Stock Exchange release September 30, 2003 02:37:52 PM CET

METSO'S EFFICIENCY IMPROVEMENT PROGRAM IS PROCEEDING

Metso Minerals will downsize its manufacturing units in in the United States, Finland and France in order to streamline the cost structure and reduce overcapacity.
At the manufacturing plant in Milwaukee, WI, USA, production of heavy-duty mining crushers and other products will cease by the end of June, 2004. The decision will affect approximately 100 employees. The manufacturing of Milwaukee products will be transferred to other Metso units and partly outsourced to North American subcontractors. Functions not related to manufacturing will continue in Milwaukee. These include sales, marketing and R&D.
At the Tampere crusher plant in Finland, the downsizing affects approximately 80 - 100 employees. The manufacturing of some Tampere products will be transferred to other Metso units. Due to the weakening load situation at Tampere, negotiations on temporary layoffs will also be started. Metso Minerals has approximately 850 employees in Tampere, Finland.
Efficiency improvement measures will also start in the Mâcon unit in France as well as at Metso Minerals headquarters. In Mâcon Metso Minerals has 275 employees. Metso Minerals headquarters currently employ 65 people and the actions will affect about 20 positions.
The annual cost savings of the actions that have now reached their implementation stage amount to EUR 18 million. The corresponding nonrecurring cost is EUR 21 million.
Metso Minerals has globally over 40 manufacturing units and the business area employed almost 10,800 persons at the end of 2002.
The earlier announced reduction of about 300 employees in Metso Paper's North American operations will reach the implementation stage for approximately 100 employees in October. The annual cost savings of these actions is approximately EUR 9 million. The corresponding nonrecurring cost is approximately EUR 10 million. Metso Paper has about 1,500 employees in 15 units in North America. The rest of the actions to reduce Metso Paper's personnel in North America will be specified by the end of the year 2003.
Related to the analysis on decreasing in-house manufacturing capacity in the Nordic countries, Metso Paper has started planning the outsourcing of Turku Works and the component production related to papermachine finishing equipment in Järvenpää, Finland. These two units together employ together about 200 people.
The above mentioned actions are part of Metso Corporation's efficiency improvement program to streamline the long term cost structure and accelerate profitability improvement. The program aims at an annual result improvement of approximately EUR 100 million, of which Metso Paper will account for EUR 30-40 million, Metso Minerals for EUR 50-60 million and Metso Automation for EUR 10 million.
In addition to streamlining the cost structure and improving the operational efficiency Metso aims to strengthen its long term competitiveness while directing resources more clearly towards Metso's transformation in order to respond to customer needs.
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 2002, the net sales of Metso Corporation were EUR 4.7 billion and the personnel totaled approximately 28,500. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.