NORMA

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO H1 Y2000 CONSOLIDATED FINANCIAL RESULTS



Sales and Revenues



The H1 Y2000 consolidated net sales of AS Norma totalled 295,7

million EEK, incl. parent company with 248,2 million EEK.

Consolidated sales increased by 13,5% (+35,3 million EEK) from

H1 in 1999. Revenues of AS Norma accounted for 84%, AS

Metaprint 11,5%, AS Tööriistavabrik 2,5% and AS Norma Maja 1,6% 

of the group's total income. The group's main fields of 

activity include production and sales of safety belts, car 

components,tin sheet lithography and real estate administration. 

Sales structure by regions has remained unchanged from the 

previous periods. Exports accounted for 83% of sales revenue;

69% of production was exported to the Eastern markets and 14%

to the West.

The average number of employees during the H1 was 1093.



Use of Capital



Accounts receivable at the end of the H1 total 122,9  million

EEK, of which 73% is receivable from the Eastern markets.

The H1 volume of  accounts receivable has decrease 

by 7,3 million EEK. The share of accounts in arrears of 

total receivable was 54%. Provision reserve was constituted 

by total Eastern market accounts receivable (16,4 million EEK) 

and provision reserve decrease 3,3  million EEK.

As of  the  end H1 2000, the consolidated balance sheet size

amounted to 511,8 million EEK (23,0 million EEK growth), 

increasing mainly due to the increase in current assets 

(30,4 million  EEK).

The total bank loans for AS Norma was 39,9 million EEK (EBRD).

The group's owners' equity has increased by 44,7 million EEK,

amounting to 430,0 million EEK (84% of balance sheet volume).

Return on equity by net profit (ROE) was 19.6%



Investments



To support existing production capacities and assure the

efficiency of production processes AS Norma invested a total 

of 12,6 million, of which 8,3 million EEK in machinery 

and equipment.



Net Income and Earnings per Share



The company's consolidated unaudited profit after tax was 84,3 

million EEK. The increase of 17.2 million EEK over comparable 

period of the previous year was caused by changes in 

Tax Regulations. 2000 I half net profit before tax was 

EEK 6 million lower than that of H1999, because due to hedged 

currency risks this year did not show as much foreign currency 

gain as last year.Earnings per share increased to 6,39 EEK in 

H1 2000 from 5,08 EEK in H1 1999.



Changes in business activities



In order to contsentrate on core business divelopement and 

production on car safety system:



·  AS Norma signed in June an agreement for sale of its 50%

   shareholding in AS Norsafe to  Inka OY (Finland)

·  AS Norma closed AS Metaprint manufacturing department in 

   Pae street

.  AS Norma sold buildings at Kopli 40

·  AS Norma has invited tender offer for its real estate in 

   Harku, Pae and Laki street

·  In June AS Norma started assembly of seat belts on 

   subcontracting bases for Autoliv Sweden AB on assambly 

   line delivered from Sweden. During next two years is 

   planned to increase the number of assambly lines by additial

   4 line. Planned production capacity on these lines is 1,5 

   million seat belts per year





Peep Siimon

Chairman of the Board

6500-442