Largest retail agreements in Ponsse's history signed in Brazil

Ponsse Latin America Ltd has signed co-operation agreements with Linck S.A.,
Motiva S.A. and Tracbel S.A. The companies operate in Brazil in areas where
100 per cent of eucalyptus forests cultivated for forest industry raw material
are located.

The agreements relate to the retail sales of PONSSE forest machines and
harvesting heads produced by Ponsse's Brazilian factories.

- Linck S.A. operates in the states of Rio Grande do Sul, Santa
Catarina and Paraná. Linck S.A. is also a distributor for Volvo, Metso Minerals,
JCB, Dynapac and Clark.

- Motiva S.A. operates in the states of Bahia, Sergipe, Alagoas
Permambuco, Paraíba and Rio Grande do Norte states. Motiva S.A. is also a
distributor for Volvo, Yale, Michelin and JCB.

- Tracbel S.A. operates in the states of Espirito Santo, Rio de
Janeiro, Sao Paulo, Pará, Minas Gerais and Amazonas. Tracbel is also a
distributor for Volvo, Massey-Ferguson, Dynapac, Clark, Allison and Michelin.

"This agreement is part of Ponsse’s strategy to expand its distribution network
through independent companies with a strong presence amongst the area’s forest
industry. The new partners´ biggest strengths are their solid experience in the
sales and servicing of forest machines and heavy industry equipment. Our new
partners have strong service networks for securing customers’ effective use of
forest machinery. The arrangement will strengthen Ponsse's market position in
Latin America," says Ponsse Oyj´s President and CEO Arto Tiitinen.

The agreements were signed at a meeting of Ponsse Group's Board of Directors in
Mogi das Cruzes, Sao Paulo, Brazil, on 15 September 2006.

PONSSE OYJ

Arto Tiitinen
President and CEO


FOR FURTHER INFORMATION, PLEASE CONTACT:
Arto Tiitinen, President and CEO, Ponsse Oyj
tel. +358 400 566 875

DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.ponsse.com