VAAHTO GROUP PLC OYJ ISSUES PROFIT WARNING

The turnover and the profit of the Vaahto Group for the fiscal period 1.9.2004-31.8.2005 will be weaker than expected.

Despite the forecast in the Vaahto Group’s Interim Report April 14, 2005, the turnover of the Group from the period ended at August 31, 2005 will be lower than in the previous period and the result from the period will be somewhat negative. Main reasons for the weakened turnover during the latter half of the fiscal period were temporary decrease of the deliveries, which was caused by the labour dispute in the paper industry, and also the postponement of some large customer projects to the next fiscal period.

The Pulp & Paper Machinery division of the Group has made some new significant project agreements during the period and the order backlog of the Group at the end of the fiscal period is considerably higher than at the end of the previous period.

The main figures of the financial statements of Vaahto Group from the fiscal year 1.9.2004-31.8.2005 will be published on November 17, 2005.

VAAHTO GROUP PLC OYJ

Antti Vaahto

CEO