NORMA

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO CONSOLIDATED UNAUDITED FINANCIAL RESULTS Y2000



Sales and Revenues



The Y2000 consolidated net sales of AS Norma totalled 632,6 MEEK,

of which those of the parent company were 541,8 MEEK. 

Consolidated sales increased by 22,6% (+116,2 million EEK) from

Y1999. Sales to Russian customers rose by 12% and to Western

customers by 73%. Revenues of AS Norma accounted for 86%.

The group's main fields of activity include production and

sales of safety belts, car components and tin sheet lithography

and also real estate administration. Exports accounted for 86% 

of sales revenue. 69% of production was exported to Russian

customers and 31% to Western and Baltic customers.

The number of employees at the end of the year was 1084.



Use of Capital



Accounts receivable at the end of the Y2000 totalled 118,4 MEEK, 

of which 77% related to the Russian customers. During the year 

volume of accounts receivable has decreased by 11,8  MEEK. The share 

of accounts in arrears of total receivable was 27,3%. The provision

for bad debts was increased by 1,2 MEEK due to the risks at Russian 

market. At December 31,2000 the reserve totalled 20,9 MEEK. 

As of the Y2000, the consolidated balance sheet 

size was 568,1 MEEK, a growth of 79,3 MEEK, increased

mainly due to the 79,3 MEEK growth in current assets (75,9 MEEK).

Total liabilities decreased by 38,5 MEEK. The company has

no long term liabilities.

The group's owners' equity increased by 117,8 MEEK,

amounting to 503,1 MEEK (88,6% of balance sheet size).

Return on equity (ROE) measured by net profit was 31,2%



Investments



AS Norma invested a total of 48,7 million, to support

existing production capacities and assure the efficiency

its production processes. Of the total 38,6 million EEK 

was invested in machinery and equipment.



Profit and Earnings per Share



The company's consolidated unaudited net profit was 157,4 MEEK, 

a growth 49,8 MEEK comparing to 1999. Net profit before tax was 

EEK 31,3 MEEK higher than that of Y1999, a growth 24,9%. 

EBT remained on the same level (24,9%) as at 1999, mainly due to

the 5% increase in the prices of raw material. 

Earnings per share increased to 11,93 EEK in Y2000 from 8,15

EEK in Y1999.



Significant Events and changes in business activities



In order to contsentrate on core business, AS Norma sold its 50% 

shareholding in AS Norsafe and closed down production operations 

in 100% subsidery AS Metaprint. Also some real estate, not 

related to main activities, were sold.

The assembly of seat belts for Autoliv Sweden AB was started at

two production lines, sales amounted to 20,0 MEEK in 2000.



The 2001 quarterly results of AS Norma will be released at Apr.19, 2001,

July 26, 2001, October 18, 2001 and Jan. 24, 2002.





Peep Siimon

Chairman of the Board

+372-6500-442