Stock Exchange release December 20, 2000 09:07:40 AM CET

METSO WILL EXPAND ITS TISSUE MAKING RESEARCH AND DEVELOPMENT CENTER IN KARLSTAD

Metso Corporation's fiber and paper technology business area, Valmet, will invest EUR 25 million on its tissue making research and development technology in Karlstad, Sweden. The expanded facilities and the new pilot tissue machine will be operational in August 2001. The investment will further strengthen the business area's leading position in tissue making technology.

Karlstad's pilot machine will be transferred to Sweden from the former Beloit Research and Development Center in Rockton, U.S.A. Metso purchased Beloit's roll cover division, paper machine aftermarket business assets and the related paper machine technology earlier this year.

Metso Corporation's fiber and paper technology business area's tissue making business line has focused its research and development in Karlstad. A parallel pilot tissue machine is already operating there.

The good market situation has also increased the demand for trials in pilot facilities. During this year, nine tissue machines have been sold by Metso, most of them based on the Through Air Drying technology developed by the business area.

Metso Corporation's fiber and paper technology business area, Valmet, is the world's leading supplier of technology, systems and equipment for the pulp, paper, converting and panelboard industries. In 1999, Valmet's net sales were EUR 1.7 billion and it employed 10,600 persons.

Metso Corporation is a global supplier of process industry machinery and systems. In addition to fiber and paper technology, Metso's business areas are automation and control technology, and machinery. In 1999, the net sales of Metso Corporation were EUR 3.4 billion, and the personnel totaled approximately 23,000. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.