Wärtsilä Corporation INTERIM REPORT 20 July 2011 at 8.30 a.m. local time

ORDER INTAKE AND PROFITABILITY IMPROVED

SECOND QUARTER HIGHLIGHTS
- Order intake grew by 5% to EUR 1,170 million (1,117)
- Net sales decreased 8% to EUR 1,036 million (1,131)
- Operating result EUR 117 million, or 11.3% of net sales (EUR 117 million and 10.4%)
- Earnings per share amounted to EUR 0.39 (0.43)
- Book-to-bill increased to 1.13 (0.99)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-JUNE 2011
- Order intake EUR 2,149 million (1,998), an increase of 8%
- Net sales increased to EUR 2,119 million (2,052), 3%
- Operating result increased to EUR 230 million (211), 10.9% of net sales (10.3)
- At the end of the period the order book totalled EUR 3,779 million (4,315), -12%
- Earnings per share amounted to EUR 0.78 (0.77)
- Cash flow from operating activities EUR 84 million (270)

The operating result and earnings per share are shown excluding nonrecurring items. Wärtsilä recognised EUR 9 million (12) of nonrecurring items related to restructuring measures during the second quarter and EUR 12 million (56) of nonrecurring items during the review period January-June 2011.

OLE JOHANSSON, PRESIDENT AND CEO:
'The second quarter was good in terms of ordering activity and profitability. While net sales decreased somewhat, the solid order intake paves the way ahead. For the first time since 2008, we booked more new orders than we billed for. In Ship Power there is positive development in various LNG fuelled vessel markets. Power Plants also received major orders in new markets for gas-based solutions and our 'Smart Power Generation' -concept is being recognised. The Services business was stable. The growth of the global economy appears at risk of slowing down, which may impact decision making for new investments. It may also affect the utilisation of the existing marine fleet. Due to this uncertainty, as well as the timing of power plant deliveries, we have revised our net sales expectation to a slight decline compared to last year. Our profitability is expected to remain on the guided level.'

WÄRTSILÄ'S PROSPECTS FOR 2011 REVISED
Due to weaker than expected marine service markets and the timing of power plant deliveries, Wärtsilä expects its net sales for 2011 to decline by 0-5% compared to last year. We reiterate our expectation that operational profitability (EBIT% before nonrecurring items) will be around 11%.

ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on Wednesday 20 July 2011, at 10.45 a.m. Finnish time (8.45 a.m. UK time), at the Wärtsilä headquarters in Helsinki, Finland. The combined web- and teleconference will be held in English and can be viewed on the internet at the following address: http://storm.zoomvisionmamato.com/player/wartsila/objects/s8qztnc3/.

To participate in the teleconference please register at the following address: http://www.yourconferencecentre.com/r.aspx?p=1&a=DwceDNGpzRRGrV.
You will receive dial-in details by e-mail once you have registered. If you want to ask questions during the teleconference, press the *-button followed by the 1-button on your phone to register for a question and the # -key to withdraw a question. The event name is: Wärtsilä Interim Report Q2 2011. Please be ready to state your details and the name of the conference to the operator. If problems occur, please press the *-button followed by the 0-button.

An on-demand version of the webcast will be available on the company website later the same day.

For further information, please contact:

Raimo Lind
Executive Vice President & CFO
Tel: +358 10 709 5640
raimo.lind@wartsila.com

Pauliina Tennilä
Director, Investor Relations
Tel: +358 40 570 5530
pauliina.tennila@wartsila.com

For press information, please contact:

Atte Palomäki
Group Vice President, Communications & Branding
Tel: +358 40 547 6390
atte.palomaki@wartsila.com