The net sales of Viisnurk AS for the first quarter of 2002 were 81.8 mil. kroons (5.2 mil. euros) and the economic activities resulted in the loss of 1.1 mil. kroons (70 thousand euros). As compared to the same period of the previous year, the net sales of the company increased by 24%. Viisnurk earned 8.6 mil. kroons (548 thousand euros) of profit in the first quarter of 2001. The difference in the economic results of the compared quarters mainly results from the activities of the Wood Panel Factory, which produced the loss of 6.2 mil. kroons (0.4 mil. euros) in the first quarter of the current year (the factory did not operate in the first quarter of 2001). Such a loss of Viisnurk corresponds to the budget and does not require any adjustment of the annual goals of the company.

Performance of Units

- The net sales of the Furniture Factory for the 1st quarter amounted to 42.1 million kroons (2.7 mil. euros), soaring by 21% on the same period of the previous year.  The increase in the sales of the Furniture Factory resulted, first and foremost, from the growth of contract work in furniture production, which formed 43% of the net sales of the 1st quarter (39% in the 1st quarter of 2001).  Notwithstanding the growth of sales, the increased role of contract work of lower profitability and changes in the range of products of the respective group have curtailed the profit of the factory. The operating profit of the Furniture Factory amounted to 5.6 million kroons (361 thousand euros) in the 1st quarter, which is 0.4 mil. kroons (25 thousand euros) less than the year before.  This year, the factory is paying special attention to more efficient utilization of material and streamlining its procurement network to improve profitability.

- The net sales of the Sports Goods Division for the first quarter amounted to 8.7 million kroons (553 thousand euros) vs 4.6 mil. kroons (296 thousand euros) in the 1st quarter of 2001.  The economic activities of the division resulted in the loss of 2.6 mil. kroons (166 thousand euros).  The loss resulted from the traditionally slow sales of winter sports goods at the beginning of the year and modest production capacity, because the orders for the next season are placed as a rule at the end of the 1st and the beginning of the 2nd quarters.  The current market situation predicts that the estimated output of both skis and hockey sticks in 2002 will exceed that of 2001.

- The net sales of the Wood Panel Factory for the 1st quarter were 10.7 mil. kroons (681 thousand euros), of which external sale formed 40% or 4.2 mil. kroons (271 thousand euros).  As compared to the last quarter of 2001, the net sales of the factory have increased approximately by a third.  In the first quarter, the operations of the Wood Panel Factory resulted in a loss of 4.5 million kroons (285 thousand euros). The efficiency of the factory has improved significantly on the last quarter; however, it is about a million kroons less than estimated.  The inability to meet the estimations results from suspending the launch the third shift, which was planned for the 1st quarter, to the beginning of the 2nd quarter due to the lack of competent workforce and ongoing problems in the yield of sawn timber (the quality of material, training of workers).  The Wood Panel Factory aims at starting to generate profit in the third quarter of 2002.

- The net sales of the Softboard Factory were 17.8 mil. kroons (1.1 mil. euros) in the 1st quarter of 2002, which is 10% less than that of the last year.  The factory earned 2.6 million kroons (247 thousand euros) of profit, which was 3 mil. kroons (176 thousand euros) less than in the 1st quarter of 2001).  Decreased net sales and profit result from the low of the construction industry in the major export markets in Europe, which is clearly perceived by the factory and causes sagging demand and stiffening competition.  The Softboard Factory operated only five days a week throughout the 1st quarter due to declined demand.  The factory has actively sought new customers (incl. new consumer sectors) and it will continue to operate seven days a week with a non-stop cycle from the beginning of the second quarter.

- Among other activities, which exposed the profit of 1.6 mil. kroons (100 thousand euros) at the net sales of 9 mil. kroons (0.6 mil. euros), the Forestry Centre has improved its results as compared to the last year [the net sales soared by 40% and the profit went up from 49 thousand kroons (3 thousand euros) to 500 thousand kroons (32 thousand euros)].  The profit from operations of the boiler house decreased, first and foremost, due to declining internal consumption and the deficit and high price of wood chips, which are the basic raw material, from 1.6 mil. kroons (102 thousand euros) in the 1st quarter of 2001 to 0.5 mil. kroons (32 thousand euros).



BALANCE SHEET                                                   
                                In th. of In th. of  In th. of
                                In th kroons  In th kroons  In th euros  In th euros
                                  31.3.2002  31.12.2001   31.3.2002   31.12.2001
                                                               
Cash and bank                        363         5 036         23         322
Customer receivables           42 316       52 496     2 704      3 355
Other receivables                  2 044        2 215        131         142
Prepaid expenses                  5 382        5 449        344         348
Inventories                         81 400      74 576     5 202      4 765
Total current assets           131 505     139 772     8 404      8 932
                                                               
Long-term fin. investments     1 436        1 436          92           92
Tangible assets                  215 075    216 043    13 746     13 808
Intangible assets                      182           269          12           17
Total non-current assets     216 693     217 748    13 850    13 917
                                                               
TOTAL ASSETS                 348 198     357 520    22 254    22 849
                                                               
                                                               
Debt obligations                   45 199      47368      2 889      3 027
Customer prepayments               82       1 216            5          78
Supplier payables                 32 007      36 793     2 045      2 351
Taxes payable                       4 905       5 639        314        360
Accrued expenses                 8 945       8 348        572        534
Total current liabilities          91 138      99 364     5 825      6 350
                                                               
Long-term liabilities             95 479      95 479      6 102      6 102
Total non-current liabil.       95 479      95 479      6 102      6 102
                                                               
Share capital at par value     44 991      44 991     2 875      2 875
Share premium                   11 332      11 332        724        724
Mandatory capital reserve      4 499        4 499        288        288
Retained earnings              101 855     82 472      6 510      5 271
Net profit for the year        (1 096)      19 383       (70)      1 239
Total equity                     161 581    162 677    10 327     10 397
                                                               
TOTAL LIABILITIES          348 198     357 520    22 254     22 849
AND EQUITY



INCOME STATEMENT                                                       
                                In th kroons In th kroons    In th euros  In th euros
                                     I quarter     I quarter       I quarter      I quarter
                                          2002          2001            2002           2001
                                                                      
NET SALES                       81 791     66 138               5 227         4 227
                                                                      
Cost of goods sold            (72 808)   (49 763)           (4 653)      (3 180)
                                                                      
Gross profit                         8 982     16 375                 574         1 047
                                                                      
Marketing expenses           (4 630)    (4 594)               (296)         (294)
                                                                      
General admin. expenses    (2 622)    (3 060)               (168)         (196)
                                                                      
Other income                        251         935                   16              60
                                                                      
Other expenses                   (581)      (275)                 (37)           (17)
                                                                      
Profit from operations          1 400      9 381                   89            600
                                                                      
Financial income                       27         28                      2              2
                                                                      
Financial expenses             (2 523)      (842)               (161)           (54)
                                                                      
NET PROFIT                     (1 096)      8 567                (70)           548
                                                                      
Basic earnings per share        (0,24)       1,90             (0,02)          0,12
Diluted earnings per share     (0,24)       1,90             (0,02)          0,12



Andrus Aljas
CFO
+37244 78355