Highlights for 2005

New markets - Vaisala enters the weather radar business
In November, the decision was taken to enter the weather radar business. A business unit responsible for the commercialization of the new product became operative in January 2006. The weather radar compliments Vaisala's remote sensing product offering, which currently includes lightning detection systems and networks as well as wind profilers. Vaisala's weather radar has been developed in cooperation with leading international research institutions and partners. The market for weather radars is estimated at 40-60 million euros annually. The commercial introduction of the Vaisala weather radar is estimated to take place in 2007.

Automated aviation weather observing systems provider CLH Inc. joins Vaisala
Vaisala’s position as a turnkey solution provider in the U.S. aviation market was strengthened in July, when it acquired CLH Inc. The company provides automated weather observing systems (AWOS) and related services for U.S. airport operations. It focuses on the growing need for state weather networks and automated weather observing systems. CLH Inc.’s net sales in 2004 were 3.7M USD.

Acquisition of Sigmet Inc. supports new weather radar business
Sigmet is the world's leading independent weather radar signal processor and application software manufacturer. The acquisition supports Vaisala’s intention to enter the weather radar business. Sigmet’s products complement Vaisala’s product and service offering. Sigmet will continue to serve all its current customers as before. Sigmet’s net sales in 2005 were approximately 11M USD.

6M EUR worth of precipitation sensors to the U.S. National Weather Service
The U.S. National Weather Service selected Vaisala's precipitation sensors for its surface weather observation network. The contract is delivered in phases, and its estimated sales value is more than 6M EUR. The main part of the deliveries is expected to take place in 2006-2007.

Runway visual range systems for U.S. airports
Vaisala’s runway visual range systems will be introduced in the U.S. The three-year base contract signed with the U.S. Federal Aviation Administration (FAA) includes the deliveries of 21 systems and is valued at 4.3M USD. This is the first system contract Vaisala has made with the FAA. The contract contains options for delivery of up to 77 similar systems within the next five years.

Changes in the office network
Vaisala has established a company in China to strengthen its position in China's developing markets. Vaisala China Ltd. started operations at the beginning of March. Vaisala has been present in the Chinese market since 1986, and it opened a representative office in Beijing in 1994. In addition to the Beijing office, Vaisala has contact points in Shanghai and Guangzhou.

The Vaisala Instruments division opened two new sales offices in 2005: Guangzhou in China and San Jose in the U.S. Both sales offices strengthen Vaisala Instruments' position in the local markets.

In December, Vaisala closed its office in Aix-en-Provence, France. The office was specialized in lightning detection technology. Vaisala's lightning detection business is concentrated in Tucson, AZ, U.S., which improves efficiency and introduces cost-savings.