Kyro Corporation         STOCK EXCHANGE RELEASE    8 November 2006  8.30 a.m.


January-September key issues

-  Group net sales EUR 187.2 (184.1) million
-  Comparable operating profit 13.8 (17.1) million
-  Comparable profit before taxes EUR 14.2 (16.1) million
-  Profit after taxes EUR 9.9 (10.5) million, earnings per share EUR 0.13
-  Equity ratio 61.8% (61.2%).
-  Glaston’s new orders EUR 138.1 (144.7) million, order book on 30 September
   EUR 135.8 (142.4) million
-  The Group’s efficiency programmes aim to improve profit by an estimated six
   million euros per year from 2007


Kyro’s business areas are Glaston Technologies and Energy. The main business
area Glaston Technologies consists of the Glass Machinery Group and the Glass
Processing Group.

The Glass Machinery Group is the world market leader in glass processing
machines. The Glass Machinery group’s products are glass pre-processing
machines as well as safety glass machines for the architectural and automotive
industries. The group consists of Tamglass, the technology and market leader in
safety glass machines, Uniglass, which manufactures flat tempering machines,
the leading supplier of glass pre-processing machines Bavelloni, which also
produces stone processing machines, and DiaPol, which manufactures tools for
glass and stone pre-processing.

The Glass Processing Group focuses on markets in Finland and neighbouring
countries and is the leading comprehensive supplier of architectural glass
products in Finland. Its safety and insulating glass products sold under its
Tamglass brand as well as its balcony systems are supplied to the building,
window and door industries, specialty vehicle manufacturers and construction

Kyro’s second business area is Energy, which consists of the electricity and
heat generating gas-fired combi power plant of Kyro Power Oy.


The Group has under way efficiency programmes by which Kyro aims to improve
profit by an estimated six million euros per year starting from the beginning
of 2007.

In July, Bavelloni announced an efficiency programme which includes, among
other things, the closure of its Bergamo assembly plant and the centralisation
of European warehousing operations in Italy. The programme also includes other
productivity-raising operational and process changes, with arrangements
affecting personnel. Personnel negotiations relating to this are under way in

Measures taken in the Glass Processing Group include the restructuring of
Tamglass Finton, the merger of three Glass Processing Group companies into one
company, and the personnel reductions that followed from these.

Kyro will adjust the profit improvement target of the programmes after the
final quarter. The costs of the programmes, an estimated five million euros,
will be recognised almost entirely in 2006.


The Kyro Group’s net sales in January-September were EUR 187.2 (184.1)
million. The Group’s comparable operating profit was EUR 13.8 (17.1) million,
representing 7.4% (9.3%) of net sales.

Comparable operating profit does not include non-recurring items totalling
two million euros recognised in the first to third quarters for the above-
mentioned efficiency programmes. They consist of the restructuring of the
Glass Processing Group, EUR 0.9 million, and the Bavelloni efficiency
programme, EUR 0.8 million. In addition, a EUR 0.3 million non-recurring
expense item has been recognised in the third quarter for the Energy business
area’s Partner project.

In addition to the latter, restructuring expenses amounting to around three
million euros are expected to be recognised in the fourth quarter.

Comparable profit before taxes was EUR 14.2 (16.1) million, representing 7.6%
(8.7%) of net sales.

Taking into account the recognised non-recurring items, profit before taxes
was EUR 12.2 (16.1) million. Profit for the financial period was EUR 9.9
(10.5) million. This includes a EUR 1.8 million tax refund from previous
years. Return on invested capital was 12.0% (17.4%). Earnings per share were
EUR 0.13 (0.13) and equity per share was EUR 1.69 (1.61).

Net financial items totalled EUR 0.5 (-1.0) million. This includes interest,
dividend and other financial income of EUR 1.8 (2.0) million, and interest
and other financial expenses of EUR -1.3 (-3.0) million.

The Group’s order book on 30 September 2006 stood at EUR 135.8 (142.4)

Business areas’ net sales, operating profit and order book, EUR million

                          Net sales      Operating profit       Order book
                        1-9/06   1-9/05   1-9/06   1-9/05  30.9.2006  30.9.2005
Glaston Technologies     161.5    164.1     11.2     16.6      111.8      119.4
Energy                    25.6     19.9      4.7      4.6       24.0       23.0
Non-recurring items                         -2.0                               
Parent company,            0.1      0.2     -2.1     -4.1                      
other operations and
Group, total             187.2    184.1     11.7     17.1      135.8      142.4


The Group’s financial standing is good. Equity ratio was 61.8% (61.2%) on
30 September 2006. Cash flow from business operations was EUR -3.9 (12.2)
million. The most significant item of cash flow from financing was a total of
EUR 13.4 (5.6) million in dividends paid in the spring. Cash flow also includes
EUR 7.3 million in taxes for 2005 paid in 2006, including e.g. EUR 2.9 million
taxes on capital gains from the sale of hydropower operations in December 2005.

The Group’s liquid funds on 30 September 2006 totalled EUR 10.5 (5.2)
million. Interest-bearing net debt stood at EUR –2.8 million (assets greater
than interest-bearing debt), whereas it was EUR 9.8 million the previous
year. Gearing stood at -2.1% (7.7%).


The Kyro Group’s capital expenditure in January-September totalled EUR 8.3
(7.8) million. This includes the construction costs of a new production plant
in China and the extension of the head office in Finland (totalling c.
EUR 3.4 million), obligatory product development capitalisations under IFRS
(EUR 1.2 million) as well as normal repair and maintenance investments.


The Kyro Group had 1,245 (1,215) employees on 30 September 2006. The number of
Group employees working in Finland was 440 (443), while the number working
abroad was 805 (771). The average number of employees was 1,272 (1,202). The
number of personnel has grown mainly through recruitment of maintenance and
installation staff in the early part of the year.

                           30.9.2006            30.9.2005

Glaston Technologies        1 213                 1 184
Energy                         24                    23
Kyro Corporation                8                    8
Kyro Group                  1 245                 1 215


A total of 6,015,984 (16,151,459) Kyro Corporation (KRO1V) shares were traded
in January-September, representing 7.6% (20.4%) of the total number of
shares. The lowest price paid for a share on the Helsinki Stock Exchange was
EUR 3.75 and the highest price EUR 4.84. The average price during the period
was EUR 4.31.


The Annual General Meeting on 16 March 2006 authorised the Board of Directors
to acquire the company’s own shares for the purpose of using them as
consideration in possible acquisitions, to finance investments or other
industrial arrangements or to be disposed of in other ways or to be

According to the authorisation the Board of Directors may acquire the company’s
own shares using assets available for distribution of profits, provided that
the combined nominal value of the acquired shares together with any shares
already in the possession of the company corresponds to a maximum of 10 per
cent of the company’s total share capital at the moment of acquisition. Shares
can be acquired or sold in public trading on the Helsinki Stock Exchange at the
market value of the shares at the time in question.

Authorisations to acquire and dispose of the company’s own shares are valid for
a period of one year from the decision of the Annual General Meeting on
16 March 2006. On 30 September 2006, Kyro Corporation held a total of 329,904
(329,904) of its own shares, acquired on the basis of previous authorisations.
The company did not exercise the authorisation in April-September.


Glaston Technologies’ net sales totalled EUR 161.5 (164.1) million in January-
September. Comparable operating profit was EUR 11.2 (16.6) million,
representing 6.9% (10.1%) of net sales.

Comparable operating profit does not include the non-recurring items totalling
EUR 1.7 million recognised in the period under review for the Glaston
Technologies business area.

New orders totalling EUR 138.1 (144.7) million were received. The order book
stood at EUR 111.8 (119.3) million at the end of September. The order book for
pre-processing machines has grown compared to last year. Moreover, the order
book for safety glass machines has turned to clear growth since June.

The Glass Machinery Group’s net sales and profitability were reduced by lower
delivery volume of new and used safety glass machines than in 2005 as well as
the emphasis of deliveries being outside the eurozone. However, a strong
final quarter for safety glass machines is expected. The Machinery Group’s
profitability is also affected by an emphasis of deliveries outside the
eurozone as well as expenses resulting from new products and product series.
Tamglass has initiated a programme of measures to improve the efficiency of
delivery processes, particularly the reduction in future of “extra costs”
caused by preliminary series.

The Glass Processing Group’s net sales grew slightly from the previous year
and its comparable result improved.


Market and sales

The general market situation for glass processing machines is good in all the
main market areas. Safety glass machine business activity in the first half
of the year was significantly lower than the high 2005 level, but in the
third quarter and thereafter it has been above the level of the corresponding
period in 2005.

In the third quarter, the overall level of Glaston’s safety glass machine
orders was good, even though the investment climate in Europe was still
guarded. The excellent market situation in North America, which is investing
strongly in high technology, continued and activity was also good, for
example, in the Middle East, South American and Chinese markets.

The offer book for automotive segment safety glass machines is growing, but the
level of orders remained cautious in the third quarter.

More glass pre-processing machine orders than the previous year were received
almost everywhere. Bavelloni’s sales are developing in line with strategy
towards larger machines, the architectural segment and Tamglass-Bavelloni joint
deliveries under the One-Stop-Partner concept.

One-Stop-Partner concept orders are continuing to grow. In the third quarter,
sales of combinations exceeded the targets set for them as well as total sales
for the whole of last year, EUR 12 million. A typical OSP delivery includes a
Tamglass flat tempering machine and one or more Bavelloni pre-processing
machines or a combination of these, i.e. a complete glass processing line.

At Uniglass, which specialises in flat tempering machines, demand strengthened
in the third quarter.

Production and new products

Glaston Technologies has a factory network covering Finland, Italy, the United
States, China and Brazil. Operations are based on own product development,
assembly and a strong subcontracting network, which can adjust capacity
flexibly. The utilisation rates of the machine factories were good in July-

The first deliveries of the many products launched last year have been
scheduled for the third and fourth quarters. The first of Bavelloni’s new pre-
processing lines started operating in early autumn. Moreover, a number of
orders for the Tamglass Sonic were received during the third quarter.

Glaston Technologies announced its most significant new products of the year
at Düsseldorf’s Glasstec Fair in October. There is more information on the
success of the fair in the section ‘Events after the review period’.

Maintenance and service business, and tools

In July-September, orders for Glaston Technologies’ maintenance and service
business continued to grow in all areas of operations. Demand was buoyant for
Tamglass safety glass machine options, particularly control system updates.
Sales of machine options to date will be recognised to a large extent during
the final quarter. Due to the good order intake, prospects for the beginning of
next year are positive.

Used machine business has picked up in parallel with sales of new machines, but
2006 volume will remain modest, however, as many deliveries have been
rescheduled for 2007.

During the period, Bavelloni introduced a new maintenance contract model. The
service was well received, which is a clear indication of the benefits brought
to customers by Bavelloni-Tamglass cooperation, harmonisation of operating
models and clear productisation of services. Easy Life, a maintenance and
service concept offered by Glaston, is the only one of its kind in the

Bavelloni’s sales of spare parts and other maintenance products continued to
grow, as did sales of tools. Local tool manufacturing that began this year in
Brazil has achieved its targets, and manufacturing will also begin in China in
the near future.


Market and sales

The Glass Processing Group’s market situation continued to be positive in July-
September, mainly owing to an active domestic construction sector. The group
expects prospects for the construction sector to remain good for the rest of
the year. Safety and insulating glass units have increased their market share
from the previous year. Due to a rise in raw glass prices, the Glass Processing
Group increased its prices during the third quarter.

Project sales references include the Ideapark in Lempäälä, the West Terminal in
Helsinki harbour and the Järvenpää Swimming Hall.

Group development

The Glass Processing Group intends to develop its production and make expansion
and replacement machine investments at the beginning of next year. The measures
will boost the group’s efficiency and improve its reference value as a Glass
Machinery Group customer.

The Glass Processing Group’s companies Tamglass Safety Glass Ltd, Tamglass
Insulating Glass Oy and Tamglass Finton Oy will merge into a single legal
entity before the end of the year. As a result of the restructuring of Tamglass
Finton, sales and installation of balcony systems have been transferred to
partner network in September.


Net sales, operating profit and order book

The net sales of the Energy business area totalled EUR 25.6 (19.8) million in
January-September. Operating profit was EUR 4.7 (4.6) million, representing
18.3% (22.5%) of net sales. Both net sales and operating profit were again
boosted mainly by a rise in energy prices. Financial data for 2005 are not
fully comparable, because they include Kyro Power’s then hydropower and
district heat distribution operations.

Kyro Power’s order book was EUR 24.0 (23.2) million on 30 September 2006.

Development of the energy market

Due to lower rainfall levels, the water situation in the Nordic countries
remained weak in July-September, particularly in Norway and Sweden.
Consequently the price of electricity reached a historic high in August. The
price of emissions rights, on the other hand, moved with the range 15-20 euros.

Energy production

Kyro Power’s gas-fired combi power plant operated without interruption during

Development of operations

In Kyro Power’s Partner project, at the end of September Kyro signed with M-
real Corporation an agreement by which Kyro has the right to sell and M-real
the right to buy Kyro Power’s gas-fired combi power plant in summer 2007. If
realised, the transaction would cover the gas-fired combi power plant and
associated business operations. The agreement has no direct financial impact.
Kyro released a bulletin about the agreement on 29 September 2006.


On 4 October 2006, Kyro announced that Kyro’s President and CEO Pentti Yliheljo
is to retire. As of 1 January 2007, the new President and CEO will be MSc(Econ)
Mika Seitovirta, aged 44. Pentti Yliheljo’s expertise will be continue to
available to the Group until 30 June 2007.

At the end of October, Glaston Technologies agreed a record amount of new
orders, valued at EUR 27.8 million. The record intake was achieved in
connection with the Glasstec 2006 Fair in Düsseldorf, where orders were also
obtained for new products supporting the One-Stop-Partner concept. Tamglass
introduced a series of flat tempering products based on a completely new
automatic control system. Bavelloni launched a series of new modular cutting
lines, a compact, high-capacity CNC centre called NRG and the super-fast
PowerSeam edge grinding machine. Kyro released a bulletin about the fair
successes on 2 November 2006.


The industry’s most extensive customer service network, widest product range
and the One-Stop-Partner concept create for Glaston Technologies good
opportunities to fulfil customers’ needs better than before. Glaston
Technologies is the technology and market leader in a growing business

The level of the Kyro Group’s order and offer books for the latter part of
the year is good, and the final quarter is expected to be strong.

Consequently, Kyro is still aiming to increase its net sales and comparable
operating profit in 2006. Certain significant deliveries have, however, been
rescheduled for 2007 for reasons due to customers, which means that the
success of other year-end deliveries will decide whether Kyro exceeds its
previous year’s result.

Helsinki, 8 November 2006

Kyro Corporation

Board of Directors

Additional information about the interim can be obtained from Kyro Group’s
President and CEO Pentti Yliheljo and Chief Financial Officer Vesa Hopia,
tel. +358 3 372 3111.

Investor relations

Kyro Corporation, IR and Communications Manager Emmi Watkins, tel. +358 400
903 260 /, IR pages at the Internet address


Helsinki Exchanges, key media


                       Compa-                Compa-    
                        rable                rable      
                        7-9      7-9    7-9   1-9     1-9    1-9      1-12      
                        /06      /06    /05   /06     /06    /05      /05
Consolidated Income                                                  
Statement, EUR million
Net sales                60.4    60.4   59.6   187.2  187.2   184.1    266.7
Other operating income    1.8     1.8    0.9     5.0    5.0     1.9     14.9
Operating expenses       55.6    57.0   61.1   172.6  174.6   162.5    237.4
Depreciation              2.0     2.0    2.1     5.8    5.8     6.4      8.7
Operating profit          4.6     3.2    6.3    13.8   11.7    17.1     35.5
  % of net sales          7.6     5.4   10.5     7.4    6.3     9.3     13.3
Financial income and      0.5     0.5   -0.4     0.5    0.5    -1.0     -1.3
Profit before taxes       5.1     3.7    5.9    14.2   12.2    16.1     34.2
and minority interest
Income tax                       -1.2   -1.8           -2.3    -5.5    -11.9
Profit for the                    2.6    4.1           10.0    10.5     22.4
financial period
Distribution of profit                                               
for financial period
To parent company                 2.6    4.1            9.9    10.5     22.4
To minority                       0.0    0.0            0.0     0.0      0.0
Profit for the                    2.6    4.1           10.0    10.5     22.4
financial period
Earnings per share,              0.04   0.05           0.13    0.13     0.28
Consolidated Balance                                30.9.06 30.9.05 31.12.05
Sheet, EUR million                                             
Non-current assets                                    123.7   121.7    106.2
Inventories                                            64.1    69.9     59.6
Trade and other                                        53.9    59.3     64.3
Assets recognised at                                                 
fair value
through profit and                                      0.1     0.1      0.1
Cash and cash                                          10.5     5.2     26.3
Assets, total                                         252.3   256.1    256.5
Shareholders’ equity                                                 
and liabilities
Shareholders’ equity                                  133.6   127.1    139.0
Minority interest                                       0.0     0.0      0.0
Shareholders’ equity,                                 133.6   127.1    139.0
Provisions                                             13.8     9.1      9.8
Non-current interest-                                   0.6     1.3      1.2
bearing liabilities
Non-current non-                                        8.1    10.4      7.8
interest bearing
Current interest-                                       7.3    13.8      1.7
bearing liabilities
Current non-interest-                                  88.9    94.4     97.0
bearing liabilities
Shareholders’ equity                                  252.3   256.1    256.5
and liabilities, total
 Consolidated cash flow
                                           30.9.2006 30.9.2005  31.12.2005
 Cash flow from business operations                             
 Profit for the financial period                 9.9      10.5        22.4
 Adjustments                                    -0.3      12.7        17.6
 Cash flow before change in working              9.6      23.2        40.0
 Change in working capital:                     -6.7      -7.5       -15.8
 Cash flow from operations before                2.9      15.7        24.2
 financial items and taxes
 Interest received                               0.4       1.1         1.2
 Dividends received                              0.0       0.2         0.4
 Interest paid                                  -0.6      -3.1        -1.3
 Taxes paid                                     -6.7      -1.7        -2.0
 Cash flow from business operations             -3.9      12.2        22.6
 Cash flow from investments                                     
 Investments in tangible and intangible         -7.4      -7.4       -10.3
 Proceeds from the sale of tangible and          5.8       0.1        25.7
 intangible assets
 Taxes on proceeds of sale of energy            -2.9            
 business operations in 2005
 Cash flow from investments                     -4.5      -7.3        15.4
 Cash flow from financing                                       
 Change in long-term loan receivables            1.1            
 Drawings of short-term loans                    5.6       2.4  
 Repayments of short-term loans                           -8.1       -16.8
 Repayments of long-term loans                  -0.6                  -1.0
 Dividends paid                                -13.4      -5.6        -5.7
 Other financing items                                     5.5         5.5
 Cash flow from financing                       -7.4      -5.8       -17.9
 Change in liquid assets                       -15.8      -0.9        20.1
 Liquid assets at beginning of period           26.3       6.2         6.2
 Liquid assets at end of financial              10.5       5.2        26.3
                                               -15.8      -0.9        20.1
 Key figures                              30.9.2006  30.9.2005  31.12.2005
 Number of shares, 1000                      79,350     79,350      79,350
  - of which outstanding                     79,020     79,020      79,020
 Return on invested capital, %                 12.0       17.4        26.1
 Return on equity, %                            9.7       11.2        17.1
 Equity ratio, %                               61.8       61.2        64.4
 Gearing, %                                    -2.1        7.7       -17.7
 Equity per share, EUR                         1.69       1.61        1.76
 Investments, EUR million                       8.3        7.8        11.4
 Personnel at end of year                     1,245      1,214       1,222
 Personnel (average)                          1,272      1,208       1,218
 Order book, EUR million                      135.8      142.4       140.7
 Business areas net sales, operating profit and
 order book, EUR million
 Net sales                                        Compa-                Compa-
                                                  rable                 rable
                1-3   4-6    7-9    10-12   1-3    1-3    4-6    7-9     7-9
                /05   /05    /05     /05    /06    /06    /06    /06     /06
 Glaston        50.7  60.6    52.8    74.8  54.8   54.8    55.3  51.3    51.3
 Energy          8.0   5.1     6.8     7.7   8.9    8.9     7.6   9.0     9.0
 Parent          0.1   0.1     0.1     0.0   0.1    0.1     0.1   0.1     0.1
 Group,         58.7  65.8    59.6    82.5  63.8   63.8    63.0  60.4    60.4
 Operating      1-3   4-6    7-9    10-12   1-3    1-3     4-     7-9     7-9
 profit         /05   /05    /05     /05    /06    /06    6/06    /06     /06
 Glaston         4.5   6.2     5.8     5.5   3.2    3.8     4.5   1.8     2.8
 Operating       9.0  10.3    11.1     7.4   5.7    7.0     8.1   3.5     5.5
 profit %
 Energy          2.0   1.1     1.5    14.3   1.6    1.6     1.1   1.9     1.9
 Operating      25.1  20.5    22.4   185.9  18.1   18.1    14.8  21.5    21.5
 profit %
 Parent         -1.4  -1.6    -1.1    -1.4  -0.7   -0.7    -1.2  -0.5    -0.1
 Group,          5.1   5.7     6.3    18.4   4.0    4.7     4.5   3.2     4.6
 Operating       8.7   8.7    10.5    22.3   6.3    7.4     7.1   5.4     7.7
 profit %
 Order book    03/05  6/05    9/05   12/05 03/06  03/06   06/06 09/06   09/06
 Glaston       114.5 122.1   119.4   108.8 100.0  100.0    98.2 111.8   111.8
 Energy         24.6  23.2    23.0    31.9  31.9   31.9    31.9  24.0    24.0
 Group,        139.1 145.3   142.4   140.7 131.9  131.9   130.1 135.8   135.8
 Contingent              30.9.2006  30.9.2005  31.12.2005
 liabilities, EUR
 Company mortgages             0.2        0.2         0.2
 Other own liabilities        13.4       15.0        14.7
 Derivatives contracts                         
 Value of underlying                           
 Forward currency             19.9       16.1        14.1
 Electricity contracts         7.3       10.9         9.6
 Fair value                                    
 Forward currency                              
 Positive fair value           0.1        0.0         0.0
 Negative fair value          -0.3       -0.2        -0.3
 Electricity contracts                         
 Positive fair value                      0.0         0.0
 Negative fair value          -3.5       -1.9        -2.1
 Statement of change in                                               
 consolidated shareholders’
                               Shareholders’ equity attributable to   
                               parent company shareholders
 1000 EUR          Share Shar   Own   Trans Fair   Retaí Tot.  Mino-  Share-
                   capi- pre-   sha-  la-   value  ned         rity   hold-
                   tal   mium   res   tion  fund   assets      inte-  ers’
                         fund         diffe                    rest  equity
                                      rences                         total
 Shareholders’     12.7   25.3  -1.0  1.5    -1.6 102.0 139.0     0.0  139.0
 equity 1.1.2006                                           
 Change in                              -                -0.9           -0.9
 translation                          0.9
 Recognitions to                             -1.1        -1.1           -1.1
 fair value fund
 Profits and                                                          
 losses from
 hedging of
 net investment,                      0.1                 0.1            0.1
 less taxes
 Dividend                                             -     -          -13.4
 distribution                                      13.4  13.4
 Profit for the                                     9.9   9.9     0.0   10.0
 Shareholders’     12.7   25.3  -1.0  0.6    -2.7  98.5 133.6     0.0  133.6
                  Share  Shar   Own   Trans Fair   Retaí Tot. Mino-   Share-
                   capi- pre-   sha-  la-   value  ned        rity    hold-
                   tal   mium   res   tion  fund   assets     inte-   ers’
                         fund         diffe                   rest   equity
                                      rences                          total                                                     
 1000 EUR         
 Shareholders’     12.7   25.3  -1.0  0.0          84.6 121.6  0.5    122.2
 equity 1.1.2005                                            
 IAS 39,                                                              
 and valuation                                0.5   0.5   1.0            1.0
 IAS 32,                                           -0.1  -0.1    -0.2   -0.3
 n of minority
 Change in                            1.5                 1.5            1.5
 Recognitions to                             -1.9        -1.9           -1.9
 fair value fund
 Dividend                                          -5.5  -5.5           -5.5
 Other changes                                                   -0.3   -0.3
 Profit for the                                    10.5  10.5    -0.1   10.5
 Shareholders’     12.7   25.3  -1.0  1.5    -1.4  90.0  127.     0.0  127.1
 equity                                                     1
 The interim report has been prepared applying the
 valuation and allocation principles of the IFRS
 standards. The interim report applies the same
 accounting principles and calculation methods as
 the annual report.
 The numbers are unaudited.