Stock exchange release October 28, 2010 12:00 PM EEST

Metso Corporation´s Interim Review, January 1 - September 30, 2010

Metso Corporation's stock exchange release on October 28, 2010 at around 12:00 p.m. local time


Solid performance



Highlights of the third quarter of 2010

  * New orders worth EUR 1,409 million were received in July-September, i.e. 37
    percent more than in the comparison period (EUR 1,031 million in Q3/2009).

  * At the end of September, the order backlog was up by 21 percent on the end
    of December 2009, and totaled EUR 4,144 million (EUR 3,415 million at
    December 31, 2009).

  * Net sales increased by 11 percent on the comparison period, and were EUR
    1,325 million (EUR 1,196 million in Q3/2009).

  * Earnings before interest, tax and amortization (EBITA), before non-recurring
    items, were EUR 128.6 million in July-September, i.e. 9.7 percent of net
    sales (EUR 134.3 million and 11.2% in Q3/2009).

  * Operating profit (EBIT) was EUR 103.5 million, i.e. 7.8 percent of net sales
    (EUR 114.1 million and 9.5% in Q3/2009).

  * The EBIT includes as a whole EUR 10.5 million in negative non-recurring
    items (EUR 9.7 million in negative non-recurring items in Q3/2009).

  * Earnings per share were EUR 0.45 (EUR 0.44 in Q3/2009).

  * Free cash flow was EUR 122 million (EUR 249 million in Q3/2009).

  * Return on capital employed (ROCE) before taxes was 13.0 percent (11.1% in
    Q3/2009).



"I am pleased with our solid performance. Our underlying operational performance
has improved quarter on quarter this year, underlying EBITA margin was 7.5
percent in the first quarter, 9.1 percent in the second quarter and now 9.7
percent in this quarter. Another strong area is our services business which
continues to develop strongly: orders have grown this year about 38 percent. I
am also pleased with our good free cash flow for the quarter. Our strong balance
sheet gives us a solid base to develop Metso further", comments Metso's
President and CEO Jorma Eloranta.



"We anticipate that the gradual recovery will continue in most of our customer
industries, but the picture is mixed. Out of our new orders 56 percent came from
the emerging markets in the third quarter and the outlook remains strong. In
Europe and North America demand outlook is more uncertain. There are also
differences between customer industries: for example demand in the mining
industry continues strong while in the power market final decision-making in new
projects is taking quite a long time despite the favorable long-term demand
outlook for renewable energy.



Our guidance for 2010 is intact. We have also given our estimate of 2011
development. Our orders received for the first nine months of this year exceed
the net sales for the same period by 15 percent. Based on this and assuming that
the gradual recovery of the global economy will continue we estimate that in
2011 our net sales will grow about 10 percent compared to this year and EBITA
before non-recurring items will improve."





Metso's key figures



                           Q3/   Q3/   Chan-                         Chan-
EUR million                                  Q1-Q3/ 2010 Q1-Q3/ 2009       2009
                           2010  2009  ge %                          ge %

Net sales                  1,325 1,196 11    3,865       3,663       6     5,016

Net sales of services      615   511   20    1,738       1,565       11    2,102
business

   % of net sales          47    43          46          43                42

Earnings before interest,
tax and amortization
(EBITA) and non-recurring
items
                           128.6 134.3 -4    341.2       311.0       10    399.0

   % of net sales          9.7   11.2        8.8         8.5               8.0

Operating profit           103.5 114.1 -9    313.0       238.6       31    293.6

   % of net sales          7.8   9.5         8.1         6.5               5.9

Earnings per share, EUR    0.45  0.44  2     1.21        0.88        38    1.06

Orders received            1,409 1,031 37    4,446       2,993       49    4,358

Orders received of
services business
                           672   456   47    2,000       1,450       38    1,937

Order backlog at end of                      4,144       3,340       24    3,415
period

Free cash flow             122   249   -51   321         449         -29   717


Return on capital employed
(ROCE) before taxes,
annualized, %
                                             13.0        11.1              10.0

Equity to assets ratio at
end of period, %
                                             37.2        33.2              35.7

Gearing at end of period,                    21.3        51.1              32.5
%








Metso's third quarter 2010 review





Operating environment and demand in July-September



The gradual recovery of demand continued in most of our customer industries in
the third quarter of 2010. The growing budget deficits of several European
countries and the United States coupled with strong fluctuations in exchange
rates have, however, led to uncertainty, which has slowed the recovery of the
markets particularly in Europe and North America. In the emerging markets market
outlook continues to be strong.  Our customers' overall capacity utilization
rates have clearly improved, which has had a positive impact on our services
business.



Mining companies ran their production at high capacity utilization rates and
quotations for equipment and projects were at a strong level resulting in an
increase in new orders. Due to the strengthening demand and prices for minerals
and due to our large installed equipment base, demand for our services for
mining customers improved further.



In the construction industry, demand for equipment used in aggregates production
was weak in Europe and in North America. Infrastructure construction projects in
the Asia-Pacific region and in the Brazilian markets maintained healthy demand
thanks to continued economic growth. Demand for our services business for the
construction industry was satisfactory.



Demand for power plants that utilize renewable energy sources was good in Europe
and North America in July-September. Several European countries and the United
States have published targets to increase the use of renewable energy supporting
the long-term demand for our power plant solutions fuelled by biomass and waste.
However, in the short-term, uncertainty in the financial markets and pending
policies on support mechanisms for renewable energy are delaying decision-making
in several projects. Demand for the power plant services business was good.



Demand for our automation products continued to be good as the oil, gas and
petrochemical industries increased their investments due to the favourable long-
term outlook in the global energy segment. Demand for our automation solutions
by the pulp and paper customer industry developed favorably, too. Demand for our
services business for automation was good.



The demand for metal and solid waste recycling equipment was satisfactory.
Demand for recycling equipment services has clearly improved in 2010 alongside
the increasing capacity utilization rates of our customers' plants and
equipment.



The demand for new fiber lines, pulp mill rebuilds and mill services was
satisfactory during the quarter as the price and demand of pulp have
strengthened. A few large chemical pulp industry projects are in the preparatory
phase in South America. Demand for new paper and board lines focused on China
and was satisfactory. The use of tissue is quickly growing worldwide,
particularly in emerging markets, and the demand for new tissue lines was good.
The paper and board industry's improved capacity utilization rates resulted in
increased demand for paper machine clothing and our other services products.





Orders received in July-September



In July-September, we received new orders worth EUR 1,409 million, i.e. 37
percent more than in the comparison period (EUR 1,031 million in Q3/2009). The
share of emerging markets in our orders received was 56 percent. Orders received
increased on the weak comparison period in all of our reporting segments and in
all geographical areas except in Western Europe. Services orders increased 47
percent on the comparison period and accounted for 48 percent of the total
orders. Services orders grew in all segments.



Orders received by Mining and Construction Technology in July-September amounted
to EUR 643 million, which was 53 percent more than in the comparison period (EUR
420 million in Q3/2009). This was the seventh consecutive growth quarter since
the lowest point in the last quarter of 2008. Orders received from mining
customers increased 92 percent whereas orders from construction customers
decreased 4 percent. Services business orders were up 30 percent, and the growth
came mostly from mining customers. Among the largest, was an order received for
mining and minerals processing equipment and services for Nordic Mines' new gold
ore processing plant in Finland.



Orders received by Energy and Environmental Technology increased by 36 percent
on the comparison period and totaled EUR 341 million (EUR 250 million in
Q3/2009). Orders received by the Power business increased 32 percent and those
of the Automation business by 35 percent. In the Recycling business, orders
received grew by nearly 50 percent on the exceptionally weak comparison period.
Orders received included a service and rebuild project for one of Celulosa
Arauco y Constitucíon's recovery boilers that was damaged in an earthquake in
Arauco, Chile, a conversion of a pulverized coal boiler to a biomass-fired
boiler for Dalkia in Poland and a new biomass-fired power plant to Bomhus Energi
in Sweden.



Orders received by Paper and Fiber Technology grew 13 percent on the comparison
period and totaled EUR 417 million in July-September (EUR 369 million in
Q3/2009). Growth in orders received came from the Fiber business, where new
orders grew by 126 percent. The orders received included a coated board line for
Lee & Man Paper Manufacturing in Guangdong province and two board machines for
Liansheng Paper Industry (Longhai) in Longhai City, China.





Financial performance in July-September

Our net sales in July-September totaled EUR 1,325 million, which is 11 percent
more than a year earlier (EUR 1,196 million in Q3/2009). The services business
net sales increased 20 percent on the comparison period, and accounted for 47
percent of total net sales (43% in Q3/2009).



In the third quarter, our earnings before interest, tax and amortization and
non-recurring items (EBITA before non-recurring items), were EUR 128.6 million,
i.e. 9.7 percent of net sales (EUR 134.3 million and 11.2% in Q3/2009).
Profitability (i.e. EBITA margin before non-recurring items) continued to show
an improving trend after being 7.5 percent in the first quarter and 9.1 percent
in the second quarter. Decline in profitability compared with the third quarter
in 2009 was primarily due to clear increase in selling, general and
administrative expenses (SG&As), from 17.6 percent of net sales to 18.9 percent.
SG&As were at an exceptionally low level in the third quarter of 2009 due to
strict savings measures. This quarter SG&As have grown as a result of rapidly
increased market activity evidenced by 37 percent increase in new orders. Third
quarter gross profit margin improved to 26.9 percent from 26.0 percent in the
same period last year.



Metso's operating profit (EBIT) was EUR 103.5 million, or 7.8 percent of net
sales (EUR 114.1 million and 9.5% in Q3/2009). Our EBIT for July-September
included the following non-recurring items (see table), which had a total
negative impact of EUR 10.5 million on our third-quarter financial performance.



Non-recurring items in July-September



Q3/2010
                   Mining and         Energy and          Paper and Fiber  Metso
                   Construction       Environmental       Technology
                   Technology         Technology                           Group
EUR million

EBITA before non-  74.9               31.7                31.8             128.6
recurring items

% of net sales     13.3               10.2                7.2              9.7

Capacity
adjustment         -1.2               -2.9                -2.7             -6.8
expenses

Adjustments
related to
intellectual
property           -2.0               -                   -                -2.0
settlements in the
United States and
in Australia

Adjustments
related to         -1.6               -                   -                -1.6
business disposal

Provision for
prior years' ICMS  -0.1               -                   -                -0.1
(VAT) tax credit
in Brazil

Amortization of
intangible assets  -1.8               -5.0                -7.2             -14.6
*)

Operating profit   68.2               23.8                21.9             103.5
(EBIT)




*) Amortization of intangible assets includes EUR 8.4 million that is related to
fair value allocations of acquired businesses.



Q3/2009
                   Mining and         Energy and          Paper and Fiber  Metso
                   Construction       Environmental       Technology
                   Technology         Technology                           Group
EUR million

EBITA before non-  57.7               40.3                35.9             134.3
recurring items

% of net sales     11.7               11.5                10.1             11.2

Capacity
adjustment         -10.6              -3.2                -3.5             -17.3
expenses

Gain on sale of    7.6                -                   -                7.6
Talvivaara shares

Amortization of
intangible assets  -1.0               -4.2                -4.8             -10.5
*)

Operating profit   53.7               32.9                27.6             114.1
(EBIT)







*) Amortization of intangible assets includes EUR 4.4 million that is related to
fair value allocations of acquired businesses.





Metso´s January-September 2010 Interim Review



Orders received and order backlog

Orders received in January-September totaled EUR 4,446 million, an increase of
49 percent on the comparison period. Excluding the effect from exchange rate
translation, the growth would have been 39 percent. The growth was strongest in
the Paper and Fiber Technology segment with other segments also recording clear
growth in new orders. Our customers' improved capacity utilization rates led to
38 percent growth in our services orders compared to the same period a year
earlier.



The three countries with the highest value of orders received were China, the
United States and Brazil. The share of emerging markets in our orders received
was 53 percent (49% in Q1-Q3/2009).



At the end of September, our order backlog was EUR 4,144 million, which is 21
percent stronger than at the end of 2009 (EUR 3,415 million). Around EUR 1.6
billion of the orders are expected to be recognized as net sales this year and
around EUR 920 million of the total order backlog are services business orders.
At the end of September our order backlog included some EUR 395 million worth of
orders (EUR 395 million at the end of June, 2010) for projects with uncertain
delivery schedules and which will, according to present estimates, be delivered
after 2010. The pulp mill project for Fibria, Brazil, is included in these
projects.



Orders received by reporting segment



                        Q1-Q3/2010                     Q1-Q3/2009

                                    % of orders        EUR     % of orders
                        EUR million received                   received
                                                       million

Mining and Construction
Technology
                        1,806       40                 1,203   40

Energy and
Environmental
Technology              1,081       24                 793     26

Paper and Fiber         1,560       35                 983     33
Technology

Valmet Automotive       48          1                  42      1

Intra-Metso orders      -49                            -28
received

Total                   4,446       100                2,993   100







Orders received by market area

                    Q1-Q3/2010                       Q1-Q3/2009

                                                     EUR     % of orders
                    EUR million % of orders received         received
                                                     million

Europe              1,605       35                   1,081   36

North America       659         15                   509     17

South and Central   647         15                   345     12
America

Asia-Pacific        1,323       30                   869     29

Africa and Middle   212         5                    189     6
East

Total               4,446       100                  2,993   100









Net sales

Our net sales for January-September increased by 6 percent on the comparison
period and were EUR 3,865 million (EUR 3,663 million in Q1-Q3/2009). Excluding
the effect from exchange rate translation, the decline would have been 1
percent. The growth came from Paper and Fiber Technology, which recorded growth
of 30 percent on the comparison period. Net sales for Mining and Construction
Technology were at around the same level as in the comparison period and net
sales for Energy and Environmental Technology fell by 11 percent. Net sales for
our services business increased 11 percent (when excluding the impact of the
acquired Fabrics business, i.e. the former Tamfelt, the growth was 4 percent)
and its share of the total net sales increased to 46 percent (43% in Q1-
Q3/2009).



Measured by net sales, the largest countries were China, the United States and
Brazil, which together accounted for about 36 percent of our total net sales.
The share of emerging markets in our net sales was 49 percent (43% in Q1-
Q3/2009).



Net sales by reporting segment

                               Q1-Q3/2010                 Q1-Q3/2009

                                                          EUR
                               EUR million % of net sales         % of net sales
                                                          million

Mining and Construction
Technology
                               1,576       41             1,551   42

Energy and Environmental
Technology
                               978         25             1,104   30

Paper and Fiber Technology     1,301       33             1,002   27

Valmet Automotive              48          1              42      1

Intra-Metso net sales          -38                        -36

Total                          3,865       100            3,663   100







Net sales by market area

                          Q1-Q3/2010                 Q1-Q3/2009

                                                     EUR
                          EUR million % of net sales         % of net sales
                                                     million

Europe                    1,370       36             1,589   43

North America             665         17             574     16

South and Central America 532         14             458     12

Asia-Pacific              1,086       28             755     21

Africa and Middle East    212         5              287     8

Total                     3,865       100            3,663   100







Financial result

In January-September, our EBITA before non-recurring items was EUR 341.2
million, i.e. 8.8 percent of net sales (EUR 311.0 million and 8.5% in Q1-
Q3/2009). Improved capacity utilization rates and higher sales led to about 1
percentage point improvement in gross profit margin which was partly offset by
an increase in SG&As from 18.8 percent of net sales in January-September 2009 to
19.2 percent in the same period this year. SG&As have grown as a result of
rapidly increased market activity evidenced by 49 percent increase in new
orders.



Our operating profit (EBIT) for January-September was EUR 313.0 million, or 8.1
percent of net sales (EUR 238.6 million and 6.5% in Q1-Q3/2009).

The EBIT for January-September includes EUR 14.9 million in non-recurring items,
which had a positive impact, as specified in the following table.

Non-recurring items



Q1-Q3/2010
                   Mining and         Energy and          Paper and Fiber  Metso
                   Construction       Environmental       Technology
                   Technology         Technology                           Group
EUR million

EBITA before non-  179.2              92.8                86.7             341.2
recurring items

% of net sales     11.4               9.5                 6.7              8.8

Capacity
adjustment         -1.2               -7.9                -5.6             -14.7
expenses

Gain on sale of    1.1                -                   -                1.1
Talvivaara shares

Gain on
intellectual
property           30.1               -                   -                30.1
settlements in the
United States and
in Australia

Gain on business   0.9                -                   -                0.9
disposal

Credit loss
reserve related to -                  -                   0.9              0.9
two paper machine
customers

Provision for
prior years' ICMS  -3.4               -                   -                -3.4
(VAT) tax credits
in Brazil

Amortization of
intangible assets  -4.7               -14.9               -21.8            -43.1
*)

Operating profit   202.0              70.0                60.2             313.0
(EBIT)







*) Amortization of intangible assets includes EUR 25.0 million that is related
to fair value allocations of acquired businesses.



Q1-Q3/2009
                   Mining and         Energy and          Paper and Fiber  Metso
                   Construction       Environmental       Technology
                   Technology         Technology                           Group
EUR million

EBITA before non-  159.4              109.5               54.5             311.0
recurring items

% of net sales     10.3               9.9                 5.4              8.5

Capacity
adjustment         -16.0              -6.0                -21.6            -43.6
expenses

Gain on sale of    13.8               -                   -                13.8
Talvivaara shares

Hedging reversal
due to a cancelled -                  -                   -9.0             -9.0
customer order

Credit loss
reserve related to -                  -                   -4.1             -4.1
two paper machine
customers

Amortization of
intangible assets  -2.6               -13.2               -12.0            -29.5
*)

Operating profit   154.6              90.3                7.8              238.6
(EBIT)







*) Amortization of intangible assets includes EUR 13.7 million that is related
to fair value allocations of acquired businesses.



2009
                   Mining and         Energy and          Paper and Fiber  Metso
                   Construction       Environmental       Technology
                   Technology         Technology                           Group
EUR million

EBITA before non-  201.6              147.4               71.3             399.0
recurring items

% of net sales     9.7                9.7                 5.1              8.0

Capacity
adjustment         -21.9              -11.1               -41.7            -74.7
expenses

Gain on sale of    23.1               -                   -                23.1
Talvivaara shares

Hedging reversal
due to a cancelled -                  -                   -9.0             -9.0
customer order

Credit loss
reserve related to -                  -                   -4.1             -4.1
two paper machine
customers

Amortization of
intangible assets  -4.0               -18.2               -15.7            -40.7
*)

Operating profit   198.8              118.1               0.8              293.6
(EBIT)







*) Amortization of intangible assets includes EUR 18.5 million that is related
to fair value allocations of acquired businesses.



Group Head Office's operating profit in January-September includes foreign
exchange gains of EUR 9 million from foreign exchange hedge contracts made by
reporting segments with Group Treasury (EUR 10 million gain in Q1-Q3/2009).
Corresponding foreign exchange losses are included in the operating results of
the reporting segments.



Our net financing expenses in January-September were EUR 53 million (EUR 59
million in Q1-Q3/2009). Interest expenses were EUR 52 million (EUR 56 million in
Q1-Q3/2009). Net financing expenses include EUR 9 million in foreign exchange
losses related to the above-mentioned Group Head Office's foreign exchange gain.



Our profit before taxes was EUR 260 million (EUR 180 million) and we estimate
our tax rate for 2010 to be about 30 percent (32% in 2009).



The profit attributable to shareholders was EUR 181 million in January-September
(EUR 125 million in Q1-Q3/2009), corresponding to earnings per share (EPS) of
EUR 1.21 (EUR 0.88/share).



The return on capital employed (ROCE) before taxes in January-September was
13.0 percent (11.1%) and return on equity (ROE) was 13.5 percent (11.4%).



Cash flow and financing

Net cash generated by operating activities for January-September was EUR 368
million (EUR 487 million in Q1-Q3/2009).



Net working capital decreased in January-September by EUR 31 million.



Free cash flow in January-September was EUR 321 million (EUR 449 million in Q1-
Q3/2009).



Net interest-bearing liabilities totaled EUR 415 million at the end of September
(EUR 583 million at December 31, 2009).



Our total cash assets at the end of September were EUR 984 million, EUR 362
million of which has been invested in financial instruments with an initial
maturity exceeding three months. The remaining EUR 622 million has been
accounted for as cash and cash equivalents. The syndicated EUR 500 million
revolving loan facility is available until late 2011, and it is currently
undrawn. Metso's liquidity position is good.



At the end of September, our gearing was 21.3 percent (51.1%) and equity-to-
assets ratio was 37.2 percent (33.2%). In April, following the Annual General
Meeting, we paid EUR 105 million in dividends for 2009.



Capital expenditure and R&D

Our gross capital expenditure in January-September, excluding business
acquisitions, was EUR 90 million (EUR 79 million in Q1-Q3/2009). The share of
maintenance investments was 59 percent, i.e. EUR 53 million. Capital expenditure
on fixed assets includes two small technology related acquisitions. In April we
purchased the paper machine web inspection and web break system business from
Viconsys with about 30 people, and in August we purchased Camoplast-Finntrack
Oy's rubber belt related business with 16 people to complement our service and
product offering to pulp and paper customers. We estimate new capital
expenditure in 2010 to somewhat exceed the 2009 level (EUR 117 million in 2009).



The first phase of Metso's largest single investment so far in India, Metso
Park, was completed in March and the second phase has been initiated. A
technology center specializing in automation and flow control solutions and
products was opened in May in Shanghai, China. In York, Pennsylvania, USA,
Mining and Construction Technology took up new office premises under operating
lease arrangements in May. In June, construction work was started in Vantaa for
a new facility for our industrial valve production in Finland. This investment
will be accounted as an operating lease. In Araucaria, Parana state, Brazil,
construction work on a new facility for our regional pulping and power
operations has been started. In Jyväskylä, Finland, we completed an upgrade of a
pilot machine at the Paper Technology Center. In Zibo, our third service center
in China for the pulp and paper industry is nearly finished. Investment projects
in global enterprise resource planning systems are underway in Mining and
Construction Technology and in the Automation business.



Metso's research and development expenses in January-September totaled EUR 76
million, representing 2.0 percent of Metso's net sales (EUR 84 million and 2.3%
in Q1-Q3/2009).



Acquisitions, divestments and joint ventures

In July, we acquired the repair service business of Wyesco of Louisiana, L.L.C.,
in the U.S. state of Louisiana. The business was affiliated to Metso's Paper and
Fiber Technology segment and it employs 30 people.



In April, we sold the Flexowell conveyor belt operations in Germany to ContiTech
Transportbandsysteme GmbH. Flexowell was part of Metso's Mining and Construction
Technology segment.



In November 2009, we concluded a combination agreement with Tamfelt, one of the
world's leading suppliers of technical textiles. The exchange offer was carried
out in November-December of 2009 and successfully completed on December
23, 2009. The remaining 2 percent of Tamfelt's shares were redeemed in
accordance with the Finnish Companies Act, and in May Metso gained title to all
the shares in Tamfelt. The redemption price determined in the Arbitral Tribunal
was EUR 7.17 per share. Metso paid the redemption price of EUR 4.3 million in
September 2010 to the minority shareholders of Tamfelt who were party to the
redemption proceedings.



Since the acquisition, Tamfelt has been a part of our Paper and Fiber Technology
segment and constitutes today the segment's Fabrics business line.





Personnel

At the end of September, we had 27,552 employees, which was 386 more than at the
end of 2009 (27,166 employees at December 31, 2009), and 719 employees less than
a year ago, taking into account the impact of the acquired and divested
businesses. The number of employees increased 5 percent in Mining and
Construction Technology, and in Energy and Environmental Technology as well as
Paper and Fiber Technology it stayed at around the same level as it was at the
end of 2009. During January-September, we had an average of 27,333 employees.



Personnel by area

                                                   % of total
               Sep 30, % of total     Sep 30, 2009 person-      Change % Dec 31,
               2010    personnel                                         2009
                                                   nel

Finland        8,767   32             8,321        31           5        8,746

Other Nordic   2,867   10             2,985        11           -4       2,995
countries

Rest of Europe 3,430   12             3,516        13           -2       3,678

North America  3,454   13             3,502        13           -1       3,428

South and
Central        3,045   11             2,720        10           12       2,618
America

Asia-Pacific   4,599   17             4,218        16           9        4,316

Africa and     1,390   5              1,401        6            -1       1,385
Middle East

Total          27,552  100            26,663       100          3        27,166







Changes in top management

In August, Metso's Board of Directors appointed Mr. Matti Kähkönen, M.Sc. in
Engineering, as the new President and Chief Executive Officer of Metso
Corporation and Metso Group. Kähkönen will start in his new position on March
1, 2011. Metso's current President and CEO, Jorma Eloranta, will continue in his
position until March 1, 2011. Until then, Kähkönen will continue as President of
Metso's Mining and Construction Technology segment.



In September, Metso's Executive Vice President and CFO Olli Vaartimo turned 60
years old, the age of retirement according to his executive contract. As of
October 1, 2010, Kähkönen took over as Metso's Executive Vice President and
Deputy to the CEO and as Vice Chairman of the Metso Executive Team. Vaartimo has
agreed to continue to provide support during the transition period, until the
end of June 2011, as changes are made in Metso's top management including the
search for a new CFO.





REPORTING SEGMENTS





Mining and Construction Technology



                       Q3/  Q3/
EUR million                      Change % Q1-Q3/ 2010 Q1-Q3/ 2009 Change % 2009
                       2010 2009

Net sales              563  492  14       1,576       1,551       2        2,075

Net sales of services  292  259  13       827         777         6        1,017
business

   % of net sales      52   53            53          50                   49

Earnings before
interest, tax and
amortization (EBITA)
and non-recurring
items                  74.9 57.7 30       179.2       159.4       12       201.6

   % of net sales      13.3 11.7          11.4        10.3                 9.7

Operating profit       68.2 53.7 27       202.0       154.6       31       198.8

   % of net sales      12.1 10.9          12.8        10.0                 9.6

Orders received        643  420  53       1,806       1,203       50       1,660

Orders received of     311  239  30       915         733         25       970
services business

Order backlog at end                      1,329       1,103       20       1,041
of period

Personnel at end of                       9,974       10,014      0        9,541
period






The net sales of Mining and Construction Technology increased 2 percent on the
comparison period of January-September (excluding the impact of exchange rate
translation, net sales would have declined 8%), and were EUR 1,576 million. In
the mining business, net sales were up 3 percent while in the construction
business net sales were on par with the comparison period. The services business
net sales increased 6 percent and accounted for 53 percent of the segment's net
sales (50% in Q1-Q3/2009).





Mining and Construction Technology's EBITA before non-recurring items was EUR
179.2 million (non-recurring items analyzed in the 'Financial result' section),
i.e. 11.4 percent of net sales in January-September (EUR 159.4 million and
10.3% in Q1-Q3/2009). Improved capacity utilization rates and price levels
contributed positively to the profitability while a 7 percent increase in
selling, general and administrative expenses (SG&As) compared with 2 percent
increase in net sales had a negative impact on profitability. Growth in SG&As
was due to increased market activity.



Operating profit (EBIT) for January-September was EUR 202.0 million, i.e. 12.8
percent of net sales (EUR 154.6 million and 10.0% in Q1-Q3/2009). EBIT includes
positive non-recurring items of EUR 27.5 million net whereas non-recurring items
in the comparison period weakened the EBIT by EUR 2.2 million (non-recurring
items are analyzed in the 'Financial result' section).



Orders received by Mining and Construction Technology in January-September grew
50 percent from the comparison period and amounted to EUR 1,806 million. Orders
received grew in all geographical regions. Orders from mining customers
increased 71 percent and from construction customers 16 percent. The share of
orders received from emerging markets was 60 percent (50% in Q1-Q3/2009). New
orders received in January-September include grinding equipment deliveries for
the Kinross Gold goldmine in Brazil, mining equipment for Tisco's iron ore
processing plant in China, and mining and minerals processing equipment and
services for Nordic Mines' new gold ore processing plant in Finland.



The order backlog strengthened 28 percent from the end of 2009 and totaled EUR
1,329 million at the end of September (EUR 1,041 million at December 31, 2009).
At the end of September, our order backlog included mining equipment orders,
which are subject to uncertainties primarily related to delivery schedules, of
around EUR 75 million, unchanged from the end of June.





Energy and Environmental Technology



                       Q3/  Q3/
EUR million                      Change % Q1-Q3/ 2010 Q1-Q3/ 2009 Change % 2009
                       2010 2009

Net sales              312  350  -11      978         1,104       -11      1,523

Net sales of services  129  117  10       372         379         -2       516
business

   % of net sales      42   34            39          35                   35

Earnings before
interest, tax

 and amortization
(EBITA)
                       31.7 40.3 -21      92.8        109.5       -15      147.4
 and non-recurring
items

   % of net sales      10.2 11.5          9.5         9.9                  9.7

Operating profit       23.8 32.9 -28      70.0        90.3        -22      118.1

   % of net sales      7.6  9.4           7.2         8.2                  7.8

Orders received        341  250  36       1,081       793         36       1,297

Orders received of
services business
                       162  98   65       460         326         41       443

Order backlog at end                      1,159       939         23       1,032
of period

Personnel at end of                       6,015       6,119       -2       6,060
period






The net sales of Energy and Environmental Technology declined 11 percent on the
comparison period, as a result of weak order intake in 2009, and were EUR 978
million. The net sales declined 13 percent in the Power business, 11 percent in
the Automation business and 9 percent in the Recycling business. The net sales
of the services business were about on par with the comparison period and
accounted for 39 percent of the segment's net sales (35% in Q1-Q3/2009).



Energy and Environmental Technology's EBITA before non-recurring items was EUR
92.8 million, i.e. 9.5 percent of net sales (EUR 109.5 million and 9.9% in Q1-
Q3/2009). Negative volume leverage on profitability was partly offset by clearly
improved project execution in large delivery projects.



Operating profit (EBIT) for January-September declined and was EUR 70.0 million
and 7.2 percent of net sales (EUR 90.3 million and 8.2% in Q1-Q3/2009). The EBIT
includes EUR 7.9 million in non-recurring expenses (non-recurring items are
analyzed in the 'Financial result' section) primarily related to capacity
adjustment actions (non-recurring expenses EUR 6.0 million in Q1-Q3/2009).



Orders received by the segment increased 36 percent on the comparison period and
totaled EUR 1,081 million. Orders received increased in all of the business
lines. Major orders received include biomass boilers for RWE npower renewables
in the UK and for 4Ham Cogen in Belgium. In addition, several automation orders
for managing power plants, pulp mills, paper, board and tissue lines as well as
oil and gas projects were received. In the Recycling business, several sizable
metal recycling shredder orders were received.



The order backlog at the end of September, EUR 1,159 million, was 12 percent
higher than at the end of 2009. The order backlog includes projects worth
approximately EUR 80 million with uncertain delivery schedules. The uncertainty
is mostly related to the deliveries of power boiler and automation technology
for Fibria's pulp mill project in Brazil.









Paper and Fiber Technology



EUR million      Q3/ 2010 Q3/ 2009 Change % Q1-Q3/     Q1-Q3/    Change % 2009
                                            2010       2009

Net sales        443      356      24       1,301      1,002     30       1,408

Net sales of
services         194      135      44       539        410       31       569
business

   % of net      44       38                41         41                 41
sales

Earnings before
interest, tax,
amortization
(EBITA) and non-
recurring items  31.8     35.9     -11      86.7       54.5      59       71.3

   % of net      7.2      10.1              6.7        5.4                5.1
sales

Operating profit 21.9     27.6     -21      60.2       7.8       n/a      0.8

   % of net      4.9      7.8               4.6        0.8                0.1
sales

Orders received  417      369      13       1,560      983       59       1,384

Orders received
of services
business         198      119      66       625        391       60       524

Order backlog at                            1,703      1,330     28       1,380
end of period

Personnel at end                            10,388     9,475     10       10,459
of period




Net sales of Paper and Fiber Technology grew 30 percent in January-September,
and were EUR 1,301 million. The increase in net sales came from all business
lines. The comparable net sales growth, i.e. excluding the impact of the
acquired Fabrics business, was 19 percent. The net sales of the services
business increased 31 percent and accounted for 41 percent of the net sales (41%
in Q1-Q3/2009). The growth in the services business' net sales came primarily
from the acquired Fabrics business.



Paper and Fiber Technology's EBITA before non-recurring items was EUR 86.7
million, i.e. 6.7 percent of net sales (EUR 54.5 million and 5.4% in Q1-
Q3/2009). Clear improvement in the profitability resulted primarily from
strengthened financial performance in the services business and strong net sales
growth in the Paper business. In the third quarter of 2009, the underlying EBITA
margin was exceptionally strong because of high gross margins in some large
paper projects as a result of lower procurement prices enabled by low cycle
phase and overall successful implementation of the projects.



Operating profit (EBIT) for January-September was EUR 60.2 million, i.e. 4.6
percent of net sales. The EBIT includes non-recurring items (non-recurring items
are analyzed in the 'Financial result' section), which weaken the EBIT by a
total of EUR 4.7 million (non-recurring items in Q1-Q3/2009 weakened the EBIT by
EUR 34.7 million).



New orders from paper and board customers increased in January-September 8
percent and orders from the pulp industry were up 220 percent on the
exceptionally weak comparison period. Orders from tissue customers increased 59
percent. Overall, the value of orders received by Paper and Fiber Technology
increased 59 percent and was EUR 1,560 million. The increase in services orders
was 60 percent (30 percent without the Fabrics business). Among the orders
received in January-September were board-making technology and machinery for
Cheng Loong in Taiwan, for Saica Containerboard in the UK as well as for
Zhejiang Ji'An in China, a fine paper line for APRIL Fine Paper (Guangdong) in
China, a kraft pulp mill for Japanese Oji Paper to China and the main technology
for Ilim Group's new kraft pulp mill in Bratsk, Russia.



At the end of September, the order backlog was EUR 1,703 million. Around EUR
240 million of the order backlog relates to the pulp mill project for Fibria in
Brazil, for which the delivery schedule is still open.



Valmet Automotive



Valmet Automotive's net sales in January-September totaled EUR 48 million (EUR
42 million in Q1-Q3/2009). The operating loss was EUR 7.8 million (EUR 8.4
million loss in Q1-Q3/2009). Delivery volumes improved in the third quarter and
profitability turned positive. At the end of September, Valmet Automotive
employed 668 people (679 employees at December 31, 2009).



Valmet Automotive manufactures THINK City electric cars for the Norwegian
company THINK Global AS, and electric golf cars for the Danish company Garia
A/S. Additionally, Valmet Automotive has an assembly contract with Porsche AG
which is expected to end by the end of 2011.



Valmet Automotive also has an agreement with the U.S. company Fisker Automotive
Inc. for the manufacturing and engineering of Fisker Karma plug-in hybrid cars.
The first pre-series cars have been delivered and the series production is
scheduled to start in the first quarter of 2011. The annual production is
projected to reach 15,000 cars at full capacity.





Short-term risks of business operations

The growing budget deficits in many European countries and the United States
coupled with strong fluctuations in exchange rates have increased the
uncertainty, which could slow the economic recovery, particularly in Europe and
North America. Despite this, we estimate that the business environment in our
main customer industries will continue to develop favorably during the rest of
2010 and the first half of 2011. We estimate that the high share of our business
derived from services and emerging markets will diminish the possible negative
effects that market uncertainties may have.



If the recovery in the global economy is interrupted, it might have adverse
effects on new projects under negotiation or on projects in our order backlog.
Some projects may be postponed or they may be suspended or canceled. At the
moment less than 10 percent of orders in the order backlog are subject to
uncertainties relating to delivery schedules. In long-term delivery projects the
initial customer down payments are typically 10-30 percent of the value of the
project, in addition to which the customer makes progress payments during the
project execution. This significantly decreases our risk and financing
requirements related to these projects. We continually assess our customers'
creditworthiness and ability to meet their obligations. As a rule, we do not
finance customer projects.



We have adjusted our capacity and cost structure in order to maintain our
competitiveness. Also our suppliers have strongly adjusted their capacity during
the past two years and it is possible that now with the demand picking up
suppliers' ability to supply raw materials, components and sub-contracting
services may have weakened, which may result in delivery problems. If the
recovery of the global economy is interrupted, the markets for our products may
contract, which may lead to tightening price competition.



Securing the continuity of our operations requires that sufficient funding is
available under all circumstances. We estimate that our cash assets totaling EUR
984 million and available credit facilities are sufficient to secure short-term
liquidity. Committed credit facility available for withdrawal amounted to EUR
500 million. The average repayment period for our long-term debt is 3.0 years.
Less than one third of our long-term debt will mature by the end of 2011. There
are no prepayment covenants in our debt facilities that would be triggered by
changes in credit ratings. Some of our debt facilities include financial
covenants related to capital structure. We fully meet the covenants and other
terms related to our financing agreements.



The levels of net working capital and capital expenditure have a fundamental
effect on the adequacy of financing. We have developed our practices and the
supporting information systems relating to managing net working capital and we
expect that these will improve our capacity to control movements in our net
working capital as delivery volumes experience an upswing. We estimate that we
are well-positioned to keep our capital expenditure at a moderate level in the
coming years.



We have EUR 877 million of goodwill on our balance sheet which is mainly related
to business acquisitions made over the last 10 years. We conduct impairment
tests regularly once a year and more frequently if needed, and have not detected
any impairment. The principles for the impairment testing are presented in our
Annual Report.



Changes in the prices of raw materials and components can affect our
profitability. On the other hand, some of our customers are raw material
producers, whose ability to operate and invest may be enhanced by strengthening
raw material prices and hampered by declining raw material prices.



Currency exchange rate risks are among the most substantial financial risks.
Exchange rate changes can affect our business, although the wide geographical
scope of our operations decreases the impact of any individual currency. In
general, uncertainty in the economy is likely to increase exchange rate
fluctuations. We hedge the currency exposures that arise from firm delivery and
purchase agreements.





Short-term outlook

We anticipate that the gradual recovery will continue in most of our customer
industries. The growing budget deficits in several European countries and the
United States and the uncertainty caused by fluctuations in the exchange rates
may, however, slow down the recovery of the markets particularly in Europe and
North America. In the emerging markets the outlook continues strong. The
improving capacity utilization rates of our customer industries are supporting
our services business, and most of our customers are expected to gradually
regain their confidence to increase the level of investments in new and existing
capacity.



The number of quotations for equipment and projects from mining companies has
strongly increased since the beginning of this year. This has had a clear
positive impact on our orders and we expect this to continue during the rest of
2010 and first half of 2011. Due to the strengthening demand for minerals and
our large installed equipment base, we expect demand for our mining services to
continue strong.



We anticipate that demand for equipment used in aggregates production by the
construction industry will continue to be weak in Europe and in North America
during the rest of 2010 and the first half of 2011. In the Asia-Pacific region
and Brazil, infrastructure construction projects are maintaining good demand
thanks to continuing strong economic growth. We estimate that demand for our
services business for the construction industry will remain satisfactory.



Demand for power plants that utilize renewable energy sources is expected to be
good in Europe and North America in 2010 and first half of 2011. Several
European countries and the United States have published targets to increase the
use of renewable energy and this is expected to support demand for our power
plant solutions fuelled by biomass and waste. However, uncertainty in the
financial markets and pending policies over support mechanisms for renewable
energy may delay final decisions in some of the projects under negotiations.
Demand for the power plant services business is expected to be good.



We estimate that demand for our automation products will continue to get
stronger during this year and first half of 2011, as the oil, gas and
petrochemical industries increase their investments due to the improvement in
energy prices and demand. Demand for automation products in the pulp and paper
customer industry is also expected to develop favorably. Demand for our services
business for automation solutions is expected to be good.



We expect the demand for metal and solid waste recycling equipment to be
satisfactory. Demand for recycling equipment services is expected to continue
improving over the coming quarters as the capacity utilization rates of our
customers' plants and equipment improve.



Demand for new fiber lines, rebuilds and pulp mill services has clearly
recovered from the low levels of the past few years, and we expect the fiber
equipment market to continue to be active this year and into 2011. Demand for
paper and board lines is expected to be satisfactory and for tissue lines good
in 2010 and first half of 2011. We expect the improved capacity utilization
rates of the paper and board industry to boost the demand for our services
business.



As earlier, we estimate that our net sales in 2010 will grow about 10 percent
from the EUR 5 billion level of 2009, and that our profitability will be
satisfactory. Our estimate is based on our net sales of EUR 3.9 billion for the
first nine months and on the order backlog at the end of September, out of which
about EUR 1.6 billion is estimated to be recognized as net sales during 2010, as
well as on the expectation that the recovery of the global economy will
continue.



Our orders received for the first nine months of this year exceed the net sales
for the same period by 15 percent. Based on this and assuming that the gradual
recovery of global economy will continue we estimate that in 2011 our net sales
will grow about 10 percent compared to this year and EBITA before non-recurring
items will improve.



The estimates for our financial performance in 2010 and 2011 are based on
Metso's current market outlook and business scope as well as foreign exchange
rates similar to September 2010.





Helsinki, October 28, 2010

Metso Corporation's Board of Directors



It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for general
economic development and the market situation, expectations for customer
industry profitability and investment willingness, expectations for company
growth, development and profitability and the realization of synergy benefits
and cost savings, and statements preceded by "expects", "estimates", "forecasts"
or similar expressions, are forward-looking statements. These statements are
based on current decisions and plans and currently known factors. They involve
risks and uncertainties which may cause the actual results to materially differ
from the results currently expected by the company.

Such factors include, but are not limited to:

1) general economic conditions, including fluctuations in exchange rates and
interest levels, which influence the operating environment and profitability of
customers and thereby the orders received by the company and their margins

(2) the competitive situation, especially significant technological solutions
developed by competitors

(3) the company's own operating conditions, such as the success of production,
product development and project management and their continuous development and
improvement

(4) the success of pending and future acquisitions and restructuring.



The Interim Review is unaudited.



CONSOLIDATED STATEMENT OF INCOME





                                             7-9/  7-9/  1-9/   1-9/   1-12/
EUR million
                                             2010  2009  2010   2009   2009

Net sales                                    1,325 1,196 3,865  3,663  5,016

Cost of goods sold                           -969  -885  -2,857 -2,752 -3,808

Gross profit                                 356   311   1,008  911    1,208

Selling, general and administrative expenses -251  -210  -744   -688   -938

Other operating income and expenses, net     -2    13    49     15     24

Share in profits of associated companies     0     0     0      1      0

Operating profit                             103   114   313    239    294

% of net sales                               7.8%  9.5%  8.1%   6.5%   5.9%

Financial income and expenses, net           -8    -23   -53    -59    -72

Profit before taxes                          95    91    260    180    222

Income taxes                                 -28   -28   -78    -54    -71

Profit                                       67    63    182    126    151



Attributable to:

Shareholders of the company                  67    62    181    125    150

Minority interests                           0     1     1      1      1

Profit                                       67    63    182    126    151





Earnings per share, EUR                      0.45  0.44  1.21   0.88   1.06

Diluted earnings per share, EUR              0.45  0.44  1.21   0.88   1.06









CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME





                                                       7-9/ 7-9/ 1-9/ 1-9/ 1-12/
EUR million
                                                       2010 2009 2010 2009 2009

Profit                                                 67   63   182  126  151



Cash flow hedges, net of tax                           36   7    16   17   14

Available-for-sale equity investments, net of tax      1    -5   1    5    -1

Currency translation on subsidiary net investments     -58  13   81   61   74

Net investment hedge gains (+) / losses (-), net of    17   -2   -10  0    0
tax

Defined benefit plan actuarial gains (+) / losses (-),  -    -    -    -   -2
net of tax

Other comprehensive income (+) /
                                                       -4   13   88   83   85
expense (-)



Total comprehensive income (+) / expense (-)           63   76   270  209  236



Attributable to:

Shareholders of the company                            63   75   269  208  235

Minority interests                                     0    1    1    1    1

Total comprehensive income (+) / expense (-)           63   76   270  209  236











CONSOLIDATED BALANCE SHEET





ASSETS





                                         Sep 30, Sep 30, Dec 31,
EUR million
                                          2010   2009     2009

Non-current assets

Intangible assets

Goodwill                                 877     787     863

Other intangible assets                  290     249     312

                                         1,167   1,036   1,175

Property, plant and equipment

Land and water areas                     64      58      62

Buildings and structures                 271     233     261

Machinery and equipment                  448     371     449

Assets under construction                42      53      47

                                         825     715     819

Financial and other assets

Investments in associated companies      13      15      13

Available-for-sale equity investments    17      25      15

Loan and other interest bearing
                                         6       9       9
receivables

Available-for-sale financial investments 256     44      130

Financial instruments held for trading   45      39      40

Derivative financial instruments         0       0       0

Deferred tax asset                       179     181     171

Other non-current assets                 27      34      44

                                         543     347     422



Total non-current assets                 2,535   2,098   2,416



Current assets

Inventories                              1,320   1,316   1,172



Receivables

Trade and other receivables              1,156   976     938

Cost and earnings of projects under

construction in excess of advance        308     296     312

billings

Loan and other interest bearing
                                         5       8       8
receivables

Available-for-sale financial assets      61      79      79

Derivative financial instruments         51      34      21

Income tax receivables                   42      40      42

                                         1,623   1,433   1,400



Cash and cash equivalents                622     612     727



Total current assets                     3,565   3,361   3,299



TOTAL ASSETS                             6,100   5,459   5,715











SHAREHOLDERS EQUITY AND LIABILITIES





                                           Sep 30, Sep 30, Dec 31,
EUR million
                                            2010    2009    2009

Equity

Share capital                              241     241     241

Cumulative translation adjustments         9       -75     -62

Fair value and other reserves              722     511     710

Retained earnings                          967     872     894

Equity attributable to shareholders        1,939   1,549   1,783



Minority interests                         9       10      9



Total equity                               1,948   1,559   1,792



Liabilities

Non-current liabilities

Long-term debt                             1,240   1,331   1,334

Post employment benefit obligations        192     192     190

Provisions                                 55      46      52

Derivative financial instruments           9       8       5

Deferred tax liability                     50      47      56

Other long-term liabilities                9       2       4

Total non-current liabilities              1,555   1,626   1,641



Current liabilities

Current portion of long-term debt          124     155     173

Short-term debt                            46      102     69

Trade and other payables                   1,258   958     1,065

Provisions                                 214     237     235

Advances received                          526     412     363

Billings in excess of cost and earnings
                                           336     355     330
 of projects under construction

Derivative financial instruments           40      27      21

Income tax liabilities                     53      28      26

Total current liabilities                  2,597   2,274   2,282



Total liabilities                          4,152   3,900   3,923





TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 6,100   5,459   5,715





NET INTEREST BEARING LIABILITIES

                                           Sep 30, Sep 30, Dec 31,
 EUR million
                                            2010    2009    2009

Long-term interest bearing debt            1,240   1,331   1,334

Short-term interest bearing debt           170     257     242

Cash and cash equivalents                  -622    -612    -727

Other interest bearing assets              -373    -179    -266

Total                                      415     797     583







CONDENSED CONSOLIDATED CASH FLOW STATEMENT



                                                       7-9/ 7-9/ 1-9/ 1-9/ 1-12/
EUR million
                                                       2010 2009 2010 2009 2009

Cash flows from operating activities:

Profit                                                 67   63   182  126  151

Adjustments to reconcile profit to net cash

provided by operating activities

Depreciation and amortization                          45   35   132  105  143

Interests and dividend income                          13   16   40   46   58

Income taxes                                           28   28   78   54   71

Other                                                  -11  -6   16   4    18

Change in net working capital                          24   159  31   294  518

Cash flows from operations                             166  295  479  629  959

Interest paid and dividends received                   -5   -10  -40  -35  -51

Income taxes paid                                      -23  -26  -71  -107 -138

Net cash provided by operating activities              138  259  368  487  770

Cash flows from investing activities:

Capital expenditures on fixed assets                   -30  -23  -88  -78  -116

Proceeds from sale of fixed assets                     2    0    6    3    8

Business acquisitions, net of cash
                                                       -2    -   -7   -3   -1
acquired

Proceeds from sale of businesses,
                                                        -    -   10   2    2
 net of cash sold

Investments in financial assets                        -23  -140 -113 -143 -221

Other                                                  2    0    6    1    1

Net cash used in investing activities                  -51  -163 -186 -218 -327

Cash flows from financing activities:

Redemption of own shares                                -    -   -7   -2   -2

Dividends paid                                          -    -   -105 -99  -99

Net funding                                            -19  -94  -196 120  59

Other                                                   -   2    -1   -4   -6

Net cash provided by (+) / used in (-) financing       -19  -92  -309 15   -48
activities

Net increase (+) / decrease (-) in cash and cash       68   4    -127 284  395
equivalents

Effect from changes in exchange rates                  -14  3    22   14   18

Cash and cash equivalents
                                                       568  605  727  314  314
at beginning of period

Cash and cash equivalents at end of period             622  612  622  612  727







FREE CASH FLOW





                                          7-9/ 7-9/ 1-9/ 1-9/ 1-12/
EUR million
                                          2010 2009 2010 2009 2009

Net cash provided by operating activities 138  259  368  487  770

Capital expenditures on maintenance
                                          -18  -10  -53  -41  -61
 investments

Proceeds from sale of fixed assets        2    0    6    3    8

Free cash flow                            122  249  321  449  717







CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY









                                                               Eq-

                                                               uity

                              Cu-mu-                           at-    Mi-

                              la-                    Re-       tri-   nor- To-

                   Share      tive        Fair value tain-     but-   ity  tal
EUR million        capi-                  and  other                       eq-
                              trans-      reser-ves  ed        able   in-
                   tal        lation                                       uity
                                                     earn-ings to     ter-
                              ad-just-
                              ments                            share- ests

                                                               hold-

                                                               ers

Balance at Jan     241        -136        490        849       1,444  9    1,453
1, 2009



Profit             -          -           -          125       125    1    126



Other comprehensive

income (+) / expense (-)

   Cash flow       -          -            17        -         17     -    17
hedges, net of tax

   Available-for-
sale equity
                   -          -            5         -         5      -    5
   investments,
net of tax

   Currency
translation on
                   -          61           -         -         61     -    61
   subsidiary net
investments

   Net investment
hedge gains
                   -          0            -         -         0      -    0
   (losses), net
of tax

Total
comprehensive      -          61           22        125       208    1    209
income (+) /
expense (-)



Dividends          -          -            -         -99       -99    -    -99

Redemption of own  -          -            -3        -         -3     -    -3
shares

Share-based
payments, net of   -          -            1         -         1      -    1
tax

Other              -          -            1         -3        -2     -    -2

Balance at Sep     241        -75          511       872       1,549  10   1,559
30, 2009



Balance at Jan     241        -62          710       894       1,783  9    1,792
1, 2010



Profit             -          -            -         181       181    1    182



Other comprehensive

income (+) / expense (-)

   Cash flow       -          -            16        -         16     -    16
hedges, net of tax

   Available-for-
sale equity
                   -          -            1         -         1      -    1
   investments,
net of tax

   Currency
translation on
                   -          81           -         -         81     -    81
   subsidiary net
investments

   Net investment
hedge gains
                   -          -10          -         -         -10    -    -10
   (losses), net
of tax

Total
comprehensive      -          71           17        181       269    1    270
income (+) /
expense (-)



Dividends          -          -            -         -105      -105   -    -105

Donations to       -          -            -         -2        -2     -    -2
universities

Redemption of own  -          -            -7        -         -7     -    -7
shares

Share-based
payments, net of   -          -            2         -         2      -    2
tax

Other              -          -            -         -1        -1     -1   -2

Balance at Sep     241        9            722       967       1,939  9    1,948
30, 2010






ACQUISITIONS



Acquisitions in 2010



In July Metso acquired the service business of Wyesco of Louisiana L.L.C., in
Louisiana,

USA. The acquired business is a diverse repair service provider for pulp mills
and related industry. The purchase price was less than EUR 3 million and the
business was combined

into Metso's Paper and Fiber Technology segment from July 19, 2010 onwards.






Acquisition of Tamfelt in
2009



Metso acquired Tamfelt Corporation, a Finnish corporation listed in the NASDAQ
OMX Helsinki exchange, through a public share exchange offer that was completed
at the end of December 2009. The total transaction value was EUR 215 million
whereof EUR 206 million was compensated by offering 8,593,642 new Metso shares
representing 95.2% of Tamfelt's shares and votes. Prior to the transaction,
Metso held Tamfelt shares worth EUR 4 million i.e. 2.8% of Tamfelt's shares and
votes. The remaining 2.0% of Tamfelt's shares, amounting to EUR 4 million, were
redeemed in accordance with the Finnish Companies Act and Metso paid the
redemption price with the interest accrued thereon in September 2010. The
transaction value included EUR 5 million in expenses and transfer taxes related
to the acquisition.



The transaction value, together with the shares already held, exceeded the net
assets of Tamfelt by EUR 117 million, whereof EUR 50 million was allocated to
intangible assets, representing the fair values of acquired customer base, order
backlog and technology. Furthermore, EUR 10 million was allocated to the
property, plant and equipment, to reflect their appraisal to fair values. The
deferred tax liability resulting from these allocations was EUR 16 million. The
remaining EUR 73 million represents goodwill, which reflects the value of
assembled workforce, significant synergy benefits and widened business portfolio
offering Metso potential to expand its operations into new markets and customer
segments.





Had the acquisition occurred on January 1, 2009, Metso's net sales would have
increased by EUR 130 million. The calculation of pro forma net income of the
acquired business would be impracticable considering the effects of the
acquisition cost.





Details of the acquired net assets and goodwill are as follows:



                                              Fair value

EUR million                   Carrying amount allo-cations Fair value

Intangible assets             4               50           54

Property, plant and equipment 87              10           97

Inventories                   30              -            30

Trade and other receivables   30              -            30

Deferred tax liabilities, net -9              -16          -25

Other liabilities assumed     -23             -            -23

Non-interest bearing net      119             44           163
assets



Cash and cash equivalents                                  19
acquired

Debt assumed                                               -36

Transaction value                                          -215

Pre-acquisition holding of                                 -4
Tamfelt shares

Goodwill                                                   73



Transaction value settled in                               -5
cash

Cash and cash equivalents                                  19
acquired

Total cash inflow on acquisition in 2009                   14



Amounts settled in 2010                                    -4

Total cash inflow on Tamfelt acquisition                   10









ASSETS PLEDGED AND CONTINGENT LIABILITIES





                                                       Sep 30, Sep 30, Dec 31,
EUR million
                                                        2010    2009    2009

Mortgages on corporate debt                            2       3       20

Other pledges and contingencies

Mortgages                                              2       1       1

Pledged assets                                         -       0       -

Guarantees on behalf of associated company obligations -       -       -

Other guarantees                                       4       7       7



Repurchase and other commitments                       6       6       6

Lease commitments                                      229     156     226









NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS







                               Sep 30, Sep 30,       Dec 31,
EUR million
                                2010    2009          2009

Forward exchange rate          2,049   1,196         1,390
contracts

Interest rate swaps            163     123           128

Option agreements

Bought                         2       -             13

Sold                           10      -             6



The notional amount of electricity forwards was 671 GWh as of September
30, 2010 and 603 GWh as of September 30, 2009.



The notional amount of nickel forwards to hedge stainless steel prices was
534 tons as of September 30, 2010 and 282  tons as of September 30, 2009.



The notional amounts indicate the volumes in the use of derivatives, but do not
indicate

 the exposure to risk

.




KEY RATIOS



                                                     1-9/2010 1-9/2009 1-12/2009

Earnings per share, EUR                              1.21     0.88     1.06

Diluted earnings per share, EUR                      1.21     0.88     1.06



Equity/share at end of period, EUR                   12.96    10.96    11.89

Return on equity (ROE), % (annualized)               13.5     11.4     9.8

Return on capital employed (ROCE) before tax, %      13.0     11.1     10.0
(annualized)

Return on capital employed (ROCE) after tax, %       9.8      8.6      7.7
(annualized)

Equity to assets ratio at end of period, %           37.2     33.2     35.7

Gearing at end of period, %                          21.3     51.1     32.5



Free cash flow, EUR million                          321      449      717

Free cash flow/share, EUR                            2.14     3.17     5.07

Cash conversion, %                                   176      359      475



Gross capital expenditure (excl. business            90       79       117
acquisitions), EUR million

Business acquisitions, net of cash acquired, EUR     7        3        1
million

Depreciation and amortization, EUR million           132      105      143



Number of outstanding shares at end of period        149,631  141,349  149,939
(thousands)

Average number of shares (thousands)                 149,700  141,396  141,477

Average number of diluted shares (thousands)         149,825  141,396  141,526





















EXCHANGE RATES USED







                        1-9/   1-9/    1-12/                Sep 30, Dec 31,
                                               Sep 30, 2010
                        2010   2009    2009                  2009    2009

USD (US dollar)         1.3267 1.3861  1.3960  1.3648       1.4643  1.4406

SEK (Swedish krona)     9.6665 10.6371 10.6092 9.1421       10.2320 10.2520

GBP (Pound sterling)    0.8593 0.8955  0.8948  0.8600       0.9093  0.8881

CAD (Canadian dollar)   1.3827 1.5978  1.5910  1.4073       1.5709  1.5128

BRL (Brazilian real)    2.3574 2.8419  2.7994  2.3201       2.6050  2.5113

CNY (Chinese renminbi)  9.0236 9.4682  9.5338  9.1321       9.9958  9.8350

AUD (Australian dollar) 1.4774 1.8187  1.7858  1.4070       1.6596  1.6008









FORMULAS FOR CALCULATION OF INDICATORS





  EBITA before non-recurring items:



  Operating profit + amortization + goodwill impairment + non-recurring items





  Earnings/share:



  Profit attributable to shareholders of the
  company

  Average number of shares during period





  Equity/share:



  Equity attributable to
  shareholders

  Number of shares at end of period





  Return on equity (ROE), %:



  Profit
                                     x 100
  Total equity (average for period)





  Return on capital employed (ROCE) before tax, %:



  Profit before tax + interest and other financial expenses
                                                                           x 100
  Balance sheet total - non-interest bearing liabilities (average for
  period)





  Return on capital employed (ROCE) after tax, %:



  Profit + interest and other financial expenses
                                                                           x 100
  Balance sheet total - non-interest bearing liabilities (average for
  period)





  Gearing, %:



  Net interest bearing liabilities
                                     x 100
  Total equity





  Equity to assets ratio, %:



  Total equity
                                              x 100
  Balance sheet total - advances received





  Free cash flow:



  Operating cash flow

  - capital expenditures on maintenance investments

  + proceeds from sale of fixed assets

  = Free cash flow



  Cash conversion, %:



  Free cash flow
                       x 100
  Profit







REPORTING SEGMENTS



NET SALES

                         7-9/             7-9/  1-9/  1-9/  10/2009        1-12/
EUR million
                         2010             2009  2010  2009  -9/2010        2009

Mining and Construction  563              492   1,576 1,551 2,100          2,075
Technology

Energy and Environmental 312              350   978   1,104 1,397          1,523
Technology

Paper and Fiber          443              356   1,301 1,002 1,707          1,408
Technology

Valmet Automotive        20               7     48    42    62             56

Group Head Office and    -                -     -     -     -              -
other

Group Head Office and
                         20               7     48    42    62             56
others total

Intra Metso net sales    -13              -9    -38   -36   -48            -46

Metso total              1,325            1,196 3,865 3,663 5,218          5,016



EBITA BEFORE NON-RECURRING ITEMS

                                    7-9/  7-9/  1-9/  1-9/                 1-12/
EUR million                                                 10/2009-9/2010
                                    2010  2009  2010  2009                 2009

Mining and Construction Technology  74.9  57.7  179.2 159.4 221.4          201.6

Energy and Environmental Technology 31.7  40.3  92.8  109.5 130.7          147.4

Paper and Fiber Technology          31.8  35.9  86.7  54.5  103.5          71.3

    Valmet Automotive               0.7   -5.5  -7.8  -8.4  -7.5           -8.1

    Group Head Office and other     -10.5 5.9   -9.7  -4.0  -18.9          -13.2

Group Head Office and others total  -9.8  0.4   -17.5 -12.4 -26.4          -21.3

Metso total                         128.6 134.3 341.2 311.0 429.2          399.0








                                    7-9/  7-9/  1-9/  1-9/                 1-12/
EBITA BEFORE NON-RECURRING ITEMS, %                         10/2009-9/2010
OF NET SALES                        2010  2009  2010  2009                 2009



%

Mining and Construction Technology  13.3  11.7  11.4  10.3  10.5           9.7

Energy and Environmental Technology 10.2  11.5  9.5   9.9   9.4            9.7

Paper and Fiber Technology          7.2   10.1  6.7   5.4   6.1            5.1

     Valmet Automotive              3.5   -78.6 -16.3 -20.0 -12.1          -14.5

    Group Head Office and other     n/a   n/a   n/a   n/a   n/a            n/a

Group Head Office and others total  n/a   n/a   n/a   n/a   n/a            n/a

Metso total                         9.7   11.2  8.8   8.5   8.2            8.0



NON-RECURRING ITEMS

                                    7-9/  7-9/  1-9/  1-9/                 1-12/
EUR million                                                 10/2009-9/2010
                                    2010  2009  2010  2009                 2009

Mining and Construction Technology  -4.9  -3.0  27.5  -2.2  30.9           1.2

Energy and Environmental Technology -2.9  -3.2  -7.9  -6.0  -13.0          -11.1

Paper and Fiber Technology          -2.7  -3.5  -4.7  -34.7 -24.8          -54.8

    Valmet Automotive               -     -     -     -     -              -

    Group Head Office and other     -     -     -     -     -              -

Group Head Office and others total  -     -     -     -     -              -

Metso total                         -10.5 -9.7  14.9  -42.9 -6.9           -64.7



AMORTIZATION

                                    7-9/  7-9/  1-9/  1-9/                 1-12/
EUR million                                                 10/2009-9/2010
                                    2010  2009  2010  2009                 2009

Mining and Construction Technology  -1.8  -1.0  -4.7  -2.6  -6.1           -4.0

Energy and Environmental Technology -5.0  -4.2  -14.9 -13.2 -19.9          -18.2

Paper and Fiber Technology          -7.2  -4.8  -21.8 -12.0 -25.5          -15.7

Valmet Automotive                   -     -     -     -     -0.1           -0.1

Group Head Office and other         -0.6  -0.5  -1.7  -1.7  -2.7           -2.7

Group Head Office and others total  -0.6  -0.5  -1.7  -1.7  -2.8           -2.8

Metso total                         -14.6 -10.5 -43.1 -29.5 -54.3          -40.7



OPERATING PROFIT (LOSS)

                                    7-9/  7-9/  1-9/  1-9/                 1-12/
EUR million                                                 10/2009-9/2010
                                    2010  2009  2010  2009                 2009

Mining and Construction Technology  68.2  53.7  202.0 154.6 246.2          198.8

Energy and Environmental Technology 23.8  32.9  70.0  90.3  97.8           118.1

Paper and Fiber Technology          21.9  27.6  60.2  7.8   53.2           0.8

Valmet Automotive                   0.7   -5.5  -7.8  -8.4  -7.6           -8.2

Group Head Office and other         -11.1 5.4   -11.4 -5.7  -21.6          -15.9

Group Head Office and others total  -10.4 -0.1  -19.2 -14.1 -29.2          -24.1

Metso total                         103.5 114.1 313.0 238.6 368.0          293.6



OPERATING PROFIT (LOSS), % OF NET SALES

                         7-9/             7-9/  1-9/  1-9/                 1-12/
%                                                           10/2009-9/2010
                         2010             2009  2010  2009                 2009

Mining and Construction  12.1             10.9  12.8  10.0  11.7           9.6
Technology

Energy and Environmental 7.6              9.4   7.2   8.2   7.0            7.8
Technology

Paper and Fiber          4.9              7.8   4.6   0.8   3.1            0.1
Technology

    Valmet Automotive    3.5              -78.6 -16.3 -20.0 -12.3          -14.6

    Group Head Office    n/a              n/a   n/a   n/a   n/a            n/a
and other

Group Head Office and
                         n/a              n/a   n/a   n/a   n/a            n/a
others total

Metso total              7.8              9.5   8.1   6.5   7.1            5.9



ORDERS RECEIVED

                         7-9/             7-9/  1-9/  1-9/                 1-12/
EUR million                                                 10/2009-9/2010
                         2010             2009  2010  2009                 2009

Mining and Construction  643              420   1,806 1,203 2,263          1,660
Technology

Energy and Environmental 341              250   1,081 793   1,585          1,297
Technology

Paper and Fiber          417              369   1,560 983   1,961          1,384
Technology

    Valmet Automotive    20               7     48    42    62             56

    Group Head Office    -                -     -     -     -              -
and other

Group Head Office and
                         20               7     48    42    62             56
others total

Intra Metso orders       -12              -15   -49   -28   -60            -39
received

Metso total              1,409            1,031 4,446 2,993 5,811          4,358







QUARTERLY INFORMATION



NET SALES

                  7-9/         10-12/       1-3/         4-6/        7-9/
EUR million
                  2009         2009         2010         2010        2010

Mining and
Construction      492          524          472          541         563
Technology

Energy and
Environmental     350          419          332          334         312
Technology

Paper and Fiber   356          406          364          494         443
Technology

    Valmet        7            14           11           17          20
Automotive

    Group Head    -            -            -            -           -
Office and other

Group Head Office
and others        7            14           11           17          20

total

Intra Metso net   -9           -10          -9           -16         -13
sales

Metso total       1,196        1,353        1,170        1,370       1,325



EBITA BEFORE NON-RECURRING
ITEMS

                  7-9/         10-12/       1-3/         4-6/        7-9/
EUR million
                  2009         2009         2010         2010        2010

Mining and
Construction      57.7         42.2         39.5         64.8        74.9
Technology

Energy and
Environmental     40.3         37.9         31.8         29.3        31.7
Technology

Paper and Fiber   35.9         16.8         18.9         36.0        31.8
Technology

    Valmet        -5.5         0.3          -7.1         -1.4        0.7
Automotive

    Group Head    5.9          -9.2         4.5          -3.7        -10.5
Office and other

Group Head Office
and others        0.4          -8.9         -2.6         -5.1        -9.8

total

Metso total       134.3        88.0         87.6         125.0       128.6



EBITA BEFORE NON-RECURRING ITEMS, % OF NET SALES

                  7-9/         10-12/       1-3/         4-6/        7-9/
%
                  2009         2009         2010         2010        2010

Mining and
Construction      11.7         8.1          8.4          12.0        13.3
Technology

Energy and
Environmental     11.5         9.0          9.6          8.8         10.2
Technology

Paper and Fiber   10.1         4.1          5.2          7.3         7.2
Technology

    Valmet        -78.6        2.1          -64.5        -8.2        3.5
Automotive

    Group Head    n/a          n/a          n/a          n/a         n/a
Office and other

Group Head Office
and others        n/a          n/a          n/a          n/a         n/a

total

Metso total       11.2         6.5          7.5          9.1         9.7



NON-RECURRING
ITEMS

                  7-9/         10-12/       1-3/         4-6/        7-9/
EUR million
                  2009         2009         2010         2010        2010

Mining and
Construction      -3.0         3.4          -            32.4        -4.9
Technology

Energy and
Environmental     -3.2         -5.1         -3.4         -1.6        -2.9
Technology

Paper and Fiber   -3.5         -20.1        -0.4         -1.6        -2.7
Technology

    Valmet        -            -            -            -           -
Automotive

    Group Head    -            -            -            -           -
Office and other

Group Head Office
and others        -            -            -            -           -

total

Metso total       -9.7         -21.8        -3.8         29.2        -10.5



AMORTIZATION

                  7-9/         10-12/       1-3/         4-6/        7-9/
EUR million
                  2009         2009         2010         2010        2010

Mining and
Construction      -1.0         -1.4         -1.4         -1.5        -1.8
Technology

Energy and
Environmental     -4.2         -5.0         -4.9         -5.0        -5.0
Technology

Paper and Fiber   -4.8         -3.7         -7.2         -7.4        -7.2
Technology

    Valmet        -            -0.1         -            -           -
Automotive

    Group Head    -0.5         -1.0         -0.8         -0.3        -0.6
Office and other

Group Head Office
and others        -0.5         -1.1         -0.8         -0.3        -0.6

total

Metso total       -10.5        -11.2        -14.3        -14.2       -14.6



OPERATING PROFIT
(LOSS)

                  7-9/         10-12/       1-3/         4-6/        7-9/
EUR million
                  2009         2009         2010         2010        2010

Mining and
Construction      53.7         44.2         38.1         95.7        68.2
Technology

Energy and
Environmental     32.9         27.8         23.5         22.7        23.8
Technology

Paper and Fiber   27.6         -7.0         11.3         27.0        21.9
Technology

    Valmet        -5.5         0.2          -7.1         -1.4        0.7
Automotive

    Group Head    5.4          -10.2        3.7          -4.0        -11.1
Office and other

Group Head Office
and others        -0.1         -10.0        -3.4         -5.4        -10.4

total

Metso total       114.1        55.0         69.5         140.0       103.5



OPERATING PROFIT (LOSS), % OF
NET SALES

                  7-9/         10-12/       1-3/         4-6/        7-9/
%
                  2009         2009         2010         2010        2010

Mining and
Construction      10.9         8.4          8.1          17.7        12.1
Technology

Energy and
Environmental     9.4          6.6          7.1          6.8         7.6
Technology

Paper and Fiber   7.8          -1.7         3.1          5.5         4.9
Technology

    Valmet        -78.6        1.4          -64.5        -8.2        3.5
Automotive

    Group Head    n/a          n/a          n/a          n/a         n/a
Office and other

Group Head Office
and others        n/a          n/a          n/a          n/a         n/a

total

Metso total       9.5          4.1          5.9          10.2        7.8



CAPITAL EMPLOYED

EUR million       Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 June        Sep
                                                         30, 2010    30, 2010

Mining and
Construction      1,111        1,072        1,109        1,098       1,099
Technology

Energy and
Environmental     626          524          512          499         511
Technology

Paper and Fiber   427          636          675          664         620
Technology

    Valmet        27           28           26           22          24
Automotive

    Group Head    956          1,108        921          1,061       1,105
Office and other

Group Head Office
and others        983          1,136        947          1,083       1,129

total

Metso total       3,147        3,368        3,243        3,344       3,359



ORDERS RECEIVED

                  7-9/         10-12/       1-3/         4-6/        7-9/
EUR million
                  2009         2009         2010         2010        2010

Mining and
Construction      420          457          559          604         643
Technology

Energy and
Environmental     250          504          356          384         341
Technology

Paper and Fiber   369          401          461          682         417
Technology

    Valmet        7            14           11           17          20
Automotive

    Group Head    -            -            -            -           -
Office and other

Group Head Office
and others        7            14           11           17          20

total

Intra Metso       -15          -11          -21          -16         -12
orders received

Metso total       1,031        1,365        1,366        1,671       1,409



ORDER BACKLOG

EUR million       Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 June        Sep
                                                         30, 2010    30, 2010

Mining and
Construction      1,103        1,041        1,182        1,310       1,329
Technology

Energy and
Environmental     939          1,032        1,073        1,159       1,159
Technology

Paper and Fiber   1,330        1,380        1,516        1,759       1,703
Technology

    Valmet         -            -            -            -           -
Automotive

    Group Head     -            -            -            -           -
Office and other

Group Head Office
and others         -            -            -            -           -

total

Intra Metso order -32          -38          -51          -52         -47
backlog

Metso total       3,340        3,415        3,720        4,176       4,144



PERSONNEL         Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 June        Sep
                                                         30, 2010    30, 2010

Mining and
Construction      10,014       9,541        9,550        9,787       9,974
Technology

Energy and
Environmental     6,119        6,060        5,873        6,114       6,015
Technology

Paper and Fiber   9,475        10,459       10,326       10,526      10,388
Technology

  Valmet          636          679          705          723         668
Automotive

  Group Head      419          427          494          515         507
Office and other

Group Head Office 1,055        1,106        1,199        1,238       1,175
and others total

Metso total       26,663       27,166       26,948       27,665      27,552











Notes to the Interim Review



We have prepared this Interim Review in accordance with IAS 34 'Interim
Financial Reporting'. The same accounting policies have been applied as in the
annual financial statements. This Interim Review is unaudited.



New accounting standards



IFRS 7 (Amendment)

In October 2010, IASB issued an amendment to IFRS7 Financial Instruments:
Disclosures on transfer of financial assets. The amendment becomes applicable to
Metso after January 1, 2012 and it is not expected to impact our disclosures.



IFRS 9

IASB has published a new standard IFRS 9 'Financial instruments: Recognition and
measurement'. The standard represents the first milestone in the IASB's planned
replacement of IAS 39. It addresses classification and measurement of financial
assets. The next steps involve reconsideration and re-exposure of the
classification and measurement requirements for financial liabilities,
impairment testing methods for financial assets, and development of enhanced
guidance on hedge accounting. We are currently evaluating the effects on our
financial statements, and expect the standard to have major impacts on the
accounting of financial instruments.



IFRS 9 becomes effective for the financial statements or periods beginning after
January 1, 2013. It is still subject to endorsement by the European Union, and
the endorsement process has been postponed.



Provided that the standard has received endorsement by the European Union, we
will apply the standard for the financial year beginning on January 1, 2013.



Decisions of the Annual General Meeting

Our Annual General Meeting on March 30, 2010 approved the Financial Statements
for 2009 and decided to discharge the members of the Board of Directors and the
President and CEO from liability for the financial year 2009. The Annual General
Meeting approved the proposals of the Board to authorize the Board to resolve on
a repurchase of Metso's own shares, on share issue and granting of special
rights and on donations to universities. The Annual General Meeting also
approved the proposal to amend Article 8 (notice convening a meeting) of the
Articles of Association. On the basis of the decision made by the Annual General
Meeting, in September, Metso paid a donation of EUR 1.9 million to the Aalto
University Foundation and to other Finnish universities as follows: EUR 350,000
to Tampere University of Technology's TTY Foundation; EUR 100,000 to the
University of Jyväskylä; and EUR 50,000 each to Åbo Akademi University, the
Lappeenranta University of Technology and the University of Oulu. The donation
authorization granted by the Annual General Meeting has been exercised in full.



The AGM decided that a dividend of EUR 0.70 per share will be paid for 2009. The
dividend was paid on April 13, 2010.



The AGM elected Jukka Viinanen Chairman of the Board and Maija-Liisa Friman Vice
Chairman of the Board. Erkki Pehu-Lehtonen and Mikael von Frenckell were elected
as new members of the Board. The Board members re-elected were Christer Gardell,
Yrjö Neuvo and Pia Rudengren. The term of office of Board members lasts until
the end of the next Annual General Meeting.



The AGM decided that the annual remunerations for Board members would be EUR
92,000 for the Chairman, EUR 56,000 for the Vice Chairman and EUR 45,000 for the
members and that they be paid EUR 600 for each meeting they attend, including
committee meetings. Based on the decision of the AGM, the Board members have
used 40 percent of their annual remuneration to buy Metso shares. The Board
members acquired the shares from the market within two weeks after the
publication of the first-quarter 2010 interim report on April 29, 2010.
Altogether 5,580 shares were acquired, which is 0,004 percent of total amount of
Metso shares. There are no specific principles for the ownership of above
mentioned shares.



The auditing company, Authorized Public Accountants PricewaterhouseCoopers Oy,
was re-elected as our Auditor until the end of the next AGM.



The AGM decided to establish a Nomination board of the AGM to prepare proposals
for the following AGM regarding the composition of the Board and director
remuneration. Representatives of the four biggest shareholders will be elected
to the Nomination board based on the ownership information as of November 1, and
the Chairman of the Board will be an expert member of the Nomination board.





Members of Metso Board committees and personnel representatives

Our Board elected members from among the Board for the Audit Committee and
Remuneration and HR Committee at its assembly meeting on March 30, 2010. The
Board's Audit Committee consists of Pia Rudengren (Chairman), Maija-Liisa Friman
and Erkki Pehu-Lehtonen. The Board's Remuneration and HR Committee consists of
Jukka Viinanen (Chairman), Mikael von Frenckell, Christer Gardell and Yrjö
Neuvo.



Metso's personnel groups in Finland have elected Jukka Leppänen as the personnel
representative. He participates in the meetings of our Board of Directors as an
invited external expert, and his term of office is the same as the Board
members' term.



Shares and share capital

At the end of September 2010, our share capital was EUR 240,982,843.80 and the
number of shares was 150,348,256. The number of shares includes 716,904 Metso
shares held by the parent company, which represent 0.5 percent of all the shares
and votes. The average number of shares outstanding in January-September of
2010, excluding Metso shares held by the Parent Company, was 149,700,337 and the
average number of diluted shares was 149,824,882.

During February-March 2010, we executed a repurchase of 300,000 of our own
shares relating to our share-based management incentive program decided on in
October 2009 (Metso Share Ownership Plan 2010-2012). The average purchase price
of the shares was EUR 23.47 and the total amount EUR 7,040,303.60.



During January-September, 7,287 shares were returned from Metso Share Ownership
Plan participants to the Parent Company due to employment terminations.



Market capitalization of Metso, excluding the shares held by the Parent Company,
was EUR 5,031 million on September 30, 2010.



Metso is not aware of any valid shareholders' agreements regarding the ownership
of Metso shares or voting rights.





Share-based incentive plans

Metso's share ownership plans are part of the remuneration and commitment
program for Metso management. For further information, see
www.metso.com/investors



Share ownership plan for 2009-2011

In October 2008, the Board of Directors approved a new share ownership plan for
the years 2009-2011. The plan has one three-year earnings period and required
participants' personal investment in Metso shares at the beginning of the
program. Any possible reward from the plan requires continued employment with
Metso and reaching the financial targets set for the plan. The plan has about
90 participants and the rewards that can be paid correspond to a maximum of
around 370,000 Metso shares. The plan will not have a diluting effect on the
share value. Members of the Executive Team may receive a maximum of 77,400
shares as share rewards.



Share ownership plan for 2010-2012

In October 2009, the Board of Directors approved a similar kind of share
ownership plan for the years 2010-2012. The plan includes one three-year
earnings period and required participants' personal investment in Metso shares.
Any possible reward from the plan required continued employment with Metso and
reaching the financial targets set for the plan. The program has about 90
participants and the rewards that can be paid correspond to a maximum of around
340,000 Metso shares. The plan will not have a diluting effect on the share
value. Members of the Executive Team may receive a maximum of 77,400 shares as
share rewards.



Share ownership plan for 2011-2013

On September 30, the Board of Directors approved a Metso Share Ownership Plan
for 2011-2013. The plan includes one three-year earnings period and it has one
three-year earnings period that begins on January 1, 2011 and ends on December
31, 2013. The plan is targeted to about 100 key managers and it requires
participants' personal investment in Metso shares at the beginning of the
program. Any possible reward from the plan requires continued employment with
Metso and reaching the financial targets set for the plan. The rewards paid may
correspond to a maximum of 400,000 Metso shares. The shares for the plan are
acquired in public trading and therefore the plan will not have diluting effect
on the share value. Final allocations and maximum total number of shares will be
decided in December 2010.



Trading of Metso shares

The number of Metso Corporation shares traded on the NASDAQ OMX Helsinki
Exchange during January-September was 173,130,203 shares, equivalent to a
turnover of EUR 4,589 million. The price of the Metso share on September
30, 2010 was EUR 33.62 and the average trading price for the period was EUR
26.50. The highest quotation during the review period was EUR 33.93 and the
lowest EUR 20.91.



Metso's ADSs (American Depositary Shares) are traded in the United States on the
OTC market. On September 30, 2010, the closing price of an ADS was USD 45.82.
Each ADS represents one share.



Disclosures of changes in holdings

On July 15, 2010, Marathon Asset Management LLP announced that on July 12, 2010
the Marathon Asset Management LLP holding in shares of Metso fell below the 5
percent threshold. The holding amounted to 7,437,730 shares, which corresponds
to 4.95 percent of the total amount of shares and votes in Metso Corporation.
Out of this holding, Marathon Asset Management LLP was in possession of
5,573,661 shares to which they had voting rights. This represents 3.71 percent
of the total voting rights in Metso.



BlackRock Investment Management (UK) Limited announced that on March 19, 2010
the BlackRock, Inc. holding in shares of Metso Corporation fell below the 5 per
cent threshold. The holding amounted to 7,298,453 shares, which corresponds to
4.85 percent of the total amount of shares and votes in Metso Corporation.



BlackRock Investment Management (UK) Limited announced that on February
24, 2010 the BlackRock, Inc. holding in shares of Metso amounted to 7,563,054
shares, which corresponds to 5.03 percent of the total amount of shares and
votes in Metso Corporation.



Credit ratings

On September 20, 2010, Moody's Investors Service confirmed Metso's Baa2 long
term credit rating and raised the outlook from negative to stable.



On August 12, 2010, Standard and Poor's Rating Services affirmed Metso's BBB
long-term credit rating and changed the outlook from negative to stable. At the
same time the short-term corporate credit rating was raised to A-2 from A-3.



Metso's financial reporting during the rest of 2010 and in 2011

Metso's Financial Statement Review for 2010 will be published on February
3, 2011. The Annual Report will be published in the week starting on March
7, 2011 (week 10). The Interim Review for January - March 2011 will be published
on April 29, 2011, the Interim Review for January - June 2011 on July 28, 2011
and the Interim Review for January - September 2011 on October 27, 2011.



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 about 27,000 employees in more than 50 countries.
www.metso.com



For further information, please contact:

Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 204 84 3000

Olli Vaartimo, CFO, Metso Corporation, tel. +358 204 84 3010

Johanna Henttonen, Vice President, Investor Relations, Metso Corporation, tel.
+358 20 484 3253



Olli Vaartimo
CFO



Johanna Henttonen
Vice President, Investor Relations



Distribution:

NASDAQ OMX Helsinki Ltd

Media
www.metso.com