Wärtsilä and Metso form joint venture for ren...

Wärtsilä Corporation, Company announcement, 26 September 2008, at
9.30 am (EET)

Wärtsilä and Metso have signed a contract to form a joint venture
combining Metso's Heat & Power business (a business unit within Metso
Power) and Wärtsilä's Biopower business. The new joint venture will
be one of Europe's leading providers of medium- and small-scale power
and heating plants, focusing on renewable fuel solutions. The closing
of the transaction will require the relevant regulatory approvals,
which are expected during the coming months.

Metso will own 60 percent and Wärtsilä 40 percent of the joint
venture. It is estimated that in 2008 the consolidated annual pro
forma net sales of the joint venture would be approximately EUR 130
million and the number of employees approximately 200.

Through this joint venture, Metso Power, a leading boiler technology
company, and Wärtsilä Biopower, a leading modularized power plant
supplier, will combine their resources and expertise in sustainable
energy production. The technology offerings of the two businesses -
Wärtsilä's grate and Metso's fluidized bed combustion technologies -
are complementary and enable solution offerings for a wide range of
fuels in power plants.

"The general market outlook for the energy industry and especially
for renewable energy production is promising. With Metso and Wärtsilä
now joining forces, we will have enhanced capabilities to build and
develop new technologies and solutions," says Lennart Ohlsson,
President of Metso Power.

"Fuel flexibility will be an important competitive edge in the
future, and the joint venture will be well positioned to meet this
challenge. We expect that there will be a high demand for the
products, services and expertise of the combined entity," says
Christoph Vitzthum, Group Vice President, Wärtsilä Power Plants.

The demand for power plants capable of running on renewable fuels has
increased as a result of high energy prices and increased global
energy consumption. The European Union target to increase the share
of energy based on renewables to 20 percent of primary energy by 2020
is a major factor behind this joint venture.

Metso's Heat & Power business consists of Noviter Oy and VEÃ… AB, both
subsidiaries of Metso Power. The business unit employs approximately
100 people in Scandinavia, the Baltic countries and Russia. Metso
Power designs and manufactures power generation and chemical recovery
systems for energy producers and the pulp and paper industry
globally.

Wärtsilä Biopower, a part of Wärtsilä Power Plants, supplies and
manufactures biomass-fueled combined heat and power plants and
heating plants. The company employs approximately 100 people in
Finland. Wärtsilä's engine-based power plant business is not affected
by this joint venture and continues to offer a broad range of
fuel-flexible power solutions.

Further information, please contact:
Mr Christoph Vitzthum
Group Vice President
Wärtsilä Power Plants
Tel: [phone]
[e-mail]

Mr Atte Palomäki
Group Vice President, Communications
Wärtsilä Corporation
Tel: [phone]
[e-mail]

Wärtsilä in brief
Wärtsilä enhances the business of its customers by providing them
with complete lifecycle power solutions. When creating better and
environmentally compatible technologies, Wärtsilä focuses on the
marine and energy markets with products and solutions as well as
services. Through innovative products and services, Wärtsilä sets out
to be the most valued business partner of all its customers. This is
achieved by the dedication of more than 17,000 professionals manning
160 Wärtsilä locations in 70 countries around the world. Wärtsilä's
net sales in 2007 were EUR 3.8 billion. Wärtsilä is listed on The
Nordic Exchange in Helsinki, Finland.  www.wartsila.com

Metso in brief
Metso is a global engineering and technology corporation with 2007
net sales of over EUR 6 billion. Its over 27,000 employees in
approximately 50 countries serve customers in the pulp and paper
industry, rock and minerals processing, the energy industry and
selected other industries.  www.metso.com