Wärtsilä - Company Announcement

Wärtsilä Capital Markets Day: Wärtsilä's net sales to increase by about 25% in 2008 and profitability to improve

Wärtsilä Corporation Company Announcement 20.11.2007 at 8 am EET

The management of Wärtsilä will today announce the growth estimate
for 2008 and will specify the long term profitability target.
Wärtsilä's net sales are estimated to increase by about 25 percent in
2008. This estimate is based on a very strong order book, out of
which approx. EUR 2.8 billion will be delivered in 2008, and the
continued strong development of the Services business. In 2008 the
profitability will improve. To support this growth, Wärtsilä is
planning to invest approx. EUR 200 million during 2008 in capacity
expansion, process improvements and maintenance.

Wärtsilä also specifies its long term profitability target (EBIT%)
that has previously been 8% over the cycle. The specified target is 8
- 10 percent, plus/minus 2 percent, of net sales over the cycle.

The 2007 estimates unchanged

The short-term market forecast and profitability estimate published
in the Q3 interim report are unchanged: Demand in the ship power and
energy markets looks likely to remain active for Wärtsilä for the
next two quarters. Based on the strong order book, Wärtsilä's net
sales are expected to grow this year by around 15%. Full year
profitability will exceed 9%.

Currently contracting of ships is continuing on a high level and on
short-term there are no signs of change in the activity. In some
vessel types, for example in offshore supply vessels, contracting has
decreased during the last few months when new ships have entered into
service.

On long-term it is estimated that contracting of large merchant ships
will decrease from current high levels. The contracting of smaller
vessels will also slightly decrease, but will remain relatively
stable. In the offshore sector investments in new exploration and
utilization of current fields are expected to continue.

Demand in the Power Plants business is expected to remain strong. All
relevant customer segments and geographical areas remain active.
Wärtsilä's power generation equipment brings added value in terms of
fuel flexibility and efficiency, in a market where energy security
and the responsible use of fuels are at the forefront of the energy
debate.

Due to the long order book Wärtsilä has time to react to potential
fluctuations in the market and this is supported by the flexible
manufacturing model.

For further information please contact Mr Raimo Lind, Executive Vice
President & CFO, phone +358 10 709 5640 or Ms Eeva Kainulainen, VP,
Corporate Communications & IR, phone +358 10 709 5235.

The presentation material of the Capital Markets Day can be found on
www.wartsila.com. You can follow the presentations as webcasts
through this link. The link to webcast can also be found at
www.wartsila.com.