Viisnurk                      FINANCIAL RESULTS                 08/09/2002



FINANCIAL RESULTS, 6 MONTHS 2002



The net sales of Viisnurk AS for the second quarter of 2002 were 94 mil.

kroons (6 mil. euros) and net profit was 4.8 mil. Kroons (0.31 mil. euros). As

compared to the second quarter of the previous year, the net sales of the

company increased by 21.3% and net profit almost halved. During the first half

of the accounting year, Viisnurk exposed the profit of 3.7 mil. kroons (0.24

mil. euros) at the net sales of 175.8 mil. Kroons (11.2 mil. euros). In 2001,

the net sales were 143.6 mil. kroons (9.2 mil. euros) and the profit 18.5 mil.

kroons 1.18 mil. euros) respectively. The economic results of Viisnurk for the

first half-year were influenced most by the loss produced by the Wood Panel

Factory and the low demand on the major export markets.



The economic results of the company were influenced by the following factors:



- The Wood Panel Factory, which was launched last year, exposed the loss of

2.5 mil. kroons (0.16 mil. euros) at the net sales of 12.1 mil. kroons (0.77

mil. euros) in the 2nd quarter. As compared to the previous quarter, the net

sales of the factory increased by 13.2% and the loss decreased by

approximately 2 mil. kroons (0.13 mil. euros). The total net sales for the

first half-year amounted to 22.7 mil. kroons (1.45 mil. euros) and the total

loss to 7 mil. kroons (0.45 mil. euros). Lack of qualified work force at the

Wood Panel Factory constituted the hindrance in gaining positive economic

results besides; the operation of the factory was influenced by difficulties

on the European furniture industry, thus complicating procurement of suitable

orders.

- The net sales of the Furniture Factory in the first half of 2002 amounted to

88.9 mil. kroons (5.68 mil. euros), soaring by 16% on the same period of the

previous year (incl. 11,6% in the 2nd quarter). The operating profit of the

factory amounted to 12 mil. kroons (0.77 mil. euros) in the first half-year,

which is approximately 10% less than the year before. The profitability of the

Furniture Factory was 13.6% for the 2nd quarter; showing an improvement as

compared to the previous quarter.

- The net sales of the Sports Goods Division for the first half-year amounted

to 20.6 mil. kroons (1.32 mil. euros), which is 28.7% more than that of the

last year. The economic activities of the division resulted in the loss of 2.1

mil. kroons (0.13 mil. euros). During the 2nd quarter, the most important

contracts concerning the sale of skis and hockey sticks for the next season

were concluded by the Sports Goods Division. Pursuant the agreements, the

production of the skis will remain at the same level as the year before,

whereas the average price for the sold skis will decrease by approximately 10%

owing to sagging demand. The estimated output of hockey sticks will exceed

that of the previous year by ca 40%.

- The Softboard Factory exposed the profit of 9 mil. kroons (0.58 mil. euros)

at the net sales of 39.7 mil. kroons (2.54 mil. euros) for the first half of

the year. As compared to the previous year, the net sales of the factory

increased by 5% and the profit decreased by 27%. The profitability of the

factory improved in the 2nd quarter as compared to the 1st one, however, the

decline on target markets as well as the increase of the price of such factors

of production as electricity and wood chips, hindered us to achieve the level

of the preceding year.



To provide continuous growth in profitability, Viisnurk AS continues to focus

its activities on upgrading first and foremost in furniture production.





INCOME STATEMENT



                     In th. of  kroons     In th. of    In t. of     In t. of

                                              kroons       euros        euros

                            II quarter    II quarter  II quarter   II quarter

                                  2002          2001        2002         2001

                                                                             

NET SALES                       93 997        77 509       6 007        4 954

                                                                             

Cost of goods sold            (78 939)      (58 312)     (5 045)      (3 727)

                                                                             

Gross profit                    15 058        19 197         962        1 227

                                                                             

Marketing expenses             (5 003)       (4 167)       (320)        (266)

                                                                             

General admin. expenses        (2 497)       (2 218)       (160)        (142)

                                                                             

Other income                       262           233          17           15

                                                                             

Other expenses                   (407)         (751)        (25)         (48)

                                                                             

Profit from operations           7 413        12 294         474          786

                                                                             

Financial income                     7           288                       19

                                                                             

Financial expenses             (2 580)       (2 637)       (165)        (169)

                                                                             

NET PROFIT                       4 840         9 945         309          636

                                                                             

Basic earnings per share          1,08          2,21        0,07         0,14

Diluted earnings per              1,08          2,21        0,07         0,14

share





                     In th. of  kroons     In th. of    In t. of     In t. of

                                              kroons       euros        euros

                              6 months      6 months    6 months     6 months

                                  2002          2001        2002         2001

                                                                             

NET SALES                      175 787       143 647      11 235        9 181

                                                                             

Cost of goods sold           (151 873)     (108 429)     (9 706)      (6 930)

                                                                             

Gross profit                    23 914        35 218       1 529        2 251

                                                                             

Marketing expenses             (9 633)       (8 761)       (616)        (560)

                                                                             

General admin. expenses        (4 993)       (4 925)       (319)        (315)

                                                                             

Other income                       513         1 168          33           75

                                                                             

Other expenses                   (988)       (1 025)        (64)         (67)

                                                                             

Profit from operations           8 813        21 675         563        1 384

                                                                             

Financial income                    34           316           3           21

                                                                             

Financial expenses             (5 103)       (3 479)       (327)        (222)

                                                                             

NET PROFIT                       3 744        18 512         239        1 183

                                                                             

Basic earnings per share          0,83          4,11        0,05         0,26

Diluted earnings per              0,83          4,11        0,05         0,26

share







BALANCE SHEET



                             In th. of     In th. of    In t. of     In t. of

                                kroons        kroons       euros        euros

                             30.6.2002    31.12.2001   30.6.2002   31.12.2001

                                                                   

Cash and bank                      630         5 036          40          322

Customer receivables            54 458        52 496       3 480        3 355

Other receivables                1 960         2 215         125          142

Prepaid expenses                 5 653         5 449         361          348

Inventories                     91 540        74 576       5 851        4 765

Total current assets           154 241       139 772       9 857        8 932

                                                                   

Long-term fin.                   1 436         1 436          92           92

investments

Tangible assets                216 301       216 043      13 824       13 808

Intangible assets                  479           269          31           17

Total non-current assets       218 216       217 748      13 947       13 917

                                                                   

TOTAL ASSETS                   372 457       357 520      23 804       22 849

                                                                   

                                                                   

Debt obligations                45 855        47 368       2 931        3 027

Customer prepayments                80         1 216           5           78

Supplier payables               44 034        36 793       2 814        2 351

Taxes payable                    6 710         5 639         429          360

Accrued expenses                11 457         8 348         732          534

Total current                  108 136        99 364       6 911        6 350

liabilities

                                                                   

Long-term liabilities           97 900        95 479       6 257        6 102

Total non-current               97 900        95 479       6 257        6 102

liabil.

                                                                   

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              101 855        82 472       6 510        5 271

Net profit for the year          3 744        19 383         239        1 239

Total equity                   166 421       162 677      10 636       10 397

                                                                   

TOTAL LIABILITIES AND          372 457       357 520       23 804      22 849

EQUITY





Andrus Aljas

CFO

044 78 355