Fenniger                       FINANCIAL RESULTS                30.08.2005



CONSOLIDATED FINANCIAL RESULTS, 6 MONTHS 2005



Summary of Economic Results



During  the  first half of 2005 the building of the business- and  housing

facility  in  Riga  undertaken  by the   subsidiary  of  AS  Fenniger,  AS

Eldikrija, continued.

The  state  commissioning took place 30.06.2005.  In  July  the  inventory

actions  in  the apartments and office facilities were begun, the  actions

were  ended  in  August. Since the inventory actions were finished  –  all

apartments  and office facilities in the building have been  entered  into

the  Latvian  Land  register as separate entities. As the  result  of  the

inventory  actions the exact areas for the spaces on sale were determined:

the  total  area  of  apartments on sale is 19 813,5 m2   and  for  office

facilities the total area is 2 729,8 m2.

All  apartments  and  office facilities in the  building  are  covered  by

preliminary contracts, the handover of the apartments was begun in August.

According  to  the terms of public emission of debentures , the  2nd  rate

mortgage in favour of  the underwriting security agent, AS Lõhmus,  Haavel

and  Viiseman, was to be released  after the building actions  had  ended.

The mortgage was revoked 10.08.2005.

A  significant undertaking after the interim report period, is to purchase

the  plot  of land where the aforementioned building is located  from  the

Latvian  National  Real  Estate Agency. As AS Eldikrija  had  a  long-term

commercial lease contract for the plot as well as it owns the building  on

the  plot – according to the legislation, it had the pre-emptive right for

purchasing  the land. AS Eldikrija exercised the right and  purchased  the

plot at the auction for the opening price of 1 450 000 Latvian LATs.

Legally  AS  Eldikrija  will  become the  owner  of  the  plot,  once  the

respective entry has been made into the land register.



The loss for the  Fenniger consolidating group during the 1st half of 2005

was  estimated  as 3,6 million kroons. The loss was predictable  as  there

were no apartment sales during the first half-year.

Compared  to  the  same  period  last year, the  marketing  expenses  have

increased around 2,5 times, but at the same time the administrative  costs

have decreased by a third.

The  interest costs, compared to the same period last year, have decreased

significantly  –  the reason being the capitalising  of   bank  loan-  and

debenture interests into the cost of the building.

The  deferred Income Tax claim has emerged at the subsidiary AS  Eldikrija

due  to the accumulated- and unused loss, which during the next accounting

periods  shall decrease the emerging Income Tax base. As the 1st  half  of

2005  also  ended  in  loss, the deferred Income Tax claim  increased  and

decreased the net loss by approximately 800. 000 kroons.



The  balance  sheet  total  for the Fenniger  consolidating  group  as  of

30.06.2005  was 335.761.099 kroons. Since the beginning of  the  year  the

balance  sheet total has increased by approximately 79 million kroons  i.e

ca 30%. The increase occurred mainly due to finishing of the building, the

building  is  reflected in the balance sheet as a  current  asset  on  the

respective line Stock.

The  consolidating  group's equity capital as of  30.06.2005  is  slightly

below the legislated minimum (50% of the share capital). The council of AS

Fenniger and the shareholder have discussed the situation, and find,  that

the  equity  capital shall increase to the required limit as soon  as  the

sales  start  and by the end of the accounting period the  equity  capital

shall  meet  all the requirements set. The equity capital  of  the  parent

company is in concordance with the limits set by legislation.





Balance sheet                                                     

                           thous. EEK   thous. EEK  thous. EUR  thous. EUR

ASSETS                     30.06.2005   31.12.2004  30.06.2005  31.12.2004

CURRENT ASSETS                                                   

Cash and bank              52 335 228   66 955 038   3 344 831   4 279 207

Customer receivables           60 395       15 875       3 860       1 015

Other receivables          55 180 088    1 338 305   3 526 650      85 533

Accrued income and          4 761 057    5 645 118     304 287     360 789

prepayments

Stock                     210 284 994  170 449 611  13 439 660  10 893 716

TOTAL CURRENT ASSETS      322 621 762  244 403 947  20 619 288  15 620 260

                                                                  

NONCURRENT ASSETS                                                 

Other long-term             2 898 324    2 089 372     185 237     133 535

receivables

Investment property         9 405 988    9 386 522     601 152     599 908

Tangible fixed assets         502 396      573 084      32 109      36 627

Intangible assets             332 629      332 629      21 259      21 259

TOTAL NONCURRENT ASSETS    13 139 337   12 381 607     839 757     791 329

TOTAL ASSETS              335 761 099  256 785 554  21 459 045  16 411 589

                                                                  

LIABILITIES                30.06.2005   31.12.2004  30.06.2005  31.12.2004

                                                                 

CURRENT LIABILITIES                                               

Short-term loans          186 997 894    2 499 430  11 951 344     159 743

Customer advances for     102 748 495   73 641 337   6 566 826   4 706 539

goods and services

Supplier payables             151 011    7 842 761       9 651     501 244

Other short-term            3 931 823    4 614 347     251 289     294 910

payables

Taxes payable                 224 056        3 655      14 320         234

Accrued expenses and          226 796       32 055      14 495       2 049

unearned income

TOTAL CURRENT             294 280 075   88 633 585  18 807 925   5 664 719

LIABILITIES

                                                                  

NONCURRENT LIABILITIES                                            

Long-term loans            40 046 616  163 006 523   2 559 445  10 418 016

Other long-term               929 420      907 017      59 401      57 969

payables

TOTAL NONCURRENT           40 976 036  163 913 540   2 618 846  10 475 985

LIABILITIES

TOTAL LIABILITIES         335 256 111  252 547 125  21 426 771  16 140 704

                                                                  

OWNER´S EQUITY                                                       

                                                                     

Share capital (par          1 100 000    1 100 000      70 303      70 303

value)

Share premium              23 050 000   23 050 000   1 473 163   1 473 163

Mandatory reserves            100 000      100 000       6 391       6 391

Unrealised exchange        -2 727 596   -2 566 238    -174 325    -164 013

differences

Retained earnings         -17 445 373   -8 396 785  -1 114 963    -536 652

Net profit (-loss) for     -3 572 053   -9 048 588    -228 296    -578 310

the financial year

PARENT COMPANY OWNER´S        504 978    4 238 389      32 273     270 882

SHARE

Minority share                     10           40           1           3

TOTAL OWNER´S EQUITY          504 988    4 238 429      32 274     270 885

TOTAL LIABILITIES AND     335 761 099  256 785 554  21 459 045  16 411 589

EQUITY





Income Statement                                                  

                        thous.EEK     thous.EEK  thous. EUR   thous. EUR

                         6 months      6 months    6 months     6 months

                           ending        ending      ending       ending

                       30.06.2004    30.06.2004  30.06.2005   30.06.2004

                                                               

Revenue                   514 967       104 178      32 912        6 658

Cost of sales             572 191             0      36 569            0

                                                               

GROSS PROFIT              -57 224       104 178      -3 657        6 658

                                                               

Marketing expenses      1 024 944       409 761      65 506       26 189

Administrative          2 817 227     4 034 391     180 054      257 845

expenses

Other revenue              15 801             0       1 010            0

Other expenses             63 164         9 643       4 037          616

                                                               

OPERATING PROFIT       -3 946 758    -4 349 617    -252 244     -277 992

(- LOSS)

                                                               

FINANCIAL INCOME         -457 180    -3 682 764     -29 219     -235 372

AND EXPENSES

                                                                        

interest expenses        -450 006    -2 789 596     -28 761     -178 288

income from other         -62 110    -1 147 271      -3 969      -73 324

noncurrent

financial

investments

foreign exchange         -302 233       242 721     -19 316       15 513

gain (-loss)

other income and          357 169        11 382      22 827          727

expenses

                                                               

PROFIT (LOSS)          -4 403 938    -8 032 381    -281 463     -513 364

BEFORE TAXES

                                                               

Deferred taxes            804 883             0      51 441            0

                                                               

NET PROFIT (-LOSS)     -3 599 055    -8 032 381    -230 022     -513 364

FOR THE YEAR

                                                               

PARENT COMPANY         -3 572 053    -8 032 374    -228 296     -513 364

OWNER´S SHARE

MINORITY INTEREST         -27 002            -7      -1 726            0

                                                               

Basic earnings per         -32,47        -76,48       -2,08        -4,89

share

(EEK/EUR)                                                      

Diluted earnings           -32,47        -76,48       -2,08        -4,89

per share

(EEK/EUR)





Meeli Puusepp

CFO

+372 681 9900