Algol to incorporate its business divisions

Algol is restructuring its organisation by incorporating its operations. The
five current sales divisions will be formed into three main business areas,
each with its own specialized operative unit: Algol Chemicals Oy, Algol
Technics Oy and Algol Pharma Oy. The Parent Company of the Group will be Algol
Oy, which also owns the entire share capital of the new companies. The
restructuring will take effect on 1 January 2004.

The new organizational structure is based on Algol´s traditional three product
groupings: raw materials and semi-finished goods; machinery and equipment; and
healthcare products. The aim of the restructuring according to Algol Managing
Director Magnus Bargum is to clarify the Group structure and to strengthen
competitiveness by further increasing specialization in the core business
areas. The organizational restructuring does not necessitate a reduction in
personnel.

Algol Chemicals Oy will be based on the existing Chemical Division and its
product range of industrial chemicals and speciality chemicals. The head of the
company will be Raul Henriksson, currently Director of the Chemical Division.
Algol Technics Oy will be based on the existing Steel Division, Technical
Division and Materials Handling Division and its product range of industrial
machinery, equipment and speciality products. The head of the company will be
Simo Uusitalo, currently Director of the Materials Handling Division. Algol
Pharma Oy will be based on the existing Pharmaceutical Division and its product
range of healthcare products. The head of the company will be Heikki Haapoja,
currently Director of the Pharmaceutical Division.

The Parent Company of the new Algol Group will continue to be Algol Oy, which
includes the Group Management and Administration. Magnus Bargum will continue
as Managing Director of the Parent Company as well as Chairman of the Group
Board. The Board will include the heads of the new companies in addition to Tom
Haglund, Director of Group Administration. Group subsidiaries in Finland, the
Baltic States, Scandinavia and Russia will join the new companies according to
their business areas.

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