Stock Exchange release July 1, 2004 08:34:36 AM CET


Following the approval of the necessary competition authorities Metso Corporation has completed the divestment of its compaction and paving equipment group, Dynapac, to the Nordic private equity investor Altor. The purchase price was paid and Dynapac was transferred to the buyer on June 30, 2004. The debtfree divestment value is estimated to be EUR 283 million. Metso and Altor reached an agreement of the sale in April 2004.
The divestment has a significant positive effect on Metso's gearing, which will decrease approximately 27 percentage points. Following the divestiture the value of goodwill and other intangible assets on Metso's balance sheet will decrease by approximately EUR 130 million.
The divestment of Dynapac is a part of Metso's strategy to focus on serving pulp and paper industry, rock and minerals processing and process automation customers. Dynapac, which was a part of Metso Minerals, does not have customer based synergies with other businesses within the business area.
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 2003, the net sales of Metso Corporation were EUR 4.3 billion. Metso has approximately 26,000 employees in 50 countries. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates", "forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company.
Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions developed by competitors
(3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.

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