Riga Stock exchange                                                20.10.2004



Riga, October 20 – The leading Baltic telecoms equipment developer and producer

JSC SAF Tehnika recorded 12,8 m LVL audited consolidated sales and 3,9 m LVL 

net profit in financial year ended on June 30.



As a result of rapid increase of export sales the company experienced turnover 

increase by 163% (comparing to previous financial year), by finalization of several

successful deals for supplies in Asia and Latin America regions the company managed 

to increase profit by 383% (811 786 LVL in the financial previous year and 

3 920 569 LVL during this financial year). Allocation of turnover by regions: 

Asia - 7 415 401 LVL, Europe - 4 234 147 LVL, 1 168 904 LVL – other regions.



“The first financial year of SAF Tehnika as a Public Joint-Stock Company is over 

and I am glad to inform you that it was successful, rich with positive events and

encourages grand for optimism in the future,” said SAF Tehnikas`s CEO Normunds Bergs.



Capital investments during the financial year 2003/2004 and rapid growth of demand 

ensured 2.6 times increase of sales comparing with the previous financial year, 

which justifies the strategy chosen by the company – to keep the high quality and 

optimum price ratio.



The company also have positive increase trend in the export volume. Last year income

from foreign sales reached 94.36 %, in the previous financial year export volume 

made 84 % of sales.



Last year SAF Tehnika successfully started working on one of the company’s major 

objectives – diversification of sales. Geographically the area of the company’s 

activities has extended and now covers several new regions, the most important of 

those are South America and Africa. 



In the reporting year the ISO 9001 quality audit was carried out and company obtained 

a quality compliance certificate. It also became a member of ETSI (European 

Telecommunications Standards Institute), which enables Company to be up-to-date and 

aware of novelties in the industry and to participate in working out new 

telecommunications standards. In the reporting period Company started implementing

of the CRM (Customer Relationship Management) system, which will help to improve 

the quality of service



During the reporting year JSC SAF Tehnika increased production capacity and employed

55 % more human resources (number of employees on 30.06.2003 was 75, on 30.06.2004 

company employed 116 people).



In May of the reporting period the company successfully made initial public offer 

with total market capitalisation over 50 million euros.



SAF Tehnika can also be proud of the deal on acquisition of the Swedish company 

Viking Microwave business, which is now already operates as SAF Tehnika Sweden. 

The new competence in development of microwave radio will significantly increase 

the company competitiveness, as range of SAF Tehnika products has extended.

 

“Looking into the future I can assert that SAF Tehnika will follow its strategy 

in respect of investments in the company development, business expansion to new 

markets and development of new products, according to the demands of concrete 

markets,” says N.Bergs.



For more information:



Aleksis Orlovs

Financial director

Phone.: +371 7046833

Mob.phone.: +371 9287289

Fax: +371 7020009

e-mail:Aleksis.Orlovs@saftehnika.com



Ieva Muciņa

Head of Marketing Department

Phone: 7046836

Mob.phone: 9477915

Fax: 7020009

e-mail:Ieva.Mucina@saftehnika.com