Executives from Karhu and Exel Oyj Finland announced that Karhu has been awarded the exclusive rights to distribute Exel's line of Nordic Walking poles in North America. The
agreement is effective immediately.

Both companies see a bright future for Nordic Walking here if participation levels grow as they have in Europe. In Finland, for example, fully ten per cent of the population now participates in Nordic Walking on a regular basis
less than seven years after its 1997 launch. In the German speaking countries, approximately 1 million people are Nordic Walking, a significant
increase since its launch in 2000.

Doug Barbor, President of Karhu, said: “Nordic Walking gives us the
opportunity to be a stronger company with a year-round business. We will be
expanding our reach out of the so-called 'Snow Belt' to work with new
channels of distribution and new retailers. Right now in fact, we are in the
process of interviewing independent sales organizations in markets where we
have not traditionally sold our ski equipment. The benefits of this new
program will be compelling to retailers and their customers.”

“We are very excited about this opportunity to bring Exel's Nordic Walking
equipment and programming here. We believe there is a vast, untapped group
of dedicated walkers in the U.S. and Canada who will understand and embrace
this concept,” said Tracy Ferland product and marketing manager for the Exel
brand at Karhu. “Once walkers realize that they can increase total body
fitness, increase caloric expenditures 20 per cent or more compared to their
normal walking routine, and that this is a fun workout, we think they'll be
hooked.”

Karhu plans to adapt the marketing and business models used successfully by
Exel in Europe and Japan to appeal to consumers in the U.S. and Canadian
markets. The company has started the process of building relationships with
fitness organizations, instructors, health clubs, walking organizations,
athletes, celebrities and other influentials as part of a multi-faceted
grassroots marketing program. Karhu also will launch aggressive advertising
and public relations campaigns to spotlight the benefits of Nordic Walking.

Exel's international sales manager Chris Griffin, who will play an integral role in the North American rollout of Nordic Walking, was enthusiastic about the future possibilities for both brands. “We looked very carefully for a distributor who could duplicate or even surpass our successes in Europe. Karhu USA showed us that they have the ability, the understanding, and the resources to achieve our objectives. Although we are a Finnish company, we speak the same language when it comes to our love of skiing, the outdoors, fitness and all the benefits that come from those activities. And Nordic Walking represents a natural transition from snow to dry land for two
companies already heavily invested in the snow business. We're very excited
about working with Karhu USA,” he said.