ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – JUNE 30, 2002

ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE August 1, 2002, 8:00 AM

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ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – JUNE 30, 2002
– Net sales for the interim report period totaled EUR 86.5 million

and for the second quarter EUR 42.2 million

– Operating loss for the interim report period totaled EUR 29.6

million and for the second quarter EUR 1.4 million

– Earnings per share were EUR -2.73 and for the second quarter EUR –

0.12

– Equity per share was EUR 10.24 (EUR 14.99 in H1 2001)
BUSINESS REVIEW
During the period under review, the capacity utilization rate of

Aspocomp’s factories was low due to the continuing poor state of the

telecommunication market. As a consequence of the current state of

the market and worldwide overcapacity in the printed wiring board

(PWB) industry, the focus in production is increasingly moving to

Asia, especially China, where the PWB market is still growing.

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

ACP Electronics in China. Aspocomp’s holding in both subsidiaries is

51%. The Asian share of Aspocomp’s total production has doubled

compared to the first half of last year.
Increased outsourcing in production has led to more responsibility

for developing new components being transferred from OEMs (Original

Equipment Manufacturers) to component suppliers. The development and

commercialization of the new technologies utilized in high-tech

component manufacturing require cooperation between the various

companies in the value chain. As a manufacturer of high-tech

components, Aspocomp has been actively involved in creating an

efficient research network among component suppliers. As a result of

the cooperation, Perlos and Aspocomp established the joint venture

company Asperation Oy, and Elcoteq and Aspocomp established the joint

venture company Imbera Electronics Oy.
BUSINESS ENVIRONMENT
The delayed recovery of the telecommunications sector, which is

Aspocomp’s prime business sector, is keeping business conditions

challenging. As mobile handset sales are forecasted to be flat and

telecom infrastructure sales are expected to decline markedly, the

forecasted growth rate of 5% for PWB business in 2002 will be

difficult to achieve. This is due to the fact that considerably more

than 50% of HDI/microvia PWBs are used in telecom products,

particularly in mobile handsets, and the HDI/microvia PWBs, combined

with silicon substrates, are presumed to be the growth drivers of the

PWB business.
Only a significant improvement in the handset end-user market during

the second half of 2002 would allow the PWB sector to achieve the

growth target of 5%. In the major growth area Asia, for example, many
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PWB manufacturers located in Taiwan and China have generated around

40% of their annual turnover target by the end of June.
The capacity cuts effected at PWB plants in Europe and North America

will probably continue throughout the year. Many manufacturers will

also further delay their investments in China and other Southeast

Asian locations. A positive sign is the recent recovery of the

semiconductor business, which historically fluctuates on a similar

cycle to that of PWBs.
GROUP NET SALES AND PROFIT
Net sales totaled EUR 86.5 million for the period from January 1 to

June 30, 2002, compared with EUR 117.5 million during the same period

in the previous year. Other operating income totaled EUR 0.3 million

(EUR 0.6 million). The share of net sales of the company’s five

biggest customers, Nokia, Sanmina-SCI, Siemens, Ericsson and Tellabs,

was 65%. Direct exports from Finland totaled EUR 35.8 million (EUR

16.5 million) and offshore net sales totaled EUR 20.2 million (EUR

33.1 million). Net sales by region were as follows: Finland 36%

(60%), rest of Europe 24% (35%), Asia 11% (2%), and the Americas 29%

(3%).
Operating loss for the period totaled EUR 29.6 million or -34.3% of

net sales (EUR -8.8 million; -7.5%). The operating loss for the

period, net of the write-downs and losses related to French

subsidiary Aspocomp S.A.S. in the first quarter, totaled EUR 1.1

million. Net financial costs totaled EUR 1.5 million (EUR 0.9

million).
The loss before extraordinary items was EUR 31.2 million (loss of EUR

9.7 million). The loss before taxes was EUR 31.2 million (loss of EUR

9.7 million), and the net loss for the period was EUR 27.4 million

(loss of EUR 7.7 million). Earnings per share totaled EUR -2.73 (EUR

-0.76).
The net sales for the second quarter totaled EUR 42.2 million, of

which the net sales of operations in China accounted for EUR 3.1

million. The EBITDA for the second quarter totaled EUR 6.0 million,

of which China accounted for EUR -1.2 million. The operating loss for

the second quarter totaled EUR 1.4 million, including EUR 2.6 million

of operating loss in China.
The net sales of the operations in China for the period totaled EUR

7.2 million, EBITDA EUR -1.7 million and operating loss EUR 3.9

million. Due to ramp-up costs and low capacity utilization rate the

business in China was still unprofitable.
BUSINESS UNITS
Printed Wiring Boards (PWB)
The downturn in net sales for the PWB business unit was 23% compared

to the same period in the previous year. The net sales for the PWB

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business unit were EUR 70.2 million (EUR 91.2 million). The net sales

of the Mobile segment decreased by 13% and totaled EUR 34.8 million

(EUR 40.2 million). The net sales of the Telecom segment declined by

48% and totaled EUR 14.4 million (EUR 27.7 million). The downturn in

net sales for the Auto & Industry segment was 10.0% and they totaled

EUR 21.0 million (EUR 23.3 million).
ELECTRONICS MANUFACTURING SERVICES (EMS)
The net sales of the EMS business unit decreased by 38% and totaled

EUR 16.3 million (EUR 26.3 million).
FINANCING, INVESTMENTS AND EQUITY RATIO
The Group’s liquidity was good. Net interest-bearing debt for the

period totaled EUR 59.6 million, including EUR 32 million in

financial leasing liabilities. Gross investments for the period

totaled EUR 13.7 million (EUR 24.7 million) or 15.8% of net sales

(23.3%). The investments were primarily in Asia, totaling EUR 10

million. The investment in Finland totaled EUR 3.7 million. Net

financial costs as a percentage of net sales totaled 1.8% (0.8%). The

equity ratio was 57.7% (57.7%) at the end of the period under review,

compared with the year-end figure of 56.5%.
SHARES AND SHARE CAPITAL
The number of Aspocomp’s issued shares on June 28 was 10,041,026 and

the share capital was EUR 10,041,026. 100,000 shares of the total

issued number were in the possession of the company. The average

number of shares, adjusted for buybacks, was 10,029,005. During the

period extending from January 1 to June 28, a total of 1,454,995

shares with a value of EUR 12,202,669.99 were traded on the Helsinki

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

was 18.0% at the end of the period. The share price reached a high of

EUR 13.25 and a low of EUR 6.60 between January 1 and June 28, 2002.

The average price was EUR 8.39. The closing price on June 28, 2002,

was EUR 6.80 and the market capitalization of the company was EUR

67,598,976.80 million.
On April 5, the annual general meeting passed a resolution to

decrease the company’s share capital by invalidating 100,900 company

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 passed a resolution to

authorize the Board to decide on buying back company shares and to

decide on new issues of shares and/or convertible bonds. The

authorizations are valid for one year of the date of AGM.
On May 7, 2002, the Board of Directors decided to use the

authorization regarding share buybacks by acquiring 100.000 company

shares on the market by the end of June 2002. The information

regarding the share buybacks is given in the table below.

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Period of time      Number           Average price/  Total price,

                    of shares        share, euro     euro

May 1 – 31, 2002      24,400           7.99          194,982.50

June 1 – 30, 2002     75,600           7.45          563,122.50

Total                100,000           7.58          758,105.00
By June 28, the company had bought back 100,000 company shares and

the counter book value of the shares was EUR 100,000, representing

1.0% of the company’s share capital and voting rights. The share

buybacks did not have any significant impact on the distribution of

holdings or voting rights in the company.
No decisions have been made regarding the exercise of other

authorizations granted by the annual general meeting.
On May 17, 2002, the insurance company If Skadeförsäkring Ab

announced that its share in the voting rights and share capital of

Aspocomp Group Oyj is over 5%.
THE NEW BOARD OF DIRECTORS
The annual general meeting elected new members to the Board of

Directors 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 member. Mr. Gustav Nyberg continues

as member. At its meeting on April 11, the Board of Directors re-

elected Mr. Jorma Eloranta as Chairman and Mr. Karl Van Horn as Vice-

Chairman.
PERSONNEL
The number of employees averaged 3,058 from January 1 to June 30,

2002, compared with 3,379 for the same period in the previous year.

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

2,813 employees in all.
              Average       Average       Number    Number    Number

               number        number

                2002          2001         2002      2001      2001

           Jan 1-Jun 30   Jan 1-Jun 30    Jun 30    Jun 30    Dec 31

Europe         1,548         1,916        1,215     1,984     1,785

Thailand         889         1,207          890     1,132       882

China            621           256          708       296       511

Total          3,058         3,379        2,813     3,412     3,178
Efforts were made to adjust to the weak market by continuing to trim

personnel and retrench operations at all Aspocomp plants during the

period.
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PWB PRODUCTION IN FRANCE
Aspocomp S.A.S. filed for bankruptcy on March 6, 2002, after several

years of unprofitable operations. Because of the weakened PWB market,

the parent company did not see any feasible reason for continuing its

financial support of the company. Aspocomp S.A.S. has been reported

as part of the Group for the first two months of the year, during

which its net sales were EUR 2.6 million and the operating loss was

EUR 4.0 million. The non-recurring costs to the Group caused by

filing for bankruptcy were EUR 24.5 million. The liquidation of

Aspocomp S.A.S. was begun by ruling of a local court on June 20,

2002.
A writ of summons filed with the Tribunal de Commerce in Evreux,

France, by the administrators of the French subsidiary Aspocomp

S.A.S. has been served to Aspocomp Group Oyj. The bankruptcy estate

demands that the bankruptcy proceedings of the subsidiary and the

liability for its debts be extended to include also Aspocomp Group

Oyj.
Under the writ of summons, Aspocomp Group Oyj is to appear before the

court in France on September 10, 2002, and present its response to

the claims of the plaintiff. According to the expert opinion

available, the writ of summons and the claims presented therein are

unfounded and they will be answered in due time. As a consequence, it

is estimated that the writ of summons will have no effect on the

profitability position of the company, nor on its balance sheet or

financial position.
PROSPECTS
As a consequence of the overcapacity situation the price pressure in

the printed wiring board market continues. Due to the new customer

projects in China, the capacity utilization rate at the Suzhou plant

is expected to grow during the second half of the year. At the other

production units, the improvement of the capacity utilization rates

requires a distinct clear recovery by the telecom industry. Our main

target for the second half of the 2002 is to maintain a positive

operative cash flow.
ASPOCOMP GROUP INCOME STATEMENT
                        1-6/02        1-6/01     1-12/01

                         MEUR   %      MEUR   %     MEUR   %

NET SALES                86.5  100.0  117.5 100.0  221.8 100.0

Other operating

income                    0.3    0.3   0.6    0.5    0.9   0.4

Depreciation and

write-downs              15.8   18.3  17.8   15.2   39.1  17.6
OPERATING PROFIT/LOSS

AFTER DEPRECIATION      -29.6  -34.3  -8.8   -7.5  -27.4 -12.4

Financial income

and expenses             -1.5   -1.8  -0.9   -0.8   -2.6  -1.2

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PROFIT/LOSS BEFORE EXTRAORDINARY

ITEMS AND TAXES         -31.2 -36.1   -9.7   -8.3  -29.9 -13.5

Extraordinary income      0     0      0      0      0     0
Extraordinary expenses    0     0      0      0      0     0
PROFIT/LOSS BEFORE TAXES -31.2 -36.1  -9.7   -8.3  -29.9 -13.5

Minority interest          2.2   2.6   0.8    0.6    3.6   1.6
PROFIT/LOSS FOR THE

PERIOD                  -27.4  -31.7  -7.7   -6.6  -26.9 -12.1
EARNINGS PER SHARE, EUR  -2.73        -0.76         -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.
ASPOCOMP GROUP BALANCE SHEET
                           6/02   6/01   Change    12/01

                           MEUR   MEUR      %       MEUR
Non-Current Assets
Intangible assets            4.8  12.1   -59.8       5.3

Tangible assets            145.6 177.5   -18.0     195.3

Investments                  3.3   0.5               1.5
Current Assets
Inventories                 22.3  39.0   -42.9      30.7

Receivables                 44.4  47.8    -7.1      39.1

Investments                  0    21.0               0.0

Cash and bank deposits      10.1  33.2   -69.7      20.3
TOTAL ASSETS               230.5 331.1   -30.4     292.1
Shareholders’ equity
Share capital               10.1  10.1              10.1

Other shareholders’ equity  92.6 142.0   -34.9     121.5

Minority interest           31.0  38.9   -20.2      33.8

Mandatory reserves           2.4  10.6   -77.1      11.5

Long-term liabilities       46.7  49.9    -6.4      55.1

Short-term liabilities      47.7  79.6   -40.1      60.1
TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY       230.5 331.1   -30.4     292.1
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KEY FIGURES
Equity/share, EUR         10.24  14.99             13.01
Equity ratio, %           57.7   57.7              56.5
Gearing, %                44.9   13.9              35.7
Gross investments, MEUR   13.7   27.4              73.3
Accumulated excess depreciation and voluntary reserves totaling EUR

4.9 million have been divided among shareholders’ equity and nominal

tax liabilities.
CONTINGENT LIABILITIES
                                 6/02         12/01

                                 MEUR          MEUR

Securities on Group liabilities   6.0           3.2

Operational leasing liabilities   0.1           0.2

Other liabilities                 0.3           0.3

TOTAL                             6.4           3.7
All figures are unaudited. Some statements in this interim report are

forecasts and actual results may differ materially from those stated.
Statements in this stock exchange release relating to matters that

are not historical facts are forecasts. All forecasts 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 forecasts. 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, August 1, 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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DISTRIBUTION:

Helsinki Exchanges

Press and Media

www.aspocomp.com
INTERIM REPORT JANUARY-SEPTEMBER, 2002

The next interim report will be published on October 31, 2002.