Metso Oyj - Company Announcement

Metso to reduce 718 employees in the Paper business line's Finnish operations

Metso Corporation's company release on March 17, 2009 at 11:00 a.m.

Metso has concluded employee negotiations relating to the Finnish
units of its Paper business line, excluding Metso Foundries Jyväskylä
Oy, where negotiations are still continuing. The negotiations
concerned all of the units' employees in Finland, totaling
approximately 3,800 people. As a result, Metso will make 718 employee
reductions, of which fixed term employment contracts and retirement
arrangements account for 424 people. The reductions will apply to all
employee groups. At the outset of negotiations on January 26, 2009,
the reduction need was estimated at between 800 and 1,100 employees.

Numbers of employee reductions, by location:

Jyväskylä                                           270
Järvenpää and Hollola, total          201
Oulu                                                   31
Tampere                                            45
Turku                                                  91
Valkeakoski and Inkeroinen, total            76
Varkaus                                             4

The reductions will be implemented immediately, starting in March
2009 and with the last employees leaving in 2010.

Rearrangements affecting production and the business units

The following rearrangements relating to changes in production and
business unit structures have also been agreed in the negotiations:
- Operations will be terminated at Hollola and transferred to
Järvenpää as part of the Paper Finishing unit
- Operations will be terminated at the Oulu rubber covering unit and
transferred in a more limited scope to Järvenpää's production
- Operations will be terminated at the Tampere roll factory and
transferred in a more limited scope to Järvenpää's production
- Water technology operations will be transferred from Turku to
Jyväskylä as part of the Paper Machines unit
- Turku Chemical Systems operations will be transferred to Järvenpää
as part of the Paper Finishing unit
- With respect to Metso Paper Turku Works, the review of operating
alternatives is continuing

In connection with the transfers, some of the employees in the units
to be terminated (totaling 90 - 110 employees) will have the option
of transferring to new locations.

Metso will support those persons affected by the rearrangements by
applying individualized incentive payments on certain conditions and
by providing retraining and relocation services. Metso will also
compensate removal and travel expenses for those changing their
working location within the company.

The measures decided are due to the permanent weakening of pulp and
paper industry markets. The Paper business line's operations and cost
structure is being adjusted to the changed market situation.

As a result of the rearrangements, the annual expenses of the Paper
business line are estimated to decrease by EUR 40 million. The cost
reductions are estimated to be realized in full starting in 2010. The
nonrecurring expenses caused by the rearrangements and recognized in
2009 are estimated to be approximately EUR 15 million, the majority
of which are estimated to be booked during the first quarter of 2009.

Metso is a global supplier of sustainable technology and services for
mining, construction, power generation, automation, recycling and the
pulp and paper industries. We have over 29,000 employees in more than
50 countries. www.metso.com

For further information for the press, please contact, as of March 17
at 12 noon:
Bertel Langenskiöld, President, Paper and Fiber Technology, tel. +358
400 813 860
Hannu Mälkiä, President, Paper business line, tel. +358 400 460 587
Jaakko Puurula, Senior Vice President, Human Resources, Paper and
Fiber Technology, tel. +358 400 582 904

Further information for investors, please contact:
Johanna Sintonen, Vice President, Investor Relations, Metso
Corporation, tel. +358 20 484 3253


Metso Corporation

Olli Vaartimo
Executive Vice President and CFO

Kati Renvall
Vice President, Corporate Communications

Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com