STARMAN                          FINANCIAL REPORT                    22.08.2005



AS STARMAN CONSOLIDATED FINANCIAL STATEMENTS FOR THE 1-ST HALF-YEAR 2005 - EEK



INCOME STATEMENT



(in thousands of kroons)



                                1st      1st      2nd     2nd     Note 

                                half-yea half-yea quarter quarter      

                                r 2005   r 2004   2005    2004         

                                                                       

 Revenue                        90 661   66 029   47 024  34 926  2    

 Other income                   950      804      473     443     3    

 Goods, raw materials and       -29 029  -21 701  -15 235 -11 678 3    

 services                                                              

 Other operating expenses       -15 842  -11 626  -8 379  -6 188  3    

 Personnel expenses             -14 654  -10 428  -8 247  -5 577  3    

 Depreciation, amortisation and -15 970  -13 144  -8 207  -6 970       

 impairments                                                           

 Other expenses                 -2 477   -207     -2 409  -114    3    

                                                                       

 Operating profit               13 638   9 727    5 020   4 842        

                                                                       

 Net financial items            -2 641   -1 336   -1 499  -809    4    

                                                                       

 Profit before income tax       10 998   8 391    3 521   4 034        

                                                                       

                                                                       

 Net profit for the financial   10 998   8 391    3 521   4 034        

 year                                                                  

                                                                       

 Basic EPS (in EEK)             0,84     0,64     0,27    0,31    9    

 Diluted EPS (in EEK)           0,84     0,64     0,27    0,31    9    





BALANCE SHEET



(in thousands of kroons)



                                      30.06.2005  31.12.2004  Note  

 ASSETS                                                             

 Current assets                                                     

 Cash and bank accounts               7 584       9 315             

 Trading securities                   3 275       3 214             

 Accounts receivable                  9 896       8 072             

 Other short-term receivables         1 253       1 661             

 Inventories                          11 574      8 993             

 Total current assets                 33 582      31 255            

 Non-current assets                                                 

 Other financial assets               288         313               

 Property, plant and equipment        253 511     233 503           

 Intangible assets                    431         320               

 Total non-current assets             254 229     234 136           

 TOTAL ASSETS                         287 812     265 391           

 LIABILITIES AND OWNER'S EQUITY                                     

 Liabilities                                                        

 Current liabilities                                                

 Borrowings                           6 354       10 865      5     

 Prepayments                          4 752       3 892             

 Accounts payable                     19 958      10 193            

 Other short-term payables            0           6 500       6     

 Taxes payable                        5 477       3 187             

 Accrued expenses                     8 167       5 431             

 Total current liabilities            44 709      40 068            

 Non-current liabilities                                            

 Long-term borrowings                 95 492      88 709      5     

 Total non-current liabilities        95 492      88 709            

 Total liabilities                    140 200     128 777           

 Owner's equity                                                     

 Share capital                        130 536     43 512            

 Share premium                        0           68 455            

 Reserves                             1 465       719               

 Retained earnings/loss               4 613       9 001             

 Profit for the financial year        10 998      14 927            

 Total owner's equity                 147 612     136 614     7     

 TOTAL LIABILITIES AND OWNER'S EQUITY 287 812     265 391           





Rändy Hütsi

Member of the Management Board

+372 677 9977

Additional information: AS Starman consolidated interim report for the 1st half-

year 2005