HARJU ELEKTER                  FINANCIAL RESULTS                    02.11.2004



FINANCIAL RESULTS, 9M 2004



Harju Elekter has been able to effect the success arising form economic growth

and the synergistic cooperation of the group and achieve good financial

results. Sales income and operating profit have grown delightfully in all

areas of activity. The results for the first nine months of 2004 will make

positive developments possible also in the periods to come.



                                                  1-9/2004   1-9/2003

Key indicators (MEUR)

Net sales                                         20,15      15,04

Operating profit                                  1,54       0,90

Profit before fin.expenses (EBIT)                 6,27       7,14

Net profit for the current period                 6,04       7,08



At the end of the period

Total current assets                              10,41      6,36

Total fixed assets                                28,13      19,32

Total assets                                      38,54      25,68

Total liabilities                                 7,52       4,93

Minority interests                                0,96       0

Total owners’ equity                              30,07      20,74



Performance indicators (%)

Net sales growth                                  33,9       26,1

Operating profit growth                           70,4       13,1

Net profit growth                                 -14,4      118,9

Return of sales (operating profit/net sales *100) 7,6        6,0

Net profit margin (net profit /net sales *100)    30,1       47,1

Owners’ equity margin                             78,0       80,8

(equity /balance sheet total *100)



Number of employees on 30.09.2004                 383        294

EPS (EUR)                                         1,12      1,31



The economic results of the consolidation group for the 9M were generally good

and met our expectations. The number of sales orders in the Q3 considerably

exceeded the volume of the Q2 as well as in Estonian market also in Finnish

and Lithuanian markets. Compared to the same period last year, the sales

increasing by 33,9% and operating profit by 70,4%, gross margin improved up to

7,6%.



Of the sales revenue, 77,6% accounted for the sales of industrial products and

14,5% for intermediate sales and sales of services. At the same time, the

sales of products in the 9M increased by 32,7% in comparison with the same

period in 2003, and the sales of services and intermediate sales altogether

increased by 38,5%. Of the sales revenue of the consolidation group AS Harju

Elekter, 47,7% is ascribed to the sales to Estonia and 52,3% to the sales to

foreign markets.incl.38,5% to Finland and 11,4% to Lithuania. The sales to the

Estonian market went up by 21,3%. The sales of products to foreign markets

went up by 48,0%. Attention should be paid to the fact that the data of the 9M

2004 include also the consolidated sales revenues of the Lithuanian subsidiary

Rifas in amount 2,3 MEUR.



Financial operations yielded a total profit of MEUR 4,7 (9M 2003: MEUR 6,2).

The market price of a PKC Group Oyj share changed only little in the Q3,

decreasing by 7 euro cents; in the Q3 of 2003, however, the market price of

the share increased by 99 euro cents, resulting in additional financial income

in the amount of MEUR 5,2. A total of MEUR 3,1 (9M 2003: MEUR 5,2) of

financial income was described from the revaluation of shares in the 9M of

2004. PKC Group Oyj paid dividends for 2003 in the total amount of MEUR 1,5,

which is exceeds the relevant figure for last year by more than five times.



During the accounting period, the Group invested in tangible and intangible

assets a total of MEUR 1,6 (9M 2003: MEUR 2,4), of which in technology was

MEUR 0,8 (9M 2003: TEUR 170) and construction and renovation work of buildings

and plant was MEUR 0,8 (9M 2003: MEUR 2,0).







Andres Allikmäe

Chairman of the Board

+372 6 747 400



For more information: Interim report 1-9/2004 of Harju Elekter or Karin

Padjus, Member of the Board (tel +372 6 747 400).







AS HARJU ELEKTER

BALANCE SHEET, 30.09.04

Consolidated, unaudited

Group



in thousand                                        EEK             EUR

ASSETS                                     30.09.04 31.12.03 30.09.04 31.12.03

Cash, bank                                   17 862   26 449    1 142    1 690

Total customer receivables                   65 966   31 784    4 216    2 030

Other current receivables                     3 058    6 106      195      390

Accrued income                                  882       67       56        4

Prepaid expenses                              1 843    1 251      118       80

Total current receivables                    71 749   39 208    4 586    2 505

Raw materials and inventories                61 342   37 721    3 920    2 411

Goods                                        11 736    6 344      750      405

Prepayments to suppliers                        184       57       12        4

Total inventories                            73 262   44 123    4 682    2 820

TOTAL CURRENT ASSETS                        162 873  109 780   10 409    7 016

Stock and shares in associated companies     24 523   26 476    1 567    1 692

Other shares                                254 941  201 128   16 294   12 854

Other long-term receivables                      26       19        2        1

Total financial investments                 279 490  227 623   17 863   14 548

Investment properties                        87 485   86 896    5 591    5 554

Plant and equipment                          38 487   28 308    2 460    1 809

Other equipment and fixtures                 70 311   58 144    4 494    3 716

Other inventory                               5 715    4 996      365      319

Accumulated depreciation                    -45 057  -38 892   -2 880   -2 486

Construction-in-progress                      2 325    2 363      149      151

Prepayments for fixed assets                     43    2 068        3      132

Total tangible assets                        71 824   56 987    4 590    3 642

Licences                                      1 412    1 752       90      112

Prepayments for intangible assets                 0       39        0        2

Total intangible assets                       1 412    1 790       90      114

TOTAL NON-CURRENT ASSETS                    440 211  373 297   28 135   23 858

TOTAL ASSETS                                603 084  483 077   38 544   30 874

LIABILITIES AND OWNERS' EQUITY

Debt obligations                             18 074   14 366    1 155      918

Customer prepayments                          3 470    1 065      222       68

Supplier payables                            51 314   26 756    3 280    1 710

Other short-term borrowings                   2 050    1 218      131       78

Tax liabilities                               7 603    6 838      486      437

Other prepaid revenue                         8 706        0      556        0

Accrued expenses                              3 643    9 600      233      614

TOTAL CURRENT LIABILITIES                    94 861   59 843    6 063    3 825

TOTAL NON-CURRENT LIABILITIES                22 801   20 800    1 457    1 329

TOTAL LIABILITIES                           117 661   80 643    7 520    5 154

Minority interest                            14 991   13 222      958      845

Share capital                                56 000   54 000    3 579    3 451

Paid-in capital over/under par                6 000        0      383        0

Restricted reserves                           8 600    8 600      550      550

Retained earnings                           305 012  151 151   19 495    9 660

Net profit for the year                      94 820  175 461    6 060   11 214

TOTAL OWNERS' EQUITY                        470 432  389 212   30 066   24 875

TOTAL LIABILITIES AND OWNERS' EQUITY        603 084  483 077   38 544   30 874







INCOME STATEMENTS

INCOME STATEMENT OF THE GROUP, 9M 2004

Consolidated,unaudited

in thousand                                       EEK               EUR

GROUP                                       M9 2004  M9 2003  M9 2004  M9 2003



NET SALES                                   315 223  235 382   20 146   15 044

Cost of goods sold                         -255 958 -191 418  -16 359  -12 234



Gross profit                                 59 265   43 964    3 787    2 810



Operating expenses, incl.                   -35 421  -29 587   -2 264   -1 891

Marketing expenses                          -14 354  -11 965     -917     -765

Administrative expenses                     -21 067  -17 622   -1 346   -1 126

Other revenue                                   483      169       31       11

Other expenses                                 -302     -445      -19      -28



Operating profit                             24 025   14 101    1 535      901



Financial income and expenses, incl.

 - from associated companies                   -192   10 838      -12      693

 - from other holdings                       25 354    5 399    1 620      345

 - from revaluat.of fin.investm.             48 849   81 332    3 122    5 198

 - interest expense                          -1 012     -918      -65      -59

 - profit/loss from foreign exchange            -39      -37       -2       -2

 - other financial income/expenses               96      140        6        9

Total financial income and  expenses         73 056   96 754    4 668    6 184



Profit from normal operations                97 081  110 855    6 204    7 085

External income                                 -49        0       -3        0

Profit after faxes                           97 033  110 855    6 201    7 085

Corporate Income tax                         -2 212      -33     -141       -2

Net profit for the year                      94 820  110 822    6 060    7 083



Basic earnings per share                      17,49    20,52     1,12     1,31



Diluted earnings per share                    17,49    20,20     1,12     1,29







INCOME STATEMENT OF THE GROUP, 2004 Q3

GROUP                                       Q3 2004  Q3 2003  Q3 2004  Q3 2003

NET SALES                                   126 022   85 817    8 054    5 484

Cost of goods sold                          -99 826  -69 727   -6 380   -4 456



Gross profit                                 26 196   16 090    1 674    1 028



Operating expenses, incl.                   -12 155   -9 927     -776     -634

Marketing expenses                           -5 155   -4 209     -329     -269

Administrative expenses                      -7 000   -5 718     -447     -365

Other revenue                                    94      127        6        8

Other expenses                                  -62      -68       -4       -4



Operating profit                             14 073    6 222      900      398



Financial income and expenses, incl.

 - from associated companies                    488    9 600       31      614

 - from other holdings                        4 860      840      311       54

 - from revaluat.of fin.investm.             -2 134   29 008     -136    1 854

 - interest expense                            -416     -421      -27      -27

 - profit/loss from foreign exchange            -13       -8       -1       -1

 - other financial income/expenses               22       50        1        3

Total financial income and  expenses          2 807   39 069      179    2 497



Profit from normal operations                16 880   45 291    1 079    2 895

External income                                 -16        0       -1        0

Profit after faxes                           16 865   45 291    1 078    2 895

Corporate Income tax                         -1 927      -33     -123       -2

Net profit for the year                      14 937   45 258      955    2 893



Basic earnings per share                       2,73     8,38     0,17     0,54



Diluted earnings per share                     2,73     8,21     0,17     0,52





Karin Padjus

Chief accountant

+372 6747 403