The net sales of Viisnurk AS for the second quarter of 2002 were 94 mil. kroons (6 mil. euros) and net profit was 4.8 mil. Kroons (0.31 mil. euros). As compared to the second quarter of the previous year, the net sales of the company increased by 21.3% and net profit almost halved. During the first half of the accounting year, Viisnurk exposed the profit of 3.7 mil. kroons (0.24 mil. euros) at the net sales of 175.8 mil. Kroons (11.2 mil. euros). In 2001, the net sales were 143.6 mil. kroons (9.2 mil. euros) and the profit 18.5 mil. kroons 1.18 mil. euros) respectively. The economic results of Viisnurk for the first half-year were influenced most by the loss produced by the Wood Panel Factory and the low demand on the major export markets.

The economic results of the company were influenced by the following factors:

- The Wood Panel Factory, which was launched last year, exposed the loss of 2.5 mil. kroons (0.16 mil. euros) at the net sales of 12.1 mil. kroons (0.77 mil. euros) in the 2nd quarter. As compared to the previous quarter, the net sales of the factory increased by 13.2% and the loss decreased by approximately 2 mil. kroons (0.13 mil. euros). The total net sales for the first half-year amounted to 22.7 mil. kroons (1.45 mil. euros) and the total loss to 7 mil. kroons (0.45 mil. euros). Lack of qualified work force at the Wood Panel Factory constituted the hindrance in gaining positive economic results besides; the operation of the factory was influenced by difficulties on the European furniture industry, thus complicating procurement of suitable orders.

- The net sales of the Furniture Factory in the first half of 2002 amounted to 88.9 mil. kroons (5.68 mil. euros), soaring by 16% on the same period of the previous year (incl. 11,6% in the 2nd quarter). The operating profit of the factory amounted to 12 mil. kroons (0.77 mil. euros) in the first half-year, which is approximately 10% less than the year before. The profitability of the Furniture Factory was 13.6% for the 2nd quarter; showing an improvement as compared to the previous quarter.

- The net sales of the Sports Goods Division for the first half-year amounted to 20.6 mil. kroons (1.32 mil. euros), which is 28.7% more than that of the last year. The economic activities of the division resulted in the loss of 2.1 mil. kroons (0.13 mil. euros). During the 2nd quarter, the most important contracts concerning the sale of skis and hockey sticks for the next season were concluded by the Sports Goods Division. Pursuant the agreements, the production of the skis will remain at the same level as the year before, whereas the average price for the sold skis will decrease by approximately 10% owing to sagging demand. The estimated output of hockey sticks will exceed that of the previous year by ca 40%.

- The Softboard Factory exposed the profit of 9 mil. kroons (0.58 mil. euros) at the net sales of 39.7 mil. kroons (2.54 mil. euros) for the first half of the year. As compared to the previous year, the net sales of the factory increased by 5% and the profit decreased by 27%. The profitability of the factory improved in the 2nd quarter as compared to the 1st one, however, the decline on target markets as well as the increase of the price of such factors of production as electricity and wood chips, hindered us to achieve the level of the preceding year.

To provide continuous growth in profitability, Viisnurk AS continues to focus its activities on upgrading first and foremost in furniture production.


INCOME STATEMENT

                               In th kroons In th kroons In th euros In th euros
                                   II quarter    II quarter  II quarter   II quarter
                                         2002          2001        2002         2001
                                                                            
NET SALES                       93 997        77 509      6 007        4 954
                                                                            
Cost of goods sold            (78 939)     (58 312)   (5 045)      (3 727)
                                                                            
Gross profit                      15 058        19 197         962        1 227
                                                                            
Marketing expenses           (5 003)       (4 167)      (320)        (266)
                                                                            
General admin. expenses    (2 497)       (2 218)      (160)        (142)
                                                                            
Other income                       262            233            17           15
                                                                            
Other expenses                  (407)         (751)         (25)         (48)
                                                                            
Profit from operations          7 413       12 294         474          786
                                                                            
Financial income                       7            288                          19
                                                                            
Financial expenses             (2 580)      (2 637)      (165)        (169)
                                                                            
NET PROFIT                       4 840        9 945         309          636
                                                                            
Basic earnings per share         1,08          2,21        0,07         0,14
Diluted earnings per              1,08          2,21        0,07         0,14
share

 
                                  In th kroons In th kroons In th euros In th euros
                                   6 months    6 months   6 months   6 months
                                        2002          2001         2002         2001
                                                                            
NET SALES                     175 787     143 647      11 235      9 181
                                                                            
Cost of goods sold          (151 873)  (108 429)     (9 706)    (6 930)
                                                                            
Gross profit                       23 914      35 218       1 529       2 251
                                                                            
Marketing expenses           (9 633)     (8 761)       (616)       (560)
                                                                            
General admin. expenses    (4 993)     (4 925)       (319)       (315)
                                                                            
Other income                       513         1 168          33           75
                                                                            
Other expenses                   (988)     (1 025)        (64)         (67)
                                                                            
Profit from operations          8 813      21 675         563       1 384
                                                                            
Financial income                      34           316            3            21
                                                                            
Financial expenses             (5 103)     (3 479)       (327)       (222)
                                                                            
NET PROFIT                       3 744      18 512         239       1 183
                                                                            
Basic earnings per share         0,83          4,11        0,05         0,26
Diluted earnings per              0,83          4,11        0,05         0,26
share



BALANCE SHEET

                                In th kroons   In th kroons  In th euros  In th euros
                                  30.6.2002    31.12.2001  30.6.2002   31.12.2001
                                                                  
Cash and bank                      630          5 036           40           322
Customer receivables         54 458        52 496       3 480        3 355
Other receivables                1 960         2 215          125          142
Prepaid expenses                5 653         5 449          361          348
Inventories                      91 540        74 576       5 851        4 765
Total current assets         154 241      139 772       9 857        8 932
                                                                  
Long-term fin.                    1 436         1 436           92             92
investments
Tangible assets                216 301     216 043     13 824       13 808
Intangible assets                    479           269            31             17
Total non-current assets   218 216     217 748     13 947       13 917
                                                                  
TOTAL ASSETS               372 457     357 520     23 804       22 849
                                                                  
                                                                  
Debt obligations                45 855       47 368       2 931         3 027
Customer prepayments            80         1 216             5             78
Supplier payables               44 034       36 793       2 814        2 351
Taxes payable                    6 710         5 639          429           360
Accrued expenses             11 457         8 348          732          534
Total current                  108 136       99 364        6 911        6 350
liabilities
                                                                  
Long-term liabilities            97 900       95 479       6 257        6 102
Total non-current             97 900       95 479        6 257        6 102
liabil.
                                                                  
Share capital at par            44 991       44 991      2 875        2 875
value
Share premium                 11 332       11 332          724          724
Mandatory capital               4 499         4 499          288          288
reserve
Retained earnings            101 855       82 472       6 510        5 271
Net profit for the year         3 744       19 383          239        1 239
Total equity                   166 421      162 677     10 636       10 397
                                                                  
TOTAL LIABILITIES         372 457      357 520     23 804      22 849
AND EQUITY



Andrus Aljas
CFO
044 78 355