Exel Oyj Interim Report for 1.1. – Göran Jönsson, President & CEO

Net sales EUR 28.8 million, up 12.5% Operating profit EUR 3.5 million compared to EUR 0.6 million including EUR million of non-recurring items first quarter 2006 Operating profit 12.2% (2.4%) of net sales Return on equity 36.2% (4.6%) Return on capital employed 24.3% (5.0%) Earnings per share EUR 0.19 (0.03) adjusted for full dilution New structure: Industry including all production (Mäntyharju, Plastics transferred) Highlights Exel Oyj Interim Report 1-3/2007

Net sales, M€ % Oper. profit, M€ % 9.0 % of net sales 16.0% 9.0% 8.5% Average personnel % 510 Q1/2007 Q1/2006 Change 2006 Industry Division’s Key Figures Exel Oyj Interim Report 1-3/2007

Industry Division Exel Oyj Interim Report 1-3/2007 The Industry Division’s net sales increased to EUR 26.7 (23.1) million, an increase of 15.4 per cent –Growth mainly due to the integration of the Pacific Composites Group and new profile applications especially for building, construction and energy industries Antenna profile market down from last year Strong efforts to introduce new applications

Industry Division Exel Oyj Interim Report 1-3/2007 Profitability remained on a good level despite considerable increases in raw material prices Operating profit grew by 106.4% to EUR 4.3 (2.1 including 1.5 million non-recurring items) million –Improvement in profitability caused by higher sales volumes and productivity gains at the main factories –Belgian factory in particular has achieved better productivity and operating profit than last year

Industry Division Exel Oyj Interim Report 1-3/2007 Short supply of certain carbon fibre types continued having slowed down sales of some new applications Most carbon fibre suppliers have announced increase in production capacity – available on the market in stages during Synergies and benefits of the Pacific Composites Group have been successfully gained

Net sales, M€ % 19.3 Oper. profit, M€ % -9.4 % of net sales -18.9% -26.6% -48.8% Average personnel % 69 Q1/2007 Q1/2006 Change 2006 Sport Division’s Key Figures Exel Oyj Interim Report 1-3/2007

Sport Division Exel Oyj Interim Report 1-3/2007 The Sport Division’s net sales decreased by 36.9% from the previous year from EUR 5.9 million to EUR 3.7 million mainly due to –Mild winter, which also had a negative impact on reorders –Delays in deliveries from Chinese suppliers Nordic Walking market in Germany has recovered slightly Agreements signed with distributors in Italy, France and South-Korea to generate additional sales Sales of floorball products have developed well during the quarter Operating loss EUR -0.7 (-1.2 before non-recurring items) million Margins were in line with expectations, but the quarter resulted in an operating loss due to the substantially lower sales than previous year, especially in continental Europe

Group Net Sales, EUR million Exel Oyj Interim Report 1-3/2007 Q1/2007 Q1/ Industry Sport Total

Group Operating Profit, EUR million Exel Oyj Interim Report 1-3/2007 Q1/2007 Q1/2006 Change 2006 Industry % 9.0 Sport % -9.4 Total

Exel Group Exel Oyj Interim Report 1-3/2007 The Group’s net sales in January-March grew by 12.5% on the previous year to EUR 28.8 (25.6) million –The major part of the growth is stemming from the acquisition of Pacific Composites –Sport Division’s cross-country and alpine products sales suffered from the mild winter and stiff competition. Additionally, Sport sales were impacted negatively by quality and delivery problems due to the transfer of the pole production to China Operating profit increased to EUR 3.5 million compared to EUR 0.6 million (including non-recurring items of EUR -1.9 million) the corresponding period last year –Improvement based on the restructuring measures taken in 2006, and the impact of the Pacific Composites acquisition Net profit for the reporting period EUR 2.3 (0.3) million

Net sales Operating profit % of net sales 12.2% 2.4% 0.3% Profit for the period Shareholders’ equity Interest-bearing liabilities Capital employed Return on equity, % 36.2% 4.6% -2.9% Return on capital employed, % 24.3% 5.0% 1.2% Equity ratio, % 31.7% 35.1% 29.9% Net gearing, % 110.9% 86.7% 112.8% Earnings per share, diluted, EUR Equity per share, EUR Key Financial Figures, EUR million Exel Oyj Interim Report 1-3/

Balance Sheet and Financial Position Exel Oyj Interim Report 1-3/2007 Consolidated balance sheet total at the end of the reporting period stood at EUR 84.0 (83.9) million Equity EUR 26.6 (29.4) million Equity ratio 31.7 (35.1) per cent Interest-bearing liabilities EUR 35.4 (33.2) million of which short-term liabilities accounted for EUR 9.9 (6.0) million Net interest-bearing liabilities were EUR 29.5 (25.5) million and the net gearing (86.7) per cent Cash flow from business operations EUR -1.2 (+1.3) million At the end of the reporting period, the Group’s liquid assets stood at EUR 5.9 million, compared with EUR 6.2 million at the end of 2006

Share price 5.8% of shares traded in Q Market capitalization EUR (168.8) million on 31 March 2007 Highest share price EUR (14.84) and lowest EUR (10.80) Exel Oyj 5/ /2007

Principal shareholders on 13 April 2007 Shareholder Number of % of shares shares and votes Nordstjernan AB Ilmarinen Mutual Pension Insurance Company Varma Mutual Pension Insurance Company Veikko Laine Oy Berling Capital Oy OP Suomi Small Cap Investment Fund Ulkomarkkinat Oy Suutarinen Matti Fondita Nordic Small Cap Inv. Fund ABN Amro Finland Investment Fund Lemarne Corporation Ltd FIM Fenno Investment Fund Renkkeli Oy ABN Amro Small Cap Finland Inv. Fund Veritas Pension Insurance Company

Outlook Exel Oyj Interim Report 1-3/2007 During 2007, the Group will concentrate on restoring the profitability of the Exel Group The focus on the primary business segment of the Group, the Industry Division, will be sharpened and a new business organization will be introduced. The Group will benefit further from the acquisition of Pacific Composites and the restructuring measures implemented at enhancing efficiency and cutting costs Although the important antenna profile sales will continue to slightly decline the overall market development for the Industry Division is expected to remain positive

Outlook Exel Oyj Interim Report 1-3/2007 The Sport Division is improving its negative performance, but due to a mild winter with low sales and prolonged sourcing problems, the profitability will improve slowly The primary business risks in 2007 lie in market demand, both in certain Industry and Sport segments, especially Nordic Walking; in the effective sourcing as well as in a continued shortage of carbon fibre For the full-year 2007, Exel expects the profit before taxes to improve compared with the 2006 result before taxes and non- recurring items