Stock Exchange release March 12, 2002 02:03:14 PM CET

METSO TO CONCENTRATE ITS BRAZILIAN OPERATIONS

Metso Corporation will concentrate its Brazilian operations in Sorocaba, in the state of São Paulo. The objective is the joint utilization of resources, processes and methods. Metso Minerals manufactures crushers and compaction equipment in Sorocaba.The plant houses also Metso Minerals' steel foundry, which is the largest in South America. Metso Paper and Metso Automation have sales offices in Sorocaba. The three core business areas of Metso employ a total of 1,215 persons in Brazil.

As a result of this change, Metso Minerals' plant in Vespasiano, in the state of Minas Gerais, which currently employs about 140 people, will be discontinued. The sales offices of Metso Paper and Metso Automation have transferred from Campinas to the shared premises in Sorocaba.

Brazil's rapidly growing infrastructure offers Metso with an opportunity for stable growth. The country's pulp and paper industry is both modernizing and investing in increased production capacity. As a result, Metso Paper has recently supplied for example a pulping line and a wood handling system, while Metso Automation have supplied several process automation and paper quality management systems. Brazil is an important producer of market pulp and the pulp industry is considering futher investments. The country's extensive copper and steel resources also provide demand for mining products. Although the products Metso Minerals manufactures in Brazil are primarily intended for domestic and South American markets, they are also increasingly exported to the rest of the world.

At the end of February, the Brazilian authorities gave clearance for the merger of Metso Minerals and Svedala Industri AB. This was the last official clearance needed for the acquisition.

Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket services. The Corporation's core businesses are fiber and paper technology (Metso Paper), rock and mineral processing (Metso Minerals) and automation and control technology (Metso Automation). In 2001, the net sales of Metso Corporation were EUR 4.3 billion and the personnel totaled approximately 30,000. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.