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KONE Corporation’s Board of Directors decided at its 5 December 2007 meeting to grant stock option rights to approximately 350 employees of its global organization based on the authorization received from the shareholders meeting at February 26, 2007.
The stock options are granted for encouraging key personnel for long-term efforts to grow shareholder value and to increase their commitment to the company by offering them an internationally competitive incentive program. The company’s Board Members, CEO and Executive Committee Members are not included in the option plan.
The stock options are to be marked with the symbol 2007 and a maximum total of 2,000,000 options will be offered. Each stock option entitles its holder to subscribe for one (1) new class B KONE share. The class B shares for which these stock options can be exchanged constitute no more than 1.6 % of the company’s total number of shares.
The share subscription period for stock option 2007 will be April 1, 2010 - April 30, 2012. The share subscription period begins only if the average turnover growth of the KONE Group for financial years 2008 and 2009 exceeds market growth and if the earnings before interest and taxes (EBIT) of the KONE Group for the financial year 2008 exceeds the EBIT for the financial year 2007, and the EBIT for the financial year 2009 exceeds the EBIT for the financial year 2008. If the above-mentioned criteria have not been attained, stock options expire based on the consideration and in the manner and extent decided by the Board of Directors and the terms of the stock options. The share subscription price for the stock option is 50.89 euros per share representing the trade volume weighted average quotation of the company class B share on the OMX Nordic Exchange Helsinki Ltd between November 7, 2007 - December 4, 2007 and further reduced in situations mentioned in the terms, for example with dividends distributed before the subscription of the shares.
Additional information on KONE’s compensation systems is available in the Corporate Governance section of the KONE website at www.kone.com.
KONE is one of the world’s leading elevator and escalator companies. It provides customers with industry-leading elevators, escalators and innovative solutions for maintenance and modernization. KONE also provides maintenance services for automatic building doors. In 2006, KONE had annual net sales of EUR 3.6 billion and approximately 29,000 employees. Its class B shares are listed on the OMX Nordic Exchange Helsinki in Finland.
For further information, please contact:
Jukka Ala-Mello, Secretary to the Board, tel. +358 (0)204 75 4226
Secretary to the Board
Senior Vice President, Corporate Communications & IR