INTERIM REPORT 1 JANUARY - 31 MARCH 2004

ETTEPLAN OYJ    STOCK EXCHANGE RELEASE    5 MAY 2004 09.00 A.M.  1(6)

INTERIM REPORT 1 JANUARY - 31 MARCH 2004


ETTEPLAN’S TURNOVER UP BY 18 %; OPERATING PROFIT 6,0 % OF TURNOVER

- Consolidated turnover: EUR 14,3 million   (12,1 million)
- Operating profit: EUR 0,9 million         (1,0 million)
- Earnings per share: EUR 0,09              (0,12)
- Personnel: 926 employees                  (825)

(Figures in brackets are those for the same period in 2003 unless
otherwise stated.)

The Etteplan Group’s turnover increased during January - March in
consequence of improved market situation. Operating profit per cent
of turnover improved considerably compared to both previous quarter
and the entire fiscal year 2003 as a result of both higher work-load
and improved efficiency of internal functions. Profitability has
improved in all major market areas, but especially in international
operations.

Turnover and result

Etteplan’s turnover grew to EUR 14,3 million (12,1 million), due to
clearly improved demand situation.

Operating profit was EUR 0,9 million (1,0 million), or 6,0 % of
turnover (8,2 %). The amount of work in progress increased compared
to the equivalent period in 2003, which in its part decreases the
reported operating profit. Profit for the financial period before
extraordinary items and taxes was EUR 0,9 million (1,0 million).

Net profit was EUR 0,4 million (0,5 million). Earnings per share
were EUR 0,09 (0,12). Equity per share decreased by 12,3 % and was
EUR 2,43 (2,77).

Return on investment improved clearly compared to previous year,
being 24 %. It was, however slightly poorer than in the comparison
period (26,8 %).

Business Operations

Etteplan acts as a partner of large and medium-sized internationally
operating industrial companies, carrying out entire design projects
or continuous product development and equipment design. The Group’s
design services consist of 1) machine technology and mechatronics
design, 2) automation and electrical design as well as 3) electronics
and software design. The customers are equipment manufacturers and
end-users in the wood-processing industry as well as processing,
automotive, lifting and hoisting and electronics industry.

Major events in the first quarter

The market situation has improved especially in wood processing
industry as well as in materials handling equipment-manufacturing
industry.

During the report period the company has received new significant
assignments. Among others can be mentioned designing of 28 steel
lift shafts to MacGREGOR (FIN) Oy as well as several design
assignments of paper machine sections to Metso Paper Oy.

In March, Etteplan Oyj held its Annual General Meeting, at which
the Board of Directors was authorized:

- to decide within one year from the Annual General Meeting on
the floating of one or more issues of convertible bonds and/or the
granting of stock options and/or to decide on increasing the share
capital by offering in one or more instalments a maximum of 854,921
shares with an accounting counter value of EUR 0.10 at a price
determined by the Board of Directors and otherwise on the terms
and conditions decided by the Board of Directors.

- to decide on buying back the company’s own shares (treasury
shares) in one or more instalments such that the company can buy
back a maximum of 213,730 of the company’s shares with an accounting
counter value of EUR 0.10 using distributable funds in disproportion
to shareholders’ existing shareholdings.

- to decide, on the basis of the authorization passed as a
resolution, on the transfer of the company’s treasury shares in
one or more instalments. The authorization granted to the Board of
Directors comprises the right to transfer a maximum of 213,730
shares with an accounting counter value of EUR 0.10 such that the
aggregate accounting counter value of the shares to be transferred
and the votes conferred by them is a maximum of five (5) per cent
of the company’s share capital and the total voting rights conferred
by the shares.

Personnel

The operations and number of personnel of the Etteplan Group have
grown steadily. During the report period the Group employed an
average of 926 persons (825) and at the end of the period the
payroll numbered 942 employees (823). Increases in the number of
staff were due to transferred business activities and were nearly
entirely directed to the carrying out of customer projects. The
Group’s personnel at units abroad numbered 222 employees.

Capital expenditures and financing

The Group’s total capital expenditures increased by 17,2 % compared
with the same period a year earlier and totalled EUR 0.5 million
(0,4 million). The investments went for the purchase of computer
software and hardware as well as for the development of information
networks. 

Etteplan’s financial position remained strong. Total assets at
31 March 2004 stood at EUR 27.2 million (25.2 million), of which
cash and cash equivalents as well as securities held as financial
fixed assets totalled EUR 7.1 million (5.5 million). The Group’s
interest-bearing liabilities at the end of the period totalled
EUR 0.9 million (1.0 million). As a result of the book entry of
dividend resolution made in the Annual General Meeting the equity
ratio decreased to 46.2 % (55.2 %). Good liquidity was maintained
throughout the report period and operating cash flow was 
EUR 1.3 million.

Share capital and treasury shares

At 31 March 2004 the company held 100 treasury shares, corresponding
to 0.0 % of the entire shares outstanding. The consideration paid
for the shares amounted to EUR 481.00. During the report period the
company has not bought back its shares. The company’s treasury
shares do not have an effect on the proportional distribution of
shareholdings.

Major events after the report period

The company signed in April a Letter of Intent according to which
19 designers from Metso Paper Como S.p.A will be transferred to the
service of Di&Esse Etteplan Srl, an associated company of Etteplan.
At the same time the companies agreed on partnership based co-
operation. The business trade means on annual level approximately
two per cent volume increase to the Group.

Also in April Etteplan and MacGREGOR (FIN) Oy signed a general
agreement concerning delivery of design services for lift shafts in
ships. The first assignment is to design utilizing the MacGREGOR
plug-in technology 28 steel lift shafts to Ultra Voyanger cruiser,
which is under construction in Turku, Finland.

Near-term outlook

Demand for capital goods is expected to slightly increase in
company’s main marketing area in North and Central Europe in all
industrial sectors also during the current quarter.

Company’s main objective is continuation of profitable growth. The
growth is achieved organically when customers transfer their design
activities to Etteplan and by acquisitions. The company works
persistently and systematically to ensure the realization of growth
objectives.

Hollola, 5 May 2004

Etteplan Oyj

Board of Directors


For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063.

The figures are unaudited.


DISTRIBUTION:  Helsinki Exchanges
               Principal media
               www.etteplan.com


CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1000)


                            1.1.-31.3.04  1.1.-31.3.03  1.1.-31.12.03

TURNOVER                          14 259        12 132         50 662
Variation in work in progress        253           -34            110
Other operating income                 8             7            134
Materials and services              -264           -77         -1 087
Staff expenses                   -10 771        -8 707        -38 312
Depreciation and amortisation
according to plan                   -491          -383         -1 791
Other operating  expenses         -2 138        -1 910         -7 193
Share of losses from
participating interests                0           -34           -128
OPERATING PROFIT                     856           992          2 395
 "               %                   6,0           8,2            4,7
Financial income and expenses         -2           -12             49
PROFIT BEFORE
EXTRAORDINARY ITEMS                  854           981          2 444
Extraordinary items                    0             0              0
PROFIT BEFORE APPROPRIATIONS
AND TAXES                            854           981          2 444
Income taxes                        -331          -337         -1 054
Change in deferred tax liability       1             0            -11
Minority interest                   -146          -113           -416
NET PROFIT FOR THE PERIOD            378           531            964
"                         %          2,6           4,4            1,9


CONSOLIDATED BALANCE SHEET (EUR 1000)

                            1.1.-31.3.04  1.1.-31.3.03  1.1.-31.12.03

ASSETS
NON-CURRENT ASSETS
Intangible assets                  4 140         2 315          4 308
Tangible assets                    3 297         3 143          3 361
Own shares                             0           139              0
Other investments                    415         2 352            443
NON-CURRENT ASSETS, TOTAL          7 852         7 949          8 112
CURRENT ASSETS
Stocks                             1 095           469            843
Current receivables               11 189        11 278         10 518
Marketable securities                  0         1 332            796
Cash and cash equivalent           7 068         4 179          5 810
CURRENT ASSETS, TOTAL             19 352        17 258         17 968
ASSETS, TOTAL                     27 204        25 207         26 080

SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital                        427           427            427
Share premium account              5 058         5 058          5 058
Reserve for own shares                 0           139              0
Retained earnings                  4 520         5 768          5 923
Net profit for the period            378           531            964
SHAREHOLDERS’ EQUITY, TOTAL       10 383        11 924         12 372
MINORITY INTERESTS                 1 879         1 844          2 194
LIABILITIES
Deferred tax liabilities             197           187            198
Long-term liabilities                734           794          1 065
Current liabilities               14 010        10 458         10 249
LIABILITIES, TOTAL                14 941        11 439         11 513
SHAREHOLDERS’ EQUITY AND
LIABILITIES, TOTAL                27 204        25 207         26 080


KEY FIGURES FOR ETTEPLAN GROUP (EUR 1000)
                                                            Changes
                  1.1.-31.3.04  1.1.-31.3.03  1.1.-31.12.03 for prev.
                                                            year

Turnover                14 259        12 132         50 662   17,5 %
Operating profit           856           992          2 395  -13,8 %
% of turnover              6,0           8,2            4,7
Profit before extra-
ordinary items             854           981          2 444  -13,0 %
Net profit for
the period                 378           531            964  -28,9 %
Return on investment, %   24,0          26,8           16,1
Return on equity, %       15,6          18,5            9,6
Equity ratio %            46,2          55,2           57,2
Gross interest-bearing
loans                      888           976          1 197   -9,0 %
Dept-equity ratio, %     -50,4         -33,3          -37,1
Total balance           27 204        25 207         26 080    7,9 %
Gross investments          483           412          2 772   17,2 %

Earnings per share        0,09          0,12           0,23  -25,0 %
Equity per share          2,43          2,77           2,89  -12,3 %
Personnel at the end
of the period              942           823            936   14,5 %
Personnel, average         926           825            876   12,2 %



CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)

                              1.1.-31.3.04 1.1.-31.3.03 1.1.-31.12.03
OPERATING CASH FLOW
Cash receipts from customers        13 737        8 935        48 063
Other operating income                   8            7           109
Operating expenses paid             12 158       10 078        44 117
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES            1 587       -1 137         4 055

Interest and payment paid for
financial expenses                      13           26            59
Interest received                       10           15            98
Dividend received                        0            0            11
Income taxes paid                      331          337         1 054
OPERATING CASH FLOW (A)              1 254       -1 485         3 051

INVESTMENT CASH FLOW
Investment in tangible and
intangible assets                      483           412        2 759
Sales of tangible and
intangible assets                        0             0          203
Investments to other investments         0             5           13
INVESTMENT CASH FLOW    (B)           -483          -417       -2 569

FINANCING CASH FLOW
Short-term loans, increase               0           255            0
Short-term loans, decrease               0             0           78
Long-term loans, increase                0             0          269
Long-term loans, decrease              309             2            0
Dividends paid and other
profit distribution                      0             0        1 227
FINANCING CASH FLOW (C)               -309          -253       -1 035

VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-)             462        -1 649         -553

ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD              6 606         7 160        7 160
ASSETS AT THE END
OF THE FINANCIAL PERIOD              7 068         5 511        6 606



About Us

Etteplan provides solutions for industrial equipment and plant engineering, software and embedded solutions, and technical documentation solutions to the world’s leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers’ products, services and engineering processes throughout the product life cycle. The results of Etteplan’s innovative engineering can be seen in numerous industrial solutions and everyday products. In 2018, Etteplan had a turnover of approximately EUR 236 million. The company currently has some 3,400 professionals in Finland, Sweden, the Netherlands, Germany, Poland and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com

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