ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2002

ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE Oct. 31, 2002,8:00 AM 1(9)

ASPOCOMP GROUP INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2002
JULY – SEPTEMBER (Comparable figures, 4-6/2002)

– Net sales for the third quarter grew by 6.2% compared with the

second quarter and totaled EUR 44.8 million (EUR 42.2 million).

– Operating profit totaled EUR 1.6 million (EUR -1.4 million).

– Operative cash flow was EUR 3.7 million (EUR 9.1 million).

– Earnings per share were EUR 0.36 (EUR -0.12).
JANUARY – SEPTEMBER (Comparable figures, 1-9/2001)

– Net sales for the period totaled EUR 131.3 million (EUR 167.8

million).

– Operating loss was EUR 28.0 million (loss of EUR 12.2 million).

– Operating profit without Aspocomp S.A.S was EUR 0.5 million.

– Earnings per share were EUR -2.37 (EUR -1.21).

– Equity ratio was 60.0% (56.5%) and equity per share EUR 10.46 (EUR

14.39).
BUSINESS REVIEW
Production
Aspocomp’s capacity utilization rate for the third quarter was better

than in the first half of 2002. Printed wiring board (PWB) demand is

growing most rapidly in Asia, especially in China. Aspocomp has two

subsidiaries in Asia, P.C.B. Center in Thailand and ACP Electronics

in China, which is located in Suzhou, near Shanghai. During the third

quarter period, approximately 10 new customers, including Nokia,

Kyocera, BenQ and LG Electronics, have already audited and accepted

Aspocomp’s plant in China as their supplier. The production in Asian

units has grown during the period almost 40% compared to the same

period in the previous year.
Product Development
The joint venture companies Asperation Oy (jointly founded with

Perlos) and Imbera Electronics Oy (jointly founded with Elcoteq),

have started their operations during the period under review and

progressed according to plan.
BUSINESS ENVIRONMENT
The outlook for Aspocomp’s main business sector, telecommunications,

remains divided. Handsets have shown moderate signs of recovery, but

infrastructure business is still stagnant. Automotive electronics

proceed with applying HDI technology as reliability and prices

approach the required level.
Price pressures and the uncertainty of end demand are causing

fluctuations in the value chains of communication infrastructure

construction. This fluctuation is amplified towards the upstream end

of the chain, i.e., electronics component manufacturing. In addition

to cost efficiency as a factor of competitiveness, the significance

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of flexibility and short production throughput times will increase.

Even if price pressures are relieved, shorter delivery lead times

have come to stay in the PWB business.
As was forecast at the end of second quarter, capacity cuts have

continued throughout the third quarter. Furthermore, the earlier

forecast of a positive growth rate of 5% for 2002 has been revised to

negative. Only Southeast Asia will grow in terms of net sales. Due to

prevailing price pressure, growth will also be concentrated in this

region during 2003.
GROUP NET SALES AND PROFIT, JULY – SEPTEMBER (Comparable figures 4-6/

2002)
Third-quarter net sales grew by 6.2% and totaled EUR 44.8 million

(EUR 42.2 million, 4-6/2002).
Third-quarter EBITDA increased by 47.7% and totaled EUR 8.9 million

(EUR 6.0 million). EBIT totaled EUR 1.6 million or 3.6% of net sales

(EUR -1.4 million; -3.3%). Earnings per share totaled EUR 0.36 (EUR –

0.12). The increase of tax asset, EUR 2.1 million, recorded for the

period improves EPS. Operative cash flow was EUR 3.7 million (EUR 9.1

million).
GROUP NET SALES AND PROFIT, JANUARY – SEPTEMBER (Comparable figures

1-9/2001)
Net sales totaled EUR 131.3 million for the period from January 1 to

September 30, 2002, compared with EUR 167.8 million during the same

period in the previous year. Other operating income totaled EUR 0.1

million (EUR 0.6 million, 1-9/2001). The share in net sales of the

company’s five biggest customers, Nokia, Sanmina-SCI, Siemens,

Tellabs and Ericsson, was 67%. Net sales by region were as follows:

Finland 35% (58%), rest of Europe 24% (31%), Asia 14% (3%), and the

Americas 27% (8%).
Operating loss for the period totaled EUR 28.0 million or -21.4% of

net sales (EUR 12.2 million; -7.3%). The operating profit for the

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

subsidiary Aspocomp S.A.S. in the first quarter, totaled EUR 0.5

million. Net financial costs totaled EUR 2.3 million (EUR 1.8

million).
The loss before extraordinary items was EUR 30.3 million (loss of EUR

14.0 million). The loss before taxes was EUR 30.3 million (loss of

EUR 14.0 million), and the net loss for the period was EUR 23.7

million (loss of EUR 12.3 million). Earnings per share totaled EUR –

2.37 (EUR -1.21).
BUSINESS UNITS, JULY – SEPTEMBER
Printed Wiring Boards (PWB)
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The third-quarter net sales for the PWB business unit increased by

3.8% compared with the second quarter and totaled EUR 36.1 million

(EUR 34.8 million, 4-6/2002). Despite the summer vacation period, the

net sales for the Mobile segment reached EUR 19.1 million (EUR 18.8

million). The net sales for the Telecom segment totaled EUR 5.6

million (EUR 6.8 million). There were no essential changes in the

demand of the Telecom segment PWBs. The net sales for Auto & Industry

totaled EUR 11.3 million (EUR 9.1 million). The growth of the segment

was gained by the Asian production units.
Electronics Manufacturing Services (EMS)
Net sales for the EMS business unit increased by 17.7% and totaled

EUR 8.8 million (EUR 7.4 million). The growth was due to deliveries

in the second quarter which were transferred to the third quarter

period. There were no essential changes in the total demand.
BUSINESS UNITS, JANUARY – SEPTEMBER
Printed Wiring Boards (PWB)
The downturn in net sales for the PWB business unit was 20.6%

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

the PWB business unit were EUR 106.2 million (EUR 133.7 million, 1-

9/2001). The net sales of the Mobile segment decreased by 12.0% and

totaled EUR 53.9 million (EUR 61.2 million). The net sales of the

Telecom segment declined by 47.4% and totaled EUR 20.1 million (EUR

38.1 million). The downturn in net sales for the Auto & Industry

segment was 6.1% and they totaled EUR 32.3 million (EUR 34.4

million).
ELECTRONICS MANUFACTURING SERVICES (EMS)
The net sales of the EMS business unit decreased by 26.4% and totaled

EUR 25.0 million (EUR 34.0 million, 1-9/2001).
FINANCING, INVESTMENTS AND EQUITY RATIO
The Group’s liquidity during the period under review was good. Net

interest-bearing debt for the nine months period totaled EUR 56.2

million, including EUR 31.7 million in financial leasing liabilities.

Gross investments for the period totaled EUR 14.5 million (EUR 51.5

million) or 11.0% of net sales (30.8%). The investments were

primarily in Asia (EUR 10.2 million). Investments in Finland totaled

EUR 4.3 million, including the share capital in the joint venture

companies Asperation Oy and Imbera Electronics Oy as well as share

buybacks totaling EUR 2.0 million. Net financial costs as a

percentage of net sales totaled 1.7% (1.1%). The equity ratio at the

end of September was 60.0% (56.5%) and 56.5% at the end of 2001.
SHARES AND SHARE CAPITAL
The number of Aspocomp’s issued shares on September 30 was 10,041,026

and the share capital was EUR 10,041,026. 100,000 shares of the total
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issued number were in the possession of the company. The average

number of shares, adjusted by buybacks, was 9,999,356. During the

period extending from January 1 to September 30, a total of 1,712,775

shares with a value of EUR 13,583,496.00 were traded on the Helsinki

Stock Exchange. The nominee-registered proportion of stockholdings

was 16.74% and non-domestic share 0.76% at the end of the period. The

share price reached a high of EUR 13.25 and a low of EUR 4.22 between

January 1 and September 30, 2002. The average price was EUR 7.93. The

closing price on September 30, 2002, was EUR 6.18 and the market

capitalization of the company was EUR 61,435,540.00.
On May 7, 2002, the Board of Directors decided to exercise the

authorization regarding share buybacks by acquiring 100,000 company

shares on the market by the end of June 2002. Information on share

buybacks is given in the table below.
Period of time        Amount         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

shareholdings or voting rights in the company.
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 share buybacks and decide on new

issues and/or convertible loans. The authorizations are valid for one

year from the date of the AGM.
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 was over 5%.
PERSONNEL
The number of employees averaged 3,090 from January 1 to September

30, 2002, compared with 3,347 for the same period in the previous

year. Personnel averaged 3,314 for 2001. At the end of September 2002

there were 2,894 employees in all.
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              Average       Average       Number    Number    Number

               number        number

                2002          2001         2002      2001      2001

           Jan 1-Sep 30   Jan 1-Sep 30    Sep 30    Sep 30    Dec 31

Europe         1,525         1,901        1,093     1,846     1,785

Thailand         897         1,145        1,025     1,025       882

China            668           301          776       438       511

Total          3,090         3,347        2,894     3,309     3,178
The adjustment of personnel amount in the Telecom segment’s PWB

sector and in the EMS business unit continued during the period.
THE WRIT OF SUMMONS FROM FRANCE
In accordance with the lawsuit filed by the administrators of the

French subsidiary Aspocomp S.A.S., Aspocomp Group Oyj submitted its

rebuttal to the Commercial Court in Evreux, France on September 10,

2002. According to the expert opinion available, the writ of summons

and the claims presented therein are unfounded. As a consequence, it

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

profitability position of the company, its balance sheet or financial

position. The case on the suit will resume in January 2003.
The bankruptcy estate calls for the bankruptcy proceedings of the

subsidiary and liability for its debts to be extended to include

Aspocomp Group Oyj.
PROSPECTS
The Aspocomp Group’s EBIT for the latter part of the year is

forecasted to be at least on the level of third quarter. Due to

write-downs during the first quarter, the profit for the 2002 will be

negative.
As a consequence of the overcapacity situation, price pressure

continues in the printed wiring board market. The growth for 2003 is

estimated to be moderate for the Mobile and Auto & Industry segments

in the PWB business unit. No recovery in mobile network investments

is expected to take place in the following year, and as a consequence

of this demand for the Telecom segment in the PWB business unit and

EMS business unit will not experience significant growth. Due to new

customer projects in China, the capacity utilization rate at the

Suzhou plant is expected to increase during the forthcoming quarters.

During next year, the monthly performance of the Suzhou plant is

expected to turn positive. The Aspocomp Group EBIT for 2003 is

expected to be positive and strengthen towards the end of the year.
ASPOCOMP GROUP INCOME STATEMENT, JULY – SEPTEMBER
                         7-9/02         4-6/02       7-9/01

                         MEUR   %      MEUR   %     MEUR   %
NET SALES                44.8  100.0   42.2  100.0   50.3 100.0

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Other operating

income                   -0.1   -0.3   -0.4   -0.8    0.0   0.0

Depreciation and

write-downs               7.2   16.1    7.4   17.6    8.7  17.4
OPERATING PROFIT/LOSS

AFTER DEPRECIATION        1.6    3.6   -1.4   -3.4   -3.4  -6.7

Financial income

and expenses             -0.7   -1.7   -0.8   -1.9   -0.9  -1.8
PROFIT/LOSS BEFORE EXTRAORDINARY

ITEMS AND TAXES           0.9    1.9   -2.2   -5.3   -4.3  -8.5

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  0.9    1.9   -2.2   -5.3   -4.3  -8.5

Minority interest         0.7    1.6    1.5    3.4    0.2   0.5
PROFIT/LOSS FOR THE

PERIOD                    3.7    8.2   -1.2   -2.7   -4.6  -9.1
CASH FLOW STATEMENT, JULY – SEPTEMBER
                                         7-9/02   4-6/02  7-9/01

                                          MEUR     MEUR     MEUR

Net operational cash flow                 3.7      9.1       2.1

Total cash flow from investments         -0.7     -4.8     -27.7

Cash flow before financing                3.1      4.2     -25.6

Total financing                          -5.8    -11.3       1.0

Increase/Decrease in liquid funds        -2.7     -7.1     -24.7

Liquid funds at the end of the period     7.3     10.1      29.5
ASPOCOMP GROUP INCOME STATEMENT, JANUARY – SEPTEMBER
                         1-9/02        1-9/01        1-12/01

                          MEUR   %      MEUR   %     MEUR   %
NET SALES                131.3  100.0  167.8 100.0  221.8  100.0

Other operating

income                     0.1    0.1    0.6   0.4    0.9    0.4

Depreciation and

write-downs               23.1   17.6   26.6  15.8   39.1   17.6
OPERATING PROFIT/LOSS

AFTER DEPRECIATION       -28.0  -21.4  -12.2  -7.3  -27.4  -12.3

Financial income

and expenses              -2.3   -1.7   -1.8  -1.1   -2.6   -1.2
PROFIT/LOSS BEFORE EXTRAORDINARY

ITEMS AND TAXES          -30.3  -23.1  -14.0  -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 -30.3  -23.1  -14.0  -8.4  -29.9  -13.5

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Minority interest          3.0   2.2     1.0   0.6    3.6    1.6
PROFIT/LOSS FOR THE

PERIOD                   -23.7 -18.1   -12.3  -7.3  -26.9  -12.1
EARNINGS PER SHARE, EUR  -2.37        -1.21         -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
                           9/02    9/01   Change    12/01

                           MEUR    MEUR      %       MEUR
Non-Current Assets
Intangible assets            4.2   15.4   -72.7       5.3

Tangible assets            140.5  186.0    24.5     195.3

Investments                  3.0    1.1     –         1.5
Current Assets
Inventories                 21.2   37.2   -42.9      30.7

Receivables                 47.6   50.8    -6.5      39.1

Investments                  0     17.0      –        0.0

Cash and bank deposits       7.3   12.6   -41.6      20.3
TOTAL ASSETS               223.8  320.1   -30.1     292.1
Shareholders’ equity
Share capital               10.0   10.1              10.1

Other shareholders’ equity  94.7  135.5   -30.2     121.5

Minority interest           29.9   35.8   -16.4      33.8

Mandatory reserves           2.7    9.4   -71.3      11.5

Long-term liabilities       45.7   54.4   -15.9      55.1

Short-term liabilities      40.8   74.9   -45.5      60.1
TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY       223.8  320.1   -30.1     292.1
CASH FLOW STATEMENT

                                        1-9/02   1-9/01 1-12/01
                                         MEUR     MEUR     MEUR

Net operational cash flow                8.6      13.7     16.4

Total cash flow from investments       -13.6     -56.0    -72.3

Cash flow before financing              -5.0     -42.2    -55.8

Total financing                         -8.0      38.0     42.3

Increase/Decrease in liquid funds      -12.9      -4.2    -13.5

Liquid funds at the end of the period    7.3      29.5     20.3

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KEY FIGURES

                                    9/02     9/01      12/01
Equity/share, EUR                  10.46    14.39      13.01
Equity ratio, %                    60.0     56.5       56.5
Gearing, %                         42.0     28.8       35.7
Gross investments, MEUR            14.5     51.5       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
                                 9/02         12/01

                                 MEUR          MEUR

Securities on Group liabilities   2.1           3.2

Operational leasing liabilities   0.1           0.2

Other liabilities                 0.3           0.3

TOTAL                             2.5           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, October 31, 2002
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

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