Harju Elekter                 NEWS RELEASE                09/19/2002 15:00



ACQUISITION OF SUBSIDIARY FROM SIEMENS



On 19 September 2002 AS Harju Elekter and Siemens Osakeyhtiö (Finland) signed

a contract by which Harju Elekter acquires all the shares of Satmatic Oy, a

100% subsidiary of Siemens. No transaction price has been disclosed.



The main business of Satmatic Oy is the manufacture and marketing of different

electrical equipment, including automation and power supply control equipment

for industries and car heating units for parking lots. With its advanced

engineering know-how, the company is a considerable engineering and

subcontracting party in Scandinavia. The factory in Ulvila near Pori employs

52 people, including 34 workers. The share capital of the company is EUR

200,000 (EEK 3.1m) and their annual turnover is EUR 7m (EEK 110m). The

management board has five members and its chairman is Endel Palla. Simo

Puustelli, currently Sales Director of the Automation and Drives Division of



Siemens, will be the Managing Director of the company.



Long-term cooperation between Harju Elekter and Siemens Oy will guarantee the

fulfilment of orders for Satmatic’s clients: Siemens Oy, Nextrom Oy,

Maileffer, Onninen, etc., and the continuation of profitable operations for

all parties in the future as well. The joint output capacities of the Finnish

and Estonian factories allow for a fuller range of products and better prices

for clients. After acquiring the subsidiary, Harju Elekter will be able to

extend its main product range, electrical equipment, by Satmatic’s type-

approved products and to improve the products already developed and boost

their sales in Finland and other close-by markets in the Baltic countries and

Russia.



Harju Elekter has another holding in Finland, 12% in PKC Group Oyj, listed on

the Helsinki Stock Exchange. In Estonia, Harju Elekter has holdings in the

subsidiary AS Eltek (100%) and the related companies AS Keila Kaabel (41.2%)

and AS Saajos Balti (33.3%). The groups’ sales were EEK 125.2m (EUR 8m) in the

first half of 2002, of which export accounted for 47.8%, and its net profit

was EEK 11.3m (EUR 0.7m). Harju Elekter has been manufacturing electrical

equipment and materials since 1968.







Andres Allikmäe

Chairman of Management Board

+372 6 747 400



Siemens Osakeyhtiö is a technology company serving its clients in the field of

information technology, production, energy and traffic equipment. The annual

sales of Siemens’s Finnish companies is EUR 578 million and they employ 2154

people. The annual sales of Siemens AG is EUR 87 billion and they employ

450,000 people. Siemens operates in 190 countries.





Moonika Vetevool

PR manager

+372 6712 761