07.05.2002, Trigon Property Development, TLN

Viisnurk                      FINANCIAL RESULTS                 05/07/2002



FINANCIAL RESULTS, Q1 2002



COMMENTARY TO FINANCIAL RESULTS, Q1 2002



The net sales of Viisnurk AS for the first quarter of 2002 were 81.8 mil.

kroons (5.2 mil. euros) and the economic activities resulted in the loss of

1.1 mil. kroons (70 thousand euros).   As compared to the same period of the

previous year, the net sales of the company increased by 24%.  Viisnurk

earned 8.6 mil. kroons (548 thousand euros) of profit in the first quarter

of 2001.   The difference in the economic results of the compared quarters

mainly results from the activities of the Wood Panel Factory, which produced

the loss of 6.2 mil. kroons (0.4 mil. euros) in the first quarter of the

current year (the factory did not operate in the first quarter of 2001).

Such a loss of Viisnurk corresponds to the budget and does not require

any adjustment of the annual goals of the company.



Performance of Units



- The net sales of the Furniture Factory for the 1st quarter amounted to

42.1 million kroons (2.7 mil. euros), soaring by 21% on the same period of

the previous year.  The increase in the sales of the Furniture Factory

resulted, first and foremost, from the growth of contract work in furniture

production, which formed 43% of the net sales of the 1st quarter (39% in the

1st quarter of 2001).  Notwithstanding the growth of sales, the increased

role of contract work of lower profitability and changes in the range of

products of the respective group have curtailed the profit of the factory.

The operating profit of the Furniture Factory amounted to 5.6 million kroons

(361 thousand euros) in the 1st quarter, which is 0.4 mil. kroons (25

thousand euros) less than the year before.  This year, the factory is paying

special attention to more efficient utilization of material and streamlining

its procurement network to improve profitability.



- The net sales of the Sports Goods Division for the first quarter amounted

to 8.7 million kroons (553 thousand euros) vs 4.6 mil. kroons (296 thousand

euros) in the 1st quarter of 2001.  The economic activities of the division

resulted in the loss of 2.6 mil. kroons (166 thousand euros).  The loss

resulted from the traditionally slow sales of winter sports goods at the

beginning of the year and modest production capacity, because the orders for

the next season are placed as a rule at the end of the 1st and the beginning

of the 2nd quarters.  The current market situation predicts that the

estimated output of both skis and hockey sticks in 2002 will exceed that of

2001.



- The net sales of the Wood Panel Factory for the 1st quarter were 10.7 mil.

kroons (681 thousand euros), of which external sale formed 40% or 4.2 mil.

kroons (271 thousand euros).  As compared to the last quarter of 2001, the

net sales of the factory have increased approximately by a third.  In the

first quarter, the operations of the Wood Panel Factory resulted in a loss

of 4.5 million kroons (285 thousand euros). The efficiency of the factory

has improved significantly on the last quarter; however, it is about a

million kroons less than estimated.  The inability to meet the estimations

results from suspending the launch the third shift, which was planned for

the 1st quarter, to the beginning of the 2nd quarter due to the lack of

competent workforce and ongoing problems in the yield of sawn timber (the

quality of material, training of workers).  The Wood Panel Factory aims at

starting to generate profit in the third quarter of 2002.



- The net sales of the Softboard Factory were 17.8 mil. kroons (1.1 mil.

euros) in the 1st quarter of 2002, which is 10% less than that of the last

year.  The factory earned 2.6 million kroons (247 thousand euros) of profit,

which was 3 mil. kroons (176 thousand euros) less than in the 1st quarter of

2001).  Decreased net sales and profit result from the low of the

construction industry in the major export markets in Europe, which is

clearly perceived by the factory and causes sagging demand and stiffening

competition.  The Softboard Factory operated only five days a week

throughout the 1st quarter due to declined demand.  The factory has actively

sought new customers (incl. new consumer sectors) and it will continue to

operate seven days a week with a non-stop cycle from the beginning of the

second quarter.



- Among other activities, which exposed the profit of 1.6 mil. kroons (100

thousand euros) at the net sales of 9 mil. kroons (0.6 mil. euros), the

Forestry Centre has improved its results as compared to the last year [the

net sales soared by 40% and the profit went up from 49 thousand kroons (3

thousand euros) to 500 thousand kroons (32 thousand euros)].  The profit

from operations of the boiler house decreased, first and foremost, due to

declining internal consumption and the deficit and high price of wood chips,

which are the basic raw material, from 1.6 mil. kroons (102 thousand euros)

in the 1st quarter of 2001 to 0.5 mil. kroons (32 thousand euros).







BALANCE SHEET                                                   

                             In th. of   In th. of In th. of  In th. of

                                kroons      kroons     euros      euros

                             31.3.2002  31.12.2001 31.3.2002 31.12.2001

                                                                

Cash and bank                      363       5 036        23        322

Customer receivables            42 316      52 496     2 704      3 355

Other receivables                2 044       2 215       131        142

Prepaid expenses                 5 382       5 449       344        348

Inventories                     81 400      74 576     5 202      4 765

Total current assets           131 505     139 772     8 404      8 932

                                                                

Long-term fin. investments       1 436       1 436        92         92

Tangible assets                215 075     216 043    13 746     13 808

Intangible assets                  182         269        12         17

Total non-current assets       216 693     217 748    13 850     13 917

                                                                

TOTAL ASSETS                   348 198     357 520    22 254     22 849

                                                                

                                                                

Debt obligations                45 199       47368     2 889      3 027

Customer prepayments                82       1 216         5         78

Supplier payables               32 007      36 793     2 045      2 351

Taxes payable                    4 905       5 639       314        360

Accrued expenses                 8 945       8 348       572        534

Total current liabilities       91 138      99 364     5 825      6 350

                                                                

Long-term liabilities           95 479      95 479     6 102      6 102

Total non-current liabil.       95 479      95 479     6 102      6 102

                                                                

Share capital at par value      44 991      44 991     2 875      2 875

Share premium                   11 332      11 332       724        724

Mandatory capital reserve        4 499       4 499       288        288

Retained earnings              101 855      82 472     6 510      5 271

Net profit for the year        (1 096)      19 383      (70)      1 239

Total equity                   161 581     162 677    10 327     10 397

                                                                

TOTAL LIABILITIES AND EQUITY   348 198     357 520    22 254     22 849









INCOME STATEMENT                                                       

                             In th. of  In th. of In th. of   In th. of

                                kroons     kroons     euros       euros

                             I quarter  I quarter I quarter   I quarter

                                  2002       2001      2002        2001



                                                                       

NET SALES                       81 791     66 138     5 227       4 227

                                                                       

Cost of goods sold            (72 808)   (49 763)   (4 653)     (3 180)

                                                                       

Gross profit                     8 982     16 375       574       1 047

                                                                       

Marketing expenses             (4 630)    (4 594)     (296)       (294)

                                                                       

General admin. expenses        (2 622)    (3 060)     (168)       (196)

                                                                       

Other income                       251        935        16          60

                                                                       

Other expenses                   (581)      (275)      (37)        (17)

                                                                       

Profit from operations           1 400      9 381        89         600

                                                                       

Financial income                    27         28         2           2

                                                                       

Financial expenses             (2 523)      (842)     (161)        (54)

                                                                       

NET PROFIT                     (1 096)      8 567      (70)         548

                                                                       

Basic earnings per share        (0,24)       1,90    (0,02)        0,12

Diluted earnings per share      (0,24)       1,90    (0,02)        0,12





Andrus Aljas

CFO

+37244 78355