Decisions Taken at KONE Corporation's Annual General Meeting

KONE Corporation’s Annual General Meeting was held in Helsinki on 18 May, 2005. The meeting approved the financial statements and discharged the responsible parties from liability for the accounting period 1 January, 2004–31 March, 2005.

The Annual General Meeting approved dividends of EUR 1.98 for each of the 9,526,089 class A shares and EUR 2.00 for the 54,228,666 outstanding class B shares. The date of record for dividend distribution is 23 May, 2005, and dividends will be payable on 30 May, 2005. The rest of the distributable equity, EUR 1 899 million, will be retained and carried forward.

The number of members of the Board of Directors was confirmed at seven. Antti Herlin was re-elected as chairman of the Board. Re-elected as full members of the Board were Matti Alahuhta, Jean-Pierre Chauvarie, Sirkka Hämäläinen-Lindfors, Masayuki Shimono, Iiro Viinanen and Gerhard Wendt. The Chairman of the Board’s monthly salary was confirmed to be EUR 3,500 and Board members’ salaries to be EUR 2,000 per month, with the exception that Board members employed by KONE do not receive remuneration for serving on the Board.

Authorized public accountants Jukka Ala-Mello and PricewaterhouseCoopers Oy were nominated as auditors with authorized public accountants Niina Raninen and Pasi Karppinen as deputies. The auditors’ fees will be paid upon invoicing.

KONE will demerge on 1 June, 2005 into two new separately listed companies: KONE Corporation and Cargotec Corporation. The current Board members and auditors will continue in their positions until the demerger. The last trading day for shares and option rights of the demerging corporation is May 31, 2005. Trading in the shares and option rights of the companies to be established in the demerger will begin on 1 June 2005.

Sender:
KONE Corporation
Tapio Hakakari
Director, Secretary to the Board
Minna Mars
Senior Vice President, Corporate Communications & IR
For further information, please contact:
Tapio Hakakari, Director, Secretary to the Board, tel. +358 (0)204 75 4226
www.konecorp.com