KONE Publishes Demerger Prospectus

On 1 November, 2004, KONE Corporation’s Board of Directors signed the demerger plan, and an extraordinary shareholders’ meeting will on 17 December, 2004 decide on the demerger.
The prospectus concerning the demerger will be published today, 9 December, 2004. The prospectus contains some information that has not been disclosed previously and the most essential information according to the judgment of the company is separately disclosed in this release. Shareholders and investors are, however, instructed to acquaint themselves with the entire prospectus.

This release includes the following (the whole release is available in a separate PDF file):

• pro forma financial information, calculation principles and key figures concerning the companies to be formed in the proposed demerger, new KONE and Cargotec, including the division of assets and liabilities of the demerging corporation between the companies to be formed in the demerger
• the long-term financial targets of new KONE and Cargotec
• a statement concerning events after the 1 January-30 September, 2004 interim financial statements that significantly affect the financial standing of the company, including an assessment of the impact of the acquisition of MacGREGOR Group on the net debt, goodwill, total equity/total assets ratio and gearing of Cargotec
• the outlook of the company for the rest of 2004, including the impact of the sale of Kone Corporation’s treasury shares and Velsa Oy’s shares to net debt and gearing

Other key sections of the prospectus include:

• the disclosed demerger plan signed by KONE’s Board on 1 November, 2004
• descriptions of the operations, strategies and key strengths of new KONE and Cargotec

The Prospectus will be available on KONE’s website www.konecorp.com in the “Investors” section, at OMX way at the address Fabianinkatu 14, FIN-00130 Helsinki, and can be ordered from Ulla Silvonen, tel. +358 204 75 4332 and Minna Tappola, +358 204 75 4536.
emptyThe release in PDF format
Sender:
KONE Corporation
Board of Directors
Tapio Hakakari
Director, Secretary to the Board of Directors
Minna Mars
Senior Vice President, Corporate Communications & IR
For further information, please contact:
Aimo Rajahalme, Executive Vice President, Finance and Information Services, tel. +358 (0)204 75 4484
Kari Heinistö, Senior Executive Vice President, Kone Cargotec, tel. +358 (0)204 55 4542
www.konecorp.com