Employee Negotiations Related to Development and Restructuring Program Concluded in Hattingen

In order to improve the productivity of its production lines and the cost-competitiveness of its products, KONE disclosed in March 2005 a development and restructuring plan.

In conjunction with disclosure of the plan, personnel negotiations were initiated in the escalator production unit in Hattingen, Germany.
The negotiations in the Hattingen facility have now been concluded. During the negotiations, different alternatives were evaluated, but no alternative solution was found to discontinuing production. Escalator production will be closed down at the end of September, 2005. The closing will affect the employment of 283 people. Outplacement and training services will be provided to those affected.
The Hattingen facility will carry on as KONE’s Global Escalator Technology and Service Business Center. The Center’s functions will include research and development for escalators, autowalks and ramps; escalator modernization business development; spare parts business support; and quality, sourcing and sales support. Personnel will number approximately 100.
KONE has concentrated its escalator production in Kunshan (China), Keighley (the U.K.) and Coal Valley (U.S.A.). Efforts to reduce costs and improve productivity at the Keighley and Coal Valley facilities will continue.
Sender:
KONE Corporation
Aimo Rajahalme
Executive Vice President, Finance and Information Services
Minna Mars
Senior Vice President, Corporate Communications & IR

For further information, please contact:
Minna Mars, SVP, Corporate Communications & IR, tel. +358 (0)204 75 4501
KONE is the world’s fourth largest elevator and escalator company and provides complete and innovative solutions for the installation, maintenance and modernization of elevators and escalators and the maintenance of automatic building doors. KONE provides safe and easy access to hundreds of millions of people daily in all parts of the world. KONE has annual net sales of approximately EUR 2.9 billion and about 27,000 employees. Its class B shares are listed on the Helsinki Exchanges.
www.kone.com