Harju Elekter                 FINANCIAL RESULTS                 08/03/2004



FINANCIAL RESULTS, 1-6/2004



Key indicators (MEEK)                             1-6/2004   1-6/2003

Net sales                                         189,2      149,6

Operating profit                                  10,0       7,9

Profit before fin. expenses (EBIT)                80,8       66,1

Net profit for the current period                 79,9       65,6



At the end of the period

Total current assets                              120,2      92,2

Total fixed assets                                441,9      268,4

Total assets                                      562,1      360,7

Total liabilities                                 101,5      81,3

Minority interests                                13,1       0

Total owners’ equity                              447,5      279,3



Performance indicators (%)

Net sales growth                                  26,5       19,5

Operating profit growth                           26,3       21,5

Net profit growth                                 21,8       482,4

Return of sales (operating profit/net sales *100) 5,3        5,3

Net profit margin (net profit /net sales *100)    42,2       43,8

Owners’ equity margin                             79,6       77,4

(equity /balance sheet total *100)



Current ratio*                                    1,7        1,3

Quick ratio*                                      0,9        0,8

Number of employees on 30.06.2004                 374        296

EPS (EEK)                                         14,79      12,14

*average number in the current period



The H1 of 2004 was for Harju Elekter consolidation group successful and

exceeds the expectations. Electrical engineering sector is characterised by

dependence on the season, due to which the production volume of the winter

period is considerably lower than in the second and third quarter when

construction reaches its peak. The economic results of the consolidation

group for the first six months were generally good and met our expectations.

The number of sales orders in the Q2 considerably exceeded the volume of the

Q1. Compared to the same period last year, the sales and operating profit

both increased.



Of the sales revenue, 76,6% accounted for the sales of industrial products

and 23,4% for intermediate sales and sales of services. At the same time,

the sales of products in the H1 increased by 23,0% in comparison with the

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

altogether increased by 39,5%, including trade and intermediate sales by

41,2%. Of the sales revenue of Harju Elekter 47,6% is ascribed to the sales

to Estonia and 52,4% to the sales to foreign markets. The sales to the

Estonian market went up by 16,4%. The sales of products to foreign markets

went up by 37,3%.  Attention should be paid to the fact that the data of

the H1 of 2004 include also the consolidated sales revenues of the Lithuanian

subsidiary Rifas in amount 19,9 MEEK (1,26 MEUR). The Republic of Finland,

with its share of 38,1% in turnover, continued to be the largest target

country of export.



Financial operations yielded a total profit of MEEK 70,2 (MEUR 5,1), which

is 22% more than in the same period of the previous year. The major source

of financial income was the share of PKC Group Oyj. The recalculation of the

value of shares as a fair value generated financial income of MEEK 51,0 or

MEUR 3,3 (H1 2003: MEEK 52,3 or MEUR 3,3). PKC Group Oyj paid dividends in

the amount of MEEK 19,4 or MEUR 1,2 for 2003 ((H1 2003: MEEK 4,6 or MEUR 0,3).



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

assets a total of MEEK 21,3 or MEUR 1,4 (H1 2003: MEEK 27,0 or MEUR 1,7), of

which in technology was MEEK 10,4 or TEUR 663 (H1 2003: MEEK 2,7 or TEUR 170)

and construction and renovation work of buildings and plant was MEEK 10,6 or

TMEUR 672 (H1 2003: MEEK 22,4 or MEUR 1,4).





Andres Allikmäe

Chairman of the Board

Tel +372 6 747 400



More information: Interim report 1-6/2004 of Harju Elekter, Karin

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





BALANCE SHEET OF THE GROUP, 30.06.04

Consolidated, unaudited



in thousand                        EEK           EUR

ASSETS                           30.06.0431.12.0330.06.0431.12.03

Cash, bank                          7 482  26 449     478   1 690

Total customer receivables         47 583  31 784   3 041   2 030

Other current receivables           2 652   6 106     169     390

Accrued income                      1 762      67     113       4

Prepaid expenses                    2 132   1 251     136      80

Total current receivables          54 129  39 208   3 459   2 505

Raw materials and inventories      48 771  37 721   3 117   2 411

Goods                               9 683   6 344     619     405

Prepayments to suppliers              157      57      10       4

Total inventories                  58 611  44 123   3 746   2 820

TOTAL CURRENT ASSETS              120 222 109 780   7 684   7 016

Stock and shares in ass.companies  24 036  26 476   1 536   1 692

Other shares                      257 075 201 128  16 430  12 854

Other long-term receivables            26      19       2       1

Total financial investments       281 137 227 623  17 968  14 548

Investment properties              85 621  86 896   5 472   5 554

Plant and equipment                35 589  28 308   2 275   1 809

Other equipment and fixtures       68 074  58 144   4 351   3 716

Other inventory                     5 574   4 996     356     319

Accumulated depreciation          -42 823 -38 892  -2 737  -2 486

Construction-in-progress            5 676   2 363     363     151

Prepayments for fixed assets        1 423   2 068      91     132

Total tangible assets              73 513  56 987   4 698   3 642

Licences                            1 598   1 752     102     112

Prepayments for intangible assets       0      39       0       2

Total intangible assets             1 598   1 790     102     114

TOTAL NON-CURRENT ASSETS          441 868 373 297  28 240  23 858

TOTAL ASSETS                      562 090 483 077  35 924  30 874

LIABILITIES AND OWNERS' EQUITY

Debt obligations                   24 880  14 366   1 590     918

Customer prepayments                3 842   1 065     246      68

Supplier payables                  33 959  26 756   2 170   1 710

Other short-term borrowings         1 820   1 218     116      78

Tax liabilities                     5 932   6 838     379     437

Accrued expenses                    8 571   9 600     548     614

TOTAL CURRENT LIABILITIES          79 004  59 843   5 049   3 825

TOTAL NON-CURRENT LIABILITIES      22 526  20 800   1 440   1 329

TOTAL LIABILITIES                 101 531  80 643   6 489   5 154

Minority interest                  13 063  13 222     835     845

Share capital                      54 000  54 000   3 451   3 451

Restricted reserves                 8 600   8 600     550     550

Retained earnings                 305 012 151 151  19 495   9 660

Net profit for the year            79 883 175 461   5 105  11 214

TOTAL OWNERS' EQUITY              447 496 389 212  28 600  24 875

TOT.LIABILITIES AND OWNERS' EQUIT 562 090 483 077  35 924  30 874





INCOME STATEMENT OF THE GROUP, H1 2004

Consolidated,unaudited



in thousand                      EEK             EUR

GROUP                            H1 2004 H1 2003 H1 2004 H1 2003



NET SALES                         189 201 149 566  12 092   9 559

Cost of goods sold               -156 132-121 692  -9 978  -7 778



Gross profit                       33 069  27 874   2 113   1 781



Operating expenses, incl.         -23 266 -19 660  -1 487  -1 257

Marketing expenses                 -9 199  -7 756    -588    -495

Administrative expenses           -14 067 -11 904    -899    -761

Other revenue                         389      43      25       3

Other expenses                       -240    -377     -15     -24



Operating profit                    9 952   7 880     636     504



Financial income and expenses, incl.

 - from associated companies         -680   1 238     -43      79

 - from other holdings             20 494   4 560   1 310     291

 - from revaluat.of fin.investm.   50 983  52 324   3 258   3 344

 - interest expense                  -596    -497     -38     -32

 - profit/loss from foreign excha     -27     -30      -2      -2

 - other financial income/expense      74      90       5       6

Total financial income and  expen  70 249  57 685   4 490   3 687



Profit from normal operations      80 201  65 565   5 126   4 190

External income                       -33       0      -2       0

Profit after faxes                 80 168  65 565   5 124   4 190

Corporate Income tax                 -285       0     -18       0

Net profit for the year            79 883  65 565   5 105   4 190



Basic earnings per share            14,79   12,14    0,95    0,78



Diluted earnings per share          14,44   11,99    0,92    0,77





INCOME STATEMENT OF THE GROUP, 2004 Q2

                                 Q2 2004 Q2 2003 Q2 2004 Q2 2003

NET SALES                         103 468  78 724   6 613   5 031

Cost of goods sold                -84 462 -64 552  -5 397  -4 126



Gross profit                       19 006  14 172   1 215     906



Operating expenses, incl.         -12 022 -10 563    -768    -675

Marketing expenses                 -4 807  -4 043    -307    -257

Administrative expenses            -7 215  -6 520    -461    -417

Other revenue                         204      37      13       2

Other expenses                       -132    -194      -8     -12



Operating profit                    7 056   3 452     451     221



Financial income and expenses, incl.

 - from associated companies          -19   1 164      -1      74

 - from other holdings                 -6   1 343       0      86

 - from revaluat.of fin.investm.   19 402  52 055   1 240   3 327

 - interest expense                  -371    -285     -24     -18

 - profit/loss from foreign excha     -21     -14      -1      -1

 - other financial income/expense      51      32       3       2

Total financial income and  expen  19 037  54 295   1 217   3 470



Profit from normal operations      26 093  57 747   1 668   3 691

External income                       -17     173      -1      11

Profit after faxes                 26 076  57 920   1 667   3 702

Corporate Income tax                 -828       0     -53       0

Net profit for the year            25 248  57 920   1 614   3 702



Basic earnings per share             4,68   10,73    0,30    0,69



Diluted earnings per share           4,56   10,57    0,29    0,68





Karin Padjus

Chief accountant

  + 372 6 747 400





Moonika Vetevool

PR manager

+372 6712 761