Ponsse Oyj's Board of Directors has approved a merger plan according to which the subsidiary Lako Oy, wholly owned by the company, will merge with its parent company. The subsidiary merger will take place without payment of merger consideration. The aim is that the merger will take place on 31 August 2007. The merger will help simplify the Group structure and improve competitiveness. PONSSE OYJ Arto Tiitinen President and CEO Further information: Mikko Paananen, CFO Telephone: +358 400 817 036 DISTRIBUTION: Helsinki Stock Exchange Principal media www.ponsse.com