Glaston Interim Report 1 January - 30 September 2008


                        
GLASTON CORPORATION        Stock Exchange Release      24.10.2008
9.00 a.m.


Glaston Interim Report 1 January - 30 September 2008

- Orders received in January-September totalled EUR 152.9 (170.7)
million.
- The order book on 30 September 2008 was EUR 82.6 (125.7) million.
- In January-September, the Group's net sales grew by 11% from the
corresponding period the previous year to EUR 201.5 (181.0) million.
Third quarter net sales totalled EUR 65.8 (57.3) million.
- Operating profit in January-September before non-recurring items
was EUR 6.5 (9.5) million, i.e. 3.2 (5.2) % of net sales. Third
quarter operating profit was EUR 1.1 (4.0) million, i.e. 1.6 (6.9) %
of net sales. *)
- Return on capital employed (ROCE) was 6.2 (6.4)%.
- Earnings per share in January-September were EUR 0.04 (0.04).
- Glaston expects full-year net sales to be at the previous year's
level and operating profit to be below the 2007 figure.

*) 1-9/2007 non-recurring items EUR -7.3 million.

President & CEO Mika Seitovirta:"The market situation weakened significantly during the third
quarter and in the last week of September we lowered our operating
profit forecast for 2008. Demand for the Group's products in the
Middle East and South America, however, continues to be strong.
Demand in the One-Stop-Partner and particularly the solar energy
market continued to be relatively good, but customers'
decision-making times have lengthened, influencing the Group's order
intake. In North America, demand was still weak and no signs of
recovery in the near future are perceptible.

The profitability of the Heat Treatment and Software Solutions
business areas was good. The financial performance of the
Pre-processing business area fell significantly short of
expectations. Service Solutions' maintenance business sales developed
positively, with product upgrades and the new maintenance contract
concept playing a key role.

The productivity of Glaston's glass processing unit, which operates
in Finland, improved in the third quarter and restructuring is
proceeding according to plan.

The incorporation of Albat+Wirsam into the Group has been completed
in all areas. Utilising Albat+Wirsam software, machines manufactured
by Glaston have been integrated to operate together effectively in
solutions serving the architectural and solar energy markets. In
October, new products were presented at Glasstec, the glass
industry's leading fair.

We expect Glaston's full-year net sales to be at the previous year's
level and operating profit to be below the 2007 figure."


Markets
Glaston's market situation weakened during the final month of the
quarter. The strong downturn in the North American market continued.
The development of the Asian market took an unfavourable turn. Demand
in the South American market continued to grow, and demand for safety
glass machines in the EMEA area was good.

Pre-processing
The slow-down in the market that began at the end of the previous
quarter continued during the third quarter. This negative trend was
reflected in orders received and in the business area's result. In
addition to North America, demand also weakened in the EMEA area. The
South American market developed positively, however.

Orders received in the review period totalled EUR 45.1 (49.9)
million. Net sales totalled EUR 66.1 (65.6) million in
January-September.

To reinforce its market position, the restructuring and strengthening
of the Pre-processing business area's sales organisation continued,
with the focus being on the EMEA area.

Assembly of Bavelloni cutting tables and lines began at the Tianjin
factory in China and the first products were delivered to the local
market during the third quarter. These actions represented the first
steps towards a new localised production range through which the
Group will be better able to meet local market needs in China and
grow its operations in low cost countries.

The emphasis in product development was on product integration and on
new products directed at the architectural and solar energy markets.
New products, including a cutting machine, edge grinding machine and
tools, were presented at Glasstec, the industry's leading fair, in
October. Pre-processing machines that operate with Albat+Wirsam
software were also presented for the first time at the fair.

Heat Treatment
The Heat Treatment business area's market situation weakened
substantially at the end of the review period. Uncertainty about
economic development and particularly the instability of the
financial markets caused customers to delay decisions in a number of
market areas. In the EMEA area and in South America especially,
demand continued to be strong, however. Activity in the solar energy
glass market remained strong throughout the entire review period. To
strengthen Heat Treatment's market position, measures to increase
production of its machines in China were continued.

In product development, the emphasis was on products aimed at the
manufacture of solar energy glass. A marketing campaign was initiated
for the CHF Pro, a continuously operating flat tempering machine
aimed at the architectural and solar energy glass segment. The
product was presented in October at the glass industry's main event,
the Glasstec Fair. The building of a global sourcing organisation was
continued by strenghtening resources in China.

January-September net sales totalled EUR 114.1 (109.5) million.
Business profitability developed favourably compared with the
corresponding period in 2007. The number of orders received by the
Heat Treatment business area was lower than in the corresponding
period last year. Orders received in January-September totalled
EUR 96.7 (119.1) million. Most of the new orders came from the EMEA.

During the review period, Glaston and Solel announced a joint project
to manufacture parabolic solar reflectors on Glaston's machines.

As part of the re-orientation of Tamglass Glass Processing's
operations, the glass processing unit initiated production at its
Akaa factory in the late summer. The Akaa facility has two machine
lines for the production of solar panels.

Software Solutions
The Software Solutions business area's excellent development
continued during the third quarter.
During the quarter, the Central European market developed positively,
which was reflected in the number of orders. Demand outside Europe
has grown, particularly in the Middle East, the APAC area and in
China. The North American market showed no signs of recovery during
the review period, but business in South America developed
positively.

January-September net sales totalled EUR 21.5 million and in the
third quarter EUR 7.8(7-9/2007: 6.8) million. Orders received
totalled EUR 11.1 (1.6) million.

One-Stop-Partner
Demand for integrated solutions continued to be good in Eastern and
Southern Europe, Asia and the APAC area. In these markets, investment
is directed at glass processing production projects. The OSP concept
for the needs of solar energy customers was well received in the
market. Customers have shown particular interest in flat panels and
Glaston's bending technology.
The global economic uncertainty has affected the willingness of OSP
customers to invest. In addition, decision-making times have
lengthened substantially. Total sales for One-Stop-Partner joint
deliveries were EUR 20.5 (36.7) million during the review period. The
unit's earnings are included in the officially reported segments.

Orders received
Glaston's order intake during the financial period was EUR 152.9
(170.7) million. Of orders received, Heat Treatment accounted for
63%, Pre-processing 30% and Software Solutions 7%.

Orders received during the third quarter totalled EUR 37.8 million.


Geographical distribution of orders received, EUR million


+-------------------------------------------+
|         | 1-9/2008 | 1-9/2007 | Change, % |
|---------+----------+----------+-----------|
| EMEA    |    104.9 |    108.3 |      -3.3 |
|---------+----------+----------+-----------|
| America |     28.0 |     35.0 |     -25.0 |
|---------+----------+----------+-----------|
| Asia    |     20.0 |     27.4 |     -36.6 |
|---------+----------+----------+-----------|
| Total   |    152.9 |    170.7 |     -11.6 |
+-------------------------------------------+



Order book
Glaston's order book on 30 September 2008 was EUR 82.6 (125.7)
million. The Heat Treatment business area accounted for EUR 59.0
million of the order book, Pre-processing for EUR 19.1 million and
Software Solutions for EUR 4.5 million.



+-------------------------------------------------+
| Order book, EUR million | 30.9.2008 | 30.9.2007 |
|-------------------------+-----------+-----------|
| Pre-processing          |      19.1 |      24.4 |
|-------------------------+-----------+-----------|
| Heat Treatment          |      59.0 |      92.6 |
|-------------------------+-----------+-----------|
| Software Solutions      |       4.5 |       8.6 |
|-------------------------+-----------+-----------|
| Total                   |      82.6 |     125.7 |
+-------------------------------------------------+



Net sales and profit
Glaston's net sales in January-September were EUR 201.5 (181.0)
million. Pre-processing's net sales were EUR 66.1 (65.6) million,
Heat Treatment's net sales EUR 114.1 (109.5) million and Software
Solutions' net sales EUR 21.5 (6.8) million.

Third-quarter net sales were EUR 65.8 (57.3) million.
Pre-processing's net sales were EUR 20.0 (20.6) million, Heat
Treatment's net sales EUR 37.2 (30.2) million and Software Solutions'
net sales EUR 7.8 (6.8) million.



+----------------------------------------------------------+
| Net sales, EUR million | 1-9/2008 | 1-9/2007 | 1-12/2007 |
|------------------------+----------+----------+-----------|
| Pre-processing         |     66.1 |     65.6 |      94.1 |
|------------------------+----------+----------+-----------|
| Heat Treatment         |    114.1 |    109.5 |     162.3 |
|------------------------+----------+----------+-----------|
| Software Solutions     |     21.5 |   6.8 *) |      14.7 |
|------------------------+----------+----------+-----------|
| Parent company, elim.  |     -0.2 |     -0.9 |      -1.3 |
|------------------------+----------+----------+-----------|
| Total                  |    201.5 |    181.0 |     269.8 |
+----------------------------------------------------------+

*) Software Solutions 7-9/2007

Operating profit in January-September excluding non-recurring items
was EUR 6.5 (9.5) million, i.e. 3.2 (5.2)% of net sales. Third
quarter operating profit was EUR 1.1 (4.0) million.

Pre-processing's operating result excluding non-recurring items was
EUR -1.8 (1.2) million in the review period and EUR -1.6 (0.3)
million in the third quarter. The weak profit development is
explained by intensifying price competition resulting from the market
situation as well as a poor sales structure.

Heat Treatment's operating profit excluding non-recurring items was
EUR 10.5 (11.9) million in the review period and EUR 3.3 (3.2)
million in the third quarter. Tamglass Glass Processing's losses were
lower in the third quarter but the company's operating loss, EUR -3.6
million, continues to burden significantly the result of both Heat
Treatment and the whole of Glaston. The restructuring of Tamglass
Glass Processing's operations will be more effectively continued in
the final quarter of the year.

Software Solutions' operating profit was EUR 3.6 (1.6) million in the
review period and EUR 1.4 (1.6) million in the third quarter.



+-------------------------------------------------------------------+
| Operating profit, EUR million   | 1-9/2008 | 1-9/2007 | 1-12/2007 |
|---------------------------------+----------+----------+-----------|
| Pre-processing                  |     -1.8 |      1.2 |       1.4 |
|---------------------------------+----------+----------+-----------|
| Heat Treatment                  |     10.5 |     11.9 |      19.6 |
|---------------------------------+----------+----------+-----------|
| Software Solutions              |      3.6 |      1.6 |       2.6 |
|---------------------------------+----------+----------+-----------|
| Parent company, elim.           |     -5.8 |     -5.2 |      -7.0 |
|---------------------------------+----------+----------+-----------|
| Total                           |      6.5 |      9.5 |      16.6 |
|---------------------------------+----------+----------+-----------|
| Non-recurring items             |        - |     -7.3 |      -4.6 |
|---------------------------------+----------+----------+-----------|
| Operating profit after          |      6.5 |      2.1 |      12.0 |
| non-recurring items             |          |          |           |
+-------------------------------------------------------------------+


The January-September profit was EUR 3.1 (2.7) million. Return on
capital employed (ROCE) was 6.2 (6.4)%. Earnings per share were
EUR 0.04 (0.04). Earnings per share in the third quarter were
EUR -0.01 (0.03)

Financing
The Group's financial position was good. The equity ratio on
30 September 2008 was 48.3 (54.0)%. Glaston's Continuing Operations'
cash flow from operating activities was EUR -13.7 (3.2) million and
cash flow from investing activities was EUR -10.3 (-24.4) million.

Cash flow from financing in January-September was EUR 27.9 (8.8)
million, including dividends paid in the review period of EUR 7.8
(7.1) million.

The Group's liquid funds on 30 September 2008 totalled EUR 15.7
(16.4) million. Interest-bearing net debt totalled EUR 43.9 (13.1)
million and net gearing was 32.4 (9.9)%.

Capital expenditure
Capital expenditure in the review period totalled EUR 13.6 (29.9)
million. The most significant capital expenditure items were again in
the global ERP project and particularly in product development.

Organisation and personnel
In January  Henrik Reims was appointed SVP, OSP Deliveries and in May
Timo Nieminen was appointed SVP, Service Solutions. Both are members
of Glaston's Executive Management Group. Timo Rautarinta was
appointed Managing Director of Glaston's glass processing unit
Tamglass Glass Processing Oy as of March 2008.

To streamline Finnish operations, Glaston Service Oy's business
operations were transferred on 1 January 2008 to Glaston Finland Oy.
The transfer had no impact on the number of personnel. Albat+Wirsam
France S.A. was merged with Glaston Finland France S.A.R.L. at the
end of June.

On 30 July 2008, as part of its restructuring programme, Glaston's
Tamglass Glass Processing Ltd, which operates in Finland, initiated
statutory employer-employee negotiations, which ended on 10 September
2008. As a result of the negotiations, the glass processing unit will
discontinue its working machine and special automotive glass
operations and strengthen its architectural glass operations.
Operations at the Pihtipudas unit will cease at the end of the year
and the fixed-term employment of 17 people will end. In terms of the
working machine and special automotive glass operations to be
discontinued, the primary adjustment measure is a three-month lay-off
period for ten employees during winter 2008/2009. The need for
redundancies will be examined further in early 2009.

On 30 September 2008, Glaston Corporation had a total of 1,534
(1,425) employees, of whom 30% were in Finland and 47% elsewhere in
Europe, mainly in Germany and Italy. The proportion of Group
employees working in Asia was 10% and in the Americas 13%. The
average number of employees was 1,507 (1,270).

Shares and share prices
Glaston Corporation's paid-up share capital on 30 September 2008 was
EUR 12.7 million and the number of issued shares totalled 79,350,000.
The company has one series of share.
At the end of September, the company held 809,793 of the company's
own shares, corresponding to 1% of the total number of issued shares
and votes. The counter book value of the own shares held by the
company is EUR 129,567.
Every share that the company does not hold itself entitles to one
vote at the Annual General Meeting. The share has no nominal value.
During January-September, a total of 1,940,451 of the company's
shares were traded, representing 2.5% of the average number of
shares. The lowest price paid for a share was EUR 2.02 and the
highest price EUR 3.33. The average price during the period was
EUR 2.96 and the closing price EUR 2.02.
The equity per share attributable to owners of the parent was
EUR 1.73 (1.68).
Decisions of the Annual General Meeting
The company's Annual General Meeting was held on 11 March 2008. The
meeting approved the financial statements for 2007 and released the
Board of Directors and the President and CEO from liability for the
financial year.
The meeting also approved the Board of Directors' proposal to pay a
dividend of EUR 0.10 per share, a total of EUR 7.8 million.

Annual General Meeting confirmed that the following will continue on
the Board of Directors for a year-long term of office: Claus von
Bonsdorff, Klaus Cawén, Carl-Johan Rosenbröijer, Christer Sumelius
and Andreas Tallberg. Uponor Oyj's President and CEO Jan Lång and
Cargotec Oyj's President and CEO Mikael Mäkinen were elected new
members of the Board of Directors. The Annual General Meeting
re-elected as auditor the authorised public accounting firm KPMG Oy
Ab, with the responsible auditor being Sixten Nyman, APA.



Acquisition and disposal of own shares
The 2007 Annual General Meeting authorised the Board of Directors to
acquire the company's own shares up to a maximum of 7,605,096 shares.
The authorisation is valid until the end of the 2009 Annual General
Meeting and remains unexercised in respect of 7,021,500 shares.
During January-September, the company did not acquire its own shares.
The Annual General Meeting also decided to authorise the Board of
Directors to decide on the disposal of own shares in the company's
possession (treasury shares). On 23 April 2008, the company
transferred 103,707 treasury shares to personnel included in the
Group's share-based incentive scheme. The counter book value of the
transferred shares was EUR 16,593.
The Board of Directors has no other authorisations.
Uncertainties in the near future
The Group considers that the most significant uncertainties in the
near future relate to worldwide economic development as well as the
price development and availability of raw materials and components.
The rapidly expanding financial market crisis may have a significant
impact on the willingness of Glaston's customers to invest. The
deteriorating market prospects will also affect the Group's large
comprehensive deliveries. Fluctuations in foreign exchange rates,
particularly the US dollar exchange rate, have an impact on the
Group's result.
Outlook
Strong changes in the operating environment will be reflected in
Glaston's operations in the latter part of the year. The outlook is
reasonably positive in the Middle East and South America. In the
United States market, demand will continue to be weak and no rapid
recovery is expected. Due to the geographical spread of the Group's
operations, the economic cycles of Europe, Asia and the Americas will
partly balance each other.
The architectural glass segment and the solar energy market create a
foundation for the Group's growth. Demand for integrated, efficient
solutions still exists, but the changing market had an impact on
customers' willingness to invest, and decision-making times have
lengthened significantly.
On 26 September, Glaston announced in a separate stock exchange
release that it was lowering its profit forecast for the current
year. At the same time, the Group stated that it had initiated
efficiency measures to improve profitability. Glaston will outline
the content of this programme and its affect on profitability by the
end of October.

Glaston expects full-year net sales of 2008 to be at the previous
year's level and operating profit of 2008 to be below the 2007
figure.


Helsinki, 24 October 2008
Glaston Corporation
Board of Directors




Sender:
Glaston Corporation
Kimmo Lautanen
Chief Financial Officer
Tel. +358 10 500 500


Agneta Selroos
IR and Communications Manager
Tel. +358 10 500 500



Further information:
President & CEO Mika Seitovirta, tel: +358 10 500 500
Chief Financial Officer Kimmo Lautanen, +358 10 500 500



Glaston Corporation

Glaston Corporation is a growing, international glass technology
company.  Glaston is the global market leader in glass processing
machines, and a comprehensive One-Stop-Partner supplier to its
customers.  Its product range and service network are the widest in
the industry.  Glaston's well-known brands are Bavelloni in
pre-processing machines and tools, Tamglass and Uniglass in safety
glass machines, and Albat+Wirsam Software in glass industry software.

Glaston's own glass processing unit, Tamglass Glass Processing, is a
local Finnish manufacturer of high quality safety glass products.

Glaston's share (GLA1V) is listed on the NASDAQ OMX Nordic Exchange
Helsinki Mid Cap List.
www.glaston.net


Distribution:
OMX
Main media
www.glaston.net




GLASTON CORPORATION

CONDENSED INTERIM FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 30
SEPTEMBER 2008

These condensed interim financial statements are not audited. As a
result of rounding differences, the figures presented in the tables
may not add up to the total.


CONDENSED INCOME STATEMENT

                                      7-9/  7-9/   1-9/   1-9/  1-12/
EUR million                           2008  2007   2008   2007   2007

Net sales                             65.8  57.3  201.5  181.0  269.8
Other operating income                 0.0   0.0    0.4    0.3    0.6
Expenses                             -62.3 -51.5 -188.9 -167.3 -246.6
Share of joint ventures' result        0.0     -    0.0      -      -
Depreciation, amortization and
impairment                            -2.5  -1.8   -6.5   -4.6   -7.2
Non-recurring items                      -   0.0      -   -7.3   -4.6
Operating profit / loss                1.1   4.0    6.5    2.1   12.0
Operating profit / loss, excluding
non-recurring items                    1.1   4.0    6.5    9.5   16.6
Gain from sale of assets held for
sale                                   0.0     -    0.1      -      -
Other net financial items             -1.1  -0.1    0.1    0.2    0.0
Result before income taxes             0.0   3.8    6.7    2.3   12.0
Income taxes                          -0.6  -2.1   -3.6   -3.4   -5.2
Net result, continuing operations     -0.6   1.7    3.1   -1.1    6.9
Net result, discontinued operations      -   0.8      -    3.8    3.8
Profit / loss for the period          -0.6   2.5    3.1    2.7   10.6
Attributable to:
Non-controlling interests              0.0   0.0    0.0    0.0    0.0
Owners of the parent                  -0.6   2.5    3.1    2.7   10.6
Total                                 -0.6   2.5    3.1    2.7   10.6

Earnings per share, EUR, continuing
operations                           -0.01  0.02   0.04  -0.01   0.09
Earnings per share, EUR,
discontinued operations                  -  0.01      -   0.05   0.05
Earnings per share, EUR, total       -0.01  0.03   0.04   0.04   0.14

Operating profit / loss, as % of net
sales                                  1.6   6.9    3.2    1.2    4.5
Operating profit / loss,
non-recurring items excluded, as %
of net sales                           1.6   6.9    3.2    5.2    6.2
Profit / loss for the period, as %
of net sales                          -0.9   4.4    1.5    1.5    3.9




CONDENSED BALANCE SHEET
EUR million                            30.9.2008 30.9.2007 31.12.2007

Assets
Non-current assets
Property, plant and equipment               37.4      31.9       32.5
Goodwill                                    66.3      67.4       67.4
Other intangible assets                     20.3      19.3       19.6
Joint ventures                               0.8       0.8        0.8
Available-for-sale assets                    0.1       0.2        0.3
Other non-current assets                     0.1       0.5          -
Deferred tax assets                          3.9       4.9        4.4
Total non-current assets                   129.0     124.9      125.0
Current assets
Inventories                                 59.6      55.2       46.2
Receivables
Trade and other receivables                 92.5      75.6       91.3
Income tax receivables                       3.7       3.3        1.7
Total receivables                           96.2      79.0       92.9
Cash equivalents                            15.7      16.4       11.4
Assets held for sale                         0.2       1.1        0.3
Total current assets                       171.7     151.6      150.9
Total assets                               300.7     276.6      275.9

                                       30.9.2008 30.9.2007 31.12.2007
Equity and liabilities
Equity
Share capital                               12.7      12.7       12.7
Share premium account                       25.3      25.3       25.3
Paid-up unrestricted equity reserve          0.2       0.3        0.3
Treasury shares                             -3.5      -3.9       -3.9
Fair value reserve                           0.0         -          -
Hedging reserve                                -       0.1        0.1
Retained earnings and translation
differences                                 97.7      94.9       94.5
Net result attributable to owners of
the parent                                   3.1       2.7       10.6
Equity attributable to owners of the
parent                                     135.5     131.9      139.5
Non-controlling interest                     0.1       0.0        0.0
Total equity                               135.6     131.9      139.6
Non-current liabilities
Non-current interest-bearing
liabilities                                  8.2       2.1        1.9
Non-current interest-free liabilities
and provisions                              10.5      10.9        9.9
Deferred tax liabilities                     8.8       9.1        9.2
Total non-current liabilities               27.4      22.0       21.0
Current liabilities
Current interest-bearing liabilities        51.4      27.5       19.4
Current provisions                           2.4       1.1        2.6
Trade and other payables                    79.4      90.6       89.8
Income tax liabilities                       4.5       3.1        3.5
Liabilities held for sale                      -       0.3          -
Total current liabilities                  137.6     122.6      115.3
Total liabilities                          165.1     144.6      136.3
Total equity and liabilities               300.7     276.6      275.9




CASH FLOW STATEMENT
                                                     1-9/  1-9/ 1-12/
EUR million                                          2008  2007  2007
Cash flows from operating activities, continuing
operations

Cash flow before change in net working capital        8.5  -2.9  10.3
Change in net working capital                       -22.1   6.1  -1.6
Net cash flow from operating activities             -13.7   3.2   8.7
Cash flow from investing activities, continuing
operations
Acquisition of subsidiaries                          -0.6 -17.6 -17.7
Other purchases of non-current assets               -10.2  -7.0 -11.3
Proceeds from sale of non-current assets              0.4   0.2   1.7
Net cash used in investing activities               -10.3 -24.4 -27.3
Cash flow before financing, continuing operations   -24.0 -21.2 -18.5
Cash flow from financing activities, continuing
operations
Changes in non-current liabilities (increase + /
decrease -)                                           3.3   0.0   0.0
Changes in non-current loan receivables (increase -
/ decrease +)                                         0.3   0.0     -
Short-term financing, net (increase + / decrease -)  32.3  18.5  11.3
Dividends paid                                       -7.8  -7.1  -7.1
Acquisition of treasury shares                          -  -3.9  -3.9
Disposal of treasury shares                             -   1.3   1.3
Other financing                                      -0.1     -     -
Net cash used in financing activities, continuing
operations                                           27.9   8.8   1.5
Discontinued operations
Cash flow from operations                               -   7.6   7.6
Cash flow from investments                              -  10.7  10.7
Cash flow from discontinued operations                  -  18.3  18.3

Effect of exchange rate fluctuations                  0.3   0.0  -0.3
Net change in cash and cash equivalents               4.3   5.8   0.9
Cash and cash equivalents at the beginning of
period                                               11.4  10.5  10.5
Cash and cash equivalents at the end of period       15.7  16.4  11.4
Net change in cash and cash equivalents               4.3   5.8   0.9



CHANGES IN EQUITY


                                    Paid-up
                             Share  unrestr.           Fair
                     Share  premium  equity  Treasury  value  Hedging
EUR million         capital account reserve   shares  reserve reserve
Equity at 1 January
2007                   12.7    25.3        -     -1.0       -    -0.2
Cash flow hedges,
net of tax                -       -        -        -       -     0.2
Available-for-sale
shares, change in
fair value                -       -        -        -       -       -
Acquisition of
treasury shares           -       -        -     -3.9       -       -
Disposal of
treasury shares           -       -      0.4      1.0       -       -
Tax effect of net
income recognized
directly in equity        -       -     -0.1        -       -       -
Recognized income
and expenses for
the period                -       -      0.3     -3.0       -     0.2
Equity at 30
September 2007         12.7    25.3      0.3     -3.9       -     0.1



                                    Paid-up
                             Share  unrestr.           Fair
                     Share  premium  equity  Treasury  value  Hedging          capital account reserve   shares  reserve reserve
Equity at 1 January
2008                   12.7    25.3      0.3     -3.9       -     0.1
Cash flow hedges,
net of tax                -       -        -        -       -     0.0
Other changes             -       -        -        -     0.0    -0.1
Available-for-sale
shares, change in
fair value                -       -        -        -     0.0       -
Acquisition of
treasury shares           -       -        -        -       -       -
Disposal of
treasury shares           -       -     -0.1      0.4       -       -
Tax effect of net
income recognized
directly in equity        -       -      0.0        -     0.0       -
Recognized income
and expenses for
the period                -       -     -0.1      0.4     0.0    -0.1
Equity at 30
September 2008         12.7    25.3      0.2     -3.5     0.0       -



                                           Equity
                                        attributable
                   Retained Translation to owners of Non-controlling Total
                   earnings differences  the parent     interest     equity
Equity at 1
January 2007          102.8         0.4        140.1             0.0  140.1
Cash flow hedges,
net of tax                -           -          0.2               -    0.2
Exchange rate
differences               -        -1.3         -1.3               -   -1.3
Gains and losses
from hedge of net
investments
in foreign
operations                -         0.0          0.0               -    0.0
Available-for-sale
shares, change in
fair value                -           -            -               -      -
Acquisition of
treasury shares           -           -         -3.9               -   -3.9
Disposal of
treasury shares           -           -          1.3               -    1.3
Tax effect of net
income recognized
directly in equity        -         0.0         -0.1               -   -0.1
Share-based
incentive plan          0.1           -          0.1               -    0.1
Share-based
incentive plan,
tax effect                -           -            -               -      -
Net profit for the
period                  2.7           -          2.7             0.0    2.7
Recognized income
and expenses for
the period              2.7        -1.3         -1.0             0.0   -1.0
Dividends paid         -7.1           -         -7.1               -   -7.1
Equity at 30
September 2007         98.4        -0.9        131.9             0.0  131.9




                                           Equity
                                        attributable
                   Retained Translation to owners of Non-controlling Total
                   earnings difference   the parent     interest     equity
Equity at 1
January 2008          106.4        -1.3        139.5             0.0  139.6
Cash flow hedges,
net of tax                -           -          0.0               -    0.0
Exchange rate
differences               -         0.6          0.6             0.0    0.6
Other changes           0.0         0.1          0.0             0.1    0.0
Available-for-sale
shares, change in
fair value                -           -          0.0               -    0.0
Acquisition of
treasury shares           -           -            -               -      -
Disposal of
treasury shares           -           -          0.3               -    0.3
Tax effect of net
income recognized
directly in equity        -           -          0.0               -    0.0
Share-based
incentive plan         -0.2           -         -0.2               -   -0.2
Share-based
incentive plan,
tax effect              0.0           -          0.0               -    0.0
Net profit for the
period                  3.1           -          3.1             0.0    3.1
Recognized income
and expenses for
the period              2.9         0.7          3.9             0.0    3.9
Dividends paid         -7.8           -         -7.8               -   -7.8
Equity at 30
September 2008        101.5        -0.6        135.5             0.1  135.6





KEY RATIOS

                                       30.9.2008 30.9.2007 31.12.2007
EBITDA, as % of net sales (1                 6.5       3.7        7.1
Operating profit / loss (EBIT), as %
of net sales                                 3.2       1.2        4.5
Net result, as % of net sales                1.5       1.5        3.9
Gross capital expenditure, EUR million      13.6      29.9       34.1
Gross capital expenditure, as % of net
sales (net sales including
discontinued operations)                     6.7      15.2       11.9
Equity ratio, %                             48.3      54.0       55.4
Gearing, %                                  44.0      22.4       15.3
Net gearing, %                              32.4       9.9        6.9
Net interest-bearing debt, EUR million      43.9      13.1        9.6
Capital employed, end of period, EUR
million                                    195.2     161.5      160.9
Return on equity, %, annualized              3.0       2.6        7.6
Return on capital employed, continuing
operations, %, annualized                    6.2       1.9        7.9
Return on capital employed, %,
annualized                                   6.2       6.4       11.2
Number of personnel, average,
continuing operations                      1,507     1,270      1,288
Number of personnel, average               1,507     1,269      1,302
Number of personnel, end of period,
continuing operations                      1,534     1,425      1,435
Number of personnel, end of period         1,534     1,425      1,435



(1 EBITDA = Operating profit / loss + depreciation, amortization and
impairment.


PER SHARE DATA
                                       30.9.2008 30.9.2007 31.12.2007
Number of shares, end of period,
treasury shares excluded (1,000)          78,540    78,437     78,437
Number of shares, average, treasury
shares excluded (1,000)                   78,496    78,765     78,682
EPS, continuing operations, EUR (*          0.04     -0.01       0.09
EPS, discontinued operations, EUR (*           -      0.05       0.05
EPS, total, EUR (*                          0.04      0.04       0.14
Equity attributable to owners of the
parent per share, EUR                       1.73      1.68       1.78
Market capitalization, EUR million         158.7     286.3      217.3
Share turnover, % (number of shares
traded, % of the average number of
shares)                                      2.5       8.5       10.2
Number of shares traded, (1,000)           1.940     6.703      7.993
Closing price of the share, EUR             2.02      3.65       2.77
Highest quoted price, EUR                   3.33      4.53       4.53
Lowest quoted price, EUR                    2.02      3.52       2.70
Average quoted price, EUR                   2.96      4.03       3.90


(* Glaston Corporation has not issued options or warrants or similar
instruments which would dilute the earnings per share.


DEFINITIONS OF KEY RATIOS

Financial ratios

Operating profit / loss (EBIT) = Profit / loss after depreciation,
amortization and impairment

EBITDA = operating profit / loss + depreciation, amortization and
impairment

Net interest-bearing debt = Interest-bearing liabilities - cash and
cash equivalents

Financial expenses = interest expenses of financial liabilities +
fees of financing arrangements + foreign currency differences of
financial liabilities

Equity = Equity attributable to owners of the parent +
non-controlling interest

Capital employed = Equity + interest-bearing liabilities

Equity ratio, % = Equity x 100 / (Balance sheet total - advance
payments received)

Gearing, % = Interest-bearing liabilities x 100 / Equity

Net gearing, % = Net interest-bearing debt x 100 / Equity

Return on capital employed, % (ROCE) = (Result before taxes +
financial expenses) x 100 / (Equity + interest-bearing liabilities)
(average of 1 January and end of the review period)

Return on equity, % (ROE) = (Profit / loss for the period) x 100 /
Equity (average of 1 January and end of the review period)

Per share data

Earnings per share (EPS) = Profit / loss attributable to owners of
the parent for the review period / Adjusted average number of shares
during the review period

Equity attributable to owners of the parent per share = Equity
attributable to owners of the parent at the end of the review period
/ Non-diluted number of shares at the end of the review period

Share turnover = The proportion of number of shares traded during the
review period to weighted average number of shares

Market capitalization = Number of shares at the end of the review
period x share price at the end of review period

Number of shares at the end of review period = Number of issued
shares - treasury shares


ACCOUNTING POLICIES

These condensed consolidated interim financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRS), but they do not include all the information
required by IAS 34 Interim Financial Reporting. The consolidated
interim financial statements do not include all of the information
required for annual financial statements.

The accounting principles applied in these condensed interim
consolidated financial statements are the same as those applied by
Glaston in its consolidated financial statements as at and for
the year ended 31 December 2007, with the exception of the following
new or revised or amended standards and interpretations, which have
been applied from 1 January 2008:

-    IFRIC 11 IFRS 2 Group and Treasury Share Transactions
-    IFRIC 12 Service Concession Arrangements
-    IFRIC 14 Interpretation IAS 14 The Limit on a Defined Benefit
Asset, Minimum Funding Requirements and their Interaction

The new or amended standards or interpretations are not material for
Glaston Group.

Glaston will apply the following new or revised or amended standards
and interpretations from 1 October 2008:

- IFRIC 16 Hedges of a Net Investment in a Foreign Operation

Glaston will apply IAS 1 (revised) Presentation of Financial
Statements -standard in its financial statements for the financial
year 2008. Applying the revised IAS 1 standard will change the
presentation of income statement, balance sheet and statement of
changes in equity in the financial statements.

Glaston will apply the following new or revised or amended standards
and interpretations from 1 January 2009:

- IAS 23 (revised) Borrowing Costs
- IFRS 8 Operating Segments
- IFRIC 3 Customer Loyalty Programs
- Amendments to IFRS 2 Share-based payments: Vesting Conditions and
Cancellations
- Amendments to IAS 32 Financial Instruments: Presentation and IAS 1
Presentation of Financial Statements - Puttable Financial Instruments
and Obligations Arising on Liquidation
- Improvements to IFRSs
- IFRIC 15 Agreements for the Construction of Real Estate
- Amendment to IAS 39 Financial Instruments: Recognition and
Measurement - Eligible Hedged Items

Glaston estimates that applying IFRS 8 will not have any material
effect on the financial information of Glaston.

Applying revised IAS Borrowing Costs will change Glaston's
accounting principles from 1 January 2009. From that date on the
borrowing costs that are directly attributable to the acquisition,
construction or production of an asset will be capitalized to the
acquisition cost of the asset. The capitalization will apply mainly
to property, plant and equipment.



Other new or amended standards or interpretations are not material
for Glaston Group.

Glaston will apply the following new or revised or amended standards
and interpretations from 1 January 2010:

- IFRS 3 (revised) Business Combinations
- IAS 27 (amended) Consolidated and Separate Financial Statements.

BUSINESS COMBINATIONS

Glaston Corporation acquired on 2 July 2007 all the shares in a
German company Albat+Wirsam Software AG. The recognized acquisition
cost was EUR 21.7 million and the goodwill EUR 14.2 million at the
end of 2007, and they were recognized provisionally. Based on the
terms of the share purchase agreement the purchase consideration was
decreased during the third quarter of 2008 by EUR 1.2 million. As a
result of the lower acquisition cost and changes in the provisionally
recognized fair values of the acquired business, the goodwill arising
from the acquisition decreased by EUR 1.1 million.

SEGMENT INFORMATION

Glaston Group's primary segment is business segment. The
Pre-processing segment includes glass pre-processing machines sold
under the Bavelloni brand, maintenance and service operations, as
well as tool manufacturing. The Heat Treatment segment includes
tempering, bending and laminating machines sold under the Tamglass
and Uniglass brands, maintenance and service operations, as well as
the glass processing operations of Tamglass Glass Processing. The
Software Solutions segment's product offering, sold under the
Albat+Wirsam brand, covers enterprise resource planning systems for
the glass industry, software for windows and door glass
manufacturers, and software for glass processor's intergrated line
solutions. Software Solutions has been consolidated to Glaston Group
from 1 July 2007.

The Energy business area was divested from Glaston Group in July
2007, and is thus classified as discontinued operations in 2007
figures.

EUR million


                                                     1-9/  1-9/ 1-12/
Net sales                                            2008  2007  2007
Pre-processing                                       66.1  65.6  94.1
Heat Treatment                                      114.1 109.5 162.3
Software Solutions                                   21.5   6.8  14.7
Parent company and eliminations                      -0.2  -0.9  -1.3
Total                                               201.5 181.0 269.8


Operating profit / loss, excluding non-recurring     1-9/  1-9/ 1-12/
items                                                2008  2007  2007
Pre-processing                                       -1.8   1.2   1.4
Heat Treatment                                       10.5  11.9  19.6
Software Solutions                                    3.6   1.6   2.6
Parent company and eliminations                      -5.8  -5.2  -7.0
Total                                                 6.5   9.5  16.6
Non-recurring items                                     -  -7.3  -4.6
Operating profit / loss                               6.5   2.1  12.0
Net financial items                                   0.2   0.2   0.0
Income taxes                                         -3.6  -3.4  -5.2
Discontinued operations                                 -   3.8   3.8
Net result for the period                             3.1   2.7  10.6


Operating profit / loss, excluding non-recurring     1-9/  1-9/ 1-12/
items, as % of net sales                             2008  2007  2007
Pre-processing                                      -2.8%  1.9%  1.5%
Heat Treatment                                       9.2% 10.8% 12.1%
Software Solutions                                  16.8% 23.0% 17.8%
Total                                                3.2%  5.2%  6.2%



Depreciation, amortization and              1-9/      1-9/      1-12/
impairment                                  2008      2007       2007
Pre-processing                              -1.4      -1.3       -1.9
Heat Treatment                              -3.2      -2.8       -4.0
Software Solutions                          -1.3      -0.3       -1.1
Parent company and eliminations             -0.6      -0.2       -0.2
Total                                       -6.5      -4.6       -7.2


Assets                                 30.9.2008 30.9.2007 31.12.2007
Pre-processing                              49.0      40.2       39.6
Heat Treatment                              72.4      69.9       76.7
Software Solutions                           9.3       7.7        6.8
Parent company and eliminations              0.0      -0.7       -0.6
Total segment assets                       130.7     117.1      122.5
Non-current assets                         125.1     120.0      120.6
Deferred tax assets                          3.9       4.9        4.4
Income tax receivables                       3.7       3.3        1.7
Other non-allocated receivables             21.5      13.7       15.0
Cash and cash equivalents                   15.7      16.4       11.4
Assets held for sale                         0.2       1.1        0.3
Total assets                               300.7     276.6      275.9

Liabilities                            30.9.2008 30.9.2007 31.12.2007
Pre-processing                              17.0      17.3       21.8
Heat Treatment                              20.6      29.0       22.7
Software Solutions                           2.2       5.9        1.9
Parent company and eliminations              0.6       0.3        0.4
Total segment liabilities                   40.5      52.5       46.8
Deferred tax liabilities                     8.8       9.1        9.2
Provisions                                  12.4      11.9       12.5
Interest-bearing liabilities                59.6      29.6       21.3
Income tax liabilities                       4.5       3.1        3.5
Other non-allocated liabilities             39.3      38.2       43.0
Liabilities held for sale                      -       0.3          -
Total liabilities                          165.1     144.6      136.3





                    1-9/  1-9/ 1-12/
Orders received     2008  2007  2007
Pre-processing      45.1  49.9  68.7
Heat Treatment      96.7 119.1 141.0
Software Solutions  11.1   1.6   3.0
Total              152.9 170.7 212.7




Order book         30.9.2008 30.9.2007 31.12.2007
Pre-processing          19.1      24.4       20.9
Heat Treatment          59.0      92.6       59.9
Software Solutions       4.5       8.6        6.2
Total                   82.6     125.7       87.0




Personnel at the end of the period,
continuing operations                  30.9.2008 30.9.2007 31.12.2007
Pre-processing                               606       559        556
Heat Treatment                               646       614        612
Software Solutions                           255       239        247
Parent company                                27        13         20
Total                                      1,534     1,425      1,435


Personnel, average, continuing
operations                              1-9/2008  1-9/2007  1-12/2007
Pre-processing                               588       577        572
Heat Treatment                               642       605        606
Software Solutions                           251        76         97
Parent company                                26        12         13
Total                                      1,507     1,270      1,288


EUR million

                              1-9/   1-9/  1-12/
Net sales by market area      2008   2007   2007
EMEA                         132.0   97.7  150.5
America                       39.0   56.0   75.6
Asia                          30.5   27.3   43.7
Total                        201.5  181.0  269.8


                              1-9/   1-9/  1-12/
Net sales by market area, %   2008   2007   2007
EMEA                         65.5%  54.0%  55.8%
America                      19.4%  30.9%  28.0%
Asia                         15.1%  15.1%  16.2%
Total                       100.0% 100.0% 100.0%





                                              1-9/  1-9/
Geographical distribution of orders received  2008  2007 change, %
EMEA                                         104.9 108.3     -3.3%
America                                       28.0  35.0    -25.0%
Asia                                          20.0  27.4    -36.6%
Total                                        152.9 170.7    -11.6%



NET SALES, OPERATING PROFIT /LOSS AND ORDER BOOK OF CONTINUING
OPERATIONS BY QUARTER

EUR million


                            1-3/  4-6/  7-9/ 10-12/  1-3/  4-6/  7-9/
Net sales                   2007  2007  2007   2007  2008  2008  2008
Pre-processing              21.7  23.4  20.6   28.5  22.9  23.2  20.0
Heat Treatment              36.6  42.7  30.2   52.8  32.9  44.0  37.2
Software Solutions             -     -   6.8    7.9   7.3   6.4   7.8
Parent company and
eliminations                -0.1  -0.5  -0.3   -0.5   0.0  -1.0   0.8
Total                       58.2  65.6  57.3   88.8  63.1  72.6  65.8


Operating profit / loss
excluding non-recurring     1-3/  4-6/  7-9/ 10-12/  1-3/  4-6/  7-9/
items                       2007  2007  2007   2007  2008  2008  2008
Pre-processing               1.2  -0.2   0.3    0.2   0.6  -0.7  -1.6
Operating profit / loss, %  5.3% -0.9%  1.3%   0.8%  2.5% -3.1% -8.4%
Heat Treatment               3.0   5.7   3.2    7.7   1.9   5.3   3.3
Operating profit / loss, %  8.1% 13.4% 10.5%  14.6%  5.7% 12.0%  8.9%
Software Solutions             -     -   1.6    1.0   1.0   1.2   1.4
Operating profit / loss, %     -     - 23.1%  13.2% 13.2% 19.3% 18.1%
Parent company and
eliminations                -2.4  -1.7  -1.1   -1.8  -1.8  -2.0  -2.0
Total                        1.7   3.8   4.0    7.1   1.6   3.8   1.1
Operating profit / loss, %  2.9%  5.8%  6.9%   8.0%  2.6%  5.2%  1.6%


                            1-3/  4-6/  7-9/ 10-12/  1-3/  4-6/  7-9/
Operating profit / loss     2007  2007  2007   2007  2008  2008  2008
Pre-processing               1.2  -1.6   0.3    0.3   0.6  -0.7  -1.6
Operating profit / loss, %  5.3% -7.0%  1.3%   0.9%  2.5% -3.1% -8.4%
Heat Treatment               3.0  -0.2   3.2    7.7   1.9   5.3   3.3
Operating profit / loss, %  8.1% -0.4% 10.6%  14.6%  5.7% 12.0%  8.9%
Software Solutions             -     -   1.6    1.0   1.0   1.2   1.4
Operating profit / loss, %     -     - 23.1%  13.2% 13.2% 19.3% 18.1%
Parent company and
eliminations                -2.4  -1.7  -1.1    0.9  -1.8  -2.0  -2.0
Total                        1.7  -3.5   4.0    9.9   1.6   3.8   1.0
Operating profit / loss, %  2.9% -5.4%  6.9%  11.2%  2.6%  5.2%  1.6%


                            1-3/  4-6/  7-9/ 10-12/  1-3/  4-6/  7-9/
Order book                  2007  2007  2007   2007  2008  2008  2008
Pre-processing              20.2  25.9  24.4   20.9  21.0  21.9  19.1
Heat Treatment              72.3  90.3  92.6   59.9  65.0  71.0  59.0
Software Solutions             -     -   8.6    6.2   9.5   6.0   4.5
Total                       92.5 116.2 125.7   87.0  95.5  98.9  82.6




DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

The Energy business area was divested from Glaston Group in July
2007, and is thus classified as discontinued operations in 2007
figures.

EUR million



                                                     1-9/  1-9/ 1-12/
Result of the Energy Business Area                   2008  2007  2007
Income                                                  -  16.0  16.0
Expenses                                                - -11.9 -11.9
Profit before taxes                                     -   4.1   4.1
Income taxes                                            -  -1.1  -1.1
Profit after taxes                                      -   3.0   3.0
Gains from disposal of discontinued operations net
of tax                                                  -   0.8   0.8
Profit for the period. discontinued operations          -   3.8   3.8




The impact of the disposal of the Energy Business Area on Glaston
Group's financial position in 2007

Carrying amounts of disposed assets and liabilities
Property, plant and equipment                                    13.8
Intangible assets                                                 0.1
Inventories                                                       0.2
Trade payables and other liabilities                             -0.1
Total assets and liabilities                                     14.0

Consideration received in cash                                   10.6
Expenses attributed to disposal                                  -0.3
Cash flow from disposal                                          10.4
Recognized as a receivable                                        4.7
Total consideration                                              15.1


From the sale of the Energy Business Area a receivable of EUR 4.7
million was recognized related to the sale of future CO2 emission
rights. The receivable is estimated to be realized in 2009 - 2013.


Assets held for sale          30.9.2008 30.9.2007 31.12.2007

Intangible assets                     -       0.2          -
Property, plant and equipment         -       0.2          -
Shares                              0.2       0.4        0.3
Inventories                           -       0.2          -
Total assets                          -       1.1        0.3

Liabilities held for sale     30.9.2008 30.9.2007 31.12.2007

Provisions                            -       0.3          -
Total liabilities                     -       0.3          -


Assets held for sale are related to shares owned by Glaston
Corporation. On 30 September 2007, the assets and liabilities held
for sale were related to the balcony glazing business and Glaston
Corporation's shares.

CONTINGENT LIABILITIES


EUR million            30.9.2008 30.9.2007 31.12.2007
Mortgages
On own behalf                0.2       0.2        0.2
Guarantees
On own behalf                0.6       1.3        1.4
On behalf of others          0.2       0.6        0.3
Lease obligations           18.2       4.0       18.0
Repurchase obligations       1.4       1.5        3.0



A customer of the US subsidiary Glaston USA, Inc. has made a claim of
USD 10 million due to a sale of a machine in 2004. On 25 January
2008, the company received a statement that the customer has
increased the claim to USD 22 million. It is Glaston's opinion, that
both the original claim and the increased one are unfounded. The
matter has been referred to arbitration court in the USA and the
court's decision is expected to be received during the first quarter
of 2009.

Glaston Group has international operations and can be a defendant or
plaintiff in a number of legal proceedings incidental to those
operations. The Group does not expect the outcome of any unmentioned
legal proceedings currently pending, either individually or in the
aggregate, to have material adverse effect upon the Group's
consolidated financial position or results of operations.

DERIVATIVE INSTRUMENTS


EUR million          30.9.2008       30.9.2007       31.12.2007              Nominal   Fair  Nominal   Fair  Nominal    Fair
                     value     value value     value value      value
Currency derivatives
Currency forwards         10.7  -0.3      16.3   0.4       12.8   0.1



Derivative instruments are used only for hedging purposes. Nominal
values of derivative instruments do not necessarily correspond with
the actual cash flows between the counterparties and do not therefore
give a fair view of the risk position of the Group. The fair values
are based on market valuation on the date of reporting.


RELATED PARTY TRANSACTIONS

Glaston Group's related parties include the parent company,
subsidiaries and joint ventures. Related parties also include the
members of the Board of Directors and the Group's Management Team,
the CEO and their family members.

Glaston follows the same commercial terms in transactions joint
ventures and other related parties as with third parties.

During the review period Glaston's related party transactions
included sales to joint ventures. In addition, the Group has leased
premises from companies owned by individuals belonging to the
management. The lease payments were in January - September EUR 0.5
million.

During the review period there were no related party transactions
whose terms would differ from the terms in transactions with third
parties.

Share-based incentive plan

Based on the 2007 share-based incentive plan, Glaston Corporation
transferred in April own shares to persons who are considered to be
related parties. The shares were transferred to the CEO (19.740
shares) and other members of the Management Team (in total 32.900
shares).

The expenses arising from the 2007 and 2008 plans were EUR 0.2
million in January - September.

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