Komatsu signs Share Purchase Agreement for acquisition of Partek Forest

Komatsu Ltd. has agreed with KONE Corporation to acquire 100% shares of KONE's subsidiaries, Partek Forest AB and Partek Forest Holdings, LLC (collectively, "Partek Forest"). The enterprise value of the transaction is EUR 120 million. Partek Forest, one of the leading companies for purpose built forestry equipment, produces and sells a wide range of equipment including harvesters, forwarders and feller bunchers. The acquisition is expected to close by the end of 2003, subject to necessary regulatory filings and approvals including those under the applicable antitrust laws and regulations.
Komatsu manufactures and distributes forestry equipment based on its excavators and bulldozers in some regions. By acquiring Partek Forest, Komatsu will establish a wide range of forestry equipment with presence in all major markets around the world. In addition, by combining the regional strength of Partek Forest in Europe and Komatsu in the Americas, Asia and the Pacific, Komatsu will create a powerful distribution and service network and develop a 50 billion yen forestry equipment business. Post acquisition, Partek Forest's products will continue to be sold under the Valmet and Timbco brands. Partek Forest has mainly direct sales networks, except in North America and in some other markets where Partek Forest's products are sold through distributors. In North and South America, Partek Forest products are already being sold through some of the Komatsu distributors. Komatsu will further strengthen the distribution and service network to enhance customer satisfaction of forestry equipment users.
Komatsu is currently pursuing a growth strategy and by making a full-scale entry into the forestry equipment business, Komatsu will broaden and strengthen its business base with the aim of increasing sales and profitability.

• Company name:Partek Forest AB
  Established:1961
  Head Office:Umea, Sweden
  President & CEO:Hans Eliasson
  Main Businesses:Manufacture and sale of forestry equipment mainly used in Europe
  Manufacturing Base:Umea and Vindeln, Sweden
  Number of Employees:Approx. 940
  Annual Sales (2002):Approx. 190 million Euro

• Company name:Partek Forest Holdings, LLC (Partek Forest North America, LLC)
  Established:2002
  Head Office:Shawano, Wisconsin, USA
  President:Leif Magnusson
  Main Businesses:Manufacture and sale of forestry equipment mainly used in North America
  Manufacturing Base:Shawano, Wisconsin, USA
  Number of Employees:Approx. 80
  Annual Sales (2002):Approx. 45 million Euro

• Company name:KONE Corporation
  Established:1910
  Head Office:Helsinki, Finland
  Securities:Listed on Helsinki Stock Exchange
  Chairman & CEO:Antti Herlin
  Main Businesses:Production, sale and service of elevators, escalators and material handling equipment
  Service Operations:Deployed worldwide in 40 countries
  Number of Employees:Approx. 35,000
  Annual Sales (2002):Approx. 5.5 billion Euro