Ponsse's investments total 20 million euro


PONSSE OYJ PRESS RELEASE 15 JANUARY 2007 AT 2:30 PM

Ponsse's investments total 20 million euro

The latest phase of Ponsse's investment programme in Vieremä is the new component
factory which will be inaugurated by the Finnish Prime Minister Matti Vanhanen on
the 15 January 2007. Cut-to-Length method forest machine markets are expected to
grow in all the main markets in the future. These investments make it possible
for Ponsse to double its production capacity.

Scheduled for completion in autumn 2007, the component factory with its modern
production technology is a large investment in productivity and quality for the
whole forest machine factory. At the same time, the investment will reduce
delivery times for forest machines. As a result of the investment, the production
of spare parts will be separated from the component production of new machines,
which will result in an increase in the service level of maintenance operations.

The global growth of the Cut-to-Length forest machine markets will further
increase the demand for forest machines. According to Jaakko Pöyry Forest
Industry Consulting Oy, driven by industry growth, the global annual harvesting
volume of industrial wood is predicted to increase from 1.54 billion m3 to 1.83
billion m3 in 2020.

Due to increased machine delivery volumes and the growing number of visitors, an
extension to the assembly factory and a new customer service centre were
constructed in 2005, as well as a delivery and final phase equipment hall in
2006. In the space of two years, the total area of industrial operations and
premises required has grown from 15,800 to approximately 25,000 square metres.

Ponsse's suppliers are intensively involved in the development of operations.
Eighteen months ago, Ponsse launched a supplier network development project. The
purpose has been to attract all important suppliers in Vieremä. A business park
for partner companies is under development next to the Vieremä factory, and the
quality components produced by the companies operating there meet the
requirements of Ponsse's customer-oriented production, and also boost delivery
reliability. Physical location within the vicinity of the factory makes intensive
and innovative product development cooperation possible. The business park for
partner companies already includes the premises of RateSteel Oy (approximately
2000 square metres), while the office premises for HT-Lasertekniikka
(approximately 2500 square metres) and Hytar Oy (approximately 2000 square
metres) are currently under construction. Vieremän toimitilat Oy has overseen the
construction of these facilities.

"Our investments during the past two years total 20 million euro. Investments
will continue in order to raise the degree of automation at the Vieremä factory.
We want to assume a global leading position in the development and production of
environmentally friendly Cut-to-Length forest machines," says Arto Tiitinen,
President and CEO of Ponsse Oyj.

Vieremä, 15 January 2007

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
Principal media
www.ponsse.com