KONE's Share Capital Increases through Subscription of Shares with 2005A and 2005B Option Rights

A total of 1,740 new KONE class B shares have been subscribed for with 2005A option rights and a total of 9,000 new KONE class B shares with 2005B option rights.

The corresponding EUR 5,370.00 increase in KONE Corporation’s share capital has been entered into the Finnish Trade Register on 9 August, 2006. Trading of the new shares will start on 10 August, 2006. The shares acquired shall first qualify for dividend payment for the financial year during which the subscription has taken place. Other rights related to the shares shall commence on the date when the increase in the share capital is entered into the Trade Register.

KONE 2005A and 2005B option rights were listed on the main list of the Helsinki Stock Exchange on 1 June, 2005. To date, 448,350 shares have been subscribed for with the option rights. The maximum number of shares that can be subscribed for is 1,308,510. The subscription price is EUR 8.04 per share.

KONE’s share capital is EUR 63,978,930.00 after the entry into the Trade Register, comprising 108,905,682 listed class B shares and 19,052,178 unlisted class A shares.

Sender:

KONE Corporation

Jukka Ala-Mello
Director, Secretary to the Board

Minna Mars
Senior Vice President,
Corporate Communications & IR

For further information, please contact:
Jukka Ala-Mello, Director, Secretary to the Board, tel. +358 (0)204 75 4226

KONE is one of the world’s leading elevator and escalator companies. It provides its customers with industry-leading elevators and escalators and innovative solutions for their maintenance and modernization. KONE also provides maintenance of automatic building doors. In 2005, KONE had annual net sales of EUR 3.2 billion and about 27,000 employees. Its class B shares are listed on the Helsinki Stock Exchange.

www.kone.com