AS HARJU ELEKTER              FINANCIAL RESULTS                    28.02.2005



GROUP FINANCIAL RESULTS, 2004



We are satisfied with the group’s results for 2004. Both the sales revenue and

operating profit increased; financial income met the expectations.



The excellent results were due to focusing on the principal area of activity —

design, manufacturing and sale of electrical products, contributing both to

development and staff. The cooperation of the group in Estonia, Finland and

Lithuania has also been successful; it is based on investments in technology

and real estate and increasingly promotes development, promising to look into

the future with optimism.



Key indicators (MEUR)                             2004       2003

Net sales                                         29,0       21,9

Operating profit                                  2,0        1,3

Profit before financial expenses (EBIT)           9,5        11,3

Net profit for the current period                 9,3        11,2



At the end of the period

Total current assets                               9,1        7,0

Total fixed assets                                31,9       23,9

Total assets                                      40,9       30,9

Total liabilities                                  6,7        5,2

Minority interests                                 0,9        0,8

Total owners’ equity                              33,3       24,9



Performance indicators (%)

Net sales growth                                  32,5       26,2

Operating profit growth                           56,8       27,7

Net profit growth                                 -17,2     229,5

Return of sales (operating profit/net sales *100) 6,9        5,8

Net profit margin (net profit /net sales *100)    32,0       51,3

Owners’ equity margin                             81,3       80,6

(Equity /balance sheet total *100)



Number of employees on 31.12.2004                 405        353

EPS (EUR)                                         1,70      2,07



The sales revenue of the consolidation group AS Harju Elekter comprised MEEK

453,8 (MEUR 29,0) in the 2004, increasing by 32,6% in comparison with the same

period of the previous year. Of the sales revenue, 75,9% (2003: 76,7%)

accounted for the sales of industrial products and 14,6% (2003: 14,4%) for

intermediate sales and 9,5% (2003: 8,9%) other incomes from sales of services.

The fourth quarter was successful for all the companies of the group,

exceeding the indicator for a comparable period in 2003 by 29,5%. The

excellent results were supported by the expansion of sales results both in the

power distribution and industrial sectors as well as by the launch of the

sales of new products (HENEX).



Of the sales revenue of the consolidation group AS Harju Elekter, 49,3% (2003:

52,8%) is ascribed to the sales to Estonia and 50,7% to the sales to foreign

markets, incl.37,2% (2003: 39,2%) to Finland and 10,6% (2003: 3,7%) to

Lithuania. The sales to the Estonian market went up by 23,7% and to foreign

markets by 42,4%. The data of the 2003 includes only the Q4 of the

consolidated sales revenues of the Lithuanian subsidiary Rifas.



The total operating profit of the consolidation group AS Harju Elekter was

MEEK 31,2 (MEUR 2,0), being 56,8% higher than in the previous year. As the

growth rate of sales significantly exceeded that of fixed costs, the profit

margin of the group for 2004 was higher than that of 2003 by 1,1 percentage

points, reaching 6,9% (2003: 5,8%). The Q4 operating profit was 7,2 million

kroons (0,5 million euros), exceeding the indicator for a comparable period in

2003 by 25,2%.



Financial operations yielded a total profit of MEEK 116,3 or MEUR 7,4 (2003:

MEEK 155,8 or MEUR 10,0). The market price of a PKC Group Oyj share increased

in the Q4 by 1,49 euros (EEK 23,31) up to 10,25 euros (EEK 160,38). From the

revaluation of the shares described the financial profit in the amount MEEK

43,4 or MEUR 2,8 (Q4 2003: MEEK 56,5 or MEUR 3,6). A total of MEEK 92,2 or

MEUR 5,9 (2003: MEEK 137,9 or MEUR 8,8) of financial income was received from

the revaluation of shares in the 2004. PKC Group Oyj paid dividends for 2003

in the total amount of MEEK 24,3 or MEUR 1,5 (2003: MEEK 4,6 or MEUR 0,26),

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



The net profit of the consolidation group in the year of 2004 was MEEK 145,4

or MEUR 9,3 (2003: MEEK 175,5 or MEUR 11,2). EPS was 26,59 kroons or 1,70

euros (2003: 32,49 kroons or 2,08 euros).



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

assets a total of MEEK 42,4 or MEUR 2,7 (2003: MEEK 50,8 or MEUR 3,25), of

which in technology was MEEK 12,3 or MEUR 0,8 (2003: MEEK 6,0 or MEUR 0,38)

and construction and renovation work of buildings and plant was MEEK 28,3 or

MEUR 1,8 (2003: MEEK 39,9 or MEUR 2,6)





Andres Allikmäe

Chairman of the Board

+372 6 747 400



For more information: Interim report for 1-12/2004 of Harju Elekter or Karin

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





BALANCE SHEET, 31.12.2004

Consolidated, unaudited



GROUP

in thousand                    EEK           EUR

ASSETS                       31.12.0431.12.0331.12.0431.12.03

Cash, bank                     18 786  26 449   1 201   1 690

Total customer receivables     49 824  31 784   3 184   2 030

Other current receivables       4 156   6 106     266     390

Accrued income                    221      67      14       4

Prepaid expenses                1 136   1 251      73      80

Total current receivables      55 337  39 208   3 537   2 505

Inventories                    67 950  44 123   4 343   2 820

TOTAL CURRENT ASSETS          142 073 109 780   9 080   7 016

Long-term financial investmen 323 138 227 623  20 652  14 548

Investment properties          86 880  86 896   5 553   5 554

Tangible assets                86 551  56 987   5 532   3 642

Intangible assets               1 951   1 790     125     114

TOTAL NON-CURRENT ASSETS      498 520 373 297  31 861  23 858

TOTAL ASSETS                  640 593 483 077  40 941  30 874

LIABILITIES AND OWNERS' EQUITY

Debt obligations               14 380  14 366     919     918

Customer prepayments            2 666   1 065     170      68

Supplier payables              45 535  26 756   2 910   1 710

Other short-term borrowings     1 750   1 218     112      78

Tax liabilities                 7 560   6 838     483     437

Accrued expenses               12 044   9 600     770     614

Short-term provision              300

Other prepaid revenue           3 643       0     233       0

TOTAL CURRENT LIABILITIES      87 878  59 843   5 616   3 825

TOTAL NON-CURRENT LIABILITIES  17 357  20 800   1 109   1 329

TOTAL LIABILITIES             105 235  80 643   6 726   5 154

Minority interest              14 381  13 222     919     845

Share capital                  56 000  54 000   3 579   3 451

Paid-in capital over/under pa   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       145 365 175 461   9 291  11 214

TOTAL OWNERS' EQUITY          520 977 389 212  33 296  24 875

TOT.LIABILIT.AND OWNERS' EQUI 640 593 483 077  40 941  30 874





INCOME STATEMENT OF THE GROUP, 2004

Consolidated,unaudited



1000 EEK

GROUP                        Q4 2004 Q4 2003     2004    2003



NET SALES                     138 557 106 966 453 780 342 348

Cost of goods sold           -114 958 -87 462-370 916-278 973



Gross profit                   23 59919 504    82 864  63 375



Operating expenses, incl.     -16 112 -13 730 -51 534 -43 168

Marketing expenses             -6 692  -5 757 -21 046 -17 740

Administrative expenses        -9 420  -7 973 -30 488 -25 428

Other revenue                      40     227     523     396

Other expenses                   -322    -247    -624    -692



Operating profit                7 205   5 754  31 229  19 911



Financial income and expenses, incl.

 - from associated companies      311     852     119  11 691

 - from other holdings              1   2 156  25 356   7 557

 - from revaluat.of fin.inves  43 363  56 546  92 212 137 876

 - interest expense              -438    -546  -1 449  -1 464

 - profit/loss from foreign e     -19     -24     -58     -62

 - other financial income/exp      59      46     155     186

Total financial income and  e43 277    59 030 116 334 155 784



Profit from normal operations  50 482  64 784 147 563 175 695

External income                  -546    -283    -595     -97

Profit after faxes             49 936  64 501 146 968 175 598

Corporate Income tax              610     -38  -1 603    -137

Net profit for the year        50 546  64 463 145 365 175 461



Basic earnings per share         9,03   11,94   26,59   32,49



Diluted earnings per share       9,03   11,70   26,59   31,91





1000 EUR

GROUP                        Q4 2004 Q4 2003     2004    2003



NET SALES                       8 855   6 836  29 002  21 880

Cost of goods sold             -7 347  -5 590 -23 705 -17 830



Gross profit                    1 508   1 246   5 297   4 050



Operating expenses, incl.      -1 029    -878  -3 293  -2 759

Marketing expenses               -428    -368  -1 345  -1 134

Administrative expenses          -602    -510  -1 948  -1 625

Other revenue                       3      15      33      26

Other expenses                    -21     -16     -40     -44



Operating profit                  460     367   1 997   1 273



Financial income and expenses, incl.

 - from associated companies       20      55       8     747

 - from other holdings              0     138   1 620     483

 - from revaluat.of fin.inves   2 771   3 614   5 893   8 812

 - interest expense               -28     -35     -93     -94

 - profit/loss from foreign e      -1      -2      -4      -4

 - other financial income/exp       4       3      10      12

Total financial income and  e   2 766   3 773   7 434   9 956



Profit from normal operations   3 226   4 140   9 431  11 229

External income                   -35     -18     -38      -6

Profit after faxes              3 191   4 122   9 393  11 223

Corporate Income tax               39      -2    -102      -9

Net profit for the year         3 230   4 120   9 291  11 214



Basic earnings per share         0,58    0,76    1,70    2,07



Diluted earnings per share       0,58    0,75    1,70    2,04



Karin Padjus

Chief accountant

67 47 403