ASPOCOMP GROUP INTERIM REPORT 1.1.2004 – 31.3.2004 ASPOCOMP SIGNIFICANTLY IMPROVED ITS NET SALES AND PROFITS

ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE May 10, 2004 at 8:00 AM 1(11)

ASPOCOMP GROUP INTERIM REPORT 1.1.2004 – 31.3.2004

ASPOCOMP SIGNIFICANTLY IMPROVED ITS NET SALES AND PROFITS
During the first quarter of 2004, Aspocomp increased its net sales

by 16% to EUR 47.6 million, thanks to the strong increase in volume,

while the earnings per share increased to EUR 0.17 (-0.04).
Highlights first quarter 2004 (all comparisons are year on year to

first quarter 2003 results):
– Net sales increased to EUR 47.6 million (41.1). Most of the

increase in net sales was contributed by the Chinese subsidiary ACP

Electronics, but the Finnish PCB factories and the Mechanics and

Modules business segment also started the year well.
– Operating profit increased to EUR 2.7 million (-1.7), representing

5.6% of net sales (-4.1%). Profitability was in particular improved

by increased volume, better efficiency and the increased share of

high-tech PCBs (printed circuit boards) in Aspocomp’s product

portfolio.
– The profit before tax increased to EUR 2.3 million (-2.2), and

earnings per share increased to EUR 0.17 (-0.04).
– Cash flow from operations totalled EUR 4.6 million (2.9).
– Investments increased to EUR 2.4 million (1.4). The most

significant investment was starting the extension of the production

line for High Density Interconnection PCBs at the ACP Electronics

subsidiary.
Prospects:
– The net sales and earnings in April-June are expected to remain at

the same level as in the first quarter. The net sales, operating

profit and earnings per share for the whole year are expected to be

significantly better than in the previous year.
MAIJA-LIISA FRIMAN, PRESIDENT AND CEO OF ASPOCOMP:
“During the first quarter, the business of Aspocomp developed

favourably: sales increased significantly, and internal efficiency

in the Group improved. Net sales increased by 16% compared with the
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same period in the previous year, and the results were clearly in

the profit.
Our key objectives for 2004 include the expansion of our customer

base and intensifying the co-operation with our current customers as

well as improvement in internal efficiency. The investments made in

our subsidiary in China improve particularly our position in high-

tech HDI printed circuit boards.
Our methods of operation include close co-operation with customers

in product development and design, a quick development path from R&D

to serial production and further to cost-effective large series. The

well-focussed technology development of Aspocomp also provides our

customers with opportunities to improve the features of their new

products as pioneers. The total benefits for our customers are based

on the combination of this method of operation, the product range

and technological development. The combination gives Aspocomp a

significant competitive edge over nearly all other PCB

manufacturers.ö
NET SALES AND PROFIT, JANUARY-MARCH 2004 (comparison figures are for

Q1 2003)
During the first quarter, the net sales of the Aspocomp Group

increased to EUR 47.6 million (41.1). The increased sales in the PCB

segment, resulted mainly from markedly increased volumes, and in the

Mechanics and Modules segment due to several large deliveries in the

first quarter. The changes in the USD-EUR exchange rate had a 6%

negative effect on net sales.
During the first quarter, the net sales of the Aspocomp Group were

divided by region as follows: Europe 67% (70%), Asia 17% (12%) and

the Americas 16% (18%).
Roughly 70% of Group net sales were accrued by products used in

mobile phones and telecom infrastrucure and approximately 30% was

made up by automotive, industrial and consumer electronics.
The Group’s five largest customers, Nokia, Ericsson, Sanmina-SCI,

Philips and Siemens, made up 61% of net sales (61%). Philips

returned among the Group’s five largest customers.
Operating profit before depreciation was 18.4% of net sales (13.1%),

amounting to EUR 8.8 million (5.4). Operating profit was EUR 2.7

million (-1.7). The improved profitability was in particular

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attributable to the considerably increased delivery volumes from PCB

factories and the restructuring carried out in the Group during

2003. Profitability was also improved by better efficiency at ACP

Electronics, and the increased share of high-tech PCBs in Aspocomp’s

product portfolio.
The net financing costs amounted to EUR 0.4 million (0.5), and

profit before taxes was EUR 2.3 million (-2.2). The profit for the

period after taxes and minority interests increased to EUR 1.7

million (-0.4), and earnings per share increased to EUR 0.17 (-

0.04). The cash flow from operations totalled EUR 4.6 million (2.9).
Printed Circuit Boards
During the first quarter, the net sales of the PCB segment increased

to EUR 36.4 million (32.0), thanks to the positive growth in

volumes. The increased share of high-tech products resulted in

improved profitability compared with the previous year.
The net sales figures for the previous year include the Teuva

factory that was divested by Aspocomp in 2003. During the same

period in 2003, the factory had net sales amounting to EUR 2.2

million. The comparable net sales of the factories in Finland (Salo

and Oulu) increased by approximately one quarter, while the

factories in Asia (China and Thailand) increased their net sales by

46%. The Asian factories’ share of the PCB segment net sales

increased to 45%.
During the first quarter, the net sales of the PCB segment were

divided by region as follows: Europe 57% (61%), Asia 22% (16%) and

the Americas 21% (23%).
The operating profit of the PCB segment was EUR 1.3 million (-2.7).

The improvement in profitability was strongest at the subsidiary ACP

Electronics.
Mechanics and Modules
The net sales of the Mechanics and Modules business segment during

the first quarter increased by 23% to EUR 11.2 million (9.1). The

increase in net sales was attributable to large deliveries being

scheduled for the first quarter, as well as to the fact that the

telecom network markets picked up.
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The operating profit for the segment increased to EUR 1.4 million

(1.0), mainly due to increased volumes.
FINANCING, INVESTMENTS and EQUITY RATIO
The Group’s liquidity during the period under review was good. The

Group’s liquid assets totalled EUR 28.5 million (21.6). Interest-

bearing net debt totalled EUR 23.3 million (38.0), including EUR

25.4 million (30.3) in financial leasing liabilities consolidated in

the Group Balance Sheet. The gearing was 18.6% (28.7), while gearing

without the consolidated financial leasing liabilities was -1.7%

(5.9%). Non-interest-bearing debts amounted to EUR 35.6 million

(27.3).
Investments totalled EUR 2.4 million (1.4), or 5.0% of net sales

(3.4%). EUR 1.4 million of the investments were made in Asia and EUR

1.0 million in Europe. Net financial expenses as a percentage of net

sales totalled 0.8% (1.3%).
The Group’s equity ratio at the end of March was 58.9% (60.4%).
SHARES AND SHARE CAPITAL
On March 31, 2004, the total number of Aspocomp shares was

10,041,026 and the share capital was EUR 10,041,026. Of the total,

100,000 shares are held by the company itself. The number of shares

adjusted for Aspocomp’s own shareholding was 9,941,026. During the

period, a total of 882,371 shares in Aspocomp Group Oyj were

exchanged on the Helsinki Exchanges. The grand total of these

transactions amounted to EUR 11,091,282.73. The lowest price paid

for the shares was EUR 11.63, the highest was EUR 14.54, and the

average was EUR 12.57. The closing price on March 31, 2004 was EUR

12.00, and the market capitalization of the company was EUR

119,292,312.00. Nominee registered shares represented 11.00% of

share capital while 0.88% was held directly by foreign shareholders.
On April 2, 2004, the Annual General Meeting of Aspocomp Group Oyj

authorized the Board of Directors to decide on acquiring and/or

conveying its own shares and on a shares issue and/or taking

convertible loans. The authorizations are valid for one year from

the date of the Annual General Meeting. At the same time, the Annual

General Meeting cancelled the similar authorizations granted on

April 4, 2003.
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PERSONNEL
The average number of employees in the Aspocomp Group during the

period January 1 – March 31, 2004 was 3,277 (3,053). At the end of

March 2004, there were 3,304 employees (3,041).
                   Average number  Average number  Number  Number

                        2004            2003        2004    2003

                     1.1.-31.3.      1.1.-31.3.     31.3.   31.3.
Europe                   963           1,154         966    1,053

Thailand               1,206           1,037       1,206    1,079

China                  1,108             862       1,132      909

Total                  3,277           3,053       3,304    3,041
MANAGEMENT
On February 2, 2004, the Board of Directors of Aspocomp Group Oyj

appointed Ms Maija-Liisa Friman M.Sc. (Chem. Eng.) as the President

and CEO of the company. She started in her new position on April 1,

2004.
The Annual General Meeting of Aspocomp Group Oyj held on April 2,

2004 approved the Board’s proposal for changing Articles 6 and 15 of

the Articles of Association, relating to the term of office of Board

Members, so that the Members are now elected for one year at a time.
On April 2, 2004, the Annual General Meeting of Aspocomp Group Oyj

decided that the Board of Directors shall consist of six Members.

Aimo Eloholma, Roberto Lencioni, Tuomo Lähdesmäki, Gustav Nyberg and

Karl Van Horn were re-elected as Board Members, and Anssi Soila was

elected as a new Member. Authorized Public Accounting Firm

PricewaterhouseCoopers Oy was appointed as the Auditor for the

company.
In its meeting on April 2, 2004, the Board re-elected Tuomo

Lähdesmäki as the Chairman of the Board, while Karl Van Horn was

elected as the Vice-Chairman. As members of the Compensation and

Nomination Committees, the Board elected Aimo Eloholma, Roberto

Lencioni and Tuomo Lähdesmäki, who was also appointed as Chairman

for both committees. Karl Van Horn, Gustav Nyberg and Anssi Soila

were elected by the Board as members of the Audit Committee. The

Board appointed Gustav Nyberg as Chairman of the Audit Committee.
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On 2 April 2004, the Board decided that each Member of the Board

shall spend 40% of his annual remuneration in buying shares in the

company during the period May 10 – June 18, 2004, subject to the

limitations of insider trading rules. The Board also decided not to

convey the acquired shares before the Annual General Meeting of

2005.
IFRS IMPLEMENTATION
The Aspocomp Group will introduce IFRS reporting in the beginning of

2005. The Aspocomp Group has already been recording all financial

leasing agreements as assets and liabilities since 1999. The fixed

expenditure of finished product stores have been capitalized, and

imputed tax liabilities and receivables have been recorded. The

guidelines for recording the disability pension part of the Finnish

statutory pension system renewed in March 2004. According to these

new guidelines this part of the pension system should be recorded

under IFRS as defined benefit pension plan. This means that a long

term liability must he recorded for this part of the pension plan.

The amount of the long term liability will be determined as soon as

the actuary calculations will be finished. It is assumed that the

adoption of the IFRS standards will not have any other significant

effects on the Group equity.
PROSPECTS
The growth of mobile phone markets intensified significantly during

the first quarter which increased the demand for Aspocomp PCBs,

particularly towards the end of the quarter.  The estimates given by

research institutes and equipment manufacturers regarding the size

of the total market in 2004 vary between 540 and 600 million (just

over 470 million in 2003). The estimates regarding the growth of

telecom network markets have been increased during recent months,

and the growth is now estimated at close to 10%. The vehicle and

industrial electronics manufacturing is expected to continue its

steady growth of a few per cent annually.
The net sales of Aspocomp’s PCB segment are expected to increase

considerably in 2004. The net sales of the Mechanics and Modules

segment are expected to show slower growth for the whole year than

that experienced during the first quarter. Aspocomp’s operating

profit and earnings per share are expected to be significantly

better than in the previous year.
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The net sales and profits of Aspocomp for the second quarter are

expected to be in line with those of the first quarter.
In 2004, gross investments are expected to amount to a little less

than 10% of the Group’s net sales.
PROFIT AND LOSS ACCOUNT

                             1-3/04       1-3/03        1-12/03

                             MEUR    %    MEUR    %     MEUR    %
NET SALES                    47.6  100.0  41.1  100.0  182.3  100.0
Other operating income       -0.2   -0.3  -0.1   -0.2    1.2    0.7

Depreciation and write-downs  6.1   12.8   7.1   17.3   29.7   16.3
OPERATING PROFIT/LOSS         2.7    5.6  -1.7   -4.1   -5.3   -2.9
Financial income

and expenses                 -0.4   -0.8  -0.5   -1.3   -1.3   -0.7
PROFIT/LOSS BEFORE

EXTRAORDINARY ITEMS AND TAXES 2.3    4.9  -2.2   -5.4   -6.6   -3.6
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      2.3    4.9  -2.2   -5.4   -6.6   -3.6
Taxes                        -0.1   -0.1   1.1    2.8    3.5    1.9

Minority interests           -0.5   -1.1   0.7    1.7    2.2    1.2
PROFIT/LOSS FOR THE PERIOD    1.7    3.6  -0.4   -0.9   -0.9   -0.5
EARNINGS PER SHARE            0.17        -0.04         -0.09
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.
BALANCE SHEET

                                    3/04     3/03   Change    12/03

                                    MEUR     MEUR      %       MEUR

Fixed Assets

                                                              8(11)

Intangible assets                    3.9      5.8    -33.7      4.2

Tangible assets                    103.3    124.0    -16.6    105.2

Investments                          1.1      1.4    -21.8      1.7
Current Assets
Stocks                              23.9     21.3     12.3     20.8

Receivables                         52.8     46.2     14.3     52.7

Investments                         21.4      0.0              20.8

Cash and bank deposits               7.1     21.6    -67.4      8.9
TOTAL ASSETS                       213.5    220.3     -3.1    214.2
Shareholders’ equity
Share capital                       10.0     10.0      0       10.0

Other shareholder’s equity          94.3     97.4     -3.1     92.1

Minority interest                   21.8     25.9    -15.8     20.5

Mandatory reserves                   2.1      2.0      3.9      1.7

Long-term liabilities               27.8     37.6    -25.9     28.7

Short-term liabilities              57.5     47.4     21.3     61.3
TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY               213.5    220.2     -3.1    214.2
CASH FLOW STATEMENT

                                          1-3/04   1-3/03   1-12/03

                                           MEUR     MEUR     MEUR
Cash flow from operations                   4.6      2.9     25.4

Cash flow from investments                 -2.4     -1.3    -11.3

Cash flow before financial items            2.2      1.6     14.1

 Decrease in long-term financing           -0.9     -0.1     -7.0

 Decrease/increase in short-term financing -2.4      0.3      5.0

 Dividends paid                              –        –      -3.0

Total financing                            -3.3      0.2     -5.0

Decrease/increase in liquid assets         -1.1      1.8      9.0

Liquid assets at the end of the period     28.5     21.6     29.8
BUSINESS SEGMENTS

                                          1-3/04   1-3/03   1-12/03

                                           MEUR     MEUR     MEUR
Printed Circuit Boards

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Net sales                                  36.4     32.0     142.5
Printed Circuit Boards

Operating profit                            1.3     -2.7     -11.1
Mechanics and Modules

Net sales                                  11.2      9.1      39.8
Mechanics and Modules

Operating profit                            1.4      1.0       5.8
KEY FINANCIAL INDICATORS

                                           3/04     3/03     12/03
Return on Investment (ROI), %               3.7     -3.1      -5.2
Return on Equity, %                         7.7     -3.2      -2.4
Equity/share, EUR                          10.41    10.74     10.20
Equity ratio, %                            58.9     60.4      57.1
Gearing, %                                 18.6     28.7      20.3
Gross investments, MEUR                     2.4      1.4      13.8
Average number of personnel                3,277    3,053     3,330
CONTINGENT LIABILITIES

                                           3/04     12/03

                                           MEUR      MEUR
Securities on Group liabilities             8.1       8.0

Operational leasing liabilities             0.2       0.2

Other liabilities                          26.1      24.4
TOTAL                                      34.4      32.6
DERIVATIVE CONTRACTS

                                           3/04     12/03

                                           MEUR      MEUR
Foreign Currency Forward Contracts

                                                              10(11)

Market Value                                0.1       0.0

Nominal Value                               3.9       4.6
Electricity Forward Contracts

Market Value                                0.0       0.0

Nominal Value                               0.4       0.7
All figures are unaudited.
Vantaa, May 10, 2004
ASPOCOMP GROUP OYJ
Board of Directors
For further information, please contact CEO Maija Liisa Friman,

tel. +358 09 7597 0711.
ASPOCOMP GROUP OYJ
Maija-Liisa Friman

President and CEO
PRESS CONFERENCE
A press conference intended for investors, analysts and media

representatives will be held on 10 May at 11:00 a.m. in the Paavo

Nurmi conference hall of Hotel Kämp at Pohjoisesplanadi 29,

Helsinki.
ASPOCOMP IN BRIEF
The Aspocomp Group serves the electronics industry by supplying

high-tech electronic components and services such as PCBs (printed

circuit boards), and PCB-related designs as well as mechanics and

modules. Aspocomp’s products are used in the electronics industry,

mobile handsets, telecommunications infrastructure, automotive and

other industrial applications. The Aspocomp Group’s production

facilities are located in Finland, China and Thailand. In 2003, the

Group net sales were EUR 180 million approximately, and the Group
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had some 3,300 employees. The parent company, Aspocomp Group Oyj,

has been listed on the Helsinki Exchanges since 1999.
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 the 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, fluctuations in

currency exchange rates, increases in PCB industry capacity and

competition, and the ability of the company to implement its

investment programme and to continue to expand its business outside

the European market.
DISTRIBUTION:

The Helsinki Exchanges

Major Media

www.aspocomp.com