VIISNURK

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO FINANCIAL RESULTS, 3M 2001



AS Viisnurk ended the first quarter of 2001 with net sales of 66.1m kroons, a

ca 12 per cent increase on the 59.1m kroons attained in the first quarter of

2000, and a net profit of 8.6m, a 44 per cent improvement on the 5.9m achieved

a year ago.



At 31 March 2001 AS Viisnurk did not have any subsidiary companies. Therefore,

the financial statements reflect only the results of the parent company.



The period's most significant accomplishment was the launching of the Wood

Panels Factory, a supplement to the previously established Ski, Furniture and

Softboard factories. At 31 March 2001 investments in the new business unit

totalled 91.3m kroons.



The Ski Factory ended the period with sales of 4.6m kroons. The modest result

may be explained by the seasonal nature of the factory's operation, and the

impact of the winter's poor snow conditions which reduced ski sales all over

Europe. The latter is likely to have an adverse effect on the Ski Factory's

annual sales. Due to modest sales, the factory incurred a loss of 1.5m

kroons.



The Furniture Factory continued manufacturing self-developed products and

completing specialised sub-contracting orders. Sales reached 34.7m kroons, a

ca 27 per cent increase on the first quarter of 2000, and profit amounted to

6m kroons, a 30 per cent growth on the result of a year ago.



The sales of the Softboard Factory amounted to 19.7m kroons remaining more or

less stable compared to the first quarter of 2000. The factory earned a profit

of 6.6m kroons, a 16 per cent increase on the first quarter of 2000.



The sales and loss of the Wood Panels Factory, which was launched at the end

of the quarter, amounted to ca 210,000 kroons and 935,000 kroons respectively.

Owing to high start-up costs, a relatively small production volume and high

financial expenses, the factory is going to end the year with a loss.



The activities of the Forestry Centre, production of heat energy and rental

operations generated sales of 6.9m kroons and a profit of 1.8m kroons.





Andrus Aljas

CFO

+372 44 78355