ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – MARCH 31, 2003

ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE May 6, 2003 8:00 AM 1(8)

ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – MARCH 31, 2003
JANUARY – MARCH (comparable figures, 1-3 / 2002)

– Q1 net sales decreased by 7.1 % and totaled EUR 41.1 million (EUR

44.3 million)

– PWB production in Asia grew by about 21 % to EUR 11.1 million

– Operating loss was EUR 1.7 million (loss of EUR 28.2 million)

– Free cash flow after investments improved to EUR 1.6 million (EUR –

12.3 million)

– The full year net sales are expected to grow and the free cash flow

after investments is expected to be clearly positive
BUSINESS ENVIRONMENT
General economic environment continued to be unstable and Euro

continued its rapid appreciation, especially compared to the US

Dollar.
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 Q1 2003 the mobile handset PWB sales decreased due to the

normal seasonality pattern, but are expected to recover. Also the

telecom infrastructure PWB sales were slow. However, both automotive

and industry PWB and Mechanics and Modules (MM) sales increased.
GROUP NET SALES AND PROFIT
Reported net sales decreased by 7.1 % and totaled EUR 41.1 million

for the period from January 1 to March 31, 2003, compared with the

reported EUR 44.3 million during the corresponding period previous

year (EUR 41.6 million without the French operations discontinued in

Q1 2002). The production volume of the continued operations increased

by about 10 %, but the appreciation of Euro and the price erosion

lead the comparable net sales to be on the same level as in Q1 2002.
The share of the sales to company’s five biggest customers, Nokia,

Sanmina-SCI, Siemens, Tellabs and Elcoteq, was 61 % (the share of the

five biggest in Q1 2002 was 63 %).
Profit before depreciations increased compared to the corresponding

period previous year and totalled EUR 5.4 million (EUR -19.8 million,

EUR 6.9 million without the discontinued French operations).

Operating loss for the period totaled EUR 1.7 million (EUR 28.2

million, operating profit EUR 0.3 million without the discontinued

French operations). Net financial costs were EUR 0.5 million (EUR 0.7

million).

The loss before extraordinary items was EUR 2.2 million (loss of EUR

29.0 million). The loss before taxes was EUR 2.2 million (loss of EUR

29.0 million), and the net loss for the period was EUR 0.4 million

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(loss of EUR 26.2 million). Earnings per share totaled EUR -0.04 (EUR

-2.61). The operational cash flow totalled EUR 2.9 million (EUR -4.2

million) and the free cash flow after investments was EUR 1.6 million

(EUR -12.3 million).
BUSINESS SEGMENTS
Printed Wiring Boards (PWB)
First-quarter net sales for the PWB segment decreased by 9.7 %

compared to the corresponding period previous year and totaled EUR

32.0 million (EUR 35.4 million, EUR 32.7 million without the

discontinued French operations). The impact of the appreciation of

Euro on the PWB net sales was about EUR -2.5 million. The EBIT for

the PWB segment was EUR -2.7 million (EUR 0.3 million without the

discontinued French operations).
Mechanics and Modules, MM (former EMS, Electronics Manufacturing

Services)
Net sales for the Mechanics and Modules business segment increased by

2.2 % and totaled EUR 9.1 million (EUR 8.9 million). The EBIT for the

Mechanics and Modules segment was EUR 1.0 million (EUR 0.1 million).
The research and development companies Asperation Oy and Imbera

Electronics Oy made good progress according to their plans during the

period under review.
Business by area
During the first quarter of the year 2003 the Aspocomp Group net

sales were divided by area as follows: Europe 70 % (62 %), Asia 12 %

(14 %) and the Americas 18 % (24 %).
The Group’s reported sales of PWBs manufactured in Asia grew by 21 %,

despite the appreciation of Euro. The reported sales of products

manufactured in Europe decreased by 20 % (11 % without the

discontinued French operations) reflecting the price erosion in PWBs.

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 38.0 million

(EUR 61.4 million), including EUR 30.3 million in financial leasing

liabilities (EUR 32.8 million). The non-interest-bearing debts

totalled EUR 27.3 million (EUR 28.5 million). Gross investments for

the period totaled EUR 1.4 million (EUR 8.1 million the corresponding

period previous year) or 3.4 % of the net sales (18.3 %). Most of the

investments, EUR 0.8 million, were in Asia, while investments in

Finland totaled EUR 0.6 million. Net financial costs as a percentage

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of the net sales totaled 1.3 % (1.7 %). The equity ratio at the end

of the period was 60.5 % (56.6 %) and at the end of the year 2002 61

%.
SHARES AND SHARE CAPITAL
The number of Aspocomp’s issued shares on March 31, 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 March 31, a total of 149,230 shares with a value of EUR

1,002,956.00 were traded on the Helsinki Exchanges. The nominee-

registered portion of the shareholding was 15.80 % and the foreign

portion 0.76 % at the end of the period. The share price reached a

high of EUR 7.10 and a low of EUR 6.11 between January 1 and March

31, 2003. The average price was EUR 6.72. The closing price on March

31, 2003, was EUR 6.50 and the market capitalization of the company

was EUR 64,616,669.00.
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 3,053 from January 1 to March 31,

2003, compared with 3,154 for the same period in the previous year.

The average number of employees in the year 2002 was 3,075. At the

end of March 2003 there were 3,041 employees in all (2,681).
              Average number   Average number    Number    Number

                   2003             2002          2003      2002

              Jan 1-March 31   Jan 1-March 31   March 31  March 31
Europe            1,154            1,720         1,053     1,194

Thailand          1,037              879         1,079       896

China               862              555           909       591

Total             3,053            3,154         3,041     2,681
A proposal related to the personnel negotiations of the possible

closing of the Padasjoki printed wiring board factory was given on

April 9, 2003. Possible personnel reductions and reorganization

concern all personnel groups, total of about 80 persons, at the

factory.
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 fixed

assets of the factory were about EUR 6.5 million at the end of the

first quarter 2003.

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The adjustment of the number of personnel continued at all production

sites during the financial period.
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 Board of Directors of Aspocomp Group Oyj has decided on a new

share price based incentive scheme for the management and certain key

persons. The bonus is based on the share price increase of the

Aspocomp Group Oyj share during the next two years. Precondition for

belonging to the incentive scheme is that the participants to the

scheme own Aspocomp Group Oyj shares by the end of June 2003 in

accordance with the instructions provided by the company. The

potential bonus will be paid in June 2005, provided that the person

is still employed by the Aspocomp Group.

The objective of the new incentive scheme is to increase the

shareholdings of the management and certain key persons in the

company.

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

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 will 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 will be made within the limits set by the

company’s insider regulations. The Board Members have decided not to

convey the shares before the Annual General Meeting of 2004.

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PROSPECTS
Outlook of the PWB segment remains divided. The growth of the mobile

phone market in 2003 is estimated to be between 0 and 10 %. In the

automotive and industrial business the steady growth is estimated to

continue. However, the decrease in the telecommunication

infrastructure market is estimated to continue. Outlook for the

demand of the Mechanics and Modules segment is stable.
Aspocomp’s global PWB market share is expected to increase during

2003 by improving the Group’s market position in Asia. The Asian

units’ share of the Group 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.
The second quarter net sales and the EBIT excluding possible one-time

costs related to the Padasjoki factory are expected to be on the same

level as in the first quarter 2003. 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 and the EBIT to be positive.
ASPOCOMP GROUP INCOME STATEMENT
                           1-3/03        1-3/02        1-12/02

                           MEUR   %       MEUR   %       MEUR   %
NET SALES                41.1  100.0    44.3  100.0   182.9  100.0

Other operating income   -0.1   -0.2     0.6    1.4     1.0    0.1

Depreciation and

write-downs               7.1   17.3     8.4   19.0    30.4   16.6
OPERATING PROFIT/LOSS

AFTER DEPRECIATION       -1.7   -4.1   -28.2  -63.8   -23.2  -12.7
Financial income

and expenses             -0.5   -1.3    -0.7   -1.7    -2.7   -1.5
PROFIT/LOSS BEFORE EXTRAORDINARY

ITEMS AND TAXES          -2.2   -5.4   -29.0  -65.4   -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 -2.2   -5.4   -29.0  -65.4   -25.9  -14.2
Minority interest         0.7    1.7     0.8    1.7     3.7    2.0
PROFIT/LOSS FOR THE

PERIOD                   -0.4   -0.9   -26.2  -59.2   -18.6  -10.1
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Earnings / Share, EUR    -0.04          -2.61          -1.86
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
                               3/03       3/02     Change    12/02

                               MEUR       MEUR        %       MEUR

Non-Current Assets
Intangible assets              5.8        4.1       41.5      5.7

Tangible assets              124.0      156.5      -20,8    131.3

Investments                    1.4        2.6      -46.2      1.6
Current Assets
Inventories                   21.3       24.1      -11.6     20.0

Receivables                   46.2       44.2        4.5     43.9

Investments                    0.0        0.0         –       0.0

Cash and bank deposits        21.6       17.1       26.3     19.7
TOTAL ASSETS                 220.3      248.7      -11.4    222.2
Shareholders’ equity
Share capital                 10.0       10.1       -1.0     10.0

Other shareholders’ equity    97.4       95.5        2.0     98.6

Minority interest             25.9       36.1      -28.3     27.3

Mandatory reserves             2.0        2.4      -16.7      2.1

Long-term liabilities         37.6       51.4      -26.8     38.4

Short-term liabilities        47.4       53.2      -10.9     45.7
TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY         220.3      248.7      -11.4    222.2
CASH FLOW STATEMENT

                                        1-3/03    1-3/02   1-12/02

                                         MEUR      MEUR     MEUR
Net operational cash flow                 2.9      -4.2     26.0

Total cash flow from investments         -1.3      -8.1    -19.7

Cash flow before financing                1.6     -12.3      6.4

Total financing                           0.2       9.1     -8.7

Increase/Decrease in liquid funds         1.8      -3.1     -2.4

Liquid funds at the end of the period    21.6      17.1     19.7
KEY FIGURES

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                                         3/03      3/02     12/02
Equity/share, EUR                        10.81     10.42    10.85
Equity ratio, %                          60.5      56.6     61.0
Gearing, %                               28.5      43.7     30.0
Gross investments, MEUR                   1.4       8.1     19.8
Average Personnel                       3,053      3,154    3,075
Accumulated excess depreciation and voluntary reserves totaling EUR

1.1 million have been divided among shareholders’ equity and nominal

tax liabilities.
CONTINGENT LIABILITIES
                                         3/03              12/02

                                         MEUR              MEUR

Securities on Group liabilities           3.1               9.6

Operational leasing liabilities           0.1               0.1

Other liabilities                         0.3               0.3
TOTAL                                     3.4              10.0
There are no derivative contracts.
All figures are unaudited.
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.
Vantaa, May 6, 2003
ASPOCOMP GROUP OYJ
Board of Directors
For more information, please contact CEO Jarmo Niemi

                                                           8(8)

at +358 9 7597 0711.
ASPOCOMP GROUP OYJ
Jarmo Niemi

President and CEO
DISTRIBUTION:

Helsinki Exchanges

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www.aspocomp.com