Harju Elekter                 FINANCIAL RESULTS                 11/06/2002



FINANCIAL RESULTS 9M 2002



Sales revenue

During the accounting period the economic situation in Estonia has been

relatively stable. According to the data of the Estonian Market Research

Institute, in nine months of the current year the order volumes for industrial

products exceeded their usual level and the output volumes sustained a growing

trend. There have also been more export orders than usual.



The construction market is still experiencing a boom and the institute

anticipates that the fourth quarter will be more favourable than usually. The

upsurge that took off in the electrical engineering industry in the preceding

years has lasted till the present day. AS Harju Elekter's domestic market is

driven by building and renovation activities and the demand for products

primarily used for electrical engineering purposes. The energy,

infrastructure, building and wholesale companies have placed increasingly more

orders on the domestic as well as on external markets.



The consolidated net sales and revenues for nine months of 2002 amounted to

EEK 186.6 million (EUR 11.9 mil.). Compared with the same period last year,

the Group's turnover grew by 37.6 per cent, whereas in Q3 the sales surpassed

the respective indicator for the previous year by 31.5 per cent. Sales on the

Estonian market accounted for 59.0 per cent of the consolidated net sales and

revenues (2001 9m: 59.4%), marking a 36.6 per cent rise in comparison with the

nine month period in 2001, and on the external markets EEK 76.5 million (EUR

4.9 mil.) which is 39.1 per cent more than during the same period last year.



Driven by the growing demand on the electrical engineering market,

manufacturing and marketing of electrical equipment increased by 61.8 %

within nine months and the acquisition of the new subsidiary added another

12.1 per cent at the expense of the turnover, totalling 80.3 per cent and

representing 41.8 per cent of the sales volume (2001 9m: 31.9%).



Profit

The Group's operating profit for the nine month period was EEK12.5 million or

EUR 797 thousand (2001 9m: EEK 9.5 mil. or EUR 606 thou.), in comparison with

the same period last year the growth has been 31.4 per cent, The operating

profit for Q3 was EEK 6.0 million or EUR 382 thousand which is 1.6 times

higher than in 2001. If the profit margin for the nine month period remained

practically on the year 2001 level, then in the third quarter a 9.7 per cent

profit margin was achieved (2001 Q3: 8.0%).



Income from financing activities was EEK 7.5 million or EUR 481 thousand (2001

9m:EEK 8.2 mil. or EUR 526 thou.). Altogether EEK 3.6 million (EUR 233 thou.)

were consolidated from the related companies in the third quarter. In total,

the 2.6 million kroon (EUR 166 thou.) income from financing activities that

was received in Q3 of the current year surpassed the previous year's result.



The operating profit gained from the sale of fixed and current assets to a

subsidiary which had been formed on the basis of Cable Harnesses Factory and

the financial income earned from the sale of the subsidiary AJT Harju Elekter

are reported in the consolidated income statement under Extraordinary income,

totally in the amount EEK 30.6 million (EUR 2.0 mil.).



In brief, the Group's operating profit for nine months in 2002 was EEK 20.0

million (EUR 1,2 mil.) which is 12.8 per cent more against the same period

last year. The operating profit earned in Q3 doubly exceeded the last year's

indicator. Net profit for the period amounted to EEK 50.6 million or EUR 3.2

million (2001 9m:EEK 17.7 mil. or EUR 1.1 mil.). Net profit margin settled at

27.1 per cent (2001 9m: 13.1%). EPS was EEK 9.38 or EUR 0.60 (2001 9m: EEK

3.28 or EUR 0.21).



Investments and capital employed

During the reporting period the Group invested in tangible and intangible

fixed assets altogether EEK 10.5 million or EUR 673 thousand (2001 9m:EEK 5.4

mil. or EUR 346 thou.).  4.5 million kroons or 285 thousand euros were

invested into plant and technology, the lion share of which amount was spent

on the reconstruction of the washing systems of the powder coating unit at the

Electrical Equipment Factory in order to improve quality and to significantly

minimise environmental pollution. EEK 3.5 million or EUR 220 thousand were

used for the renovation of buildings and facilities. EEK 0.9 million (EUR 60

thou.) were spent on the installation and upgrading of the IT systems.



During the accounting period EEK 6,6 million  or EUR 420 thousand were spent

to repay the principal amount of the long-term loan and the capital lease

(2001 9m: EEK 6.5 mil. or EUR 414 thou.) which did not incur any income tax

liability for AS Harju Elekter.



Balance sheet

The consolidated balance total by the end of September 2002 was EEK 224.7

million (EUR 14.1 mil.); it had in nine months by EEK 48,2 million (EUR 3.1

mil.) and in twelve months by EEK 52.9 million (EUR 3.1 mil.). This growth is

mostly attributable to the sale of AJT Harju Elekter and purchase of the

subsidiary Satmatic Oy and the significant rise in the orders for the energy

sector products as compared with the previous quarters and the same period

last year. Changes took place also in the balance structure. Owners' equity

grew in total  by EEK 42.8 million (EUR 2.7 mil.) and reached the 74.8 per

cent ratio to the value of assets. This is 3.6 per cent points  more than a

year ago and 3.8 per cent points more than it was by 31.12.2001. On the assets

side the value of current assets grew the most during nine months, in total

EEK 28.3 million (EUR 1.8 mil.). Together with the subsidiary Satmatic Oy the

Group acquired some current assets, the  total fair value of which was EEK

21.4 million (EUR 1.4 mil.),  among them EEK 15.3 million (EUR 1.0 mil.)worth

of stock-in-trade.



Personnel

During the accounting period the average number employees in the Group was 373

(2001 9m: 682). On the balance sheet date 293 (30.09.01: 659) people were

working in the Group. The number of the employees decreased considerably in

connection with the sale of the subsidiary AJT Harju Elekter (418), although

after the acquisition of Satmatic Oy the personnel grew by 52 employees.



Important events

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 EUR 2.07 million (EEK 32.4

mill.). With the disposal of AJT, the second tier subcontracting company,

Harju Elekter minimised its business risks significantly,but the expertise of

wiring systems and fibre-optic products manufacturing was retained  in the

Group.



On the 19th of September AS Harju Elekter and Siemens Osakeyhtiö signed the

purchase agreement pursuant to which Harju Elekter acquired all shares of 100%

Siemens owned subsidiary Satmatic Oy. The core business of Satmatic is the

manufacturing and marketing of various electrical equipment, including

automation and process control systems for the paper, metal and machine

building industries as well as car heating units for parking lots. The

acquisition of the subsidiary has widened Harju Elekter's possibilities to

extend its main product range with Satmatic type-approved products, to upgrade

and improve its existing products and to boost its sales in Finland and other

neighbouring markets. The increase of the market share is estimated at EEK 100

million (EUR 6.4 million).







Andres Allikmäe

Chairman of the Management Board

+372 6 747 400



BALANCE SHEETS

BALANCE SHEET, 30.09.2002

Consolidated, unaudited



Group

in thousand                         EEK             EUR

ASSETS                            30.09.02 31.12.01 30.09.02 31.12.01

Cash, bank                           11 104   11 039      710      706

Marketable securities                     0      468        0       30

Total customer receivables           25 748   15 305    1 646      978

Other current receivables               979    3 343       63      214

Accrued income                            0       35        0        2

Prepaid expenses                      1 034    1 242       66       79

Total current receivables            27 761   19 925    1 774    1 273

Raw materials and inventories        41 177   21 557    2 632    1 378

Goods                                 4 977    3 730      318      238

Prepayments to suppliers                  8        0        0        0

Total inventories                    46 162   25 286    2 950    1 616

TOTAL CURRENT ASSETS                 85 026   56 718    5 434    3 625

Stock and shares in ass.companies    26 525   22 580    1 695    1 443

Other shares                         17 038    4 521    1 089      289

Other long-term receivables             482      473       31       30

Total financial investments          44 044   27 574    2 815    1 762

Plant and equipment                  75 381   75 284    4 818    4 812

Other equipment and fixtures         46 483   43 845    2 971    2 802

Other inventory                       2 949    3 757      188      240

Accumulated depreciation            -33 800  -31 751   -2 160   -2 029

Construction-in-progress              4 195      716      268       46

Prepayments for fixed assets             18        0        1        0

Total tangible assets                95 226   91 851    6 086    5 870

Licences                                412      309       26       20

Goodwill                                 40      112        3        7

Total intangible assets                 452      421       29       27

TOTAL NON-CURRENT ASSETS            139 723  119 845    8 930    7 660

TOTAL ASSETS                        224 749  176 563   14 364   11 284

LIABILITIES AND OWNERS' EQUITY

Debt obligations                      8 757   14 929      560      954

Customer prepayments                    561       94       36        6

Supplier payables                    25 779   12 433    1 648      795

Other short-term borrowings           1 170      499       75       32

Tax liabilities                       3 107    4 931      199      315

Accrued expenses                      4 644    6 010      297      384

TOTAL CURRENT LIABILITIES            44 019   38 896    2 813    2 486

TOTAL NON-CURRENT LIABILITIES        12 563   12 254      803      783

TOTAL LIABILITIES                    56 582   51 150    3 616    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              50 634   20 742    3 236    1 326

TOTAL OWNERS' EQUITY                168 167  125 413   10 748    8 015

TOTAL LIAB.AND OWNERS' EQUITY       224 749  176 563   14 364   11 284





BALANCE SHEET OF THE PARENT COMPANY, 30.09.2002

unaudited



Parent company

in thousand                         EEK             EUR

ASSETS                            30.09.02.31.12.01.30.09.02.31.12.01.

Cash, bank                            8 976   10 260      574      656

Marketable securities                     0      468        0       30

Total customer receivables           18 058   10 718    1 154      685

Other current receivables             3 153    5 422      202      347

Accrued income                            0       35        0        2

Prepaid expenses                        952      938       61       60

Total current receivables            22 163   17 113    1 416    1 094

Raw materials and inventories        18 476   14 275    1 181      912

Goods                                 4 931    3 679      315      235

Prepayments to suppliers                  8        0        0        0

Total inventories                    23 415   17 954    1 497    1 147

TOTAL CURRENT ASSETS                 54 554   45 795    3 487    2 927

Stock and shares in subsidiaries     13 832    8 602      884      550

Other long-term receiv.from subs.    10 170        0      650        0

Stock and shares in ass.companies    26 525   22 580    1 695    1 443

Other shares                         17 038    4 521    1 089      289

Other long-term receivables             482      473       31       30

Total financial investments          68 047   36 175    4 349    2 312

Plant and equipment                  75 251   75 151    4 809    4 803

Other equipment and fixtures         26 032   25 665    1 664    1 640

Other inventory                       1 622    2 693      104      172

Accumulated depreciation            -27 903  -27 426   -1 783   -1 753

Construction-in-progress              4 195      716      268       46

Prepayments for fixed assets             18        0        1        0

Total tangible assets                79 214   76 799    5 063    4 908

Licences                                412      309       26       20

Total intangible assets                 412      309       26       20

TOTAL NON-CURRENT ASSETS            147 672  113 283    9 438    7 240

TOTAL ASSETS                        202 226  159 078   12 925   10 167

LIABILITIES AND OWNERS' EQUITY

Debt obligations                      4 265    7 299      273      466

Customer prepayments                    561       11       36        1

Supplier payables                    16 625   10 703    1 063      684

Other short-term borrowings           1 481      483       95       31

Tax liabilities                       2 265    4 345      145      278

Accrued expenses                      3 162    5 320      202      340

TOTAL CURRENT LIABILITIES            28 359   28 161    1 812    1 800

TOTAL NON-CURRENT LIABILITIES         5 701    5 503      364      352

TOTAL LIABILITIES                    34 060   33 664    2 177    2 152

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              50 634   20 742    3 236    1 326

TOTAL OWNERS' EQUITY                168 167  125 413   10 748    8 015

TOTAL LIAB.AND OWNERS' EQUITY       202 226  159 078   12 925   10 167





INCOME STATEMENTS

INCOME STATEMENT,  9M 2002

Consolidated,unaudited



in thousand                       EEK               EUR

Group                             9M 2002  9M 2001  9M 2002  9M 2001

NET SALES                           186 636  135 625   11 928    8 668

Cost of goods sold                  152 323  108 733    9 735    6 949



Gross profit                         34 313   26 892    2 193    1 719



Operating expenses, incl.            21 707   17 037    1 387    1 089

Marketing expenses                    8 422    6 402      538      409

Administrative expenses              13 285   10 635      849      680

Other revenue                           290      302       19       19

Other expenses                          425      668       27       43



Operating profit                     12 471    9 489      797      606



Financial income, incl.

Fin.income from ass.companies         6 005    3 365      384      215

Fin.income from other holdings        2 254    6 190      144      396

Other interest and fin.income           223      215       14       14

Total financial income                8 482    9 770      542      624



Financial expenses, incl.

Interest expense                        902    1 441       58       92

Other financial expenses                 59       96        4        6

Total financial expenses                961    1 537       61       98



Profit from normal operations        19 993   17 722    1 278    1 133

External income                      30 641             1 958        0

Net profit for the year              50 634   17 722    3 236    1 133



Bas.and dil.earnings per share         9,38     3,28     0,60     0,21





INCOME STATEMENT,  Q3 2002

Consolidated,unaudited

in thousand                       EEK               EUR

Group                             Q3  2002 Q3  2001 Q3  2002 Q3  2001





NET SALES                            61 464   46 728    3 928    2 986

Cost of goods sold                   48 418   37 372    3 094    2 389



Gross profit                         11 974    8 558      765      547



Operating expenses, incl.             7 029    5 481      449      350

Marketing expenses                    2 777    2 377      177      152

Administrative expenses               4 252    3 104      272      198

Other revenue                            51       97        3        6

Other expenses                           86      237        5       15



Operating profit                      5 982    3 735      382      239



Financial income, incl.

Fin.income from ass.companies         3 648    1 313      233       84

Fin.income from other holdings           28       11        2        1

Other interest and fin.income            83       47        5        3

Total financial income                3 759    1 371      240       88



Financial expenses, incl.

Interest expense                        278      453       18       29

Other financial expenses                  3       44        0        3

Total financial expenses                281      497       18       32



Profit from normal operations         9 461    4 609      605      295

External income                      29 915             1 912        0

Net profit for the year              39 376    4 609    2 517      295



Bas.and dil.earnings per share         7,29     0,85     0,47     0,05





INCOME STATEMENT OF THE PARENT COMPANY,  9M 2002

unaudited

in thousand                       EEK               EUR

Parent company                    9M 2002  9M 2001  9M 2002  9M 2001





NET SALES                           141 369  117 316    9 035    7 498

Cost of goods sold                  113 246   96 121    7 238    6 143



Gross profit                         28 123   21 195    1 797    1 355



Operating expenses, incl.            16 441   13 095    1 051      837

Marketing expenses                    6 500    4 439      415      284

Administrative expenses               9 941    8 656      635      553

Other revenue                           253      265       16       17

Other expenses                          325      592       21       38



Operating profit                     11 610    7 773      742      497



Financial income, incl.

Financial income from subsid.           643    1 076       41       69

Fin.income from ass.companies         6 005    3 365      384      215

Fin.income from other holdings        2 254    6 201      144      396

Other interest and fin.income           227      328       14       21

Total financial income                9 130   10 970      583      701



Financial expenses, incl.

Financial expenses from subsid.         344        0      228        0

Interest expense                        391      953       18       43

Other financial expenses                 12       68        1        2

Total financial expenses                747    1 021      247       45



Profit from normal operations        19 993   17 722    1 278    1 133

External income                      30 641             1 958        0

Net profit for the year              50 634   17 722    3 236    1 133



Bas.and dil.earnings per share         9,38     3,28     0,60     0,21





INCOME STATEMENT OF THE PARENT COMPANY Q3 2002

unaudited

in thousand                       EEK               EUR

Parent company                    Q3  2002 Q3  2001 Q3  2002 Q3  2001





NET SALES                            48 646   40 399    3 109    2 582

Cost of goods sold                   37 673   32 740    2 408    2 092



Gross profit                         10 972    7 659      701      489



Operating expenses, incl.             5 508    4 257      352      272

Marketing expenses                    2 108    1 590      135      102

Administrative expenses               3 400    2 667      217      170

Other revenue                            52       76        3        5

Other expenses                           74      197        5       13



Operating profit                      5 442    3 281      348      210



Financial income, incl.

Financial income from subsid.           422      245       27       16

Fin.income from ass.companies         3 649    1 313      233       84

Fin.income from other holdings           28       14        2        1

Other interest and fin.income           116       67        7        4

Total financial income                4 213    1 639      269      105



Financial expenses, incl.

Financial expenses from subsid.      -3 229        0      228        0

Interest expense                        111      275       18       43

Other financial expenses                  0       36        1        2

Total financial expenses             -3 118      311      247       45



Profit from normal operations        12 773    4 609      816      295

External income                      26 603             1 700        0

Net profit for the year              39 376    4 609    2 517      295



Bas.and dil.earnings per share         7,29     0,85     0,47     0,05





Karin Padjus

Chief accountant

67 47 403





Moonika Vetevool

PR manager

+372 6712 761