Exel Oyj to establish a joint venture in China

EXEL OYJ          STOCK EXCHANGE RELEASE     9.12.2004 at 12.15  1 (1)


Exel Oyj has today 9 December 2004 signed in Beijing, China a contract
with China Institute of Sports Science regarding the establishment of
a joint venture in China. Exel is among the first Western companies to
apply for permission to set up a joint venture in order to import and
sell in China products manufactured outside of China. The law
permitting the import and sales of non-PRC (People’s Republic of
China) products will come into effect on 13 December 2004. The
application process is estimated to take from 3 to 4 months, and the
joint venture is expected to be in full operation in spring 2005.

The joint venture offers significant growth potential in a new market
area to Exel’s Sport division’s products. At the beginning the
objective of the joint venture is to market and sell sport products in
China, mainly poles for Nordic Walking, cross-country skiing and
Alpine skiing. Later the product range will possibly be expanded to
other products.

The analyses published earlier regarding the start-up of production in
China are progressing, and decisions are expected to be made during
the first quarter of 2005.

More detailed information will be given in a press conference to be
organized on Monday 13 December 2004 at 11 am Finnish time at Scandic
Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland.

Mäntyharju, 9 December 2004


Ari Jokelainen
President & CEO

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

Exel Oyj is a Finnish company specialised in composite technology. The
Group’s operations consist of sporting goods and industrial
applications. Exel’s best-known products include cross-country and
Alpine poles, Nordic Walking poles, surfboard masts, floorball clubs
and industrial profiles in general. The Group’s six factories are
located in Finland, Germany, Belgium and Spain. Over 80% of production
is exported. In 2003 the Group’s net sales totalled EUR 57.3 million.
Exel personnel numbers 450. Exel’s share is listed on Helsinki
Exchanges Main List. www.exel.net.