ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – MARCH 31, 2002

ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE May 7, 2002 at 8:00AM 1(7)

ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – MARCH 31, 2002
– Net sales for the first three months decreased 30.5% totalling EUR

44.3 million (EUR 63.7 million in Q1 2001)

– Operating profit was EUR -28.2 million (EUR 2.6 million) and profit

before taxes was EUR -29.0 million (EUR 2.3 million)

– Operating profit without Aspocomp S.A.S. was EUR 0.3 million

– Earnings per share was EUR -3.00 (EUR 0.18)

– Equity per share was EUR 10.42 (EUR 15.83)
BUSINESS REVIEW
Improving operative profit
During Interim Report period the capacity utilisation rate of

Aspocomp´s factories was poor due to the radical changes in the

telecommunication market. Based on economical reasons Aspocomp Group

Oyj as the parent company didn´t see feasible possibilities to

continue its financial support to its heavily loss-making French

subsidiary, Aspocomp S.A.S. The subsidiary filed for bankcruptcy on

March 6, 2002. As a consequence of the filing the Group level non-

recurring one-time costs were EUR 24.5 million. These are mainly

balance sheet items which don’t generate material cash flow out.

Aspocomp S.A.S. is reported as part of the Group in the first two

months, during which its net sales were EUR 2.6 million and the

operating loss was EUR 4.0 million. The non-recurring one time costs

and negative EBIT totalled EUR 28.5 million. Excluding Aspocomp

S.A.S., Group´s EBITDA was EUR 6.9 million and operating profit EUR

0.3 million.
The growth focus in Asia
As a consequence of the current market situation and the worldwide

overcapacity in the printed wiring board (PWB) industry the focus on

production has moved to lower cost level Asia, especially to China.

The PWB market in China is still growing. The Asian share of

Aspocomp´s total production has tripled compared to last year´s first

quarter.
Aspocomp has two subsidiaries in Asia, P.C.B. Center in Thailand and

ACP Electronics in China, where the HDI (High Density

Interconnection) PWB production was started in December, 2001.

Aspocomp´s ownership in both subsidiaries is 51%.
Building the research network
As a consequence of the outsourcing trend of the production, more

responsibilities for developing new components are transferred from

OEMs (Original Electronics Manufacturers) to the component suppliers.

The development and commercialization of new technologies utilized in

high tech component manufacturing require co-operation between

companies with different type of competences. As the high tech

component manufacturer Aspocomp has been actively involved in

creating an effective network for research co-operation between

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different suppliers. The Joint Venture companies, Asperation Oy and

Imbera Electronics Oy, are result of this.
Asperation Oy is a research and development company which was

established on March 1, 2002 by Aspocomp and Perlos Corporation. Its

ownership is shared equally. Asperation focuses on research and

development of integrated components for the mobile phone and

electronics industry. Mr Jukka Ranta, D.Sc. (Electrical Engineering

and Computer Sciences), Senior Vice President, Business Development &

Research of Aspocomp Group was appointed as Managing Director of the

company. The objective of the company is to create new innovations

which both owner companies can use in their own operations. Moreover,

the co-operation aims to cut down the time to market of innovations

and new products. Already during its first year of operation,

Asperation is expected to create commercially significant and value-

adding solutions for the customers.
After the closing of the reporting period, on April 12, Aspocomp and

Elcoteq Network Corporation established a Joint Venture called Imbera

Electronics Oy concentrating on the development and commercialization

of the IMB (Intergrated Module Board) technology. The ownership of

the Imbera is shared equally. Mr Risto Tuominen, M.Sc. Engineering,

Research Manager of Aspocomp was appointed as Managing Director of

the company. Imbera´s objective is to finalize the development of an

innovative production process where active components are integrated

inside a PWB. The IMB technology is expected to become commercially

available within three years.
BUSINESS ENVIRONMENT
After the record year of 2000 PWB industry turned into a bad

overcapacity situation. The estimated value of the global PWB market

was EUR 36.4 billion for the year 2001. This is 25% less than in

2000. In Western Europe the value of PWB production decreased by 13%

to EUR 5.2 billion.
The share of HDI PWBs, Aspocomp´s main products, was 6.7% of the

total PWB market. In 2001, the production of HDI PWBs decreased over

18% when the growth of over 18% was forecasted. Aspocomp’s share of

the global HDI PWB market was about 4%.
Based on research institutions´ estimates the constant annual average

growth rate (CAAGR) is estimated to be about 6% up till 2005. CAAGR

estimate for the Western Europe is slightly below 5%, for Asia over

7% and for China almost 18%. The most rapidly growing segment is HDI

PWBs with an estimated growth rate of close to 30%.
In 2002 PWB market is expected to grow by about 5%. The growth areas

are Asia and South America. Other areas will recover with moderate

growth, between 1.5% and 2.5%, which is not much compared to the

crash of market in 2001. The downsizing of capacity started already

in 2001 both in North America and in Europe will probably continue

through out the year.
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BUSINESS UNITS
Printed Wiring Boards (PWB)
The net sales decrease for the PWB business unit was 28% compared to

the corresponding period in the previous year. The net sales for the

PWB business unit was EUR 35.4 million (EUR 49.1 million). The net

sales of the Mobile segment decreased by 32% and totalled EUR 16.0

million (EUR 23.4 million). The net sales of the Telecom segment

decreased by 47% and totalled EUR 7.6 million (EUR 14.3 million). The

net sales growth for the Auto & Industry segment was 4% and totalled

EUR 11.9 million (EUR 11.4 million).
ELECTRONICS MANUFACTURING SERVICES (EMS)
The net sales of the EMS business unit decreased by 39% and totalled

EUR 8.9 million (EUR 14.6 million).
GROUP NET SALES AND PROFIT
The net sales totalled EUR 44.3 million for the period from January 1

to March 31, 2002, compared with EUR 63.7 million during the

corresponding period the previous year. Other operating income

totalled EUR 0.6 million (EUR 0.4 million). The share of net sales of

the Group’s five biggest customers, Nokia, Ericsson, Sanmina-SCI,

Siemens and Benq (Acer), was 63%. Direct export from Finland totalled

EUR 19.0 million (EUR 10.8 million) and offshore net sales totalled

EUR 11.8 million (EUR 26.4 million). Net sales by region were as

follows: Finland 32% (58%), other Europe 30% (38%), Asia 14% (1%) and

Americas 24% (3%).
Operating profit for the period totalled EUR -28.2 million or -63.8%

of net sales (EUR 2.6 million; 4.1%). Net financial costs totalled

EUR 0.7 million (EUR 0.3 million).
Profit before extraordinary items was EUR -29.0 million (EUR 2.4

million). Profit before taxes was EUR -29.0 million (EUR 2.3 million)

and net profit for the period was EUR -26.2 million (EUR 1.8

million). Earnings per share totalled EUR -3.00 (EUR 0.18).
FINANCING, INVESTMENTS AND EQUITY RATIO
The Group’s liquidity was good. Gross investments for the period

totalled EUR 8.1 million (EUR 17.1 million) or 18.3% of net sales

(26.8%). The investments were primarily in China. Net financial costs

as a percentage of net sales totalled 1.7% (0.4%). The equity ratio

was 56.6% (60.7%) at the period end compared with the year end figure

of 56.5%.
SHARES AND SHARE CAPITAL
On March 31, the company owned 100,900 Aspocomp shares and the

counter book value of the shares was EUR 100,900, representing 0,99%
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of the company´s shares outstanding. The number of issued shares was

10,141,926 on March 31 and the share capital was EUR 10,141,926.

During the period extending from January 1 to March 31 a total of

772,918 shares with a value of EUR 6,826,401.00 were traded on the

Helsinki Stock Exchange. The non-domestic share in the ownership of

the stock was 18.72%, as of the end of the period. The share price

reached a high of EUR 13.25 and a low of EUR 7.53 between January 1

and March 31, 2002. The average price was EUR 8.83. The closing price

on March 27, 2002 was EUR 7.60 and the capital market value of the

company was EUR 76.3 million.
After the fiscal period, at the Annual General Meeting on April 5 the

company´s share capital was decided to be decreased by invalidating

100,900 own shares. The new share capital, EUR 10,041,026, and the

number of shares, 10,041,026, were entered in the Finnish Trade

Register on April 9. In addition the Annual General Meeting decided

to authorize the Board to decide on acquiring own shares and decide

on new issues and/or convertible loans. The authorizations are valid

for one year from the date of AGM. The Board of Directors has today

decided to use the authorization regarding the acquisition of own

shares by acquiring 100.000 own shares by the end of June 2002. There

are no decisions regarding the other authorizations.
THE NEW BOARD OF DIRECTORS
The Annual General Meeting elected new Board Members on April 5,

2002. Mr Jorma Eloranta, Mr Karl Van Horn, Mr Aimo Eloholma and Mr

Roberto Lencioni were re-elected. Mr Tuomo Lähdesmäki was elected as

a new Board Member. Mr Gustav Nyberg continues as Board Member. At

its meeting on April 11 the Board of Directors re-elected Mr Jorma

Eloranta as the Chairman and Mr Karl Van Horn the Vice-Chairman.
PERSONNEL
The number of employees averaged 3,154 from January 1 to March 31,

2001, compared to 2,606 for the same period the previous year.

Personnel averaged 3,314 for 2001. At the end of March 2002 there

were total of 2,681 employees.
              Average       Average       Number    Number    Number

               number        number

                2002          2001         2002      2001      2001

           Jan 1-Mar 31   Jan 1-Mar 31    Mar 31    Mar 31    Dec 31
Europe         1,720         1,925        1,194     1,906     1,785

Thailand         879           450          896     1,350       882

China            555           231          591       243       511

Total          3,154         2,606        2,681     3,499     3,178
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PROSPECTS
Aspocomp expects that the market situation remains challenging.

According to the latest estimates the total mobile phone market

volume in 2002 will be between 400 and 420 million. This means that

the mobile phones sales would stay approximately at the same level
than in 2000 and 2001. Operators´ investments in telecommunication

infrastructure has been estimated to decline compared to previous

year. As a result of this the overcapacity situation continues and

the PWB production moves to Asia. Aspocomp´s EMS business unit is as

well dependent on operators´ investments in telecom networks.
Stopping the financing of the unprofitable French operation was one

action to adapt Aspocomp to the current market situation. In addition

Aspocomp has expanded PWB production to Asia on-time and created the

cost-effective research network to strengthen its market position in

the electronics industry supply chain. Despite the challenging market

situation Aspocomp´s target for 2002 is to maintain clearly positive

cash flow.
ASPOCOMP GROUP INCOME STATEMENT
                             1-3/02       1-3/01         1-12/01

                              MEUR   %     MEUR     %     MEUR    %
NET SALES                     44.3 100.0   63.7   100.0  221.8  100.0

Other operating

income                         0.6   1.4    0.4     0.6    0.9    0.4

Depreciation and

write-downs                    8.4  19.0    9.0    14.2    39.1  17.6
OPERATING PROFIT/LOSS

AFTER DEPRECIATION           -28.2 -63.8    2.6     4.1   -27.4 -12.4

Financial income

and expenses                  -0.7  -1.7   -0.3    -0.4    -2.6  -1.2
PROFIT/LOSS BEFORE EXTRAORDINARY

ITEMS AND TAXES              -29.0 -65.4    2.4      3.7  -29.9 -13.5

Extraordinary income           0.0          0.0            0.0

Extraordinary expences         0.0         -0.1     -0.2   0.0
PROFIT/LOSS BEFORE TAXES     -29.0 -65.4    2.3      3.6  -29.9 -13.5

Minority interest              0.8   1.7    0.2      0.2    3.6   1.6
PROFIT/LOSS FOR THE PERIOD   -26.2  59.2    1.8      2.9  -26.9 -12.1
EARNINGS PER SHARE, EUR      -3,00          0.18           -2.66
Accrued taxes for this interim period have been calculated in

accordance with the corporate tax rate in force during the period

under review and they include taxes brought forward from earlier

periods. The calculation of earnings/share excludes taxes on

extraordinary items.
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ASPOCOMP GROUP BALANCE SHEET
                           3/02   3/01   Change    12/01

                           MEUR   MEUR      %       MEUR
Non-Current Assets
Intangible Assets           4.1   11.3   -63.8       5.3

Tangible Assets           156.5  168.1    -6.9     195.3

Investments                 2.6    0.5               1.5
Current Assets
Inventories                24.1   41.5   -41.9      30.7

Receivables                44.2   58.9   -26.7      39.1

Investments                 0.0   17.6               0.0

Cash and bank deposits     17.1    7.7   123.9      20.3
TOTAL ASSETS              248.7  305.6   -18.6     292.1
Shareholders’ equity
Share capital              10.1   10.1    0.0       10.1

Other shareholders´equity  95.5  150.3  -36.5      121.5

Minority interest          36.1   24.9   44.9       33.8

Mandatory reserves          2.4    5.5  -56.4       11.5

Long-term liabilities      51.4   35.8   43.5       55.1

Short-term liabilities     53.2   78.9  -32.5       60.1
TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY      248.7  305.6  -18.6      292.1
KEY FIGURES
Equity / share, EUR       10.42  15.83             13.01
Equity Ratio, %           56.6   60.7              56.5
Gearing, %                43.7   14.3              35.7
Gross Investments, MEUR    8.1   17.1              73.3
Accumulated excess depreciation and voluntary reserves totalling EUR

4.9 million have been divided among shareholders’ equity and nominal

tax liabilities.
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CONTINGENT LIABILITIES
                                 3/02         12/01

                                 MEUR          MEUR
Securities on Group liabilities   3.2           3.2

Operational leasing liabilities   0.1           0.2

Other liabilities                 0.3           0.3

TOTAL                             3.6           3.7

All figures are unaudited. Some statements in this interim report are

forward looking and actual results may differ materially from those

stated.
Statements in this stock exchange release relating to matters that

are not historical facts are forward-looking statements. All forward-

looking statements, involve known and unknown risks, uncertainties
and other factors, which may cause the actual results, performances

or achievements of Aspocomp Group to be materially different from any

future results, performances or achievements expressed or implied by

such forward-looking statements. Such factors include general

economic and business conditions; increases in PWB industry capacity

and competition; the ability of the company to implement its

investment program and to continue to expand its business outside the

European market.
Vantaa, May 7, 2002
ASPOCOMP GROUP Oyj
Board of Directors
For more information, please contact CEO Jarmo Niemi

at +358 9 759 70711.
ASPOCOMP GROUP Oyj
Jarmo Niemi

President and CEO
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