Net sales for the first six months of the year increased 25.3 %
totalling EUR 122.2 million (EUR 97.5 million), the profit before
extraordinary items and taxes increased 40.0 % totalling EUR 12.5
million (EUR 8.9 million) and earnings per share were EUR 0.98 (EUR
0.70). Increase in net sales and earnings for the entire year is
expected to continue at the same rate.


Net sales totalled EUR 122.2 million for the period from January 1 to
June 30, 2000, compared with EUR 97.5 million during the
corresponding period the previous year. Other operating income
totalled EUR 1.1 million (EUR 1.3 million). The share of net sales
from the company’s three biggest customers, Ericsson, Nokia and
Philips, was 63 %. Direct exports from Finland totalled EUR 12.4
million (EUR 11.0 million) and offshore net sales totalled EUR 35.4
million (EUR 27.8 million).

Operating profit for the period totalled EUR 13.3 million or 10.8 %
of net sales (EUR 9.6 million; 9.8 %). The operating profit excluding
the costs of the company’s share offering would have been EUR 14.0
million and the corresponding EBIT 11.4 %. Net financial costs
totalled EUR 0.7 million (EUR 0.7 million).

The profit before extraordinary items and taxes was EUR 12.5 million
(EUR 8.9 million). The pre-tax profit totalled EUR 12.3 million (EUR
8.9 million) and the net profit for the period was EUR 8.6 million
(EUR 6.1 million). Earnings per share totalled EUR 0.98 (EUR 0.70).


The Group’s liquidity remained good even though major investments
were carried out. Gross investments for the period totalled EUR 29.7
million (EUR 11.0 million) or 24.3 % of net sales (11.3 %). During
the period a share offering was organized. In that issue the company
received a total of EUR 85 million and a net of EUR 81.1 million
after deducting the fees. Immediately after receiving the funds from
the issue the company paid off its short-term debts. The rest of the
funds were invested in short-term instruments such as commercial
paper and fixed income funds. Net financial costs as a percentage of
net sales totalled 0.6 % (0.7 %). The equity ratio increased from the
year end figure of 43.9 % to 62.7 % at the period end (44.7 %).


As of June 30 the company’s share capital totalled EUR 10,141,926
with a total 10,141,926 shares outstanding. As a result of the share
issue the share capital rose from 8,770,416 by 1,191,510 to 9,961,926
on May 29 and by 180,000 to 10,141,926 on June 7.
During the period extending from January 1 to June 30 a total of
2,193,431 shares with a value of EUR 135,175,834.68 were traded on
the Helsinki Stock Exchange. The non-domestic share in the ownership
of the stock was 27.5 %, as of the end of the period. The share price
reached a high of EUR 86.96 and a low of EUR 30.50 between January 1
and June 30, 2000. The average price was EUR 61.63. The closing price
on June 30, 2000 was EUR 60.00 and the market value of the capital
stock was EUR 608.5 million. European Strategic Investors Holdings NV
announced on May 29, 2000 that its share of Aspocomp Group Oyj shares
decreased to under 5 % on that date.


The Aspocomp Oyj Board made a decision on May 2, 2000 on the basis of
the authorization granted at the shareholders’ meeting of March 17,
2000, to carry out a share issue and offering aimed at Finnish and
international institutional investors, as well as the general public
in Finland and the Group’s personnel. Merrill Lynch International
operated as the international manager and Conventum Corporate Finance
Oy acted as the main domestic organizer. The share issue comprised a
total maximum issuance and sale of 1,200,000 shares including a total
maximum of 570,000 shares held by two Aspocomp Group Oyj
shareholders, the Kaleva Mutual Insurance Company and European
Strategic Investors Holdings NV.
The institutional private placement offered investors a total of
1,700,000 shares for purchase and subscription between May 2 and
May 23, 2000. The general public was offered 60,000 shares and
company personnel a total of 10,000 shares between May 8 and May 12,
2000. On May 23, 2000, a price of 62 euros was established for the
institutional and public issues, while the price for personnel was
fixed at 55.80 euros. Of the shares issued and sold, 73 % were
allocated to international investors and 27 % to Finnish investors. A
total of 1,745,960 shares were allocated to institutional investors,
14,040 shares to the general public and 1,510 to the personnel. The
increase in the share capital of Aspocomp Group Oyj resulting from
the share issue from 8,770,416 euros to 9,961,926 euros was
registered on May 29, 2000. The shares were quoted on the main list
of the Helsinki Stock Exchange as of May 30, 2000.

On June 5, 2000 the main organizer of the Aspocomp Group Oyj share
issue, Merrill Lynch International, decided to exercise its right to
increase the number of new shares available for sale by 180,000 in
order to cover the over subscription of the issue. As a consequence
of this action the company’s share capital rose by 180,000 euros to
10,141,926 euros. The increase was registered on June 7, 2000 and
shares were quoted on the Helsinki Stock Exchange from June 8, 2000.
In the aftermath of the share issue, the Board is still authorized to
issue a total of 382,573 shares of the 1,754,083 shares contained in
the original authorization. The issued shares carry the same rights
and privileges as the company’s other outstanding shares, including
dividend rights for the period ending December 31, 2000, as well as
dividend rights for later periods. The total amount of funds
generated by the issue and sale of the new shares comes to 85 million
euros before organizing fees and other expenditure. The company’s
intention is to use these funds to finance operational expansion in
Europe, as well as to finance investments and acquisitions in Asia.
The company paid a fee to the share issue organizers totalling 3.9
million euros. The organizers are to pay the costs associated
with the issue and sale of the shares from this sum and the fees paid
to them have been deducted from the share issue premium. Other
expenses related to the share issue totalling 0.7 million euros were
charged directly to the income statement.

Number of Holdings
Shares and Votes %
Sampo Group
Sampo Life Insurance Company Limited 460 726 4.54
Sampo Insurance Company Plc 314 000 3.10
Sampo Enterprise Insurance Company Limited 300 000 2.96
Industrial Insurance Company Ltd 200 000 1.97

1 274 726 12.57

Nyberg H.B. 820 000 8.09

Pohjola Group
Pohjola Non-Life Insurance Company Limited 387 810 3.82
Suomi Mutual Life Assurance Company 209 400 2.06
Pohjola Life Assurance Company Ltd 153 500 1.51

750 710 7.39

Varma-Sampo Mutual Insurance Company 547 200 5.40

Vehmas A.E. 398 456 3.93

Vehmas Tapio 374 146 3.69

Vehmas Liisa 333 130 3.28

European Strategic Investors Holdings N.V. 256 000 2.52

Estlander Henrik 242 146 2.39

FIM Forte Investment Fund 173 700 1.71

Nominee registered shares 2 424 918 23.91


The number of employees averaged 2,023 from January 1 to June 30,
2000, compared to 1,740 for the same period the previous year.
Personnel averaged 1,886 for 1999.
Professor Jukka-Pekka Ranta, Doctor of Technology, was appointed Vice
President, Strategic Planning and Research and Development for
Aspocomp Group Oyj effective September 1, 2000. Ranta resigned from
his position as member and Chairman of the Board in connection with
this appointment, beginning on July 1, 2000. The Board elected Mr.
Jorma Eloranta as Chairman of the Board and Mr. Karl Van Horn as
Vice-Chairman, effective from the same date.


The Aspocomp Group´s net sales are expected to improve significantly
during the year 2000 compared to 1999, at the same rate as during the
first half of the year. Earnings are expected to improve even more
than net sales. Favourable industry prospects and improved
productivity are expected to outweigh the price erosion in all areas
of operation. It must however be remembered that the traditional
volatility of the electronics industry limits the reliability of

The above view is based upon the forecasts for the full year end
performance as of the interim report publication date. The
materialization of these forecasts is dependent on external factors
such as domestic and in particular international macro-economic
development and customer-related industry conditions and



The Mobile Business Unit (BU) provides Printed Circuit Board (PCB) –
related high technology services for mobile phone customers. The
Business Unit has production in Salo, Finland and Evreux, France. Its
ongoing investment program includes new buildings and new machinery
in both production facilities.
Net sales for the Business Unit comprised 43 % of Aspocomp’s total
during the period. The first phase of the expansion project at the
Salo plant has been completed and the second phase will be completed
by September 2000. The expansion project at the Evreux plant was
continued and the new mobile plant will be ready for production in
the summer of 2001. Profits were good in spite of the ramping up of
new investments. The company has committed to a very strong shift
towards the new microvia-technology. Already about 72 % of this
Business Unit’s sales was generated from this cutting edge High
Density Interconnection (HDI) -technology, during the period. The
shift to HDI is a trend that supports the company’s strategic
competitiveness. We expect strong volume growth to continue in the
near future as well.


The Telecom Business Unit provides PCB-related services for telecom
infrastructure customers producing e.g. base stations for mobile
phone networks. The Unit has production in Finland (Oulu, Teuva,
Padasjoki, Espoo) and in France (Evreux). The investment program in
the Finnish factories has been completed and will be commissioned
during the last half of the year. The net sales of the Telecom
Business Unit comprised 25 % of Aspocomp’s total net sales during the
period. Earnings were negative because of extra costs resulting from
the execution of the investment program in Finland. We expect
earnings to return to a satisfactory level during the second half of
the year. Both the sales growth and demand have been good. Demand for
HDI-products is growing as new applications like wideband (W-CDMA)
base stations are ramping up. As HDI-demand increases, the
competitiveness of our services will rise. Prospects for the
immediate future appear promising at the moment.


The Auto & Industry Business Unit provides PCB-related services for
automotive and industrial customers. The Unit has production in
Finland (Teuva and Padasjoki) and in France (Evreux). Currently,
products in the Auto and Industry segment are mainly standard
technology products. Transferring the production to Thailand will
continue and the standard technology products of the Auto & Industry
Business Unit will be produced by P.C.B. Center (Thailand) Co., Ltd.,
the company in which Aspocomp acquired a 12.5 % share in February
this year. Aspocomp has an option agreement giving the right to
acquire majority of the shares in P.C.B. Center during 2001.
We expect to gain a competitive advantage in Europe once the industry
begins to switch over to HDI-technologies. Auto & Industry net sales
represented 13 % of Aspocomp’s total during the period. Earnings were
negative. We expect losses to be significantly reduced after the
transfer of certain products to Thailand during the second half of
the year.


The EMS Business Unit provides focused services in thick film hybrid
circuits and mechanical assemblies mainly to the same customers as
the Telecom and Mobile Units. EMS has production in Finland
(Klaukkala and at two sites in Oulu). Our investment plan calls for
an increase in capacity and the consolidation of all production in
the Oulu area into one facility. Net sales represented 19 % of the
Group total. The growth rate was good and earnings were satisfactory.
Prospects for the immediate future are good.


In the electronics industries the experience shows that research and
development as well as investments in new technologies have been
critical success and profitability factors. Likewise in the PCB
industry now and in the future technology development and utilization
of new technologies will bring competitive advantages and
Aspocomp will be investing more aggressively in the development and
launching of new PCB technologies in order to strengthen our position
as a technology ground breaker. Research and development activities
in the electronics sector are in the process of decentralizing, as
internal processes are outsourced and the need for vertical
integration declines.
Aspocomp’s goal is in fact to use its own development activities to
co-ordinate resources from universities, research institutes and
material and equipment suppliers worldwide in order to create a
greater value-added research for our customers. At the same time we
will attempt to incorporate the latest supply chain management know-
how into our operational processes.

Pro forma Pro forma
1-6/00 1-6/99 1-12/99

NET SALES 122.2 100.0 97.5 100.0 201.3 100.0
Other operating
income 1.1 0.9 1.3 1.4 2.5 1.2
Depreciation and
write-downs 12.2 10.0 9.4 9.6 19.8 9.8

AFTER DEPRECIATION 13.3 10.8 9.6 9.8 21.5 10.7
Financial income
and expenses -0.7 -0.6 -0.7 -0.7 -1.3 -0.7

ITEMS AND TAXES 12.5 10.2 8.9 9.2 20.1 10.0
Extraordinary income 0.0 0.0 0.0
Extraordinary expences -0.2 -0.2 0.0 -0.7 -0.4

PROFIT BEFORE TAXES 12.3 10.1 8.9 9.2 19.4 9.6

PROFIT FOR THE PERIOD 8.6 7.1 6.1 6.3 13.7 6.8

EARNINGS/SHARE, EUR 0.98 0.70 1.64

Figures are unaudited.

Accrued taxes for this interim period have been calculated in
accordance with the corporate tax rate in force during the period
under review and include taxes brought forward from earlier periods.
The calculation of earnings/share excludes taxes on extraordinary

Pro forma Pro forma
6/00 6/99 Change 12/99

Non-current assets
Intangible assets 2.9 3.0 -1.1 3.2
Tangible assets 111.0 75.0 48.0 93.4
Long-term investments 1.2 0.2 – 0.1
Current assets
Inventories 28.2 19.7 42.8 23.4
Receivables 43.4 37.4 16.4 35.0
Short-term investments 49.8 – – –
Cash and bank deposits 9.6 2.1 – 2.3
TOTAL ASSETS 246.1 137.4 79.1 157.4

Shareholders’ equity 154.4 61.4 151.3 69.0
Mandatory reserves 0.3 0.3 – 0.3
Long-term liabilities 34.6 23.9 44.8 37.9
Short-term liabilities 56.8 51.8 9.7 50.2
SHAREHOLDERS’ EQUITY 246.1 137.4 79.1 157.4

EQUITY / SHARE, EUR 15.22 7.00 7.87

EQUITY RATIO, % 62.7 44.7 43.9

Figures are unaudited.

Accumulated excess depreciation and voluntary reserves totalling EUR
14.0 million have been divided among shareholders’ equity and nominal
tax liabilities.
Pro forma

Securities on Group liabilities 3.9 3.9
Operational leasing liabilities 0.5 0.5
TOTAL 4.4 4.4

The figures for the comparative year are pro forma. The calculation
principles for the pro forma figures have been presented in the 1999
Aspocomp Group Annual Report.

Helsinki, July 28, 2000


Board of Directors

For more information, please contact CEO Jarmo Niemi,
at +358 9 759 70711.


Jarmo Niemi
President and CEO

Helsinki Exchanges
Press and Media