05.05.2003, Trigon Property Development, TLN

Viisnurk                      FINANCIAL RESULTS                 05/05/2003



FINANCIAL RESULTS, 3 MONTHS 2003



The net sales of Viisnurk AS for the first quarter of 2003 were 91.2 mil.

kroons (5.8 mil. euros) and the net profit for the period was 586 thousand

kroons (37 thousand euros).   As compared to the same period of the

previous year, the sales revenue of the company increased by 11.5%. The

company finished the 1st quarter of 2002 with a loss of 1.1 mil. kroons

(70 thousand euros). The earnings of Viisnurk before interest, taxes,

depreciation and amortisation (EBITDA) amounted to 10 mil. kroons (0.6

mil. euros) in the accounting period, i.e. the EBITDA margin was 11%. In

the 1st quarter of 2002, the EBITDA of the company totalled 7.9 mil.

kroons (0.5 mil. euros) and the margin was 9.6%. Viisnurk’s cash flow from

operations was positive by 208 thousand kroons (13 thousand euros) in the

1st quarter of 2003. In the same period of the last year, the cash flow

from operations totalled 2.9 mil. kroons (185 thousand euros). In the 1st

quarter of the current year, the cash flow from operations was influenced

by the increase in the inventories of the company by 13.8 mil. kroons (0.9

mil. euros). The increase in the inventories of the Forestry Centre of the

Furniture Division in the amount of 11.8 mil. kroons (0.75 mil. euros)

resulting from the seasonal nature of the production process was the main

reason for the increase in the inventories of the company.



Divisional Review



Since the beginning of the year 2003, accounting has been kept separately

for three main business segments. During the accounting period (the 1st

quarter of 2003), the respective changes were also introduced to the

organisational structure and management of Viisnurk AS.



- The Furniture Division of Viisnurk AS incorporates the structures, which

were formerly reviewed and managed separately: the sawmill, kilns, the

Wood Panel and Furniture Factories, to improve the synergy and efficiency

within the company. The sales revenue of the Furniture Division as a whole

for the 1st quarter amounted to 57.7 million kroons (3.7 mil. euros),

soaring by 8% on the same period of the previous year. The total sales of

the Furniture Division increased, first and foremost, with regard to edge-

glued panels, forming 11.9 mil. kroons (0.8 mil. euros), i.e. 21%, of the

total sales revenue (cf. 4.2 mil. kroons/268 thou. euros, i.e. 8%, in the

1st quarter of 2002). The operating profit of the division amounted to 5.0

million kroons (317 thousand euros) in the 1st quarter, which is 3.3 mil.

kroons (209 thousand euros) more than the year before. The sawmill earned

2.5 mil. kroons (160 thousand euros) of profit (cf. 0.5 mil. kroons/32

thousand euros in the 1st quarter of 2002), the Wood Panel Factory

incurred a loss of 3.2 mil. kroons (205 thousand euros; cf. a loss of 4.5

mil. kroons/288 thousand euros in the 1st quarter of 2002), and the

Furniture Factory earned a profit of 5.7 mil. kroons (364 thousand euros;

cf. a profit of 5.6 mil. kroons/358 thousand euros in the last accounting

period). In addition to the increased volumes and decreased loss of the

Wood Panel Factory, the increased sales revenue and profitability of the

Furniture Factory, which worked under the conditions of limited orders in

the last quarter of 2002, is a positive result within the Furniture

Division. At the beginning of the year, the sales revenue of the Furniture

Factory increased by approximately 15% on the last quarter of 2002 owing

to the improved clientele portfolio.



- The sales revenue of the Sports Goods Division (which incorporates

production of skis and hockey sticks and distribution of sports goods) for

the 1st quarter of 2003 was 9.2 mil. kroons (0.6 mil. euros). The sales

revenue for the 1st quarter of 2002 was 8.7 mil. kroons (0.55 mil. euros).

The economic activities of the division resulted in the loss of 4.9 mil.

kroons (315 thou. euros). The same period of 2002 resulted in a loss of

2.6 mil. kroons (166 thousand euros). Regardless of the increase in sales

revenue, the economic results of the division reflected a setback on the

1st quarter of 2002 due to high expenditure on quality issues resulting

from postponement of unfavourable orders of 2002 into the year 2003. Due

to the restructuring process, the division started to redesign the

production process actively in the 1st quarter of the current year; it

also took part in ISPO, the biggest fair of sports goods in Munich. At

present, the Sports Goods Division has a sufficient supply of orders and

it operates at planned capacities.



- Since the 1st quarter of 2003, the Building Materials Division has

included the Softboard Factory and the boiler house that has supplied the

factory with heat (approximately 60% of the total intra-company sales of

heat). The sales revenue of the division was 24.0 mil. kroons (1.5 mil.

euros) in the 1st quarter of 2003, which is 26% more than that of the last

year. The division earned 5.4 mil. kroons of profit (345 thou. euros),

i.e. 1.0 mil. kroons (66 thou. euros) more than in the 1st quarter of

2002. The shares of the sales revenue and profit of heat production formed

8% and 13% of the respective totals of the division. Owing to efficient

sales activities and favourable market situation, the Building Materials

Division worked in a non-stop production cycle seven days a week

throughout the period (due to sales problems, it only managed to work five

days a week at the same time last year). Preparations for further increase

in the output of Isotex interior finishing boards of higher margin provide

an opportunity to launch the production line for Isotex in two shifts at

the beginning of the 2nd quarter.



- The sales revenue from other activities amounted to 328 thousand kroons

(21 thousand euros) and the profit was 65,000 kroons (4,000 euros). Income

from rent formed 50% of the sales revenue of the other activities.









INCOME STATEMENT



                                                               

                          th. EEK   th. EEK  th. euro  th. euro

                        I quarter I quarter I quarter I quarter

                             2003      2002      2003      2002

                                                               

NET SALES                  91 197    81 791     5 829     5 227

                                                               

Cost of goods sold       (79 848)  (72 809)   (5 104)   (4 653)

                                                               

Gross profit               11 349     8 982       725       574

                                                               

Marketing expenses        (5 616)   (4 630)     (359)     (296)

                                                               

General admin. expenses   (2 709)   (2 622)     (173)     (168)

                                                               

Other income                  374       251        24        16

                                                               

Other expenses              (602)     (581)      (38)      (37)

                                                               

Profit from operations      2 796     1 400       179        89

                                                               

Fin. income and expens.   (2 210)   (2 496)     (142)     (159)

                                                               

NET PROFIT                    586   (1 096)        37      (70)

                                                               

Basic earnings per           0,13    (0,24)      0,01    (0,02)

share

Diluted earnings per         0,13    (0,24)      0,01    (0,02)

share





BALANCE SHEET



                                                         

                          th. EEK    th. EEK  th. euro   th. euro

                        31.3.2003 31.12.2002 31.3.2003 31.12.2002

                                                         

Cash and bank                 623      1 764        40        113

Customer receivables       45 555     54 143     2 911      3 460

Other receivables           1 948      1 916       124        122

Prepaid expenses            5 167      4 447       330        284

Inventories                72 412     58 602     4 629      3 746

Total current assets      125 705    120 872     8 034      7 725

                                                         

Long-term fin.              1 436      1 436        92         92

investments

Real estate investm.        2 770      2 792       177        178

Tangible assets           213 709    219 008    13 658     13 998

Intangible assets             721        785        46         50

Total non-current         218 636    224 021    13 973     14 318

assets

                                                         

TOTAL ASSETS              344 341    344 893    22 007     22 043

                                                         

                                                         

Debt obligations           39 091     38 773     2 498      2 478

Customer prepayments          211        620        13         40

Supplier payables          32 966     30 978     2 108      1 980

Taxes payable               5 586      5 944       357        380

Accrued expenses            9 610     12 267       614        784

Short-term provisions       1 302      1 493        83         95

Total current              88 766     90 075     5 673      5 757

liabilities

                                                         

Long-term liabilities     111 944    111 773     7 155      7 144

Total non-current         111 944    111 773     7 155      7 144

liabilities

                                                         

Total liabilities         200 710    201 848    12 828     12 901

                                                         

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          82 223    101 855     5 255      6 510

Net profit for the per.       586   (19 632)        37    (1 255)

Total equity              143 631    143 045     9 179      9 142

                                                         

TOTAL LIABILITIES AND     344 341     344 893    22 007     22 043

EQUITY





Andrus Aljas

CFO

044 78355