KONE Board Signs Demerger Plan

KONE Corporation’s board of directors have on 1 November, 2004 signed the demerger plan regarding demerging KONE into two corporations. The complete demerger plan is enclosed in this release.

The demerger plan includes proposals regarding, among other, the following issues:

• the corporate names of the recipient corporations, their Articles of Association, boards, auditors and share capital
  
• consideration shares for KONE shareholders
• exchange of KONE 2004 option rights for corresponding option rights in the recipient corporations
• the division of the demerging parent company’s assets and liabilities between the parent companies of the new corporations

A demerger prospectus will be disclosed on 9 December, 2004. This prospectus will include descriptions of the new corporations’ operations, their balance sheets, historical pro forma
financial information and other details concerning the demerger. A shareholders’ meeting will on 17 December, 2004 decide on the demerger.
In addition to the demerger plan, KONE will on 1 November, 2004 publish an invitation to a shareholders’ meeting, and a release concerning the affect of the proposed demerger and extension of the accounting period on the KONE 2004 option rights.
Aventum Partners is KONE’s financial advisor and lead manager of the demerger in Finland, and Castrén & Snellman Attorneys Ltd is it’s legal advisor.
Sender:
KONE Corporation
Tapio Hakakari
Director, secretary to the Board of Directors
Minna Mars
Senior Vice President, Corporate Communications & IR
For further information, please contact:
Tapio Hakakari, Director, secretary to the Board of Directors, tel. +358 (0)204 75 4226
Aimo Rajahalme, Executive Vice President, Finance and Information Services,
tel. +358 (0)204 75 4484
www.konecorp.com

Attachments:

Demerger plan