AS VIISNURK                   FINANCIAL REPORT               16.04.2006
 
Financial results, 3 months 2006
 
The results of Viisnurk AS in the 1st quarter of 2006 were significantly
influenced by an extremely cold weather in January and February that
brought along higher heating costs and work stoppages in the Building
Materials Division (around 15 % of the working time of the main production
line was lost). Except for the impact caused by weather conditions, the
main activities of Viisnurk AS in the 1st quarter have proceeded as
planned. Regardless of the results of the 1st quarter, the Management of
Viisnurk see no need for changing the planned profit for 2006 which was a
consolidated profit of 16-18 mil. kroons (1-1,15 mil. euros). In terms of
profit, based on the initial results of April and May, the enterprise is
proceeding within the budget.
 
The net sales of Viisnurk AS for the 1st quarter of 2006 were 53 mil.
kroons (3.4 mil. euros) and the net profit 1.9 mil. kroons (0.12 mil.
euros). In 2005, within the same period the turnover of the enterprise totalled
61.9 mil. kroons (4 mil. euros) and the profit 3.9 mil. kroons (0.25 mil.
euros), whereas the profit of 2005 included among other things the
exceptional items - the sales of real estate investments in the amount of
1.4 mil. kroons (0.09 mil. euros).
 
As of the end of March the total assets of Viisnurk AS amounted to 157.6
mil. kroons (10.1 mil. euros), the liabilities of the enterprise made up
57 % of it.
 
Divisional review:
 
(th EEK)                           Net sales             Profit
                                2006 3k    2005 3k   2006 3k    2005 3k
Furniture Division             32.017     32.634     2.236      2.413
Building Materials             21.026     29.275     1.658      5.250
Division
Terminated business                                       (881)
activities
TOTAL                             53.043     61.909     3.894      6.782
Unallocated expenses                                     1.513      1.623
OPERATING PROFIT                                        2.381      5.159
Net financial costs                                             483      1.172
NET PROFIT                                                   1.898      3.987
 
(th EUR)                          Net sales              Profit
                                2006 3k    2005 3k   2006 3k    2005 3k
Furniture Division               2.046      2.086       143        154
Building Materials               1.344      1.871       106        336
Division
Terminated business                                      (  56)
activities
TOTAL                               3.390      3.957       249        434
Unallocated expenses                                      (97)      (104)
OPERATING PROFIT                                         152        330
Net financial costs                                           (31)       (75)
NET PROFIT                                                    121        255
 
 
Furniture Division
 
The three-month net sales of the Furniture Division of Viisnurk AS were 32
mil. kroons (2 mil. euros) and the profit 2.2 mil. kroons (0.14 mil.
euros). Compared to the same period last year, the turnover of the
division has remained the same but the profit has significantly increased
because the profit of 2005 (2.4 mil. kroons / 0.15 mil. euros) included
the above mentioned exceptional items in the amount of 1.4 mil. kroons
(0.09 mil. euros).
 
The results of the Furniture Division for the 1st quarter were as
estimated. Sales in the enterprise's basic target markets in Finland and
Russia have proceeded according to the plans. It is especially positive
that while in the 1st quarter of the past year the division sold furniture
to its former largest subcontractor IKEA for 7.1 mil. kroons (0.45 mil.
euros), by today, after finishing the cooperation with IKEA in the end of
last year, they have been able to replace the total sales to other
customers. At the same time the profitability of the division has improved
in an environment of increased expenditure. Retail sale of furniture in
the domestic market shows a rising tendency and, according to the
strategy, the division is preparing itself for the expansion of retail
business to nearest markets.
 
 
Building Materials Division
 
The Building Materials Division earned a profit of 1.7 mil. kroons (0.1
mil. euros) at the net sales of 21 mil. kroons (1.3 mil. euros) in three
months. Last year, the turnover of the division totalled 29.3 mil. kroons
(1.9 mil. euros) and the profit 5.2 mil. kroons (0.3 mil. euros) within
the same period.
 
In the 1st quarter the activity of the division was significantly
influenced by extraordinary weather conditions which, on one hand
decreased the general demand for the division's production and on the
other hand seriously disturbed the division's supply with heat energy. The
above mentioned problem repeatedly stopped the work of the main production
line with uninterrupted cycle – in total more than 15 % of the possible
working time was lost through the stoppage time. In addition, due to some
stiffening in competition in the second half of last year the decision was
made to begin the independent sales of the production of the main
production line (mainly the wind protection boards used in general
construction) in the largest target market in Finland under our own
trademark. The decision that is aimed at achieving long-term success in
the market decreased the sales in short term perspectives in the 1st
quarter of 2006 while the contracts in the market of building materials
are mainly long-term. The sales volumes and efficiency of Isotex interior
finishing boards achieved the planned levels. The output, sales and
profitability of the division have rapidly improved since the beginning of
the 2nd quarter.
 
 
 
INCOME STATEMENT                                               
Consolidated, unaudited     th EEK    th EEK    th EUR    th EUR
                          3 months  3 months  3 months  3 months
                              2006      2005      2006      2005
                                                               
REVENUE                     53.043    61.909     3.390     3.957
                                                                
Cost of sales              (44.314)  (50.795)   (2.832)   (3.247)
                                                               
Gross profit                    8.729    11.114       558        710
                                                                
Distribution expenses     (4.837)   (5.463)     (309)     (349)
                                                               
Administrative expenses (1.513)   (1.623)      (97)     (104)
                                                                
Other operating income        73     1.466           5        94
                                                               
Other operating expenses    (71)     (335)       (5)      (21)
                                                                
Operating profit               2.381     5.159       152       330
                                                               
Financial income and        (483)   (1.172)      (31)      (75)
financial expenses
                                                               
NET PROFIT FOR THE        1.898     3.987       121       255
PERIOD
                                                               
Basic earnings per share     0,42      0,89      0,03      0,06
Diluted earnings per           0,42      0,89      0,03      0,06
share
 
 
BALANCE SHEET                                         
Consolidated, unaudited     th EEK    th EEK    th EUR    th EUR
                         31.3.2006 31.12.2005 31.3.2006 31.12.2005
                                                             
                                                      
Cash and cash                7.285     5.552       466       355
equivalents
Short-term financial               0     6.785          0       434
assets
Trade receivables        23.432    21.938     1.498     1.402
Other receivables             134       522             8         33
Prepayments                 3.515     3.290         225       210
Inventories                  48.914   42.160       3.126    2.695
TOTAL CURRENT ASSETS 83.280    80.247     5.323     5.129
                                                      
Long-term financial               1           1             0            0
assets
Investment property         15.521    15.521       992       992
Property, pland and          57.203    58.235     3.656    3.722
equipment
Intangible assets                1.587     1.818        101        116
TOTAL NON-CURRENT ASSETS 74.312    75.575     4.749     4.830
                                                       
TOTAL ASSETS              157.592   155.822    10.072    9.959
                                                      
                                                      
Loans and borrowings          6.780     8.909       433       569
Customer advances                157       492        10          32
Trade payables                  22.823   23.649     1.459     1.512
Tax liabilities                       2.954     2.980        189       191
Accrued expenses               8.530     5.232        545       334
Provisions                             320        430          21         27
TOTAL CURRENT               41.564    41.692     2.657     2.665
LIABILITIES
                                                      
Provisions                             430       430            27        27
Loans and borrowings        47.920    47.920     3.063     3.063
TOTAL NON-CURRENT        48.350    48.350     3.090     3.090
LIABILITIES
                                                      
TOTAL LIABILITIES            89.914    90.042     5.747     5.755
                                                      
Share capital at par            44.991    44.991     2.875     2.875
value
Share premium                  11.332    11.332        724       724
Statutory capital                  4.499     4.499         288       288
reserve
Retained earnings               4.958    (4.817)         317     (308)
Profit for the period             1.898     9.775          121       625
TOTAL EQUITY                  67.678    65.780       4.325     4.204
                                                      
TOTAL LIABILITIES AND   157.592   155.822    10.072     9.959
EQUITY
 
 
Andrus Aljas
Member of Management Board
+372 447 8355