Ponsse Oyj to Become Lako Oy’s Majority Shareholder

Ponsse Oyj will buy 92 per cent of Lako Oy shares. With 20 years’ experience in
harvester head engineering, manufacturing, and marketing in more than 20
countries, Lako Oy will continue to operate as an independent Ponsse Oyj
subsidiary headed by Managing Director Turkka Lastunen. The parties to this deal
will not disclose the purchase price of the shares.

The handling capacity of Lako Oy’s products ranges from trunks around half a metre
thick to bulkier one-metre ones. In addition, the company’s product range includes
a series of bark removing harvesting heads. The company’s harvesting heads are
suited for attachment to both conventional rubber-tyred cut-to-length forest
machines and excavator based applications.

"Combining Ponsse’s and Lako’s expertise in highly advanced harvesting heads with
Epec Oy’s excellence in measuring instruments - which have become a concept in the
industry - will enable us to provide our customers with comprehensive solutions
for timber harvesting operations of all sizes. This deal will strengthen our
capabilities, for example, to operate in the expanding Latin American markets,
thanks to the bark removing harvesting heads. In addition, our main range of the
heaviest harvesting head models will be supplemented with new ones and heavy-duty
excavator based applications, which are in great demand in, for instance, Russia
and North America. Lako also boasts an established distribution and service
network as well as capabilities for effective product support. This share purchase
will enable us to provide barking harvesting heads for harvesting acacia and
eucalyptus trees," explains Arto Tiitinen, President and CEO of Ponsse Oyj.


Vieremä, 1 July 2005

PONSSE OYJ

Arto Tiitinen
President and CEO

FOR MORE INFORMATION, PLEASE CONTACT:
Arto Tiitinen, President and CEO, Ponsse Oyj
Tel.: +358 (0)20 768 8621

DISTRIBUTION
Helsinki Stock Exchange
Major media
www.ponsse.com