VIISNURK

COMMENTARY TO FINANCIAL RESULTS



PRELIMINARY FINANCIAL RESULTS 2001



AS Viisnurk 2001 unaudited net turnover amounted to EEK 347 million and

net profit EEK 19.3 million. The company's net sales has grown 12% y-o-y,

whereas net profit has decreased by EEK 12.3 million or 40%.



In Q4 the company's profit grossed EEK 107.5 million (2% growth y-o-y).

Loss from normal activities at the same time amounted to EEK 4.4 million.

Viisnurk's Q4 2000 profit totaled EEK 7.6 million.



Loss in Q4 was due to joint effect of different factors:



1. Plans to reach levels set in the business plan for Wood Panels Factory, 

launched in Q1 2001, did not succeed. In 2001 Wood Panels Factory posted 

EEK 17.3 million loss or EEK 2.3 million over the expected level, 

in addition to financial expenses. Greater loss was primarily due to 

problems with launch of production process and volume growth, difficulties 

with entering the correct distribution channels in times of market downturn, 

and higher than planned raw material prices. Since the beginning of this year

international specialists have been included to implement a plan for measures 

to overcome the factory's production problems to reach full power during 2002.



2. Sports equipment division's financial ratios were significantly lower 

than in 2000. Poor snow conditions in last winter influenced the ski market, 

and brought about a substantial decrease in production volumes, especially 

in Q4 (56% downfall in production volume of pairs of skis). In 2001 the Ski 

Factory produced total of 212 pairs of skis or ca 30% less than last year. 

Expenses in production expansion and marketing development of production of 

hockey sticks, another unit of the basic process, had negative influences on 

financial results in Q4. Capacity and efficiency of intermediary activities 

remained on the same level as in 2001. Sports equipment division's profit

from normal activities before fixed costs and financial expenses totaled 

EEK 6.3 million or app. 50% less than in 2000. Processes within the division 

to balance the fixed costs in terms of floating production volumes, and 

activities for enhancement of brands and for raise of the percentage of 

higher price-class products, in order to improve the financial results 

will continue in near future.



3. Downturn of main export markets in Europe and the USA has had a significant

effect on all the business units. In Q4 main co-operation partners restrained 

approach was tangible through decrease in orders and growing price pressure.

Viisnurk is expecting the economic situation to improve by end 2002 the latest

Positive changes in 2001 are furniture factory's continuous growth, and 

particle board factory's steadily high financial results. In 2001, furniture 

factory's turnover grew by 30% and profit by 20%. In 2001, furniture factory's

profit from normal activities before fixed costs and financial expenses 

totaled EEK 23.1 million, and EEK 20.6 million for particle board factory,

respectively.



In 2001, other income amounted to EEK 147 thousand. Financial year's profit

from company's normal activities before undivided expenses totaled EEK 38.1 

million, fixed costs and financial expenses of EEK 18.8 million deducted.



AS Viisnurk will publish the full version of the audited annual report on

February 26.





Additional information:



Meelis Kukk

CEO

+372 447 8323





Andrus Aljas

CFO

+372 447 8355