2003-11-04 KONE Divests Its Forest Machines Business to Komatsu

KONE has on 3 November 2003 signed an agreement for the sale of its forest machines operations, Partek Forest, to Komatsu Ltd. of Japan.

The enterprise value of the transaction is EUR 120 million, and it is subject to relevant competition authority approval.

Komatsu is one of the world’s leading manufacturers of construction and mining equipment, with net sales in 2002 of USD 9,236 million and almost 31,000 employees. Partek Forest markets its products through Komatsu’s dealerships in certain markets. By acquiring Partek Forest, Komatsu will broaden its range of forestry equipment with presence in all major markets around the world.

Partek Forest’s sales for the twelve months ended 30 September 2003 were approximately EUR 240 million disregarding the forest cranes business, which has been transferred to KONE’s Load Handling business area and is not included in the transaction. Partek Forest employs 1,008 people, of which 567 in Sweden, 225 in Brazil and 46 in Finland.

In June KONE announced its intention to concentrate on the elevator, escalator and automatic door service business, and on container and load handling, while seeking new owners for the tractor and forest machine businesses. When completed, the divestments will substantially reduce KONE’s gearing and net debt, which improves the possibilities to develop and grow KONE Elevators & Escalators and KONE Materials Handling.

Sender:

KONE Corporation

Tapio Hakakari
Secretary to the Board of Directors

Outi-Maria Liedes
Senior Vice President
Corporate Communications & IR

For further information, please contact:
Outi-Maria Liedes, Senior Vice President,
Corporate Communications & IR,
tel. +358 (0)204 75 4501

KONE is a global service and engineering company that specializes in moving people and goods. Annual net sales total EUR 5,500 million, and we employ nearly 35,000 people. KONE's B shares are listed on the Helsinki Exchanges.

Komatsu is one of the world’s leading manufacturers of construction and mining equipment. In 2002 it’s net sales were USD 9,236 million and it employs nearly 31,000 people. Komatsu’s shares are listed on the Tokyo Stock Exchange.

Partek Forest is a pioneer in mechanized timber harvesting and one of the world’s leading manufacturers of purpose-built forest machines. It’s products are sold under the Valmet and Timbco brands. Partek Forest’s net sales in 2002 amounted to EUR 235 million.