Exel Oyj Interim Report January – March

Net sales, M€ % 56.8 Oper. profit, M€ % 10.8 % of net sales 15.7% 14.5% 19.0% Average personnel % 236 Q1/2006 Q1/2005 Change 2004 Key figures of the Industry Division Exel Oyj Interim Report January-March 2006

Industry Division Exel Oyj Interim Report January-March 2006 Industry Division’s net sales grew by 38 per cent on those posted a year earlier to EUR 41.7 (36.7) million –EUR 3.2 million arose from the acquisition of Pacific Composites and Faserprofil –EUR 1.6 million organic growth The Group’s strategic focus area, the Industry Division, continued its expansion –At the end of February the Australian company Pacific Composites Pty. Ltd was acquired with production operations in Australia, Great Britain and China –The acquisition further enables Exel to serve international customers globally –Exel’s establishment in China and the Far East markets will be accelerated and the range of product offerings broadened

Industry Division Exel Oyj Interim Report January-March 2006 As a result of the acquisition of Pacific Composites, the Industry Division’s European production strategy is being reassessed, currently 8 production plants in Europe –Exel is looking at consolidating its factories in Great Britain –The production of profiles that is currently subcontracted in Spain will be transferred to other units in Europe –Rationalisation of production will create non-recurring costs of approximately EUR 0.5 million Industry’s operating profit grew to EUR 2.7 (1.8) million –Increased sales and better usage of the production capacity Carbon fibre raw materials remain in short supply; limits the development of new applications and could impact sales of some product groups towards the end of the year. Shortage expected to continue into the beginning of 2007.

Net sales, M€ % 34.5 Oper. profit, M€ % 2.6 % of net sales -25.5% 4.2% 4.6% Non-recurr. costs 1.9 Average personnel % 231 Q1/2006 Q1/2005 Change 2005 Key figures of the Sport division Exel Oyj Interim Report January-March 2006

Sport Division Exel Oyj Interim Report January-March 2006 Sport’s net sales decreased by 10% from the previous year’s level –The decrease in sales stems entirely from the Nordic Walking market segment –Heavy investments to open up new markets in North America and China –Floorball and laminate increased sales over last year –In January the decision was taken to subcontract the surface treatment, assembly and packaging operations for Nordic Walking and floorball products to China. The goal is that all these operations are handled completely in China by the beginning of Restructuring of operations at the Mäntyharju factory; as a result of personnel negotiations 54 employment contracts to be terminated. In addition, approx. 20 non- permanent employees on fixed-term contracts will not have their contracts renewed. The restructuring is expected to generate savings on the level of 2 millions from 2007 onwards.

Sport Division Exel Oyj Interim Report January-March 2006 Sport’s operating loss before restructuring costs EUR -0.2 (+0.4) million The strong focus on opening new NW markets, the strengthening of the Exel Sports Oy organisation, and the launch of the NFS concept continued to negatively impact the division’s operating profit In addition, non-recurring costs amounting to EUR 1.9 million were recorded stemming from the transfer of production operations, out of which EUR 1.7 million were write-offs

Group net sales January-March 2006 Sport 32% Industry 68% M€1-3/ /2005Change, %2005 Industry Sport Total Net sales 1-3/2006 Exel Oyj Interim Report January-March 2006

Group operating profit January-March 2006 M€1-3/ /200Change, %2005 Industry 2.7 1,8 49.1%10.8 Sport % 1.6 Total Exel Oyj Interim Report January-March 2006

Net sales and profit performance Exel Oyj Interim Report January-March 2006 Consolidated net sales for Jan-March grew by 17.8 per cent over the previous year to EUR 25.6 (21.7) million –Net sales include the operations of Pacific Composites for the month of March; a contribution of EUR 2.2 million of the net sales Operating profit EUR 0.6 (2.2) million –Operating profit before restructuring costs was EUR 2.5 million, which is higher than previous year Net financial expenses EUR 0.2 (0.1) million Group’s pre-tax profit EUR 0.5 (2.1) million and profit for the period EUR 0.3 (1.5) million

Net sales 25., Operating profit % of net sales 2.4% 10.1% 13.5% Profit for the period Equity Interest-bearing net liabilities Invested capital Return on equity, % 4.6% 28.8% 37.3% Return on investment, % 5.0% 25.6% 34.0% Solvency ratio, % 35.1% 46.0% 50.0% Net gearing 86.7% 43.8% 30.2% Earnings per share, EUR, dil Equity per share, EUR Consolidated key figures Exel Oyj Interim Report January-March

Balance sheet and financial position Exel Oyj Interim Report January-March 2006 Consolidated balance sheet at the end of the reporting period EUR 83.9 (48.5) million EUR 28 million from Australian acquisition and EUR 2 million from Austrian acquisition Solvency ratio 35.1 (46.0) per cent Cash flow from business operations EUR +1.3 (-1.7) million Capital expenditure was financed with cash flow from business operations and acquisition with a long-term loan and issue of share capital At the end of the reporting period, liquid assets were EUR 7.7 million, compared with EUR 5.8 million at the end of 2005

Shares Exel Oyj Interim Report January-March 2006 Share turnover 1-3/ % of the average number of outstanding shares Market capitalization on 31 March 2006 EUR million Highest share price EUR and closing price EUR Exel Oyj 6/2005-5/2006

Principal shareowners on 3 May 2006 Exel Oyj Interim Report January-March 2006 ShareownerNumber of Share % shares Nordstjernan AB Ilmarinen Mutual Pension Insurance Company Varma Mutual Pension Insurance Company Veikko Laine Oy Berling Capital Oy Ulkomarkkinat Oy OP Suomi Kasvu Investment Fund Suutarinen Matti ,49 Nordea Bank Finland (nominee reg.) ,00 Lemarne Corporation Ltd ,95

Outlook Exel Oyj Interim Report January-March 2006 Pacific integrated with the Group during 2006 – will significantly increase net sales for the Industry Division The acquisition strengthens and accelerate the growth of the Industry division, especially in Far East markets already in 2006 Industry’s production strategy is being assessed in Europe – rationalisation will create non-recurring costs of approx. EUR 0.5 million Carbon fibre in short supply also in 2006 – limits growth opportunities and could impact sales of some product groups towards the end of the year The main markets for NW in Central Europe remain leveled as retail chains sell out existing stocks. The chains are expected to focus on the leading pole brands, including Exel. Efforts to open new NW markets continue

Outlook Exel Oyj Interim Report January-March 2006 The transfer of pole and floorball assembly and finishing combined with outsourcing logistics, will improve the Sport Division’s profitability beginning in 2007 Group net sales are expected to increase significantly Due to the considerable reorganisation of the Sport Division’s production and the integration of Pacific composites, the result will be impacted by non-recurring items, as a result of which the pre-tax profit is expected to be lower than in 2005.