables                         8,626    6,635    30%
Marketable securities               762
Money in hand and at bank           1,1991   2,525    -21%
Share capital                       1,870    1,853    1%
Other shareholders’ equity          15,666   13,086   20%
Non-current liabilities             4,091    6,329    -35%
Current liabilities                 12,521   10,538   19%
Balance sheet total                 34,147   31,807   7%

FUNDS STATEMENT                     2003     2002     change %
Cash flow from business operations  6,409    5,994    7%
Investments in tangible and
intangible assets                   -2,599   -2,077   23%
Income from surrender of tangible
and intangible assets               79       57       39%
Rights issue                        282      147      92%
Withdrawals of non-current loans    53       71       -25%
Repayments of non-current loans     -2,192   -2,240   -2%
Withdrawals of/repayments of
current loans                       -747     473      -258%
Dividend paid                       -1,060   -1,840   -42%
Other                               4        6        -33%
Change in liquid funds              229      591      -61%

INDICATORS                          2003     2002     change %
Earnings per share, EUR             0.64     0.42     52%
Earnings per share, EUR (diluted)   0.62
Equity per share, EUR               3.26     2.78     17%
Dividend per share, EUR x)          0.80     0.20     300%
Return on equity (ROE), %           20.8     15.2     37%
Return on investment (ROI), %       20.8     14.3     45%
Solvency ratio, %                   51.7     47.2     10%
Gearing, %                          29.4     55.3     -47%
Gross investment (EUR 1,000)        2,519    2,014    25%
% of net sales                      4%       4%
Personnel at year end               355      359      -1%
Average personnel                   355      374      -5%
Order book as of Dec. 31, 2003
(EUR 1,000)                         11,449   7,564    51%

x) Board of Directors’ proposal for 2003

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CONTINGENT LIABILITIES              2003     2002
Liabilities for which a corporate
mortgage and real estate mortgages
have been provided as collateral

Financial institution loans         7,611    10,231
Mortgages given on land and
buildings                           2,954    2,954

Corporate mortgage given            12,500   12,500

NET SALES BY MARKET AREA            2003     2002

Finland                             12,446   12,522
Other Nordic countries              5,820    6,513
Rest of Europe                      36,010   28,674
North America                       2,332    2,326
Other countries                     674      1,169
Total                               57,281   51,203

Mäntyharju, February 24, 2004


Board of Directors         Ari Jokelainen

Further information:
Mr. Ari Jokelainen, President, Exel Oyj, tel. +358 50 590 6750
Mr. Markku Herranen, CFO, Exel Oyj, tel. +358 50 590 6758