Harju Elekter                 FINANCIAL RESULTS           08/07/2002 08:00



CONSOLIDATED FINANCIAL RESULTS, H1 2002



Sales and revenues

The consolidated net sales of AS Harju Elekter for H1 2002 amounted to 125.2

MEEK (8.0 MEUR). Compared to the same period last year,the company's turnover

grew by 40.8%. Sales on the domestic market accounted for 52.2% of the

consolidated net sales and revenues (H1 2001: 59.4%). Export sales were 59.8

MEEK (3.8 MEUR) which is 65.8% more than for the same period last year.



The first 6 months of 2002 were successful for Electrical Equipment Factory.

The factory's total turnover was 52.1 MEEK (3.3 MEUR), having increased in

comparsion with the same period last year by 1.4 times, incl. 55.2% increase

in the sales of electrical equipment. Sales on the domestic market grew  1.3

and on export markets 2.5 times. The share of export in total turnover was

20.7% (2001: 12.2%). The amount of purchase orders from energy,

infrastructure, building and wholesale companies increased.



The turnover of Cable Harnesses Factory amounted to 38.9 MEEK (2001:24.0 MEEK

or 1.5 MEUR), i.e. 62.2% growth. Beginning from the current year, the cost of

materials used for the manufacturing of some products is reflected in the

factory's turnover which is the main reason for the turnover increase.



Profit

The Group's six-month operating profit was 6.5 MEEK or 415 TEUR (H1 2001: 5.8

MEEK or 368 TEUR), thus the return on sales was 5.2% (H1 2001: 6.5%). The low

profitability of Cable Harnesses Factory products and the shrinking share of

products for the electronic and telecom industries in the overall sales had a

decreasing effect on the Group's return on sales. Compared to the same period

last year, the parent company's operating profit grew by 37.7%, incl. 42.4%

in Q2,return on sales improved by 0.8 percentage points,incl. 1.3 percentage

points in Q2. Beginning from the second quarter, the results of Cable

Harnesses Factory are not reported within the parent company's performance

indicators.



Income from financing activities was 4.0 MEEK or 259 TEUR (H1 2001: 7.4 MEEK

or 471 TEUR).  During the accounting period no extraordinary share transfers

were conducted (in H1 2001 income from sale of shares had been 2.8 MEEK or

176 TEUR) and also dividend income from PKC was smaller.



In the consolidated income statement under profit from extraordinary items

726 TEEK (46 TEUR) is reported as the part of extraordinary income due from

the disposal of the subsidiary's assets, which was received in Q2.



In conclusion, the Group's net profit for the first six months of 2002 was

11.3 MEEK or 719 TEUR (H1 2001: 13.1 MEEK or 838 TEUR). Thus the net profit

margin achieved was 9.0% (H1 2001: 14.8%). EPS was 2.08 EEK or 0.13 EUR (H1

2001: 2.43 EEK or 0.16 EUR).







Cash flow, investments and capital employed

Cash flow from operating activities was 14.8 million EEK or 946 thousand EUR

(H1 2001: 11.7 MEEK or 748 TEUR),  outflow due to investing and financing

activities 18.4 million EEK or 1 174 thousand EUR (H1 2001: 11.0 MEEK or 702

TEUR).



During the accounting period the Group invested 6.7 MEEK or 431 TEUR in

tangible and intangible fixed assets (H1 2001: 3.7 MEEK or 236 TEUR).

Investments in plant and technology were 3.7 MEEK or 239 TEUR,the bulk of

this amount was spent on the rehabilitation of the washing units of the 

powder- coating line with the aim to ensure better product quality and 

considerable reduction in environmental pollution. 2.0 MEEK or 128 TEUR was 

spent on the reconstruction projects of buildings and installations.



In March Harju Elekter paid 6 MEEK (383 TEUR) as a monetary contribution

into the share capital of its 100% subsidiary AJT Harju Elekter to be founded

on the basis of the Cable Harnesses Factory.



Long-term loan and capital lease repayments during the accounting period

accounted for 4.4 MEEK or 278 TEUR (H1 2001: 4.9 MEEK or 319 TEUR).



In 2002 7.6 MEEK or 483 TEUR (2001; 6.5 MEEK or 414 TEUR) were distributed

as dividends to the shareholders, with no income tax liabilities arising for

Harju Elekter.



Balance sheet

The consolidated balance sheet volume as of end of June 2002 was 191.7 MEEK

(12.3 MEUR). The balance sheet volume increased by 15.1 MEEK (1.0 MEUR)

during the first six months of 2002. On one hand, current receivables grew

by 8.5 MEEK (544 TEUR) and inventories 7.6 MEEK (485 TEUR),on the other hand,

trade accounts payable by 14.0 MEEK (894 TEUR). The increase in inventories

was caused by stock on hand procured in the 1st quarter for the manufacturing

of wiring systems for the automotive and electronic industries that, in turn,

lead to an increase in trade accounts payable and in prepaid sales tax to the

customs. However, the 30.0% growth in total inventory was beaten by the 40.8%

growth rate of the turnover.



Important events

On the basis of former Cable Harnesses Factory, AS AJT Harju Elekter (AJT),

a 100% subsidiary, was formed on the 8th of March, with the share capital of

6 million kroons (383 TEUR). The company started its Independent economic

activities on April 1.  On the 4th of June AS Harju Elekter and PKC Group Oyj

(PKC) signed a sales agreement according to which PKC acquired all shares of

AJT, a 100% Harju Elekter owned subsidiary. The transaction value was 2.07

MEUR (32.4 MEEK). The closing date was July 1, 2002.







Andres Allikmäe

Chairman of the Board

+372 6747 400





BALANCE SHEETS

BALANCE SHEET, 30.06.2002

Consolidated, unaudited



Group

in thousand                           EEK             EUR

ASSETS                              30.06.02 31.12.01 30.06.02 31.12.01

Cash, bank                              7 475   11 039      478      706

Marketable securities                       0      468        0       30

Total customer receivables             23 730   15 305    1 517      978

Other current receivables               2 505    3 343      160      214

Accrued income                             14       35        1        2

Prepaid expenses                        2 365    1 242      151       79

Total current receivables              28 614   19 925    1 829    1 273

Raw materials and inventories          28 205   21 557    1 803    1 378

Goods                                   4 661    3 730      298      238

Prepayments to suppliers                   11        0        1        0

Total inventories                      32 876   25 286    2 101    1 616

TOTAL CURRENT ASSETS                   68 965   56 718    4 408    3 625

Stock and shares in ass.companies      22 876   22 580    1 462    1 443

Other shares                            4 521    4 521      289      289

Other long-term receivables               482      473       31       30

Total financial investments            27 878   27 574    1 782    1 762

Plant and equipment                    75 423   75 284    4 820    4 812

Other equipment and fixtures           44 695   43 845    2 857    2 802

Other inventory                         3 993    3 757      255      240

Accumulated depreciation              -32 257  -31 751   -2 062   -2 029

Construction-in-progress                2 634      716      168       46

Prepayments for fixed assets                5        0        0        0

Total tangible assets                  94 493   91 851    6 039    5 870

Licences                                  468      309       30       20

Goodwill                                   64      112        4        7

Total intangible assets                   532      421       34       27

TOTAL NON-CURRENT ASSETS              122 904  119 845    7 855    7 660

TOTAL ASSETS                          191 869  176 563   12 263   11 284

LIABILITIES AND OWNERS' EQUITY

Debt obligations                       12 465   14 929      797      954

Customer prepayments                      230       94       15        6

Supplier payables                      26 434   12 433    1 689      795

Other short-term borrowings             1 201      499       77       32

Tax liabilities                         4 270    4 931      273      315

Accrued expenses                        5 917    6 010      378      384

TOTAL CURRENT LIABILITIES              50 517   38 896    3 229    2 486

TOTAL NON-CURRENT LIABILITIES          12 563   12 254      803      783

TOTAL LIABILITIES                      63 079   51 150    4 032    3 269

Share capital                          54 000   54 000    3 451    3 451

Restricted reserves                     8 600    6 510      550      416

Retained earnings                      54 933   44 161    3 511    2 822

Net profit for the year                11 257   20 742      719    1 326

TOTAL OWNERS' EQUITY                  128 790  125 413    8 231    8 015

TOTAL LIAB.AND OWNERS' EQUITY         191 869  176 563   12 263   11 284





BALANCE SHEET OF THE PARENT COMPANY, 30.06.2002

unaudited

in thousand                           EEK             EUR

ASSETS                              30.06.02.31.12.01.30.06.02.31.12.01.

Cash, bank                              7 475   11 039      478      706

Marketable securities                       0      468        0       30

Total customer receivables             23 730   15 305    1 517      978

Other current receivables               2 505    3 343      160      214

Accrued income                             14       35        1        2

Prepaid expenses                        2 182    1 242      139       79

Total current receivables              28 430   19 925    1 817    1 273

Raw materials and inventories          28 205   21 557    1 803    1 378

Goods                                   4 661    3 730      298      238

Prepayments to suppliers                   11        0        1        0

Total inventories                      32 876   25 286    2 101    1 616

TOTAL CURRENT ASSETS                   68 781   56 718    4 396    3 625

Stock and shares in subsidiaries       22 876   22 580    1 462    1 443

Stock and shares in ass.companies       4 521    4 521      289      289

Other shares                              482      473       31       30

Other long-term receivables            27 879   27 574    1 782    1 762

Total financial investments            75 423   75 284    4 820    4 812

Plant and equipment                    44 695   43 845    2 857    2 802

Other equipment and fixtures            3 993    3 757      255      240

Other inventory                       -32 257  -31 751   -2 062   -2 029

Accumulated depreciation                2 634      716      168       46

Construction-in-progress                    5        0        0        0

Prepayments for fixed assets           94 493   91 851    6 039    5 870

Total tangible assets                     468      309       30       20

Licences                                   64      112        4        7

Total intangible assets                   532      421       34       27

TOTAL NON-CURRENT ASSETS              122 904  119 845    7 855    7 660

TOTAL ASSETS                          191 686  176 563   12 251   11 284

LIABILITIES AND OWNERS' EQUITY

Debt obligations                       12 465   14 929      797      954

Customer prepayments                      229       94       15        6

Supplier payables                      26 434   12 433    1 689      795

Other short-term borrowings             1 201      499       77       32

Tax liabilities                         4 087    4 931      261      315

Accrued expenses                        5 917    6 010      378      384

TOTAL CURRENT LIABILITIES              50 333   38 896    3 217    2 486

TOTAL NON-CURRENT LIABILITIES          12 563   12 254      803      783

TOTAL LIABILITIES                      62 896   51 150    4 020    3 269

Share capital                          54 000   54 000    3 451    3 451

Restricted reserves                     8 600    6 510      550      416

Retained earnings                      54 933   44 161    3 511    2 822

Net profit for the year                11 257   20 742      719    1 326

TOTAL OWNERS' EQUITY                  128 790  125 413    8 231    8 015

TOTAL LIAB.AND OWNERS' EQUITY         191 686  176 563   12 251   11 284





INCOME STATEMENTS

INCOME STATEMENT,  H1 2002

Consolidated,unaudited



in thousand                         EEK               EUR

Group                               H1 2002  H1 2001  H1 2002  H1 2001

NET SALES                             125 172   88 897    8 000    5 682

Cost of goods sold                    103 905   71 361    6 641    4 561



Gross profit                           21 267   17 536    1 359    1 121



Operating expenses, incl.              14 679   11 556      938      739

Marketing expenses                      5 645    4 025      361      257

Administrative expenses                 9 033    7 531      577      481

Other revenue                             239      204       15       13

Other expenses                            339      431       22       28



Operating profit                        6 488    5 753      415      368



Financial income, incl.

Fin.income from ass.companies           2 357    2 053      151      131

Fin.income from other holdings          2 226    6 178      142      395

Other interest and fin.income             140      167        9       11

Total financial income                  4 723    8 399      302      537

Financial expenses, incl.

Interest expense                          624      987       40       63

Other financial expenses                   56       52        4        3

Total financial expenses                  680    1 039       43       66



Profit from normal operations          10 531   13 113      673      838

External income                           726                46

Net profit for the year                11 257   13 113      719      838



Basic and dil.earnings per share         2,08     2,43     0,13     0,16





INCOME STATEMENT,  2002 Q2

Consolidated,unaudited

in thousand                         EEK               EUR

Group                               Q2  2002 Q2  2001 Q2  2002 Q2  2001





NET SALES                              72 991   44 499    4 665    2 844

Cost of goods sold                     61 017   35 941    3 900    2 297



Gross profit                           11 974    8 558      765      547



Operating expenses, incl.               8 158    5 952      521      380

Marketing expenses                      3 059    2 122      196      136

Administrative expenses                 5 099    3 830      326      245

Other revenue                              43       96        3        6

Other expenses                            155      314       10       20



Operating profit                        3 704    2 388      237      153



Financial income, incl.

Fin.income from ass.companies           1 577    1 392      101       89

Fin.income from other holdings             11    6 166        1      394

Other interest and fin.income              89      129        6        8

Total financial income                  1 676    7 687      107      491



Financial expenses, incl.

Interest expense                          290      479       19       31

Other financial expenses                   10       17        1        1

Total financial expenses                  300      496       19       32



Profit from normal operations           5 081    9 579      325      612

External income                           726        0       46        0

Net profit for the year                 5 807    9 579      371      612



Basic and dil.earnings per share         1,08     1,77     0,07     0,11





INCOME STATEMENT OF THE PARENT COMPANY,  H1 2002

unaudited

in thousand                         EEK               EUR

Parent company                      H1 2002  H1 2001  H1 2002  H1 2001



NET SALES                              92 723   76 917    5 926    4 916

Cost of goods sold                     75 573   63 381    4 830    4 051



Gross profit                           17 151   13 536    1 096      865



Operating expenses, incl.              10 934    8 838      699      565

Marketing expenses                      4 393    2 849      281      182

Administrative expenses                 6 541    5 989      418      383

Other revenue                             205      188       13       12

Other expenses                            256      395       16       25



Operating profit                        6 167    4 491      394      287



Financial income, incl.

Fin.income from subsidiaries              222      831       14       53

Fin.income from ass.companies           2 357    2 053      151      131

Fin.income from other holdings          2 227    6 187      142      395

Other interest and fin.income             111      262        7       17

Total financial income                  4 916    9 332      314      596

Financial expenses, incl.

Fin.expenses from subsidiaries          3 573        0      228        0

Interest expense                          280      679       18       43

Other financial expenses                   12       32        1        2

Total financial expenses                3 864      711      247       45



Profit from normal operations           7 218   13 113      461      838

External income                         4 039        0      258        0

Net profit for the year                11 257   13 113      719      838



Basic and dil.earnings per share         2,08     2,43     0,13     0,16





INCOME STATEMENT OF THE PARENT COMPANY 2002 Q2

unaudited

in thousand                         EEK               EUR

Parent company                      Q2  2002 Q2  2001 Q2  2002 Q2  2001



NET SALES                              48 401   40 191    3 093    2 569

Cost of goods sold                     38 389   32 555    2 453    2 081



Gross profit                           10 012    7 636      640      488



Operating expenses, incl.               5 849    4 509      374      288

Marketing expenses                      2 527    1 451      162       93

Administrative expenses                 3 322    3 058      212      195

Other revenue                              45       84        3        5



Other expenses                             73      306        5       20



Operating profit                        4 135    2 904      264      186



Financial income, incl.

Fin.income from ass.companies           1 577    1 392      100       89

Fin.income from other holdings             11    6 169        1      394

Other interest and fin.income              44      170        3       11

Total financial income                  1 632    7 732      104      494

Financial expenses, incl.

Fin.expenses from subsidiaries          3 888      725      248       46

Interest expense                          106      321        6       21

Other financial expenses                    5       11        1        1

Total financial expenses                3 999    1 057      255       67



Profit from normal operations           1 768    9 579      113      612

External income                         4 038        0      258        0

Net profit for the year                 5 806    9 579      371      612



Basic and dil.earnings per share         1,08     1,77     0,07     0,11







Karin Padjus

Chief accountant

+372 6747 403





Moonika Vetevool

PR manager

+372 6712 761