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Stock Exchange Release: KONE Interim Report: January – June, 2003

The Commission should follow the same path here: begin with a prohibition, gain experience, and ultimately consider development of a detailed rule that would promote comparability of performance figures through the imposition of standardized methodologies. Private funds may argue that the general anti-fraud provisions in Section 206(4) and Rule 206(4)-8 are sufficient to protect the “sophisticated” accredited investors that are targeted by the advertisements. We feel strongly, however, that it is not enough to say that only accredited investors will be affected by the advertisements, because these advertisements will come before sophisticated and non-sophisticated, accredited and non- accredited. | Stock Exchange Release KONE 22 July 2003 KONE Interim Report January - June 2003 Sales and Profitability on Track The value of orders received rose to MEUR 2 317 Jan.-June 2002 1 108 . KONE Elevators Escalators accounted for MEUR 1 018 1 108 of the total. At comparable exchange rates order intake was unchanged. KONE Materials Handling s share of order intake was MEUR 1 298 Jan.-June 2002 not consolidated 1 242 reflecting growth of 14 percent at comparable exchange rates. Sales totaled MEUR 2 504 1 378 . Elevators Escalators net sales amounted to MEUR 1 238 1 378 . At comparable exchange rates sales decreased by two percent . Materials Handling s sales were MEUR 1 266 1 213 reflecting growth of 13 percent at comparable exchange rates . Operating income before goodwill amortization EBITA was MEUR 177.6 117.3 . In Elevators Escalators EBITA was MEUR 117.5 117.3 or 9.5 8.5 percent of net sales. Materials Handling s EBITA was MEUR 67.1 40.6 or 5.3 3.3 percent of net sales. Unallocated corporate costs accounted for MEUR 7.0 0.0 . Cash flow from operations before financial items and taxes was MEUR 185.0 182.8 . Elevators Escalators accounted for MEUR 126.2 182.8 and Materials Handling for MEUR 58.8 27.5 . Interest-bearing net debt decreased to MEUR 952.7 end of 2002 1 252 Net income amounted to MEUR 72.1 60.8 . Earnings per share rose to EUR 1.15 from EUR 1.04. New owners are being sought for the Tractors and Forest Machines businesses. The figures for Materials Handling were consolidated into KONE s figures as of July 1 2002 and the comparison figures for January-June 2002 are therefore not consolidated. The comparison figures are calculated at the exchange rate for the comparison period and do not include Nordkalk and Paroc which have been sold. KONE Chairman of the Board Antti Herlin in conjunction with the interim report KONE s first half financial result is on track with our disclosed expectations for the full year. In Elevators Escalators the market for new .