ASPOCOMP GROUP INTERIM REPORT JANUARY 1 - JUNE 30, 2003

ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE July 31, 2003 8:00 AM 1(11)

ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – JUNE 30, 2003

– Due to good volume growth the Q2 net sales grew by 2.4 % to EUR
42.1 million compared to the Q1 net sales, despite the depreciation
of the US dollar and the continued price erosion.

– Q2 operating loss without the non-recurring costs decreased to EUR
1.6 million from the loss of EUR 1.7 million during Q1. Reported
operating loss, EUR 6.3 million, includes non-recurring costs of EUR
4.8 million, EUR 4.1 million of which is related to the downsizing of
the Padasjoki PWB factory. Further non-recurring costs regarding the
adjustments in operations are not planned.

– During this and the previous year focus of the Aspocomp Group
operations has been substantially transferred from Europe to Asia and
the Asian share of the Group’s monthly net sales is expected to be
close to 40 % by the end of the year.

– Mechanics and Modules segment’s business continues strong; the Q2
net sales grew by 34.3 % compared to the corresponding period
previous year and the EBIT increased to EUR 1.4 million.

– As a result of the widening of the customer base the share of the
Group’s five biggest customers decreased during the first half of the
year to 60 % (1-6/2002: 65 %)

– Both the net sales and the EBIT during the latter half of the year
2003 are expected to be higher than during the first half without the
non-recurring costs. Cash flow from operations is expected to be
clearly positive.

BUSINESS ENVIRONMENT

General economic environment continued to be unstable and US dollar’s
rapid depreciation compared to the Euro stabilized. The average
currency rate of the US dollar compared to the Euro during the second
quarter was about 6 % below the first quarter level and about 20 %
below the level of the second quarter previous year.

The overcapacity in the global printed wiring board (PWB) market
prevailed and led the price erosion to continue. At the same time
more electronics manufacturing was moved to low labor cost countries
in Asia, especially to China.

During Q2 the mobile handset PWB sales stabilized. The telecom
infrastructure PWB sales were slow. However, both automotive and
industry PWB sales and Mechanics and Modules (MM) sales increased.

2(11)
GROUP NET SALES AND PROFIT, APRIL – JUNE 2003 (comparable figures, 4-
6 / 2002)

Net sales totaled EUR 42.1 million for the second quarter compared
with EUR 42.2 million during the corresponding period previous year.
The negative impact of the depreciation of the US Dollar on the net
sales was close to EUR 3 million.
Profit before depreciation without the non-recurring costs totalled
EUR 5.3 million (EUR 6.0 million). The reported profit before
depreciation was EUR 3.4 million. The non-recurring cost of EUR 1.9
million is related to the downsizing of the Padasjoki printed wiring
board factory.
Operating loss for the period without the non-recurring costs totaled
EUR 1.6 million (loss of EUR 1.4 million). The reported operating
loss for the period was EUR 6.3 million including the non-recurring
costs of EUR 4.8 million with EUR 4.1 million relating to the
downsizing of the Padasjoki factory. Net financial expenses were EUR
0.3 million (EUR 0.8 million).

The loss before taxes without the non-recurring costs was EUR 1.9
million (loss of EUR 2.2 million). The reported loss before taxes
totalled EUR 6.6 million.
The net loss after taxes and minority interest without the non-
recurring costs for the period was EUR 1.1 million (loss of EUR 1.2
million). The reported net loss after taxes and minority interest was
EUR 5.8 million. The reported earnings per share totaled EUR -0.58
(EUR -0.12). Cash flow from operations totalled EUR 1.7 million (EUR
9.1 million).

GROUP NET SALES AND PROFIT, JANUARY – JUNE 2003 (comparable figures,
1-6 / 2002)

Reported net sales decreased by 3.8 % and totaled EUR 83.2 million
for the first six months of the year compared with the reported EUR
86.5 million during the corresponding period previous year. The
negative impact of the depreciation of the US Dollar on the net sales
was about EUR 5 million.

The share of the sales to company’s five biggest customers, Nokia,
Sanmina-SCI, Elcoteq, Siemens and Ericsson, was 60 % (the share of
the five biggest in H1 2002 was 65 %).

Profit before depreciation totaled EUR 8.9 million (EUR -13.8
million). Operating loss for the period totaled EUR 8.0 million (loss
of EUR 29.6 million). Net financial expenses decreased to EUR 0.8
million (EUR 1.5 million).

The loss before extraordinary items was EUR 8.8 million (loss of EUR
31.2 million). The loss before taxes was EUR 8.8 million (loss of EUR
31.2 million), and the net loss for the period after taxes and
minority interest was EUR 6.2 million (loss of EUR 27.4 million).

3(11)
Earnings per share totaled EUR -0.62 (EUR -2.73). Cash flow from
operations totaled EUR 4.5 million (EUR 4.9 million).

BUSINESS SEGMENTS

Q2/03 Q2/02 H1/03 H1/02 2002
Printed Wiring Boards
Net Sales, MEUR 32.1 34.8 64.1 70.2 150.0

Printed Wiring Boards
EBIT, MEUR -7.7 -1.1 -10.3 -29.5 -24.0

Mechanics and Modules
Net Sales, MEUR 10.0 7.4 19.1 16.3 32.9

Mechanics and Modules
EBIT, MEUR 1.4 -0.3 2.3 -0.2 0.8

Printed Wiring Boards (PWB)

Second-quarter net sales for the PWB segment decreased by EUR 2.7
million to EUR 32.1 million (4-6/2002: EUR 34.8 million). The
negative impact of the depreciation of the US Dollar on the PWB net
sales was close to 3 million. Volume growth managed to compensate the
price erosion of about 10 %. The net sales of the Asian units
increased almost 30 % and their share of the segment’s net sales was
about 33 % (24 %).
The EBIT without the non-recurring costs was EUR -2.9 million (EUR –
1.1 million). The EBIT was affected by increased depreciation at the
printed wiring board factory in China. Capacity utilization rates are
expected to grow during the latter half of the year, especially in
China.

Mechanics and Modules, MM

Net sales for the Mechanics and Modules business segment increased by
34.3 % due to strong demand and totaled EUR 10.0 million (EUR 7.4
million). As a result of the exceptionally high capacity utilization
rate the EBIT for the segment increased to EUR 1.4 million or to 13.6
% of the net sales (EUR -0.3 million; -3.7 %). The capacity
utilization rate is expected to be on the usual level during the
latter half of the year.

Joint Ventures

The research and development companies Asperation Oy and Imbera
Electronics Oy made good progress according to their plans during the
period under review.

4(11)
Business by area

During the first half of the year 2003 the Aspocomp Group net sales
were divided by area as follows: Europe 69 % (H1 / 2002: 60 %), Asia
15 % (11 %) and the Americas 16 % (29 %). The transfer from the
Americas to Europe is related to the product project life cycles of
the customers.

The total manufacturing by area was as follows: Europe 73 % (80 %)
and Asia 27 % (20 %).

FINANCING, INVESTMENTS AND EQUITY RATIO

The Group’s liquidity during the period under review was good.
Interest-bearing net debt for the period totaled EUR 42.1 million
(EUR 59.6 million), including EUR 28.2 million in financial leasing
liabilities, consolidated in the Group balance sheet (EUR 32
million). The non-interest-bearing debts totalled EUR 27.6 million
(EUR 24.8 million). Gross investments for the period totaled EUR 6.2
million (EUR 13.7 million) or 7.5 % of the net sales (15.8 %). Most
of the investments, EUR 3.7 million, were in Asia, while investments
in Finland totaled EUR 2.5 million. Net financial expenses as a
percentage of the net sales totaled 1.0 % (1.8 %). The equity ratio
at the end of the period was 59.5 % (57.7 %) and at the end of the
year 2002 61 %.

SHARES AND SHARE CAPITAL

The number of Aspocomp’s issued shares on June 30, 2003, was
10,041,026 and the share capital was EUR 10,041,026. 100,000 shares
were in the possession of the company. The number of shares adjusted
for the treasury shares was 9,941,026. During the period from January
1 to June 30, a total of 294,710 shares with a value of EUR
2,023,577.48 were traded on the Helsinki Exchanges. The nominee-
registered portion of the shareholding was 15.70 % and the foreign
portion 0.74 % at the end of the period. The share price reached a
high of EUR 7.50 and a low of EUR 6.11 between January 1 and June 30,
2003. The average price was EUR 6.87. The closing price on June 30,
2003, was EUR 7.00 and the market capitalization of the company was
EUR 69,587,182.00.

The Aspocomp Group Oyj’s Annual General Meeting of April 4, 2003,
authorized the Board of Directors to decide on acquiring and
conveying of own shares and on increasing the share capital by a
share issue and/or by taking a convertible loan. The authorizations
are valid for one year from the date of the Annual General Meeting.

PERSONNEL

The number of employees averaged 3,101 from January 1 to June 30,
2003, compared with 3,058 for the same period in the previous year.

5(11)
The average number of employees in the year 2002 was 3,075. At the
end of June 2003 there were 3,234 employees in all (2,813).

Average number Average number Number Number Number
2003 2002 2003 2002 2002
Jan 1-June 30 Jan 1-June 30 June 30 June 30 Dec 31

Europe 1,129 1,548 1,145 1,215 1,076
Thailand 1,079 889 1,136 890 973
China 893 621 953 708 858
Total 3,101 3,058 3,234 2,813 2,907

A proposal related to the personnel negotiations of the Padasjoki
printed wiring board factory was given on April 9, 2003 and the
negotiations were concluded on May 26, 2003. As a consequence of the
negotiations the operations of the factory are notably downsized. A
part of the personnel may be possible to relocate to the other Group
factories, about 30 persons continue to run the Padasjoki operations
and about 40 persons will be redundant.

The Padasjoki factory’s share of the Group net sales in 2002 was
about 5 % and its share of the Group personnel about 3 %.
The book value of the fixed assets of the factory was about EUR 6.5
million at the end of the first quarter 2003. The non-recurring cost
related to the downsizing totaled EUR 4.1 million. The share of the
fixed assets is EUR 3.2 million and the share of the personnel costs
related to the redundancy are EUR 0.5 million.

The Aspocomp Group has incentive systems that cover the whole
personnel of the Group. In Finland factory personnel belong to a
result-related bonus system and other personnel is included in the
economic value added (EVA) based bonus system. The Group companies in
China and in Thailand have their own incentive systems.
The management and certain key persons are included in a new
shareholding based incentive scheme started during the period.
Precondition for belonging to the incentive scheme is that the
participants to the scheme own Aspocomp Group Oyj shares. The bonus
is based on the share price increase of the Aspocomp Group Oyj share
during the next two years and the potential bonus will be paid in
June 2005, provided that the person is still employed by the Aspocomp
Group.
A person is able to belong only to one incentive system at a time.

MANAGEMENT

The Annual General Meeting of Aspocomp Group Oyj decided at its
meeting on April 4, 2003, that the number of the Board Members is
six. Mr. Gustav Nyberg was re-elected as a Board Member.
At its meeting of April 4, 2003, the Board of Directors elected Mr.
Tuomo Lähdesmäki as Chairman of the Board and Mr. Jorma Eloranta as
Vice-Chairman of the Board. The Board elected also Members for the
6(11)
Board Committees: Mr. Tuomo Lähdesmäki is Chairman of the
Compensation and Nomination Committees and Mr. Jorma Eloranta a
Member. The Chairman of the Auditing Committee is Mr. Gustav Nyberg,
Mr. Karl Van Horn being a Member.

The Annual General Meeting of Aspocomp Group Oyj decided that the
remuneration of the Board Members is paid on an annual basis. The
Members of the Board of Directors decided that they acquire directly
or indirectly Aspocomp Group Oyj shares with 40% of their gross
remuneration during the time period from May 6 to June 15, 2003. The
purchases were made within the limits set by the insider regulations.
The Board Members have decided not to convey the acquired shares
before the Annual General Meeting of 2004.

ENVIRONMENT

The environmental issues at the Aspocomp Group are developed in
accordance with the principles for environmental management of the
Business Charter for Sustainable Development defined by the
International Chamber of Commerce.

During the period, the environment management system of the Chinese
subsidiary, ACP Electronics Co., Ltd. was certified. As a result all
the Aspocomp Group production sites are now ISO 14001 certified.

PROSPECTS

Outlook of the PWB segment remains divided in 2003. The growth of the
mobile phone market is estimated to be between 0 and 10 %. In the
automotive and industrial business the steady growth of about 5 % is
estimated to continue. The telecommunication infrastructure market is
estimated to decrease about 15 %.
Outlook for the demand of the Mechanics and Modules segment is
stable.

Aspocomp’s global PWB market share is expected to strengthen during
2003. The Asian units’ share of the Group monthly net sales is
forecasted to be close to 40 % by the end of 2003 (22 % in 2002).
Also the good progress in the R&D joint ventures, Asperation Oy and
Imbera Electronics Oy, is expected to continue.

Both the net sales and the EBIT during the latter half of the year
2003 are expected to be higher than during the first half without the
non-recurring costs.

ASPOCOMP GROUP INCOME STATEMENT, APRIL – JUNE

4-6/03 4-6/02
MEUR % MEUR %

NET SALES 42.1 100.0 42.2 100.0

7(11)
Other operating income -0.04 -0.1 -0.4 -0.8
Depreciation and
write-downs 9.7 23.1 7.4 17.6
Non-recurring costs 4.8 –
(included both in depreciation and other costs)

OPERATING PROFIT/LOSS
AFTER DEPRECIATION -6.3 -15.0 -1.4 -3.4

Financial income
and expenses -0.3 -0.7 -0.8 -1.9

PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAXES -6.6 -15.7 -2.2 -5.3

Extraordinary income 0.0 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0 0.0

PROFIT/LOSS BEFORE TAXES -6.6 -15.7 -2.2 -5.3

Minority interest 0.7 1.6 1.5 3.4

PROFIT/LOSS FOR THE
PERIOD -5.8 -13.9 -1.2 -2.7

Earnings / Share, EUR -0.58 -0.12

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.

CASH FLOW STATEMENT
4-6/03 4-6/02
MEUR MEUR

Cash flow from operations 1.7 9.1
Cash flow from investments -4.7 -4.8
Cash flow before financing -3.0 4.2
Decrease in long-term financing -4.0 -5.0
Increase/decrease
in short-term financing 0.8 -3.6
Dividends paid -2.5 –
Other financing -2.6
Total financing -5.7 -11.3
Decrease in liquid funds -8.8 -7.1
Liquid funds at the end of the period 13.1 10.1

8(11)
ASPOCOMP GROUP INCOME STATEMENT, JANUARY – JUNE

1-6/03 1-6/02 1-12/02
MEUR % MEUR % MEUR %

NET SALES 83.2 100.0 86.5 100.0 182.9 100.0

Other operating income -0.1 -0.1 0.3 0.3 1.0 0.1
Depreciation and
write-downs 16.9 20.3 15.8 18.3 30.4 16.6
Non-recurring costs 4.8 28.6 27.7
(included both in depreciation and other costs)

OPERATING PROFIT/LOSS
AFTER DEPRECIATION -8.0 -9.6 -29.6 -34.3 -23.2 -12.7

Financial income
and expenses -0.8 -1.0 -1.5 -1.8 -2.7 -1.5

PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAXES -8.8 -10.6 -31.2 -36.1 -25.9 -14.2

Extraordinary income 0.0 0.0 0.0 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0 0.0 0.0 0.0

PROFIT/LOSS BEFORE TAXES -8.8 -10.6 -31.2 -36.1 -25.9 -14.2

Minority interest 1.4 1.7 2.2 2.6 3.7 2.0

PROFIT/LOSS FOR THE
PERIOD -6.2 -7.5 -27.4 -31.7 -18.6 -10.1

Earnings / Share, EUR -0.62 -2.73 -1.86

ASPOCOMP GROUP BALANCE SHEET

6/03 6/02 Change 12/02
MEUR MEUR % MEUR
Non-Current Assets

Intangible assets 4.9 4.8 0.3 5.7
Tangible assets 115.7 145.6 -20.6 131.3
Investments 1.1 3.3 -67.5 1.6

9(11)
Current Assets

Inventories 21.6 22.3 -3.1 20.0
Receivables 48.8 44.4 9.8 43.9
Investments 0.0 0.0 – 0.0
Cash and bank deposits 13.1 10.1 30.5 19.7

TOTAL ASSETS 205.1 230.5 -11.0 222.2

Shareholders’ equity

Share capital 10.0 10.1 -1.0 10.0
Other shareholders’ equity 88.3 92.6 -4.6 98.6
Minority interest 23.9 31.0 -23.0 27.3
Mandatory reserves 2.4 2.4 – 2.1
Long-term liabilities 33.2 46.7 -29.0 38.4
Short-term liabilities 47.3 47.7 -0.9 45.7

TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 205.1 230.5 -11.0 222.2

CASH FLOW STATEMENT
1-6/03 1-6/02 1-12/02
MEUR MEUR MEUR

Cash flow from operations 4.5 4.9 26.0
Cash flow from investments -6.0 -12.9 -19.7
Cash flow before financing -1.5 -8.0 6.4
Increase/decrease in
long-term financing -4.2 1.1 -6.7
Increase/decrease in
short-term financing 1.2 -3.6 -3.8
Dividends paid -2.5 – –
Other financing – 0.3 1.8
Total financing -5.5 -2.2 -8.7
Decrease in liquid funds -7.0 -10.2 -2.4
Liquid funds at the end of the period 13.1 10.1 19.7

KEY FIGURES
6/03 6/02 12/02

Equity/share, EUR 9.81 10.24 10.85

Equity ratio, % 59.5 57.7 61.0

Gearing, % 34.7 44.9 30.0

Gross investments, MEUR 6.2 13.7 19.8

Average Personnel 3,101 3,058 3,075
10(11)
Accumulated excess depreciation and voluntary reserves totaling EUR
0.4 million have been divided among shareholders’ equity and nominal
tax liabilities.

CONTINGENT LIABILITIES

6/03 12/02
MEUR MEUR
Securities on Group liabilities 31.0 9.6
Operational leasing liabilities 0.1 0.1
Other liabilities 0.3 0.3

TOTAL 31.4 10.0

There are no derivative contracts.

All figures are unaudited.

Vantaa, July 31, 2003

ASPOCOMP GROUP OYJ

Board of Directors

For more information, please contact CEO Jarmo Niemi
at +358 9 7597 0711.

ASPOCOMP GROUP OYJ

Jarmo Niemi
President and CEO

ASPOCOMP IN BRIEF

Aspocomp Group serves the electronics industry by supplying high-tech
electronic components and services like PWBs (printed wiring boards),
PWB-related design as well as mechanics and modules. Aspocomp’s
products are used in mobile handsets, telecommunications
infrastructure, automotive and other industrial applications.

Aspocomp Group’s production sites are located near the customers in
Finland, China and Thailand. The Group net sales in 2002 were about
EUR 180 million and the number of personnel was about 3000.

The Group parent company Aspocomp Group Oyj is listed on the Helsinki
Stock Exchanges since year 1999.
11(11)
Some statements in this stock exchange release 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; fluctuation of
currency exchange rates; 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.

DISTRIBUTION:
Helsinki Exchanges
Press and Media
www.aspocomp.com

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