Shareholders’ Agreement about the Membership of KONE’s Board of Directors

Kone Corporation issued a stock exchange announcement on 5 April 2005 about the agreement between Mr. Antti Herlin, Mr. Ilkka Herlin, Ms. Ilona Herlin and Mr. Niklas Herlin, under which the ownership of the largest holding companies of KONE Corporation, Security Trading Oy and Holding Manutas Oy, are to be reorganized through share transactions in June-July 2005. This reorganization has been completed, and as part of it, the Kone Foundation and Antti Herlin have signed a shareholders’ agreement under which the Kone Foundation has the right to appoint its representative as a candidate for membership of KONE’s Board of Directors.
The Kone Foundation must propose its candidate to the nomination committee of KONE’s Board, and the candidate must meet the educational and work experience requirements for the position. If these requirements are met, Antti Herlin will relinquish his ability to control the outcome of the voting by committing himself to use his direct and indirect voting rights to ensure that the candidate named by the Kone Foundation is selected as a full member of KONE’s Board of Directors. The agreement will be applied during KONE’s next annual general meeting. The agreement will stay in force as long as Kone Foundation’s direct and indirect ownership of KONE Corporation does not fall more than 20 percent from the current level.
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)400 408 316
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 25,500 employees. Its class B shares are listed on the Helsinki Exchanges.
www.kone.com