PONSSE TO ESTABLISH A SUBSIDIARY IN RUSSIA

Ponsse Oyj is to establish Russian subsidiary in early 2005. The new
subsidiary’s head office will be in the St Petersburg
area. It will sell and service Ponsse’s products and develop and
provide support to dealer network in Russia. Also OOO Zeppelin Russland
serves as Ponsse’s dealer in Russia.

"The outlook on the Russian forest machine market is promising. Some
160 million cubic metres of wood are harvested each year in Russia
and we can expect increased investment in raw wood processing in
Russia in the foreseeable future. We consider mechanized wood
harvesting based on the cut-to-length method to grow in Russia.
Success in the market presumes a strong representation. Thus we
guarantee efficient service for our customers and dealers", says
Arto Tiitinen of Ponsse Oyj.

Vieremä, 21 December 2004

PONSSE OYJ

Arto Tiitinen
President, CEO

Further information from: President, CEO Arto Tiitinen
tel: +358 20 768 8621

DISTRIBUTION
Helsinki Exchanges
Main media
www.ponsse.com