Ponsse to Expand its Production in Brazil

Ponsse is to initiate production and product development of eucalyptus-debarking
harvesting heads in Brazil. This is a continuation to Ponsse's strategy for
Latin America. The arrangement will also increase the manufacture of forwarders
as well as control systems and measuring instruments at Ponsse's factories in
Finland.

By using Latin American eucalyptus as raw material, forest industry has good
prospects for growth. In Brazil alone, the current annual volume of eucalyptus
harvesting, 100 million m3, will significantly increase in the future. Both
South American and the world's leading forest companies have invested, and will
continue to invest, in increasing their production capacity and in establishing
production plantations for the rapidly growing eucalyptus crop. As a result, the
requirements imposed on the supply of industrial raw material will increase.

"We want to be close to our customers, preparing and developing the world's most
efficient and comprehensive timber harvesting solutions for local conditions.
Brazil is the best possible location due to its industrial structure and long
traditions in the forest industry, making it extremely well suited for our
industrial operations in South America. Ponsse will establish product
development and production operations as well as a maintenance service and
training centre for Latin America near Sao Paulo," says Arto Tiitinen, President
and CEO of Ponsse Oyj.

Vieremä, 16 December 2005


PONSSE OYJ

Arto Tiitinen
President and CEO


For further information, please contact:
Arto Tiitinen, President and CEO, Ponsse Oyj
tel. +358 (0)400 566 875



DISTRIBUTION
Helsinki Stock Exchange
Major media
www.ponsse.com



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Ponsse Oyj 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 65% of the
company's turnover. The group employs more than 700 people and has operations in
nearly 30 countries.