Ponsse and Volvo to cooperate in Latin America

Ponsse and Volvo agreed cooperation in Latin America to offer full line
solutions for the customers and distributors. Under this cooperation Ponsse and
Volvo will find the best application for eucalyptus and pine harvesting needs.
Together companies can now offer comprehensive alternatives so that
distributors can serve the industry in best possible way.

The cooperation with Volvo is a natural continuation of our strategy in Latin
America. Volvo has a strong position in the market, a comprehensive network and
good customer relationships. Volvo and Ponsse are based in Nordic companies,
sharing similar thinking about quality and operational culture: the culture and
procedures work well together.

"We started our collaborative product development between us and it has
resulted in the development of a purpose-built professional excavator-based
harvesting applications, integrating Ponsse's competence in the forest industry
- over thirty-five years - and Volvo's remarkably extensive experience in
excavator-based machines. Together we can offer a clever solution from the
forest to the mill: harvesting, short-distance haul, road transport and timber
processing in production plants. We also offer to our customers advanced
information system solutions and related applications that enhance the entire
logistics chain for efficient wood procurement, says Arto Tiitinen", President
and CEO of Ponsse Oyj.

In Brazil alone, the paper and pulp industry uses wood harvested from
cultivated plantations over 100 million cubic meters per year, and the volume
of harvesting will double in the near future. Eucalyptus trees grow fast, the
rotation time is approximately seven years. The world's leading forest
companies have strongly invested, and will continue to strongly invest, in the
paper and pulp industry in Latin America. The investments will increase the
demand for eucalyptus, consequently increasing the demand for forest machines.
As a result, we decided to also initiate the product development and production
operations of debarking harvesting heads at Ponsse Latin America Ltda.

"It's important to have good distribution network in a very competitive market.
With Ponsse's experience in forestry sector and Volvo´s experience in Latin
American market, together we will operate close to the customer and ensure the
efficiency of harvesting operations for them by providing an efficient
maintenance network and comprehensive training opportunities. With this long
term partnership together we will strengthen our penetration and gain
remarkable market position in Latin America forestry sector", states Arto
Tiitinen.

Ponsse Oyj is one of the three leading manufacturers of forest machines. Ponsse
manufactures forest machines and timber harvesting-related information
technology as well as producing services relating to their effective use.
Ponsse Oyj's shares are quoted on the main list of the Helsinki Stock Exchange.
Export and foreign operations account for approximately sixty-five per cent of
the company's turnover.

Vieremä, 13 April 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