KCI Konecranes signs Memorandum of Understanding with R.STAHL AG to acquire their Material Handling division

· KCI Konecranes has entered into a Memorandum of Understanding (MoU) with Germany-based R.STAHL AG to acquire their Material Handling division

· In year 2004, the Material Handling division generated sales of EUR 113 M

· R.STAHL is a significant global player in the field of overhead material handling

· The parties see a good strategic fit in their respective activities

· The planned acquisition is expected to be EPS neutral in 2006 and accretive from 2007

KCI Konecranes Plc has entered into a Memorandum of Understanding (MoU) and exclusive negotiations with R. STAHL AG, Waldenburg, Germany, concerning a possible acquisition of their Material Handling division. The Material Handling division, R.Stahl Fördertechnik, generated EUR 113 M in annual sales 2004 accounting for 46 % of the R.Stahl Group’s turnover.

R.STAHL Fördertechnik is today a significant global player with its range of products for overhead material handling. The company is a leader in several highly specialised lifting applications, such as explosion proof material handling. Additionally, the division supplies a wide range of components such as chain and wire rope hoists and related maintenance services. The company has manufacturing sites in Künzelsau and Ettlingen, Germany. The company has approximately 750 employees.

The management of R. STAHL is convinced that, united with KCI Konecranes, R. STAHL Fördertechnik will be able to assume a better position medium to long term in a highly competitive market than it would as part of the R. STAHL technology group.

“The activities of KCI Konecranes and R.STAHL Fördertechnik have a good strategic fit. The products and market segments are highly complementary, with only limited overlap. The planned acquisition would provide important synergies and the access to a large global installed base, “ says KCI Konecranes President and CEO Pekka Lundmark.

In case of successful completion of the negotiations, the agreement on the sale of R. STAHL Fördertechnik to KCI Konecranes shall be signed by the end of November 2005. Subject to clearance by the respective merger control authorities, the transaction is expected to close by year-end 2005.

The planned transaction is expected to be EPS neutral in 2006 and contribute positively to earnings per share from 2007.

Further information can be obtained from

KCI Konecranes Plc

Pekka Lundmark, President & CEO, phone: +358-20 427 2000
Teuvo Rintamäki, Chief Financial Officer, phone: +358-20 427 2040

About R.STAHL AG
Founded in 1876 by Rafael Stahl, R. STAHL is a technology group providing products for demanding special performance areas. The main emphasis is on the Explosion Protection and Material Handling divisions providing over 90% of the group's turnover. Based in Waldenburg, Germany, R.STAHL AG is listed on the Frankfurt and Stuttgart stock Exchanges. In 2004, the R. STAHL Group had annual sales of EUR 253 M. For more information, visit the R. Stahl Web site: http://www.stahl.de.

About KCI Konecranes Plc
KCI Konecranes is a world leading engineering group specialising in advanced overhead lifting solutions and maintenance services. KCI Konecranes is the world's leading supplier of heavy-duty cranes for process industries and shipyards. KCI Konecranes is a global supplier of special harbour cranes for bulk materials and containers and of mobile container handling equipment like Reach Stackers and Lift Trucks. In 2004, Group sales totalled EUR 728 million. The Group has 4,900 employees in 35 countries.