Exel to incorporate its Sport division's consumer producs into a separate company

EXEL OYJ STOCK EXCHANGE RELEASE     15.12.2004 at 13.30        1 (1)


Exel Oyj’s Sport division’s brand/consumer products have a strong
growth potential especially in Nordic Walking. To be able to respond
to the challenge set out by the markets by means of more focused and
strong operations, Exel has decided to incorporate the marketing,
sales, logistics and product development operations of the Sport
division’s consumer products (poles and floorball) into a separate
company. Poles and floorball clubs will be continued to be
manufactured by the parent company, which will be the new company’s
exclusive manufacturer of composite products. Moreover, laminate and
windsurfing mast operations will remains within the parent company.
The new company will purchase itself the so-called outsourced items
not manufactured by the parent company.

The transaction will be realized as stipulated in paragraph 52 d in
the law on taxation of income from trade. Assets and liabilities
relative to the operations will be transferred to the new company.
Also, the personnel employed by the operations will be transferred to
the new company as old employees. The transfer concerns 25 to 30
persons. Exel Oyj aims at realizing the incorporation without delay,
however at the latest by the end of January 2005. The new company’s
shares will be fully owned by Exel. The arrangement aims at more
effective and straightforward internal operations and better focusing
on the new company’s core business and thereby higher competitiveness.

Mäntyharju, 15 December 2004


Further information:
Mr. Ari Jokelainen, President & CEO, 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. Further information: www.exel.net.