28.02.2005, Trigon Property Development, TLN

VIISNURK              FINANCIAL RESULTS                28.02.2005



Unaudited financial results, 2004



The year 2004 was characterised by important structural changes

for Viisnurk AS. By restructuring the company aimed at improving

sustainable profitability and a reinforced financial position.

Today it can be said that in general, restructuring of Viisnurk

has been successfully carried out.  The Furniture and Building

Materials Divisions of Viisnurk AS show stable profits and

development; the divisions that used to make a loss have been

closed and the financial position of the company has improved

during the year. Viisnurk AS cash flows from operations were 31.2

million kroons (2 million euros) for 2004, which is 18.7 kroons

(1.2 million euros) more than for 2003 and the company’s loan

burden decreased by 33.8 million kroons (2.2 million euros) during

the year.  Whereas in 2003 the loss of the company resulted mainly

both from extraordinary costs of restructuring and normal

operations, the results for 2004 were largely dependent on

extraordinary costs related to closure and sale of divisions.

Company’s current economic activities and cash flow are positive

thereby creating preconditions for rapid improvement in operations

for 2005.





Net Sales and Profit



Viisnurk AS ended the year 2004 with the sales revenue of 347.5

million kroons (22.2 million euros). The continuing activities

generated growing sales revenue during the reporting year: the

turnover of the Furniture Division was 156.5 million kroons/10

million euros (an increase by 2.1%) and that of the Buildings

Materials Division was 96.1 million kroons/6.1 million euros (an

increase by 4.1%). Closure of the Wood Division (mid-April) and

the Sports Goods Division (end of October) reduced the total

turnover of the company (11,4% compared to 2003) because the

turnover of these divisions did not reach that of 2003.



Viisnurk AS ended the year with a loss of 16.5 million kroons (1

million euros). In 2003, the loss of the company amounted to 68.8

million kroons (4.4 million euros). Just like the economic result

for 2003, the loss of Viisnurk for 2004 includes significant

extraordinary costs, mainly due to closure and sale of

unprofitable divisions. The largest amount of the annual loss is

comprised of the calculated loss from the sale of the Wood

Division amounting to 14 million kroons (0.9 million euros), which

was charged off in 2004. The divisions that are continuing their

activities made profit in 2004: the Building Material Division

ended the year with a profit of 18.5 million kroons (1.2 million

euros) and the Furniture Division with 2.9 million kroons (0.2

million euros).



Balance Sheet and Cash Flow Statement



The total assets of Viisnurk AS decreased by 25.7% in the

accounting period, amounting to 208.5 million kroons (13.3 million

euros) at 31.12.2004. As to the assets in the balance sheet, the

current assets decreased by 36.2% and the fixed assets by 18.2%

compared to 2003 due to closure of divisions. On the other hand,

liabilities of the company plummeted – current liabilities

decreased by 36 million kroons (2.3 million euros) and non-current

liabilities by 20 million kroons (1.3 million euros) or 56 million

kroons (3.6 million euros) in total, i.e. by 27% compared to 2003.



Viisnurk AS cash flows from operations were positive with 31.2

million kroons (2 million euros) for 2004. Operations yielded in

18.7 million kroons (1.2 million euros) more compared to 2003.

Operations-related investments amounted to 3.7 million kroons (0.2

million euros); proceeds from the sale of fixed assets, securities

and immovable not related to the main activities of the company

amounted to 9 million kroons (0.6 million euros). The balance of

Viisnurk AS loans decreased by 33.8 million kroons (2.2 million

euros) in 2004.





Business Units Review



Furniture Division



The Furniture Division of Viisnurk AS ended the year with the

sales revenue of 156.5 million kroons (10 million euros) and a

profit of 2.9 million kroons (0.2 million euros). In 2003, the

division gained a profit of 6.5 million kroons (0.4 million euros)

at the net sales of 153.5 million kroons (9.8 million euros).

Finland, Sweden, Russia and Germany have remained the most

important target markets for the Furniture Division; retail sale

of furniture in Estonia via Viisnurk’s subsidiary Skano OÜ has

been launched successfully.

Optimisation of the product portfolio by abandoning several

technically complicated and economically unprofitable product

lines and reducing difference of levels of fixed costs were the

most significant developments in 2004 for the Furniture Division.

Acquisition of the sales activities of a former customer Skano AG,

the Swiss company with its main activities in Germany and Austria

at the beginning of October, can be considered a key event. This

will enable the company to better reach the end users at one of

its largest target markets and apart from gaining better sales

margins it will also reduce dependence on single major customers.

Thereby the Furniture Division aim at stable increase of

production and sales volumes and significant growth of

profitability during the following periods.



Building Materials Division



Results of the Buildings Materials Division were excellent for

2004: it made a profit of 18.5 million kroons (1.2 million euros)

at the sales revenue of 96.1 million kroons (6.1 million euros).

The division gained a profit of 19.5 million kroons (1.25 million

euros) at the net sales of 92.2 million kroons (5.9 million euros)

last year. A slight reduction of profit was due to some increase

in the prices of production inputs (wood chips, power and heat).

However, the division ended the year much better than forecasted.

One of the reasons behind it was the increased sales of Isotex

interior finishing boards with a higher added value. Isotex-line

accounted for 33.7% of the sales portfolio in 2004 compared to 28%

in 2003. Production processes functioned well during the

accounting year: we succeeded in reducing the stoppage time of the

main line with uninterrupted cycle by approx. 10%. Future

strategies in the Building Material Division first and foremost

involve constant increase of the share of products with higher

value, both with regard to internal finishing boards and planned

new products based on basic boards.



Sports Goods Division



The Sports Goods Division that used to make a loss for Viisnurk AS

was closed on 29 October 2004 according to the resolution of the

Supervisory Board. All division’s contracts with customers had

been duly carried out by the closing day. The economic results of

the Sports Goods Division for 2004 expose a loss of 11.8 million

kroons (0.75 million euros) at the turnover of 61 million kroons

(3.9 million euros).

The potential buyer of the assets of the Sporting Goods has been

elected and negotiations for entering into a purchase-sales

contract of the assets are under way.



Wood Division



The Wood Division of Viisnurk AS was closed on 16 April 2004

pursuant to the restructuring plan of the company. The economic

results of the Wood Division for 2004 expose a loss of 18 million

kroons (1.15 million euros) at the sales revenue of 33.1 million

kroons (2.1 million euros).

A contract with Desparo OPÜ was signed on 22 September 2004 on

sale of the assets of the Wood Division. The possession of the

Wood Division was transferred to the buyer by the contract

concluded under the law of obligations. Possession of the assets

shall be transferred to the buyer after concluding a real right

contract, which will be signed after registration of the land

under the division as a separate registered immovable. Total value

of the transaction is 44 million kroons (2.8 million euros).

Viisnurk AS will receive a calculated loss of 14 million kroons

(0.9 million euros) from the transaction, which is reported fully

in the annual report for 2004.







INCOME STATEMENT                                                

thousand kroons                                                 

unaudited             IV quarter IV quarter 12 months  12 months

                            2004       2003      2004       2003

                                                                

RETURN ON SALES          71 212    112 652   347 544    392 331

                                                                

Cost of production      (78 057)  (159 104) (327 738)  (414 156)

sold

                                                                

Gross profit             (6 845)   (45 452)    19 806   (21 825)

                                                                

Marketing expenses       (6 059)    (7 448)  (22 584)   (23 210)

                                                                

General                  (1 792)    (2 903)   (8 520)   (11 915)

administrative

expenses

                                                                

Other income                 61        943     4 851      6 864

                                                                

Other expenses           (4 059)    (5 761)   (5 293)   (10 380)

                                                                

Operating profit        (18 694)   (61 621)  (11 740)   (60 466)

                                                                

Financial income and     (1 385)    (1 986)   (4 806)    (8 373)

financial expenses

                                                                

NET PROFIT FOR THE      (20 079)   (63 607)  (16 546)   (68 839)

PERIOD

                                                                

Basic earnings per        (4,46)    (14,14)    (3,68)    (15,30)

share

Diluted earnings per      (4,46)    (14,14)    (3,68)    (15,30)

share





INCOME STATEMENT                                                

thousand euros                                                  

unaudited             IV quarter IV quarter 12 months  12 months

                            2004       2003      2004       2003

                                                                

RETURN ON SALES           4 522      7 200    22 212     25 074

                                                                

Cost of production       (4 989)   (10 169)  (20 946)   (26 469)

sold

                                                                

Gross profit               (437)    (2 969)     1 266    (1 395)

                                                                

Marketing expenses         (387)      (476)   (1 443)    (1 483)

                                                                

General                    (115)      (185)     (545)      (762)

administrative

expenses

                                                                

Other income                  4         60       310        439

                                                                

Other expenses             (259)      (368)     (338)      (664)

                                                                

Operating profit         (1 194)    (3 938)     (750)    (3 865)

                                                                

Financial income and        (89)      (127)     (307)      (535)

financial expenses

                                                                

NET PROFIT FOR THE       (1 283)    (4 065)   (1 057)    (4 400)

PERIOD

                                                                

Basic earnings per        (0,28)     (0,90)    (0,23)     (0,98)

share

Diluted earnings per      (0,28)     (0,90)    (0,23)     (0,98)

share





BALANCE SHEET                                          

unaudited            Thou. Kr.   Thou. Kr.      Thou.      Thou.

                                                euros      euros

                    31.12.2004  31.12.2003 31.12.2004 31.12.2003

                                                       

Cash and bank            3 870       1 141        247         73

Customer receivables    27 645      45 005      1 767      2 876

Other receivables           85         115          6          7

Prepayments              2 576       7 127        165        455

Inventories             40 419      63 819      2 583      4 080

Total current assets    74 595     117 207      4 768      7 491

                                                                

Long-term financial          1       1 436          0         92

investments

Real estate              1 782       2 535        114        162

investments

Tangible fixed         129 263     156 102      8 261      9 977

assets

Intangible fixed         2 884       3 716        184        237

assets

Total fixed assets     133 930     163 789      8 560     10 468

                                                                

TOTAL ASSETS           208 525     280 996     13 328     17 959

                                                                

                                                                

Debt obligations        76 061      90 011      4 861      5 753

Customer prepayments    11 186         219        715         14

Supplier payables       20 904      38 801      1 336      2 480

Taxes payable            3 443       6 956        220        445

Accrued expenses         8 547      17 514        546      1 119

Short-term                 445       3 129         29        200

provisions

Total current          120 586     156 630      7 707     10 011

liabilities

                                                                

Non-current debt        30 279      50 160      1 935      3 206

obligations

Total non-current       30 279      50 160      1 935      3 206

liabilities

                                                                

Total liabilities      150 865     206 790      9 642     13 217

                                                                

Share capital           44 991      44 991      2 875      2 875

(nominal value)

Issue premium           11 332      11 332        724        724

Mandatory capital        4 499       4 499        288        288

reserve

Retained profits        13 384      82 223        856      5 255

Net profit for the     (16 546)    (68 839)    (1 057)    (4 400)

year

Total equity            57 660      74 206      3 686      4 742

                                                                

TOTAL LIABILITIES      208 525     280 996     13 328     17 959

AND EQUITY





Andrus Aljas

CFO

+372 447 8355