Metso initiates reductions of workforce in Karlstad, Sweden

Metso Corporation´s press release on January 19, 2009, 10.55 a.m. local time

Metso will start personnel negotiations regarding the reduction of 45 persons at Metso Paper Karlstad AB in Karlstad, Sweden. The company’s operations are part of Metso’s Tissue business line and Paper business line.

The reduction is part of the capacity adjustments and relocating of operations initiated within Metso’s Paper and Fiber Technology segment. The primary reason of the rearrangements is the weakening of the global market situation. Operations need to be downsized and made more flexible to handle changes in the market.

The reductions will affect both blue and white collar employees and will become effective by the end of 2009. The one-time costs related to these arrangements are not expected to be material for Metso.

Metso Paper Karlstad AB currently employs close to 500 people in Karlstad. The unit supplies technology and services for the global tissue making industry and for the Scandinavian paper and board industry. Altogether Metso employs more than 3,100 people in Sweden.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have over 29,000 employees in more than 50 countries.

For more information, please contact: Anders Björn, President, Metso Paper Karlstad AB, Sweden Tel. +46 54 17 13 38, mobile +46 705 17 13 38