Viisnurk                      FINANCIAL RESULTS                 05/28/2004



FINANCIAL RESULTS, 3 MONTHS 2004



The net sales of Viisnurk AS for the three months of 2004 were 105.4 mil.

kroons (6.7 mil. euros) and the net profit 1.3 mil. kroons (0.08 mil.

euros). In the same period of the last year, the net sales totalled 91.2

mil. kroons (5.8 mil. euros) and the net profit 0.6 mil. kroons (0.04 mil.

euros). When compared to the same period of the previous year, the

turnover of Viisnurk has increased by 15%, and profit by nearly 50%.



The earnings of Viisnurk before interest and depreciation, i.e. EBITDA,

amounted to 9.2 mil. kroons (0.6 mil. euros) in the 1st quarter of 2004,

and to 10.0 mil. kroons (0.6 mil. euros) in the 1st quarter of 2003.



During the 1st quarter of 2004 the Supervisory Board of Viisnurk AS

approved a restructuring plan according to which it was decided:



- To sell the Building Materials Division;

- To sell the Sports Goods Division;

- To close down the Wood Division and to sell or rent out its fixed

assets.



The objective of the restructuring plan is to enable concentration of

efforts on to the development of the main activity (furniture production),

and to strengthen the company’s financial position. At present, the

activities concerning the restructuring process are advanced as planned.





Divisional Review



The net sales of the Furniture Division of Viisnurk AS for the 1st quarter

were 42.3 mil. kroons (2.7 mil. euros) and the profit was 1 mil. kroons

(0.06 mil. euros). The figures of the Furniture Division include also the

results of the subsidiary Skano OÜ, which deals with the retail sales of

Viisnurk furniture. Skano OÜ earned 247 thousand kroons (15.8 thousand

euros) profit on its turnover of 1 mil. kroons (0.06 mil. euros). The net

sales of the Furniture Division for the 1st quarter in 2003 were 42.5 mil.

kroons (2.7 mil. euros) and the profit was 5.7 mil. kroons (0.36 mil.

euros).



The economic results of the Furniture Division for the 1st quarter were as

planned. The economic results were positively influenced by a thorough

analysis of the product portfolio costs and revenues, and by implementing

these results primarily for the development of sales of higher

profitability products. At the same time, during the 1st quarter the

Division was continually dealing with technological and purchasing

problems related to the series manufacture of new products introduced at

the end of the last year. At present, the decision has been reached to

terminate the production of problematic products, and a plan has been

developed for further improvement of the Furniture Division’s product

portfolio and for significant reductions in the expenditure.



The economic activities of the Sports Goods Division resulted in the net

sales of 7.5 mil. kroons (0.48 mil. euros) and the loss of 4.6 mil. kroons

(0.29 mil. euros) in the 1st quarter. In the same period last year, the

turnover of the division was 9.2 mil. kroons (0.59 mil. euros) and the

loss 4.9 mil. kroons (0.31 mil. euros).

In the 1st quarter the economic results were affected by small production

capacity, which is due to the seasonality of the division’s activity.

Since beginning of the year the Sports Goods Division has been active in

fulfilling the orders of the new season.

In addition Viisnurk is currently introducing the Sporting Goods Division

to potential buyers as part of the restructuring process.



The net sales of the Building Material Division for the 1st quarter were

26.8 mil. kroons (1.7 mil. euros) and the profit was 5.6 mil. kroons (0.36

mil. euros). Compared to the year before, the turnover of the division has

grown by 12% and profits by 4%. The economic results of the division are

continuously advanced by favourable market situation, which has offered

possibilities for increasing the profitability of the product portfolio.

Potential buyers are currently performing due diligence in the Building

Materials Division and Viisnurk is expecting to receive the final bids in

the middle of June. Upon receiving satisfactory bids the transaction

closing is expected in July.



The net sales of the Wood Division of Viisnurk AS for the 1st quarter were

28.6 mil. kroons (1.8 mil. euros) and its economic activity resulted in

the profit of 217 thousand kroons (13.9 thousand euros). During the same

period in 2003, the turnover of the division was 15.2 mil. kroons (0.97

mil. euros) and the loss 709 thousand kroons (45.2 thousand euros).

Positive economic results were achieved due to an improving market

situation in the beginning of the year, which enabled the division to

increase production capacity and efficiency.

Since April 16 the Wood Panels Division has been closed and Viisnurk is

currently negotiating a sale of the division’s assets with potential

buyers.



During the 1st quarter Viisnurk AS sold its real estates not related to

production for 3.9 mil. kroons (0.25 mil. euros), earning a profit of 3.1

mil. kroons (0.2 mil. euros).







INCOME STATEMENT                                                            

consolidated                 Thou. Kr.    Thou. Kr.   Thou. eur    Thou. eur

                           1st quarter  1st quarter 1st quarter  1st quarter

                                  2004         2003        2004         2003

                                                                            

RETURN ON SALES                105,441       91,197       6,739        5,829

                                                                            

Cost of production sold       (95,292)     (79,848)     (6,090)      (5,104)

                                                                            

Gross profit                    10,149       11,349         649          725

                                                                            

Marketing expenses             (7,388)      (5,616)       (472)        (359)

                                                                            

General administrative         (2,327)      (2,709)       (149)        (173)

expenses

                                                                            

Other income                     3,251          374         207           24

                                                                            

Other expenses                   (521)        (602)        (33)         (38)

                                                                            

Operating profit                 3,164        2,796         202          179

                                                                            

Financial income and           (1,876)      (2,210)       (120)        (142)

financial expenses

                                                                            

NET PROFIT FOR THE PERIOD        1,288          586          82           37

                                                                            

Basic earnings per share          0,29         0,13        0,02         0,01

Diluted earnings per share        0,29         0,13        0,02         0,01







BALANCE SHEET                                                    

consolidated                 Thou. Kr.   Thou. Kr.    Thou. eur   Thou. eur

                             31.3.2004  31.12.2003    31.3.2004  31.12.2003

                                                                 

Cash and bank                    1,391       1,141           89          73

Customer receivables            44,598      45,005        2,850       2,876

Other receivables                   36         115            2           7

Prepayments                      4,537       7,127          290         455

Inventories                     68,278      63,819        4,364       4,080

Total current assets           118,840     117,207        7,595       7,491

                                                                 

Long-term financial              1,436       1,436           92          92

investments

Real estate investments          1,808       2,535          116         162

Tangible fixed assets          152,021     156,102        9,716       9,977

Intangible fixed assets          3,450       3,716          220         237

Total fixed assets             158,715     163,789       10,144      10,468

                                                                 

TOTAL ASSETS                   277,555     280,996       17,739      17,959

                                                                 

                                                                 

Debt obligations                87,202      90,011        5,573       5,753

Customer prepayments               182         219           12          14

Supplier payables               38,212      38,801        2,442       2,480

Taxes payable                    6,241       6,956          399         445

Accrued expenses                17,393      17,514        1,112       1,119

Short-term provisions            2,672       3,129          171         200

Total current liabilities      151,902     156,630        9,709      10,011

                                                                 

Non-current debt oblig.         50,160      50,160        3,206       3,206

Total non-current liab.         50,160      50,160        3,206       3,206

                                                                 

Total liabilities

Share capital (nom. value)      44,991      44,991        2,875       2,875

Issue premium                   11,332      11,332          724         724

Mandatory capital reserve        4,499       4,499          288         288

Retained profits                13,384      82,223          855       5,255

Net profit for the year          1,287    (68,839)           82     (4,400)

Total equity                    75,493      74,206        4,824       4,742

TOTAL LIABILIT. AND            277,555     280,996       17,739      17,959

EQUITY





Andrus Aljas

CFO

+372 447 8355