EIRIKUVA DIGITAL IMAGE GROUP HALF YEAR REPORT 1 January - 30 June 2008

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EIRIKUVA DIGITAL IMAGE GROUP HALF YEAR  REPORT 1 January - 30 June 2008         

The turnover of Eirikuva Digital Image Group (‘the Group') in January-June 2008 
was 2.7 million euros, 3% lower than the equivalent figure for the first half of
2007. In the reporting period, the business result before depreciation (EBITDA) 
was €498,000 to the negative (H1/2007: €563,000 to the negative). Loss after    
taxes was €772,000 (2007: €766,000).                                            

The turnover of Eirikuva Digital Image Oyj Abp (‘Eirikuva', ‘the Company') in   
January-June 2008 was 2.7 million euros, 3% lower than the equivalent figure for
the first half of 2007. About 43% of the image-manufacturing turnover was a     
result of the rapidly growing product area of digital photography. In 2007,     
digital image products accounted for 34% of the image-manufacturing turnover. In
the reporting period, the business result before depreciation (EBITDA) was      
€516,000 to the negative (H1/2007: €566,000 to the negative).                   
The loss per share was €0.22. Loss after taxes was €776,000 (2007: €759,000).   

MAIN EVENTS IN THE FIRST HALF                                                   

The turnover decreased and was 3% lower than that for the equivalent time in the
previous year.                                                                  
The shareholders' equity was negative, so Amago Capital converted €110,000 of   
its receivables into a subordinated loan.                                       
Co-operation negotiations for decreasing the number of personnel in the parent  
company started in June.                                                        

KEY FIGURES FOR THE FIRST QUARTER                                               

Turnover: €1,247,000 (2007 comparative: €1,222,000)                             
Business result before depreciation (EBITDA): -€331,000 (2007: -€340,000)       
Loss for Q1: €456,000 (2007: €404,000)                                          
Loss per share: €0.13                                                           

KEY FIGURES FOR THE SECOND QUARTER                                              

Turnover: €1,423,000 (2007 comparative: €1,531,000)                             
Business result before depreciation (EBITDA): -€185,000 (2007: -€226,000)       
Loss for Q2: €320,000 (2007: €355,000)                                          
Loss per share: €0.09                                                           

MANAGING DIRECTOR'S REPORT                                                      

During the first half of the year, we developed our operations by investing in  
IT skills, developing the service concept, and enhancing our visual image. We   
launched co-operation with the Tokmanni Group, the Superkuva chain, and DNA     
Finland. We opened customised partner Web sites for new customers, where        
versatile Eirikuva online photo service is offered.                             

In the first part of the year, we have also renewed partner Web sites and, as a 
new product, published the Eirikuva Photo book service. We have further         
developed our service offerings and co-operation with professional photographers
by opening a competition for professional photographers, entitled Vuoden Morsian
(Bride of the Year), on the häät.fi Web site, and by presenting Eirikuva's      
products to an important target group of photographers, couples planning their  
wedding. In Sweden, we began co-operation with Svenska Fotogruppen, an          
association of professional photographers.                                      

The preparations for the reorganisation of Eirikuva, as published in June, have 
progressed as planned. Cost-cutting measures, such as optimising logistics and  
decreasing personnel numbers, continue via co-operation negotiations.           

The Eirikuva Kiosk concept has increased awareness of the Eirikuva brand in busy
trade centres. Photo orders made via kiosks are transmitted to the automatic    
development centres of photo companies over the Internet.                       
In Finland, Eirikuva has concentrated on developing its service concept in      
co-operation with its customers. Consumers have found Eirikuva's kiosk centres, 
and they are finding increasing use, for instance, in special Eirikuva shops,   
and in Anttila and Stockmann department stores.                                 

Eirikuva's market position in Sweden has become stronger. Eirikuva photo        
services are available in OnOff, Euronics, ICA Maxi Special stores, and several 
special shops in Sweden. Also, NetOnNet shops offer Eirikuva services.          

FINANCIAL REPORT                                                                

ACCOUNTING PRINCIPLES                                                           

This report has been prepared in accordance with the Finnish Bookkeeping Act,   
and other applicable laws and regulations. The same accounting principles are   
applied as for the 2007 accounts. The business group's financial statements have
been prepared with figures from 30 June 2008, with corresponding comparable     
figures from 30 June 2007.                                                      

REVENUE AND RESULT                                                              

As the industry is experiencing a radical change related to digital and analogue
photo production, the loss for the half-year period was as €772,000             
(January-June 2007 comparative: €766,000), and the loss of the parent company   
for the same period was €776,000 (January-June 2007: €759,000).                 

The business loss before depreciation (EBITDA) was €498,000 (January-June 2007: 
€563,000).                                                                      
The corresponding figure of the parent company for the same period was €516,000 
(January-June 2007: €566,000). Digital image products accounted for 43% of the  
image-manufacturing turnover (in 2007, the corresponding figure was 34%).       

Building of the Eirikuva service concept for new market areas has continued.    
Planning and implementation of logistics services and photo-ordering programmes 
has required investments.                                                       

We have managed to decrease raw material costs, and the cost cuts allowed       
through optimising logistics will become apparent toward the end of the year.   
The number of personnel will be decreased on the basis of ongoing co-operation  
negotiations.                                                                   

Depreciation has increased from the €152,000 level of January-June 2007, to     
total €183,000 in January-June 2008. This is mainly due to considerable         
investments in machinery made in 2007. Depreciation of the Group in the period  
under review was €191,000 (January-June 2007 €160,000).                         

ASSETS AND INVESTMENTS                                                          

The bottom line for the Group balance at the end of the review period was       
€2,929,000 (2007: €3,251,000). The corresponding figure for the parent company  
was €2,784,000 (2007: €3,108,000). The equity/assets ratio of the company and   
the Group was -3% at the end of the review period (on 30 June 2007, the         
equity/assets ratio of the company and the Group was 5%). The machine           
investments recorded in the consolidated balance were €51,000 for January-June  
2008 (January−June 2007: €529,000), and the corresponding figure for the company
was €49,000 (January-June 2007: €527,000). In 2008, the company made its largest
investments in the Eirikuva Kiosk concept and photo ordering software. There    
were no other major investments in permanent assets.                            

PERSONNEL                                                                       

The company employed 50 people at the end of the period under review (2007: 67) 
and 54 on average during the review period. The Swedish operations employed     
three people (in Eirikuva Nordic AB). In 2008, the number of staff in the parent
company and its subsidiaries Eiri Kehys Oy AB and Eirikuva Nordic AB averaged 61
(2007: 79).                                                                     

GROUP STRUCTURE                                                                 

The Eirikuva Digital Image Oyj Abp Group comprises, in addition to parent       
company Eirikuva Digital Image Oyj Abp, Eiri Kehys Oy AB (Finland) and Eirikuva 
Nordic AB (Sweden), which became a Group company on 25 April 2007, wholly owned 
since the beginning of June 2007.                                               

Eirikuva Digital Image Oyj Abp was established on 16 February 2006.             

The group financial statements have been prepared according to the acquisition  
cost method. Internal business transactions and internal receivables and debts  
have been eliminated.                                                           

SHARES AND SHAREHOLDERS                                                         

The 10 biggest shareholders on 30 June 2008 were:                               
Amago Capital Ab Publ 2,020,000 shares                                          
Oy Herttaässä Ab 455,500 shares                                                 
Possidentes Oy 366,000 shares                                                   
Jonas Nordlund 113,875 shares                                                   
Blue White Capital Oy 113,875 shares                                            
Troll Capital Oy 99,275 shares                                                  
Ailama-Mäkitalo Merja 57,438 shares                                             
Markku Hietamäki 56,938 shares                                                  
Käpylän Sähkö Oy 34,000 shares                                                  
Juha Kojonen 16,300 shares                                                      

FUTURE PROSPECTS                                                                

Eirikuva believes that the market for special products will grow in 2008. It    
will continue to concentrate on the development of its service concept, with the
new value‑added products; the kiosk concept; and easy‑to‑use, consumer-friendly 
image-ordering software as the central areas of focus.                          

Within the context of its cost savings programme, Eirikuva has conducted        
co-operation negotiations with its personnel and will increase its operations'  
efficiency by adjusting the number of personnel and its premises to better meet 
the needs of its business activities.                                           

RISKS AND UNCERTAINTY FACTORS FOR THE NEAR FUTURE                               

Major challenges for Eirikuva's business activities are posed by changes taking 
place in consumer demand and in the competitive environment. Development of the 
service concept and sufficiently rapid introduction of new, innovative products 
to the market are key challenges in the industry.                               

The company's business is characterised by strong cycles, and the effect of     
seasonal variation is significant. The company aims to adapt its costs when     
turnover decreases. If the financial development of the company continues at the
current level, solvency and liquidity will pose uncertainty in the absence of   
long-term financing, unless the adaptive measures improve the result in the     
short term.                                                                     

EVENTS AFTER THE REVIEW PERIOD                                                  

The co-operation negotiations were completed on 11 August 2008, and, as a       
result, 17 employees were dismissed from the parent company. As the             
rearrangements continue, actions may affect up to 14 people by the end of       
October.                                                                        
The business result of the company in July was €122,000 (2007: €61,000).        

THE NEXT INTERIM REPORT                                                         

The next interim report will be the 2008 financial statement. It will be        
published in February 2009.                                                     


This report has not been audited by the company's auditors.                     

Lahti 25 August 2008.                                                           

Merja Ailama-Mäkitalo                                                           
Managing Director                                                               
Eirikuva Digital Image Oyj Abp                                                  
Business ID 2018481-2                                                           
Heinolan Vanhatie 25                                                            
15170 Lahti                                                                     

For more information, contact:                                                  
Managing Director                                                               
Merja Ailama-Mäkitalo                                                           
tel.: +358 (0)40 545 3357                                                       
e-mail: merja.ailama-makitalo@eirikuva.fi                                       
www.eirikuva.fi                                                                 

Privanet Pankkiiriliike Oy/Tuomas Siltala acts as the CA of Eirikuva Digital    
Image Oyj Abp.                                                                  

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| INCOME STATEMENT             | Eirikuva | Eirikuva |     Parent |     Parent |
|                              |          |          |    Company |    Company |
--------------------------------------------------------------------------------
| (1000 euro)                  |   -group |   -group |   Eirikuva |   Eirikuva |
--------------------------------------------------------------------------------
|                              | 1.1.-30. | 1.1.-30. | 1.1.-30.6. | 1.1.-30.6. |
|                              |   6.2008 |   6.2007 |       2008 |       2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TURNOVER                     |    2 672 |    2 754 |      2 670 |      2 753 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income       |       27 |       19 |         27 |         19 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials and services       |   -1 165 |   -1 208 |     -1 385 |     -1 310 |
--------------------------------------------------------------------------------
| Personnel costs              |   -1 008 |   -1 083 |       -852 |     -1 015 |
--------------------------------------------------------------------------------
| Depreciations and other      |     -191 |     -160 |       -183 |       -152 |
| adjustments                  |          |          |            |            |
--------------------------------------------------------------------------------
| Other operating costs        |   -1 024 |   -1 045 |       -976 |     -1 012 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING RESULT             |     -689 |     -723 |       -699 |       -718 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and costs   |      -82 |      -40 |        -77 |        -40 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EARNINGS BEFORE              |     -772 |     -763 |       -776 |       -758 |
| EXTRAORDINARY ITEMS          |          |          |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Extraordinary items          |        0 |        0 |          0 |          0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EARNINGS BEFORE              |          |          |            |            |
| APPROPRIATIONS               |          |          |            |            |
--------------------------------------------------------------------------------
| AND TAXES                    |     -772 |     -763 |       -776 |       -758 |
--------------------------------------------------------------------------------
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| Income tax                   |        0 |       -3 |          0 |         -2 |
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| EARNINGS FOR THE PERIOD      |     -772 |     -766 |       -776 |       -759 |
--------------------------------------------------------------------------------
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| BALANCE SHEET                | Eirikuva | Eirikuva |     Parent |     Parent |
|                              |          |          |    Company |    Company |
--------------------------------------------------------------------------------
| (1000 euro)                  |   -group |   -group |   Eirikuva |   Eirikuva |
--------------------------------------------------------------------------------
| Assets                       | 30.6.200 | 30.6.200 |  30.6.2008 |  30.6.2007 |
|                              |        8 |        7 |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM ASSETS             |          |          |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill                     |      185 |      206 |        173 |        195 |
--------------------------------------------------------------------------------
| Other intabgible assets      |       56 |        7 |         56 |          8 |
--------------------------------------------------------------------------------
| Tangible assets              |    1 228 |    1 490 |      1 189 |      1 436 |
--------------------------------------------------------------------------------
| Receivables                  |        0 |        0 |         19 |          8 |
--------------------------------------------------------------------------------
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| TOTAL LONG-TERM ASSETS       |    1 469 |    1 703 |      1 437 |      1 647 |
--------------------------------------------------------------------------------
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| SHORT-TERM ASSETS            |          |          |            |            |
--------------------------------------------------------------------------------
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| Inventories                  |      572 |      580 |        477 |        497 |
--------------------------------------------------------------------------------
| Trade receivables            |      756 |      813 |        761 |        813 |
--------------------------------------------------------------------------------
| Other receivables            |       29 |       20 |         38 |         17 |
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| Funds                        |      103 |      135 |         71 |        134 |
--------------------------------------------------------------------------------
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| TOTAL SHORT-TERM ASSETS      |    1 460 |    1 548 |      1 347 |      1 461 |
--------------------------------------------------------------------------------
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| TOTAL ASSETS                 |    2 929 |    3 251 |      2 784 |      3 108 |
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|                              | Eirikuva | Eirikuva |     Parent |     Parent |
|                              |          |          |    Company |    Company |
--------------------------------------------------------------------------------
|                              |   -group |   -group |   Eirikuva |   Eirikuva |
--------------------------------------------------------------------------------
| Shareholders´equity and      | 30.6.200 | 30.6.200 |  30.6.2008 |  30.6.2007 |
| liabilities                  |        8 |        7 |            |            |
--------------------------------------------------------------------------------
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| SHAREHOLDERS´EQUITY          |          |          |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share capital                |    1 408 |       80 |      1 408 |          8 |
--------------------------------------------------------------------------------
| Issue of shares              |          |          |          0 |         72 |
--------------------------------------------------------------------------------
| Unrestricted shareholders    |      722 |      850 |        722 |        850 |
| found                        |          |          |            |            |
--------------------------------------------------------------------------------
| Profit/loss from Previous    |   -1 452 |        0 |     -1 452 |          0 |
| years                        |          |          |            |            |
--------------------------------------------------------------------------------
| Profit/loss from the year    |     -772 |     -766 |       -776 |       -759 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS´EQUITY    |      -94 |      164 |        -98 |        171 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES                  |          |          |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term liabilities        |    1 727 |    1 665 |      1 565 |      1 501 |
--------------------------------------------------------------------------------
| Short-term liabilities       |    1 296 |    1 422 |      1 317 |      1 436 |
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| TOTAL LIABILITIES            |    3 023 |    3 087 |      2 882 |      2 937 |
--------------------------------------------------------------------------------
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| TOTAL SHAREHOLDERS´EQUITY    |    2 929 |    3 251 |      2 784 |      3 108 |
| AND LIABILITIES              |          |          |            |            |
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| BUSINESS INDICATORS          | Eirikuva | Eirikuva |     Parent |     Parent |
|                              |          |          |    Company |    Company |
--------------------------------------------------------------------------------
|                              |   -group |   -group |   Eirikuva |   Eirikuva |
--------------------------------------------------------------------------------
|                              | 1.1.-30. | 1.1.-30. | 1.1.-30.6. | 1.1.-30.6. |
|                              |   6.2008 |   6.2007 |       2008 |       2007 |
--------------------------------------------------------------------------------
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| Turnover                     |    2 672 |    2 754 |      2 670 |      2 753 |
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| Operating result             |     -689 |     -723 |       -699 |       -718 |
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| % of turnover                |    -26 % |    -26 % |      -26 % |      -26 % |
--------------------------------------------------------------------------------
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| Earnings before              |     -772 |     -763 |       -776 |       -758 |
| extraordinary items          |          |          |            |            |
--------------------------------------------------------------------------------
| % of turnover                |    -29 % |    -28 % |      -29 % |      -28 % |
--------------------------------------------------------------------------------
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| Earnings for the period      |     -772 |     -766 |       -776 |       -759 |
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| % of turnover                |    -29 % |    -28 % |      -29 % |      -28 % |
--------------------------------------------------------------------------------
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| Equity ratio                 |     -3 % |      5 % |       -4 % |        6 % |
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| (Shareholders' equity*100) /                       |            |            |
|           total assets                             |            |            |
--------------------------------------------------------------------------------
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| Earnings per share (in       |    -0,22 |   -38,30 |      -0,22 |     -37,95 |
| euros)                       |          |          |            |            |
--------------------------------------------------------------------------------
| (Earnings for the period/average number |          |            |            |
| of shares                               |          |            |            |
--------------------------------------------------------------------------------
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| Average number of shares     |    3 520 |    20000 |    3520000 |      20000 |
|                              |      000 |          |            |            |
--------------------------------------------------------------------------------
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| Nmber of shares              |          |          |            |            |
--------------------------------------------------------------------------------
| at the end of the period     |    3 520 |   20 000 |  3 520 000 |     20 000 |
|                              |      000 |          |            |            |
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| Cash flow statement          | Eirikuva | Eirikuva |   Eirikuva |   Eirikuva |
|                              |          |          |    Digital |    Digital |
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| (1000 euro)                  | -konsern | -konsern |  Image Oyj |  Image Oyj |
|                              |        i |        i |        Abp |        Abp |
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|                              | 1.1.-30. | 1.1.-30. | 1.1.-30.6. | 1.1.-30.6. |
|                              |   6.2008 |   6.2007 |       2008 |       2007 |
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| Cash flow from operating     |          |          |            |            |
| activities                   |          |          |            |            |
--------------------------------------------------------------------------------
| Operating income             |     -689 |     -722 |       -699 |       -718 |
--------------------------------------------------------------------------------
| Adjustments for operating    |      109 |       92 |        106 |        111 |
| income                       |          |          |            |            |
--------------------------------------------------------------------------------
| Change in working capital    |        2 |      177 |         99 |        197 |
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| Interest and expenses paid   |        0 |        0 |          0 |          0 |
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| Interest received            |        0 |        0 |          0 |          0 |
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| Income taxes paid            |        0 |       -2 |          0 |         -2 |
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| Cash flow from operating     |     -578 |     -455 |       -494 |       -411 |
| activities                   |          |          |            |            |
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| Cash flow from investing     |          |          |            |            |
| operations                   |          |          |            |            |
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| Purchase of tangible and     |      -44 |     -513 |        -43 |       -528 |
| intangible assets            |          |          |            |            |
--------------------------------------------------------------------------------
| Proceeds from sale of        |        0 |        0 |          0 |          0 |
| tangible and                 |          |          |            |            |
--------------------------------------------------------------------------------
| intangible assets            |        0 |        0 |          0 |          0 |
--------------------------------------------------------------------------------
| Loans granted                |        0 |       -6 |          0 |         -6 |
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|                              |          |          |            |            |
--------------------------------------------------------------------------------
| Net cash used in investing   |        0 |        0 |          0 |          0 |
| activities                   |          |          |            |            |
--------------------------------------------------------------------------------
| Loan receivables             |        3 |        0 |          3 |          0 |
--------------------------------------------------------------------------------
| Proceeds from other          |        0 |        0 |          0 |          0 |
| investments                  |          |          |            |            |
--------------------------------------------------------------------------------
| Paid interests from          |        0 |        0 |          0 |          0 |
| investments                  |          |          |            |            |
--------------------------------------------------------------------------------
| Paid dividents from          |        0 |        0 |          0 |          0 |
| investments                  |          |          |            |            |
--------------------------------------------------------------------------------
| Net cash used in investing   |      -41 |     -519 |        -40 |       -534 |
| activities                   |          |          |            |            |
--------------------------------------------------------------------------------
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| Cash flow from financing     |          |          |            |            |
| activities                   |          |          |            |            |
--------------------------------------------------------------------------------
| Issue                        |        0 |        0 |          0 |        850 |
--------------------------------------------------------------------------------
| Cost of the issue            |        0 |        0 |          0 |          0 |
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| New emission                 |        0 |        0 |          0 |         72 |
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| Change in short-term         |      -84 |      357 |       -163 |       -397 |
| liabilities                  |          |          |            |            |
--------------------------------------------------------------------------------
| Change in long-term          |      309 |      360 |        309 |        283 |
| liabilities                  |          |          |            |            |
--------------------------------------------------------------------------------
| Proceeds from long-term      |        0 |     -334 |          0 |       -443 |
| liabilities                  |          |          |            |            |
--------------------------------------------------------------------------------
| Paid dividents               |        0 |        0 |          0 |          0 |
--------------------------------------------------------------------------------
| Paid group contributions     |        0 |        0 |          0 |          0 |
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| Cash flow from financing     |      225 |      383 |        146 |        365 |
| activities                   |          |          |            |            |
--------------------------------------------------------------------------------
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| Increase (-) or decrease (+) |     -395 |     -591 |       -387 |       -580 |
| in cash and equivalents      |          |          |            |            |
--------------------------------------------------------------------------------
| Cash and equivalents         |      498 |      722 |        459 |        700 |
| 31.12.2007                   |          |          |            |            |
--------------------------------------------------------------------------------
| Cash and euivalents          |      103 |      131 |         72 |        120 |
| 30.6.2008                    |          |          |            |            |
--------------------------------------------------------------------------------
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| Change in working capital    |          |          |            |            |
--------------------------------------------------------------------------------
| Increase (-) or decrease (+) |     -125 |     -129 |       -108 |       -136 |
| in trade receivables         |          |          |            |            |
--------------------------------------------------------------------------------
| Increase (-) or decrease (+) |      130 |      217 |        118 |        182 |
| in inventories               |          |          |            |            |
--------------------------------------------------------------------------------
| Increase (-) or decrease (+) |       -3 |       88 |         89 |        151 |
| in trade payables            |          |          |            |            |
--------------------------------------------------------------------------------
|                              |        2 |      177 |         99 |        197 |
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|                              | Eirikuva | Eirikuva |     Parent |     Parent |
|                              |          |          |    Company |    Company |
--------------------------------------------------------------------------------
|                              |   -group |   -group |   Eirikuva |   Eirikuva |
--------------------------------------------------------------------------------
|                              | 30.6.200 | 30.6.200 |  30.6.2008 |  30.6.2007 |
|                              |        8 |        7 |            |            |
--------------------------------------------------------------------------------
| FIXED OWN CAPITAL            |          |          |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share capital 1.1.           |    1 408 |        8 |      1 408 |          8 |
--------------------------------------------------------------------------------
| New emission                 |          |       72 |            |         72 |
--------------------------------------------------------------------------------
| Share capital 30.6.          |    1 408 |       80 |      1 408 |         80 |
--------------------------------------------------------------------------------
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| Other funds 1.1.             |      722 |        0 |        722 |          0 |
--------------------------------------------------------------------------------
| Invested unrestricted shareholders      |      850 |            |        850 |
| equity fund                             |          |            |            |
--------------------------------------------------------------------------------
| Other funds 30.6.            |      722 |      850 |        722 |        850 |
--------------------------------------------------------------------------------
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| Retained earnings            |   -1 452 |        0 |     -1 452 |          0 |
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| Profit/loss for the period   |     -772 |     -766 |       -772 |       -759 |
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| Shareholders equity total    |      -94 |      164 |        -94 |        171 |
--------------------------------------------------------------------------------
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| SHAREHOLDERS EQUITY TOTAL    |      -94 |      164 |        -94 |        171 |
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