KONE Corporation, Stock Exchange Release, 26 January, 2007 at 12:30 p.m. KONE achieved 10 percent operating income (EBIT) already in 2006 - Order intake totaled EUR 3,116 million. - Net sales totaled EUR 3,601 million. - Operating income totaled EUR 360.1 million, corresponding to a 10.0 (9.3) percent operating income (EBIT) margin. - KONE's target for 2007 is to achieve an approximate 10 percent growth in net sales, calculated at comparable exchange rates, compared to 2006. The operating income (EBIT) target is to achieve growth of approximately 20 percent from the comparable 2006 figure EUR 360 million. - In 2008, KONE's objective is to achieve an about 12 percent operating income (EBIT) margin. - The Board of Directors proposes a dividend of EUR 1.00 per class B share. Key Figures previous accounting period 10-12/2006 10-12/2005 1-12/2006 6-12/2005 Orders MEUR 712.1 702.5 3,116.3 1,622.1 Order book MEUR 2,762.1 2,326.8 2,762.1 2,326.8 Sales MEUR 1,145.6 1,013.4 3,600.8 2,101.4 Operating income MEUR 123.4 93.6 360.1 194.7 Cash flow from operations (before financial items and taxes) MEUR 97.7 111.3 371.7 215.4 Net income MEUR 80.2 53.8 234.4 124.0 Net debt MEUR 124.9 99.3 124.9 99.3 Total equity/total assets % 30.5 31.2 30.5 31.2 Gearing % 17.9 14.8 17.9 14.8 Matti Alahuhta, President and CEO, says: "I am very satisfied with KONE's performance last year. In comparison with competition, we succeeded very well in increasing our orders and especially our profitability. We strengthened our market position in the Asia-Pacific region, continued to improve the profitability of our U.S. operations and also advanced strongly in many European markets. Our comprehensive development program has progressed well and produced results." KONE Corporation's first financial reporting period was 1 June-31 December, 2005. KONE's reporting period follows the calendar year as of 2006. In order to facilitate evaluation of the financial performance and status of the company, a separate pro forma report is published, in which the company has used 1 January - 31 December 2005 data for comparison. KONE Corporation's audited Financial Statements are available on the company's website at www.kone.com. Analyst and Media Conferences and Conference Call A meeting for the press, conducted in Finnish, will be held on Friday 26 January, 2007 at 2:00 p.m. Finnish time at KONE Building, address Keilasatama 3, 02150 Espoo. A telephone conference and a meeting for analysts, conducted in English, will begin Friday 26 January, at 3:30 p.m. Finnish time at KONE Building, address Keilasatama 3, 02150 Espoo. The telephone conference will also be available as webcast on the company website. Callers may access the conference directly at the following telephone numbers: US callers: +1 334 323 6201 Non-US callers: +44 (0)20 7162 0025 Participant code: KONE On demand version of the conference will be available on the company's website www.kone.com later the same day. KONE's Financial Statement Bulletin and Pro Forma Report for 2006, and presentation material will be available in the meetings. The presentation material and KONE's Annual Report for 2006 will be available in pdf-format on the company website as of 2:00 p.m. The printed Annual Report will be published in the week starting 5 February. Sender: KONE Corporation Aimo Rajahalme Executive Vice President, Finance Minna Mars Senior Vice President, Corporate Communications & IR For further information please contact: Aimo Rajahalme, Executive Vice President, Finance, tel. +358 (0)204 75 4484 KONE is one of the world's leading elevator and escalator companies. It provides its customers with industry-leading elevators and escalators and innovative solutions for their maintenance and modernization. KONE also provides maintenance of automatic building doors. In 2006, KONE had annual net sales of EUR 3.6 billion and about 29,000 employees. Its class B shares are listed on the Helsinki Stock Exchange in Finland. www.kone.com