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

Based on the KONE 2005 option program, 13,770 new KONE class B shares have been subscribed for with A option rights and 31,830 new KONE class B shares with B option rights.

The Finnish Board of Patents and Registration has on 24 August, 2005 entered the corresponding 45,600.00 euro increase of KONE Corporation’s share capital into the Trade Register. Trading of the new shares will start on 25 August, 2005. 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 in the Trade Register.

KONE option rights based on the KONE Corporation option program 2005 were listed on the main list of the Helsinki Stock Exchange on 1 June, 2005. The amount of listed A option rights was 72,185 and B option rights 145,900. One option right entitles the holder to subscribe for three (3) KONE class B shares, and the maximum number of shares that can be subscribed for is 654,255. The subscription price is EUR 16.08 per share.

KONE’s share capital is 63,800,355.00 euro after the entry, comprising 54,274,266 listed class B shares and 9,526,089 unlisted class A shares.

Sender:

KONE Corporation

Tapio Hakakari
Director, Secretary to the Board

Minna Mars
Senior Vice President, Corporate Communications & IR

For further information, please contact:
Tapio Hakakari, Director, Secretary to the Board, tel. +358 (0)204 75 4226

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 three billion and about 27,000 employees. Its class B shares are listed on the Helsinki Exchanges.

www.kone.com