Net sales for the period increased 23.1 % totalling EUR 177.8 million
(EUR 144.4 million). The profit before extraordinary items and taxes
increased by 25.8 % to EUR 16.1 million (EUR 12.8 million) and
earnings per share increased by 20.8 % to EUR 1.22 (EUR 1.01).
Aspocomp is expanding in China and Thailand and new business
opportunities are being created through R&D co-operation.
Expectations for sales growth in 2001 are more than 40 % and the
forecast for EBIT-margin exceeds our 10 % long-term target.


Due to the strong growth and increasing demand in the Chinese HDI
(High Density Interconnection) market, Aspocomp has decided to enter
this market. Aspocomp has today signed a Letter of Intent to start a
Joint Venture with the Taiwanese listed company Chin-Poon Industrial
Co., Ltd, which has already constructed a building of 28,000 square
meters in Shanghai area. This plant will be producing HDI-microvia
boards. The production is planned to start during the third quarter
of the year 2001. The transaction is subject to a final agreement
between the parties, which is supposed to be signed before the end of
this year. Aspocomp will own 51 % of the Joint Venture and investment
for Aspocomp would be about EUR 40 million.

In February 2000 Aspocomp acquired 12.5 % of the equity of P.C.B.
Center (Thailand) Co., Ltd., the second biggest printed circuit
producer in Thailand. Aspocomp has an option agreement giving the
right to acquire a majority of the shares in P.C.B. Center during
2001. The Board has decided to use this option so that Aspocomp’s
ownership will be 51 %. Possibilities to use the option before the
end of year 2000 are being studied. P.C.B. Center has a good capacity
utilization, net sales of EUR 24.5 million for the first nine months
of year 2000 and EBIT-margin close to 10 %. P.C.B. Center is planning
to triple its sales during the next three years.


A year ago Aspocomp Group Oyj made an initiative to our key customer,
suppliers and academia to have a research partnership on the future
electronics interconnection technologies and to develop next
generation solutions in a networked organization along the value
chain. The initiative received a very positive response and the
partnership, now called Elitec Consortium, had the kick-off meeting
in September and the activities are now in the ramp-up phase. The
Consortium will focus on creating future interconnection and
packaging technologies for advanced and leading edge electronic
products. The Consortium includes semiconductor manufacturers,
material suppliers, process and equipment manufacturers, our key
customer, academia and Aspocomp as the only printed circuit board
producer in the Consortium. The first Chairman of the Consortium is
Professor, Doctor Jukka Ranta from Aspocomp. Beside of its own
research Aspocomp Group will support Consortium work at Helsinki
University of Technology and other Universities. The whole
partnership will have annually a research effort of about 25 person

Aspocomp also is building and implementing R&D Center in Salo and it
will be ready together with the factory expansion during second
quarter in 2001. It will have clean room facilities, environmental
test facilities, wet process space meeting the standards and
requirements to make research and development in the area of new
imaging technologies, additive technologies, embedded components,
micromechanics and reliability. It will be a vehicle in implementing
the vision of Aspocomp that PCB will turn from a passive
interconnection platform to an active and functional component. The
estimated investment in the R&D Center is EUR 5 million.


Increase in net sales for the entire year is expected to be about 20
% and earnings are expected to be on the same good level as in year
1999. The fourth quarter in 1999 was exceptionally good, both in
sales and in margins. This year, during the third and fourth quarter,
delay of ramp-ups, the strong US Dollar and Japanese YEN and the
increase of material costs as well as the component shortage in
hybrid circuits production are limiting the growth of sales and
margins to the level mentioned above. Expectations for organic sales
growth in 2001 are over 30 %, but including the Asian expansions more
than 40 %, and the forecast for EBIT-margin exceeds our 10 % long-
term target.

The above view is based upon the forecasts for the fourth quarter
performance and forecasts for the year 2001 as of the interim report
publication date.


Net sales totalled EUR 177.8 million for the period from January 1 to
September 30, 2000, compared with EUR 144.4 million during the
corresponding period in the previous year. Other operating income
was EUR 1.7 million (EUR 1.9 million). The share of net sales from
the company’s three biggest customers, Nokia, Ericsson and Philips,
was 62 % (66 %), Nokia being by far the biggest out of these.

Operating profit for the period totalled EUR 16.6 million or 9.3 % of
net sales (EUR 13.8 million; 9.5 %). Operating profit excluding the
costs of the company’s share offering and the costs of preparations
for the above-mentioned expansions in China and Thailand was EUR 17.5
million and the corresponding EBIT margin 9.9 %. Net financial costs
totalled EUR 0.5 million (EUR 1.0 million).

Profit before extraordinary items and taxes was EUR 16.1 million (EUR
12.8 million), an increase of 25.8 %. Pre-tax profit totalled EUR
15.9 million (EUR 12.0 million) and the net profit for the period was
EUR 11.3 million (EUR 8.3 million). Earnings per share totalled EUR
1.22 (EUR 1.01).


The Group’s liquidity remained good even though major investments
were carried out. Gross investments for the period totalled EUR 48.9
million (EUR 23.1 million) or 27.5 % of net sales ( 16.0 %). In the
share offering the company received a total of EUR 85 million and a
net of EUR 81.1 million after deducting the fees. With these funds
the company paid off its short-term interest bearing debts. The rest
of the funds were invested in short-term instruments such as
commercial papers and fixed income funds. Net financial costs as a
percentage of net sales totalled 0.3 % (0.7 %). The equity ratio
increased from the year end figure of 43.9 % to 63.5 % at the period
end (44.2 %).


As of September 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 September 30 a total of
2,701,782 shares with a value of EUR 163,537,853 were traded on the
Helsinki Stock Exchange. The non-domestic share in the ownership
of the stock was 26.9 %, as of the end of the period. The number of
shareholders on September 30 was 1,336. The share price reached a
high of EUR 86.96 and a low of EUR 30.50 between January 1 and
September 30, 2000. The average price was EUR 60.53. The closing
price on September 29, 2000 was EUR 43.50 and the market value of the
capital stock was EUR 441.2 million. European Strategic Investors
Holdings NV announced on May 29, 2000 that its share of Aspocomp
Group Oyj shares decreased to less than 5 % on that date.


The Aspocomp Group 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
international and Finnish 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 and the general public
was offered 60,000 shares and company personnel a total of 10,000
shares. 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 shares 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 Merrill Lynch International, decided to exercise its
right (so-called overallotment option) to increase the number of new
shares available for sale by 180,000 in order to cover the over
subscription of the issue. Consequently 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.
Other expenses related to the share issue totalling 0.7 million euros
were charged directly to the income statement. As of September 30 all
costs related to the share issue have been charged to the profit and
loss 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 560 900 5.53

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 178 700 1.76

Nominee registered shares 2 353 191 23.20


The number of employees averaged 2,031 from January 1 to September
30, 2000, compared to 1,815 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 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 40 % of Aspocomp’s total sales during the period. Growth
compared to the same period in 1999 was 37 %. The expansion project
at the Evreux plant was continued and the new mobile plant will be
ready for production in the summer of 2001. Profit ability was 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 83 % of the 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 also in year 2001.


The Telecom Business Unit provides PCB-related services for telecom
infrastructure customers producing 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. This together with the investments in
Evreux will enable strong growth in 2001. The net sales of the
Telecom Business Unit comprised 27 % of Aspocomp’s total sales during
the period, growing by 34 % compared to the same period in 1999.
Earnings are expected to improve, especially in Evreux. 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 year 2001 are good.


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 use mainly standard
technology. 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. We expect to
gain a competitive advantage in Europe once the switch over to HDI-
technologies gains momentum. Auto & Industry net sales represented 13
% of Aspocomp’s total during the period, decreasing 13 % from the
year 1999 in Europe due to the transferring of production to
Thailand. However, as P.C.B. Center is a minority interest to
Aspocomp, the growth in Auto & Industry Business Unit in Thailand has
not been consolidated in Aspocomp Group figures.


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 before the end of year 2000. Net
sales represented 20 % of the Group total sales, growth being 17 %
compared to the same period in 1999. The shortage of components in
hybrid circuits production is limiting the growth of both the sales
and earnings during the third and fourth quarter. Prospects for the
future are good.

Pro forma Pro forma
1-9/00 1-9/99 1-12/99
NET SALES 177.8 100.0 144.4 100.0 201.3 100.0
Other operating
income 1.6 0.9 1.9 1.3 2.5 1.2
Depreciation and
write-downs 18.7 10.5 14.4 9.9 19.8 9.8

AFTER DEPRECIATION 16.6 9.3 13.8 9.5 21.5 10.7
Financial income
and expenses -0.5 -0.3 -1.0 -0.7 -1.3 -0.7

ITEMS AND TAXES 16.1 9.0 12.8 8.9 20.1 10.0
Extraordinary income 0.0 0.0 0.0
Extraordinary expences -0.2 -0.1 -0.8 -0.6 -0.7 -0.4

PROFIT BEFORE TAXES 15.9 8.9 12.0 8.3 19.4 9.6

PROFIT FOR THE PERIOD 11.3 6.4 8.3 5.7 13.7 6.8

EARNINGS/SHARE, EUR 1.22 1.01 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
9/00 9/99 Change 12/99

Non-current assets
Intangible assets 2.9 2.9 -1.2 3.2
Tangible assets 122.8 82.4 49.0 93.4
Long-term investments 1.1 0.1 – 0.1
Current assets
Inventories 27.9 20.3 37.4 23.4
Receivables 46.1 35.7 29.1 35.0
Short-term investments 31.0 – – –
Cash and bank deposits 15.6 2.5 – 2.3
TOTAL ASSETS 247.3 143.9 71.9 157.4

Shareholders’ equity 157.0 63.5 147.2 69.0
Mandatory reserves 0.8 1.1 -30.4 0.3
Long-term liabilities 35.8 26.2 37.0 37.9
Short-term liabilities 53.7 53.1 1.1 50.2

SHAREHOLDERS’ EQUITY 247.3 143.9 71.9 157.4

EQUITY / SHARE, EUR 15.48 7.24 7.87

EQUITY RATIO, % 63.5 44.2 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 behalf of others 2.2 3.9
Operational leasing liabilities 0.3 0.5
TOTAL 2.5 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, October 27, 2000


Board of Directors

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


Jarmo Niemi
President and CEO

Helsinki Exchanges
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