HKSCAN GROUP INTERIM REPORT 1 January - 30 June 2007

HKScan OyjSTOCK EXCHANGE RELEASE 14 August, at 10.15am 

                                 
HKSCAN GROUP INTERIM REPORT 1 January - 30 June 2007                            

* Group's overall Q2 result at anticipated level: comparable operating profit   
  at EUR 15.2m (EUR 9.1m)                                                       
* Logistical challenges and pork export prices eroded result in Finland         
* Pozmeat ramp-up delayed in Poland                                             
* Business in Sweden and the Baltics developed as planned                       


GROUP                                                                           
--------------------------------------------------------------------------------
| EUR million   |  Q2/2007 |    Q2/2006 |    H1/2007 |    H1/2006 |       2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales     |    524.3 |      239.4 |     1022.9 |      452.9 |      934.3 |
--------------------------------------------------------------------------------
| Operating     |     15.1 |        7.0 |       24.3 |       13.6 |       40.4 |
| profit        |          |            |            |            |            |
--------------------------------------------------------------------------------
| - % of net    |      2.9 |        2.9 |        2.4 |        3.0 |        4.3 |
| sales         |          |            |            |            |            |
--------------------------------------------------------------------------------
| Comparable    |     15.2 |        9.1 |       25.2 |       15.7 |       41.8 |
| operating     |          |            |            |            |            |
| profit        |          |            |            |            |            |
--------------------------------------------------------------------------------
| - % of net    |      2,9 |        3,8 |        2,5 |        3,5 |        4,5 |
| sales         |          |            |            |            |            |
--------------------------------------------------------------------------------
| EBIT          |     10.5 |        5.5 |       16.1 |       10.7 |       33.6 |
--------------------------------------------------------------------------------
| EPS           |     0.22 |       0.13 |       0.32 |       0.24 |       0.79 |
--------------------------------------------------------------------------------


The figures are derived from group accounting and contain no pro forma          
information. The comparison figures are exclusive of Scan AB and its            
subsidiaries, which have only been consolidated into Group figures since 2007.  

In the Baltics, operating profit came to 9.2 percent of net sales while the     
figure in Finland was 3.9 percent, in Poland 2.1 percent and in Sweden 1.1      
percent.                                                                        

The early part of the year has been marked by the Swedish business incorporation
into the Group as well as a transition to consolidated business management.     
Progress was made in the efficiency programmes in Finland and Sweden. These     
contributed to a sustained high level of investment in Finland in particular.   
Cost savings are expected to begin accruing in Finland as of next year.         

The increasingly challenging nature of the pork market informed the early part  
of the year, as an oversupply of pork in the EU has resulted in falling prices  
and rising inventories. The situation is much the same in all the Group's       
markets and no rapid change can be expected.                                    

During the period under review, HKScan signed a EUR 550 million financing       
agreement used to refinance most of HKScan's current loan portfolio and support 
the company's future financing needs.                                           

The company has modified its reporting by segment to report Group administration
costs as a separate item, thus improving the comparability of market area       
profitability. Group administration costs consist mainly of salary and pension  
costs as well as certain notional costs of the management incentive system,     
among others.                                                                   



MARKET AREA: FINLAND                                                            
EUR million                                                                     
--------------------------------------------------------------------------------
|              |   Q2/2007 |    Q2/2006 |    H1/2007 |    H1/2006 |       2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales    |     171.2 |      156.4 |      326.7 |      294.1 |      608.0 |
--------------------------------------------------------------------------------
| Operating    |       5.6 |        2.7 |       12.9 |        6.6 |       25.4 |
| profit       |           |            |            |            |            |
--------------------------------------------------------------------------------
| - Operating  |       3.3 |        1.7 |        3.9 |        2.2 |        4.2 |
| profit %     |           |            |            |            |            |
--------------------------------------------------------------------------------
| Comparable   |       6.2 |        5.1 |       14.3 |        9.0 |       27.4 |
| operating    |           |            |            |            |            |
| profit       |           |            |            |            |            |
--------------------------------------------------------------------------------
| - Comparable |       3.6 |        3.3 |        4.4 |        3.1 |        4.5 |
| operating    |           |            |            |            |            |
| profit %     |           |            |            |            |            |
--------------------------------------------------------------------------------


Much time and resources were allocated to addressing the logistical problems    
which arose in spring. This has resulted in additional expenditure due to       
temporary resourcing requirements. The measures are nonetheless vital to        
ensuring reliable deliveries.                                                   

These costs will, to some extent, continue to be incurred until the completion  
of the logistics centre that is to be taken into use in Q1 of 2008. This        
unsatisfactory state of affairs has held us back in growing the business in     
Finland.                                                                        

Barbecue product sales in early summer were satisfactory in terms of sausages   
while failing to meet expectations in terms of meats for grilling. The primary  
tool in the competition against barbecue products made from imported meat was   
largely pricing.                                                                

The restructuring programme has progressed in line with plans. The manufacture  
of skinless frankfurters will transfer from Turku to Vantaa and production      
activities in Turku will be discontinued at the end of October. The new         
distribution centre under construction in Vantaa will be deployed in stages     
around the turn of the year. The Tampere terminal is planned to remain in       
operation until the end of March 2008.                                          

Exports have been continued despite falling prices and the weaker profitability 
of exports, mainly to support a sustained raw material balance in the company's 
Finnish operations.                                                             



MARKET AREA: SWEDEN                                                             
EUR million                                                                     
--------------------------------------------------------------------------------
|              |   Q2/2007 |    Q2/2006 |    H1/2007 |    H1/2006 |       2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales    |     272.5 |          - |      537.0 |          - |          - |
--------------------------------------------------------------------------------
| Operating    |       6.4 |          - |        6.1 |          - |          - |
| profit       |           |            |            |            |            |
--------------------------------------------------------------------------------
| - Operating  |       2.4 |          - |        1.1 |          - |          - |
| profit %     |           |            |            |            |            |
--------------------------------------------------------------------------------
| Comparable   |       6.4 |          - |        6.1 |          - |          - |
| operating    |           |            |            |            |            |
| profit       |           |            |            |            |            |
--------------------------------------------------------------------------------
| - Comparable |       2.4 |          - |        1.1 |          - |          - |
| operating    |           |            |            |            |            |
| profit %     |           |            |            |            |            |
--------------------------------------------------------------------------------


Six-month net sales in Sweden amounted to EUR 537.0 million, compared to EUR    
500.9 million a year earlier. Operating profit for the first half of the year   
was EUR 6.1 million (EUR 0.05m) and EBIT amounted to 1.1% of net sales (0.01%   
for the first six months of 2006). The comparison data from 2006 are unofficial.

The effort required in Sweden is still in its early stages. Performance has     
developed as anticipated but remains far short of target. Most of the rise in   
net sales is attributable to the merger of SLP Pärsons into Scan in May 2006.   

Pärsons sliced products are selling especially briskly in the sector of         
processed meats. Scan has come slightly down in sales of processed meats but    
compensated it with higher margins due to price increases implemented. Scan's   
extensive industrial sales have fared tolerably in terms of pork while the      
margin has been low in beef sales. The market for meat is hampered by oversupply
and rising inventories.                                                         

A two-year efficiency programme was launched in Sweden in May in a bid to reap  
annual savings of EUR 18-22 million. The programme comprises new investment of  
ca. EUR 20 million to improve the efficiency of production technology and       
working methods. The company will also take write-downs of approximately EUR    
10-15 million. An estimated 400 jobs will be affected. The savings are expected 
to be realised in full starting from Q3 in 2009.                                

Scan is also setting up a national distribution centre in Linköping to enhance  
efficiency and flexibility in logistics while also allowing further progress to 
be made in customer service and delivery reliability. The centre is slated for  
completion in early 2010.                                                       



MARKET AREA: THE BALTICS                                                        
EUR million                                                                     
--------------------------------------------------------------------------------
|              |   Q2/2007 |    Q2/2006 |    H1/2007 |    H1/2006 |       2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales    |      37.9 |       34.1 |       69.7 |       62.7 |      130.8 |
--------------------------------------------------------------------------------
| Operating    |       3.9 |        3.7 |        6.4 |        5.3 |       12.6 |
| profit       |           |            |            |            |            |
--------------------------------------------------------------------------------
| - Operating  |      10.3 |       10.9 |        9.2 |        8.4 |        9.6 |
| profit %     |           |            |            |            |            |
--------------------------------------------------------------------------------
| Comparable   |       3.5 |        2.7 |        5.9 |        4.3 |       11.2 |
| operating    |           |            |            |            |            |
| profit       |           |            |            |            |            |
--------------------------------------------------------------------------------
| - Comparable |       9.1 |        7.9 |        8.4 |        6.9 |        8.6 |
| operating    |           |            |            |            |            |
| profit %     |           |            |            |            |            |
--------------------------------------------------------------------------------


Group development remained on a steady track in the Baltic market. Rakvere      
Lihakombinaat's net sales increased in line with target. Though a tad weaker    
than in 2006, profitability remained good. General troubles in the pork market  
and disruptions of a technical nature in processing were reflected in Rakvere's 
result. Meanwhile, Tallegg substantially increased its sales of poultry products
and enjoyed good profitability. The investments and development efforts at      
Tallegg over the past few years are now bearing fruit.                          

In Latvia, the sales of Rigas Miesnieks rose sharply and profitability remained 
at the previous year's level while in Lithuania, the company is still only      
breaking even. Lithuanian sales account for slightly over 5 percent of the      
entire Baltic Group's net sales.                                                



MARKET AREA: POLAND                                                             
EUR million                                                                     
--------------------------------------------------------------------------------
|              |    Q2/2007 |    Q2/2006 |    H1/2007 |    H1/2006 |      2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales    |       54.7 |       50.9 |      106.6 |       99.9 |     203.6 |
--------------------------------------------------------------------------------
| Operating    |        1.1 |        1.5 |        2.2 |        3.3 |       6.0 |
| profit       |            |            |            |            |           |
--------------------------------------------------------------------------------
| - Operating  |        2.0 |        2.9 |        2.1 |        3.3 |       2.9 |
| profit %     |            |            |            |            |           |
--------------------------------------------------------------------------------
| Comparable   |        1.1 |        1.5 |        2.2 |        3.3 |       6.0 |
| operating    |            |            |            |            |           |
| profit       |            |            |            |            |           |
--------------------------------------------------------------------------------
| - Comparable |        2.0 |        2.9 |        2.1 |        3.3 |       2.9 |
| operating    |            |            |            |            |           |
| profit %     |            |            |            |            |           |
--------------------------------------------------------------------------------


Development in Poland has been divided. The production and domestic sales of    
meat and processed meats - Sokolów's core business - have been in line with     
targets. The hiccough in exports experienced in late spring, largely as a result
of unfavourable exchange rates, has been rectified in the summer.               

The start-up of Pozmeat initiated in the early part of the year has been        
delayed, partly due to production-related issues and partly because of the      
slower than anticipated take-off of processed meat sales. HKScan's share of     
Pozmeat's losses during the first half of the year was EUR 1.3 million. This,   
combined with ordinary start-up costs, is likely to result in the market area of
Poland not surpassing its 2006 performance this year but instead falling        
slightly short, unlike reported earlier. This will not, however, have any       
substantial impact on the Group's overall target in respect of comparable       
operating profit. The Pozmeat start-up costs are included in full in the        
operating profit.                                                               


CAPITAL EXPENDITURE AND FINANCE                                                 

The purchase price of the Scan AB shares inclusive of transaction costs came to 
EUR 163.3 million. The acquisition was financed in part with a directed issue   
and in part with borrowed capital. The Group's other gross investments in Q2    
totalled EUR 36.9 million (EUR 28.7m during Q2 of 2006). Gross investments      
during the entire first half of 2007 totalled EUR 59.1 million (EUR 43.3m in the
first half of 2006). The sum was spent on production-related investments in the 
various market areas as follows:  Finland EUR 34.8 million, Sweden EUR 13.8     
million and the Baltics EUR 6.6 million. In Poland, HKScan's share of Sokolów   
investments was EUR 4.0 million. Gross investments in the comparison year       
included buyouts of minority interests in Sokolów and Rakvere totalling ca. EUR 
13 million.                                                                     

Major production-related investments in Finland included expansion of the Vantaa
production facility enabling it to assume the planned production and logistics  
functions transferring from Turku and Tampere. Major investments in Sweden      
concerned production techniques that will boost competitiveness, e.g. a new     
pastry line and slicing lines.                                                  

Group interest-bearing debt totalled EUR 527.9 million (EUR 228.2m) at 30 June  
2007. Interest-bearing debt in the amount of EUR 188 million transferred to the 
company in January as part of the acquisition of Scan AB. The cash consideration
of EUR 76 million for the deal was financed through a loan of corresponding     
value. Business investments and an increase in working capital in Finland have  
furthermore contributed to the rise in the Group's liabilities.                 

The low equity ratio of the recent acquisition together with on-going investment
programme resulted in the Group's equity ratio at 30 June 2007 falling as       
anticipated to 29.4 percent (40.2%). Improving the equity ratio and an emphasis 
on cash flow are key priorities for the foreseeable future.                     

HKScan signed a EUR 550 million financing agreement with an international       
syndicate of banks in June. The loan facility comprises a EUR 275 million       
seven-year amortising term loan and a EUR 275 million five-year credit limit.   
This arrangement will refinance most of HKScan's current loan portfolio and     
support the company's future financing needs.                                   


INCREASE IN SHARE CAPITAL                                                       

The company executed a directed issue of 4 843 000 Series A shares to Swedish   
Meats as part of the acquisition of the business of Swedish Meats (Scan AB). The
subscription period was 29 January 2007 and the issue price was EUR 15.55 per   
share. The company's share capital was increased by EUR 8 233 100.00 to the     
current EUR 66 820 528.10. The increase was entered in the Trade Register on 5  
February 2007.The new shares are first entitled to full dividend for the 2007   
financial year.                                                                 


NOTICES REGARDING CHANGE OF OWNERSHIP PURSUANT TO THE SECURITIES MARKETS ACT    

On 8 February 2007 Danish Crown's holding in HKScan was diluted to 8.89 percent 
of the shares and 2.46 percent of the votes as a consequence of the increase in 
HKScan's share capital.                                                         

Swedish Meats announced on 15 February 2007 that the conditional agreement      
notified by it on 13 November 2006 had been executed. Swedish Meats' holding in 
HKScan was thus confirmed at 12.32 percent of the shares and 3.41 percent of the
votes.                                                                          

The holding of Danish Crown in HKScan was reduced to 1.00 percent of the share  
capital and 0.28 percent of the votes as a result of the sale of shares to      
institutional investors on 7 March 2007.                                        

Julius Baer International Equity Fund clarified its earlier announcement stating
that its holding in HKScan Oyj now amounted to 5.13 percent of the shares and   
1.42 percent of the votes. In addition, Julius Baer Investment Management LLC   
(the fund company of the Julius Baer International Equity Fund) held 3.09% of   
the shares and 0.86% of the votes in HKScan on behalf of its clients.           


RESOLUTIONS PASSED BY THE ANNUAL GENERAL MEETING                                

The Annual General Meeting held on 20 April 2007 approved the change in the     
company's business name from HK Ruokatalo Group Oyj to HKScan Oyj. The name in  
Swedish is HKScan Abp and in English HKScan Corporation. The change came into   
effect on 30 April 2007.                                                        

The Annual General Meeting adopted the accounts and discharged the Board of     
Directors and the CEO from liability for 2006. It was decided to declare a      
dividend of EUR 0.27 per share.                                                 

Marcus H. Borgström, Markku Aalto, Tiina Varho-Lankinen and Heikki Kauppinen    
were re-elected to the Board of Directors. Johan Mattson and Karsten Slotte were
elected to the Board as new members. Mr Borgström and Mr Aalto were reappointed 
as chairman and deputy chairman respectively.                                   

The amendments to the Articles of Association proposed by the Board were        
approved. The amendments are mainly due to the new Companies Act which entered  
into force on 1 September 2006 and the amended Articles of Association took     
effect on 30 April 2007.                                                        

Authorised Public Accountants PricewaterhouseCoopers Oy and Petri Palmroth MSc  
(Econ. and Bus. Adm.), APA were appointed auditors for the 2007 financial year, 
with Mika Kaarisalo MSc (Econ. and Bus. Adm.), APA and Pasi Pietarinen MSc      
(Econ. and Bus. Adm.), APA as deputy auditors.                                  

The authorisations granted by the Annual General Meeting to the Board are       
presented below in "Board of Directors' existing authorisations".               


TREASURY SHARES                                                                 

Pursuant to an authorisation granted by the Annual General Meeting on 20 April  
2007, the company acquired its own Series A shares in public trading on the     
Helsinki Exchanges in May. At 30 June 2007, the company held a total of         
100 000 of its A Shares. These had a market value of EUR 1.9 million and        
accounted for 0.25% of all shares and 0.07% of all votes. The acquisition cost  
of EUR 1.8 million reduces the Group's equity.                                  


BOARD OF DIRECTORS' EXISTING AUTHORISATIONS                                     

The AGM authorised the Board on 20 April 2007 to decide on acquiring a maximum  
of 3 500 000 Series A shares as treasury shares, equal to ca. 8.9% of total     
registered shares and ca. 10.3% of total A Shares.                              

Treasury shares may only be acquired using unrestricted shareholders' equity.   
The company's own shares may be purchased for a price quoted in public trading  
on the purchase day or for a price otherwise determined by the market. In       
accordance with the Board decision of 7 May 2007, the company acquired 100 000 A
Shares between 14 May and 28 May in public trading on the Helsinki Exchanges.   
The authorisation is valid until 30 June 2008.                                  

The Board of Directors also holds an authorisation to resolve on an issue of    
shares, options as well as other instruments entitling to shares as referred to 
in Chapter 10, section 1 of the Companies Act. This authorisation concerns the  
issue of a maximum of 5 500 000 A Shares, corresponding to ca. 14.0% of all     
registered shares in the company.                                               

The Board may resolve upon all the terms and conditions of the issue of shares  
and other instruments entitling to shares. The authorisation to issue shares    
shall cover the issuing of new shares as well as the transfer of the company's  
own shares. The issue of shares and other instruments entitling to shares may be
implemented as a directed issue. The authorisation is valid until 30 June 2008. 
To date, the Board of Directors has not exercised this authorisation.           

The authoriations were approved in order to enable the Board of Directors to    
decide flexibly on capital markets transactions that are beneficial for the     
company, such as securing the financing needs of the company, implementing      
acquisitions or as incentives for employees. A directed purchase of the         
company's own shares and a directed share issue always requires a weighty       
economic reason for the company and the authorisations may not be utilized      
inconsistently with the principle of equal treatment of shareholders.           


EMPLOYEES                                                                       

The group employed an average of 7 932 persons during the first half of 2007 (4 
505 in the first half of 2006). The increase is attributable to the inclusion of
Scan AB and its subsidiaries as of the beginning of 2007. The average number of 
employees in each market area was as follows: Finland 2 577, Sweden 3 495 and   
the Baltics 1 860. In addition, Sokolów had an average of 5 037 employees.      


EVENTS TAKING PLACE SINCE 30 JUNE 2007                                          

In July, HK Ruokatalo Oy and Järvi-Suomen Portti Osuuskunta cooperative signed a
preliminary agreement on possible cooperation to rationalise slaughtering and   
cutting operations. Portti will study closing its Lappeenranta slaughterhouse   
and outsourcing its pork and beef slaughtering and the cutting of beef to HK    
Ruokatalo.                                                                      

The arrangement would enhance efficiency in slaughtering and cutting and reduce 
existing slaughtering capacity in Finland. The volume of HK Ruokatalo's         
slaughtering and cutting operations would increase as a result of Portti's      
outsourcing, as would the capacity utilisation rate.                            


SHORT-TERM RISKS AND UNCERTAINTIES                                              

The major risks for the HKScan Group are connected with price development of raw
materials, especially of pork, on all market areas, the success of the suggested
production transfer operations, the improvement of the logistical deliver       
security in Finland and the success of the efficiency programme in Sweden.      


FUTURE OUTLOOK                                                                  

Operating profit for 2007 is projected to improve in Finland and in Sweden      
compared to 2006. In the Baltics, profits are estimated to hold at the good     
level enjoyed in 2006. In a departure from earlier estimates, operating profit  
in the market area of Poland is likely to fall slightly short of the earlier    
year's level. This deterioration in the future outlook has no substantial impact
on the Group's target in respect of operating profit in 2007.                   


Vantaa, 14 August 2007                                                          

HKScan Corporation                                                              
Board of Directors                                                              



CONSOLIDATED FINANCIAL STATEMENTS 1 January - 30 June 2007                      


CONSOLIDATED INCOME STATEMENT                                                   
(EUR mill.)                                                                     
--------------------------------------------------------------------------------
|              |   Q2/2007 |    Q2/2006 |    H1/2007 |    H1/2006 |       2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales    |     524.3 |      239.4 |     1022.9 |      452.9 |      934.3 |
--------------------------------------------------------------------------------
| Operating    |           |            |            |            |            |
| income       |           |            |            |            |            |
--------------------------------------------------------------------------------
| and expenses |    -495.8 |     -225.2 |     -971.4 |     -425.2 |     -863.3 |
--------------------------------------------------------------------------------
| Depreciation |     -13.4 |       -7.1 |      -27.2 |      -14.1 |      -30.5 |
| and          |           |            |            |            |            |
| impairment   |           |            |            |            |            |
--------------------------------------------------------------------------------
| Operating    |      15.1 |        7.0 |       24.3 |       13.6 |       40.4 |
| profit       |           |            |            |            |            |
--------------------------------------------------------------------------------
| - % of net   |       2.9 |        2.9 |        2.4 |        3.0 |        4.3 |
| sales        |           |            |            |            |            |
--------------------------------------------------------------------------------
| Financial    |       1.2 |        0.5 |        2.1 |        0.8 |        1.9 |
| income       |           |            |            |            |            |
--------------------------------------------------------------------------------
| Financial    |      -5.6 |       -2.2 |      -10.7 |       -4.2 |       -8.7 |
| expenses     |           |            |            |            |            |
--------------------------------------------------------------------------------
| Share of     |           |            |            |            |            |
| associates'  |           |            |            |            |            |
--------------------------------------------------------------------------------
| results      |      -0.2 |        0.2 |        0.4 |        0.5 |        0.0 |
--------------------------------------------------------------------------------
| Profit       |      10.5 |        5.5 |       16.1 |       10.7 |       33.6 |
| before taxes |           |            |            |            |            |
--------------------------------------------------------------------------------
| Income taxes |      -1.5 |       -0.7 |       -3.0 |       -1.7 |       -5.8 |
--------------------------------------------------------------------------------
| Profit for   |       9.1 |        4.8 |       13.1 |        9.0 |       27.8 |
| the period   |           |            |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable |           |            |            |            |            |
| to:          |           |            |            |            |            |
--------------------------------------------------------------------------------
| Shareholders |       8.6 |        4.5 |       12.1 |        8.4 |       27.2 |
| of parent    |           |            |            |            |            |
| company      |           |            |            |            |            |
--------------------------------------------------------------------------------
| Minority     |       0.5 |        0.3 |        1.0 |        0.6 |        0.6 |
| interests    |           |            |            |            |            |
--------------------------------------------------------------------------------
| Total        |       9.1 |        4.8 |       13.1 |        9.0 |       27.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS,         |      0.22 |       0.13 |       0.32 |       0.24 |       0.79 |
| undiluted,   |           |            |            |            |            |
| EUR          |           |            |            |            |            |
--------------------------------------------------------------------------------
| EPS,         |      0.22 |       0.13 |       0.32 |       0.24 |       0.79 |
| diluted, EUR |           |            |            |            |            |
--------------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEET                                                      
(EUR mill.)                                                                     
--------------------------------------------------------------------------------
|                                     |     30 June | 30 June 2006 |        31 |
|                                     |        2007 |              |  Dec.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                              |             |              |           |
--------------------------------------------------------------------------------
| Non-current assets                  |             |              |           |
--------------------------------------------------------------------------------
|   Intangible assets                 |        18.4 |          4.1 |       4.0 |
--------------------------------------------------------------------------------
|   Goodwill                          |       105.9 |         53.4 |      53.9 |
--------------------------------------------------------------------------------
|   Property, plant and equipment     |       460.6 |        279.5 |     294.5 |
--------------------------------------------------------------------------------
|   Shares in associates              |        16.8 |          5.9 |       5.5 |
--------------------------------------------------------------------------------
|   Trade and other receivables       |        11.0 |          4.3 |       4.1 |
--------------------------------------------------------------------------------
|   Available-for-sale investments    |        11.7 |          0.3 |       0.3 |
--------------------------------------------------------------------------------
|   Deferred tax asset                |         2.7 |          2.1 |       2.2 |
--------------------------------------------------------------------------------
| Total non-current assets            |       627.0 |        349.6 |     364.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                      |             |              |           |
--------------------------------------------------------------------------------
|   Inventories                       |       139.3 |         57.0 |      58.4 |
--------------------------------------------------------------------------------
|   Trade and other receivables       |       272.3 |        124.7 |     112.1 |
--------------------------------------------------------------------------------
|   Income tax receivable             |         2.5 |          3.3 |       2.5 |
--------------------------------------------------------------------------------
|   Other financial assets            |         3.7 |            - |         - |
--------------------------------------------------------------------------------
|   Cash and bank                     |        29.7 |         13.5 |      12.1 |
--------------------------------------------------------------------------------
| Total current assets                |       447.5 |        198.4 |     185.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS                        |      1074.5 |        548.0 |     549.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES              |             |              |           |
--------------------------------------------------------------------------------
|   Share capital                     |        66.8 |         58.6 |      58.6 |
--------------------------------------------------------------------------------
|   Share premium reserve             |        74.3 |         72.9 |      72.9 |
--------------------------------------------------------------------------------
|   Treasury shares                   |        -1.8 |            - |         - |
--------------------------------------------------------------------------------
| Fair value reserve and other        |        77.1 |         10.5 |       9.0 |
| reserves                            |             |              |           |
--------------------------------------------------------------------------------
|   Translation differences           |         3.0 |          2.7 |       5.4 |
--------------------------------------------------------------------------------
|   Retained earnings                 |        94.0 |         73.1 |      90.5 |
--------------------------------------------------------------------------------
| Equity attributable to              |             |              |           |
--------------------------------------------------------------------------------
|   Shareholders of the parent        |       313.4 |        217.7 |     236.4 |
--------------------------------------------------------------------------------
|   Minority interest                 |         2.3 |          2.7 |       0.6 |
--------------------------------------------------------------------------------
| Total shareholders' equity          |       315.7 |        220.4 |     237.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities             |             |              |           |
--------------------------------------------------------------------------------
|   Deferred tax liability            |        18.3 |         12.8 |      12.2 |
--------------------------------------------------------------------------------
| Long-term interest-bearing          |       445.1 |        114.4 |      87.1 |
| liabilities                         |             |              |           |
--------------------------------------------------------------------------------
| Long-term zero-interest liabilities |         6.2 |            - |         - |
--------------------------------------------------------------------------------
|   Pension obligations               |         5.1 |          4.8 |       5.2 |
--------------------------------------------------------------------------------
|   Non-current provisions            |         2.9 |            - |         - |
--------------------------------------------------------------------------------
| Total non-current liabilities       |       477.6 |        131.9 |     104.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities                 |             |              |           |
--------------------------------------------------------------------------------
| Current interest-bearing            |        82.8 |        113.8 |     109.6 |
| liabilities                         |             |              |           |
--------------------------------------------------------------------------------
| Trade payables and other            |       197.4 |         80.0 |      96.7 |
| liabilities                         |             |              |           |
--------------------------------------------------------------------------------
|   Income tax liability              |         0.0 |          0.9 |       0.9 |
--------------------------------------------------------------------------------
|   Current provisions                |         0.9 |          0.9 |       0.6 |
--------------------------------------------------------------------------------
| Total current liabilities           |       281.2 |        195.6 |     208.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES        |      1074.5 |        548.0 |     549.5 |
--------------------------------------------------------------------------------




STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY                       
(EUR million)                                                                   

--------------------------------------------------------------------------------
|          | Shar | Shar | Valu | I   | Other | Transl | Trsry | Ret.  | Tot.  |
|          | e    | e    | e    |     |       | .      |       |       |       |
--------------------------------------------------------------------------------
|          | capi | prem | chan | U   | res.  | diff.  | shrs  | earn- |       |
|          | -    | .    | ge   |     |       |        |       |       |       |
--------------------------------------------------------------------------------
|          | tal- | res. | res. | E   |       |        |       | ings  |       |
--------------------------------------------------------------------------------
|          | res. |      |      | F*) |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOL |      |      |      |     |       |        |       |       |       |
| DERS'    |      |      |      |     |       |        |       |       |       |
| EQUITY   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| 1 Jan    | 58.6 | 72.9 |  0.1 | 0.0 |   8.9 |    5.4 |   0.0 |  90.5 | 236.4 |
| 2007     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Cash     |      |      |      |     |       |        |       |       |       |
| flow     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| hedging  |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Amount   |      |      |      |     |       |        |       |       |       |
| transfer |      |      |      |     |       |        |       |       |       |
| red to   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| sharehol |      |      |      |     |       |        |       |       |       |
| ders'    |      |      |      |     |       |        |       |       |       |
| equity   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| during   |      |      |  1.4 |     |       |        |       |       |   1.4 |
| the      |      |      |      |     |       |        |       |       |       |
| period   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Change   |      |      |      |     |       |        |       |       |       |
| in       |      |      |      |     |       |        |       |       |       |
| translat |      |      |      |     |       |        |       |       |       |
| ion      |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| differen |      |      |      |     |       |   -2.4 |       |       |  -2.4 |
| ce       |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Other    |      |      |      |     |       |        |       |   2.0 |   2.0 |
| change   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Transfer |  1.1 |      |      |     |       |        |  -1.1 |   0.0 |       |
| s betw.  |      |      |      |     |       |        |       |       |       |
| items    |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net      |      |      |      |     |       |        |       |       |       |
| profit/l |      |      |      |     |       |        |       |       |       |
| oss      |      |      |      |     |       |        |       |       |       |
| recognis |      |      |      |     |       |        |       |       |       |
| ed       |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| directly |      |      |      |     |       |        |       |       |       |
| in       |      |      |      |     |       |        |       |       |       |
| sharehol |      |      |      |     |       |        |       |       |       |
| ders'    |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| equity   |  0.0 |  1.1 |  1.4 | 0.0 |   0.0 |   -2.4 |   0.0 |   0.9 |   1.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit   |      |      |      |     |       |        |  12.1 |  12.1 |       |
| for the  |      |      |      |     |       |        |       |       |       |
| period   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total    |      |      |      |     |       |        |       |       |       |
| profits  |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| and      |  0.0 |  1.1 |  1.4 | 0.0 |   0.0 |   -2.4 |   0.0 |  13.0 |  13.1 |
| losses   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend |      |      |      |     |       |        |  -9.3 |  -9.3 |       |
| distribu |      |      |      |     |       |        |       |       |       |
| tion     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Share    |  8.2 |      |      | 66. |       |        |       |       |  74.9 |
| issue    |      |      |      |   7 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Acquisit |      |      |      |     |       |        |       |       |       |
| ion of   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| treasury |      |      |      |     |       |        |  -1.8 |       |  -1.8 |
| shares   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Share-ba |      |      |      |     |       |        |       |       |       |
| sed      |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| transact |      |      |      |     |       |        |       |       |       |
| ions     |      |      |      |     |       |        |       |       |       |
| payable  |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| in       |      |  0.3 |      |     |       |        |       |  -0.2 |   0.1 |
| equity   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOL |      |      |      |     |       |        |       |       |       |
| DERS'    |      |      |      |     |       |        |       |       |       |
| EQUITY   |      |      |      |     |       |        |       |       |       |
| TOT.     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| 30 Jun   | 66.8 | 74.3 |  1.5 | 66. |   8.9 |    3.0 |  -1.8 |  94.0 | 313.4 |
| 2007     |      |      |      |   7 |       |        |       |       |       |
--------------------------------------------------------------------------------


*) IUEF = Invested unrestricted equity fund                                     



--------------------------------------------------------------------------------
|          | Shar | Shar | Valu | I   | Other | Transl | Trsry | Ret.  | Tot.  |
|          | e    | e    | e    |     |       | .      |       |       |       |
--------------------------------------------------------------------------------
|          | capi | prem | chan | U   | res.  | diff.  | shrs  | earn- |       |
|          | -    | .    | ge   |     |       |        |       |       |       |
--------------------------------------------------------------------------------
|          | tal- | res. | res. | E   |       |        |       | ings  |       |
--------------------------------------------------------------------------------
|          | res. |      |      | F*) |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOL |      |      |      |     |       |        |       |       |       |
| DERS'    |      |      |      |     |       |        |       |       |       |
| EQUITY   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| 1 Jan    | 58.6 | 72.9 |  1.0 | 0.0 |   8.6 |    4.8 |   0.0 |  73.2 | 219.1 |
| 2006     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Cash     |      |      |      |     |       |        |       |       |       |
| flow     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| hedging  |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Amount   |      |      |      |     |       |        |       |       |       |
| transfer |      |      |      |     |       |        |       |       |       |
| red to   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| sharehol |      |      |      |     |       |        |       |       |       |
| ders'    |      |      |      |     |       |        |       |       |       |
| equity   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| during   |      |      |  0.4 |     |   0.4 |        |       |  -1.0 |  -0.2 |
| the      |      |      |      |     |       |        |       |       |       |
| period   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Change   |      |      |      |     |       |        |       |       |       |
| in       |      |      |      |     |       |        |       |       |       |
| translat |      |      |      |     |       |        |       |       |       |
| ion      |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| differen |      |      |      |     |       |    0.3 |       |       |   0.3 |
| ce       |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Other    |      |      |      |     |       |   -0.6 |       |       |  -0.6 |
| changes  |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Transfer |      |      |      |     |       |        |       |   0.0 |       |
| s        |      |      |      |     |       |        |       |       |       |
| between  |      |      |      |     |       |        |       |       |       |
| items    |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net      |      |      |      |     |       |        |       |       |       |
| profit/l |      |      |      |     |       |        |       |       |       |
| oss      |      |      |      |     |       |        |       |       |       |
| recognis |      |      |      |     |       |        |       |       |       |
| ed       |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| directly |      |      |      |     |       |        |       |       |       |
| in       |      |      |      |     |       |        |       |       |       |
| sharehol |      |      |      |     |       |        |       |       |       |
| ders'    |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| equity   |  0.0 |  0.0 |  0.4 | 0.0 |   0.4 |   -0.3 |   0.0 |  -1.0 |  -0.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit   |      |      |      |     |       |        |   8.4 |   8.4 |       |
| for the  |      |      |      |     |       |        |       |       |       |
| period   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total    |      |      |      |     |       |        |       |       |       |
| profits  |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| and      |  0.0 |  0.0 |  0.4 | 0.0 |   0.4 |   -0.3 |   0.0 |   7.4 |   7.9 |
| losses   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend |      |      |      |     |       |        |  -9.3 |  -9.3 |       |
| distribu |      |      |      |     |       |        |       |       |       |
| tion     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Share    |      |      |      |     |       |        |       |       |   0.0 |
| issue    |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Acquisit |      |      |      |     |       |        |       |       |       |
| ion of   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| treasury |      |      |      |     |       |        |       |       |   0.0 |
| shares   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| Share-ba |      |      |      |     |       |        |       |       |       |
| sed      |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| transact |      |      |      |     |       |        |       |       |       |
| ions     |      |      |      |     |       |        |       |       |       |
| payable  |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| in       |      |      |      |     |       |        |       |       |   0.0 |
| equity   |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOL |      |      |      |     |       |        |       |       |       |
| DERS'    |      |      |      |     |       |        |       |       |       |
| EQUITY   |      |      |      |     |       |        |       |       |       |
| TOT.     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------
| 30 Jun   | 58.6 | 72.9 |  1.4 | 0.0 |   9.0 |    4.5 |   0.0 |  71.3 | 217.7 |
| 2006     |      |      |      |     |       |        |       |       |       |
--------------------------------------------------------------------------------




CASH FLOW STATEMENT                                                             
(EUR mill.)                                                                     
--------------------------------------------------------------------------------
|                                         |    H1/2007 |   H1/2006 |      2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating activities                    |            |           |           |
--------------------------------------------------------------------------------
| Operating profit                        |       24.3 |      13.6 |      40.4 |
--------------------------------------------------------------------------------
| Adjustments to operating profit         |        0.0 |      -0.5 |      -1.4 |
--------------------------------------------------------------------------------
| Change in provisions                    |       -7.7 |       0.8 |       0.9 |
--------------------------------------------------------------------------------
| Depreciation and amortisation           |       27.2 |      14.1 |      30.5 |
--------------------------------------------------------------------------------
| Change in net working capital           |      -24.1 |     -16.2 |       6.3 |
--------------------------------------------------------------------------------
| Financial income and expenses           |       -8.6 |      -3.4 |      -6.8 |
--------------------------------------------------------------------------------
| Taxes                                   |       -2.2 |      -1.7 |      -5.5 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities |        8.9 |       6.7 |      64.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investing activities                    |            |           |           |
--------------------------------------------------------------------------------
| Gross PPE investments                   |      -59.1 |     -43.3 |     -82.6 |
--------------------------------------------------------------------------------
| Disposal of fixed assets                |        9.6 |       1.0 |       6.4 |
--------------------------------------------------------------------------------
| Investments in subsidiary               |      -75.2 |         - |         - |
--------------------------------------------------------------------------------
| Net cash flow from                      |            |           |           |
--------------------------------------------------------------------------------
| investing activities                    |     -124.7 |     -42.3 |     -76.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash inflow/outflow                     |            |           |           |
--------------------------------------------------------------------------------
| before financing activities             |     -115.8 |     -35.6 |     -11.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing activities                    |            |           |           |
--------------------------------------------------------------------------------
| Borrowings raised and repaid            |      144.6 |      52.0 |      20.6 |
--------------------------------------------------------------------------------
| Change in long-term debtors             |        0.0 |      -6.6 |      -0.2 |
--------------------------------------------------------------------------------
| Dividends paid                          |       -9.3 |      -9.3 |      -9.3 |
--------------------------------------------------------------------------------
| Acquisition of treasury shares          |       -1.8 |         - |         - |
--------------------------------------------------------------------------------
| Net cash flow from financing activities |      133.5 |      36.1 |      11.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid assets                 |       17.7 |       0.6 |      -0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and bank at 1 Jan                  |       12.1 |      12.8 |      12.8 |
--------------------------------------------------------------------------------
| Cash and bank at 30 Jun                 |       29.7 |      13.5 |      12.1 |
--------------------------------------------------------------------------------
| Change in cash and bank in balance      |       17.7 |       0.6 |      -0.7 |
| sheet                                   |            |           |           |
--------------------------------------------------------------------------------



KEY INDICATORS                                                                  
--------------------------------------------------------------------------------
|                                 |     30 June | 30 June 2006 |   31 Dec.2006 |
|                                 |        2007 |              |               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS, diluted                    |        0.32 |         0.24 |          0.79 |
--------------------------------------------------------------------------------
| Equity per share at 30 June,    |        7.99 |         6.32 |          6.86 |
| EUR 1)                          |             |              |               |
--------------------------------------------------------------------------------
| Equity ratio, %                 |        29.4 |         40.2 |          43.7 |
--------------------------------------------------------------------------------
| Adjusted average                |             |              |               |
--------------------------------------------------------------------------------
| number of shares                |  38 351 469 |   34 463 193 |    34 463 193 |
--------------------------------------------------------------------------------
| Gross capital                   |             |              |               |
--------------------------------------------------------------------------------
| Expenditure, EUR million        |        59.1 |         43.3 |          82.6 |
--------------------------------------------------------------------------------
| Employees, end of month         |             |              |               |
--------------------------------------------------------------------------------
| average                         |       7 932 |        4 505 |         4 418 |
--------------------------------------------------------------------------------

1) Excluding minority's share of equity.                                        



NOTES TO THE GROUP'S INTERIM REPORT                                             

ACCOUNTING PRINCIPLES                                                           

HKScan Corporation's interim report for 1 January - 30 June 2007 has been       
prepared in compliance with IAS 34 Interim Financial Reporting. The same        
accounting principles have been applied in the interim report as in the annual  
financial statements for 2006. These accounting principles are explained in the 
financial statements for 2006. The figures are derived from group accounting and
contain no pro forma information. The accounts of Scan AB and its subsidiaries  
have been consolidated into the financial statements as of 1 January 2007.      

Application of changes in or interpretations of IFRS as of 1 January 2007       

- IFRS 7 Financial Instruments: Disclosures. The standard mainly affects the    
scope of the notes to the annual financial statements.                          

- IAS 1 Presentation of Financial Statements The change in the standard has no  
impact on this interim report.                                                  

- IFRIC 10 Interim Financial Reporting and Impairment. Application of the       
interpretation has no impact on this interim report.                            

The figures presented in the interim report are unaudited.                      



ANALYSIS BY SEGMENT (EUR million)                                               
Net sales and operating profit by main market area                              

--------------------------------------------------------------------------------
|                          | Q2/2007 | Q2/2006 |   H1/2007 |  H1/2006 |   2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales                |         |         |           |          |        |
--------------------------------------------------------------------------------
| -Finland                 |   171.2 |   156.4 |     326.7 |    294.1 |  608.0 |
--------------------------------------------------------------------------------
| -Sweden                  |   272.5 |       - |     537.0 |        - |      - |
--------------------------------------------------------------------------------
| -The Baltics             |    37.9 |    34.1 |      69.7 |     62.7 |  130.8 |
--------------------------------------------------------------------------------
| -Poland                  |    54.7 |    50.9 |     106.6 |     99.9 |  203.6 |
--------------------------------------------------------------------------------
| -Between segments        |   -11.9 |    -2.0 |     -17.1 |     -3.8 |   -8.2 |
--------------------------------------------------------------------------------
| Total                    |   524.3 |   239.4 |   1 022.9 |    452.9 |  934.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit         |         |         |           |          |        |
--------------------------------------------------------------------------------
| -Finland                 |     5.6 |     2.7 |      12.9 |      6.6 |   25.4 |
--------------------------------------------------------------------------------
| -Sweden                  |     6.4 |       - |       6.1 |        - |      - |
--------------------------------------------------------------------------------
| -The Baltics             |     3.9 |     3.7 |       6.4 |      5.3 |   12.6 |
--------------------------------------------------------------------------------
| -Poland                  |     1.1 |     1.5 |       2.2 |      3.3 |    6.0 |
--------------------------------------------------------------------------------
| -Between segments        |     0.0 |     0.0 |       0.0 |      0.0 |    0.0 |
--------------------------------------------------------------------------------
| -Group administration    |    -1.9 |    -0.9 |      -3.3 |     -1.6 |   -3.5 |
| costs                    |         |         |           |          |        |
--------------------------------------------------------------------------------
| Total                    |    15.1 |     7.0 |      24.3 |     13.6 |   40.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comparable operating     |         |         |           |          |        |
| profit                   |         |         |           |          |        |
--------------------------------------------------------------------------------
| -Finland                 |     6.2 |     5.1 |      14.3 |      9.0 |   27.5 |
--------------------------------------------------------------------------------
| -Sweden                  |     6.4 |       - |       6.1 |        - |      - |
--------------------------------------------------------------------------------
| -The Baltics             |     3.5 |     2.7 |       5.9 |      4.3 |   11.2 |
--------------------------------------------------------------------------------
| -Poland                  |     1.1 |     1.5 |       2.2 |      3.3 |    6.0 |
--------------------------------------------------------------------------------
| -Between segments        |     0.0 |     0.0 |       0.0 |      0.0 |    0.0 |
--------------------------------------------------------------------------------
| -Group administration    |    -1.9 |    -0.2 |      -3.3 |     -0.9 |   -2.8 |
| costs                    |         |         |           |          |        |
--------------------------------------------------------------------------------
| Total                    |    15.2 |     7.0 |      25.2 |     15.7 |   41.8 |
--------------------------------------------------------------------------------



CHANGES IN INTANGIBLE ASSETS AND PPE                                            

--------------------------------------------------------------------------------
|                               |      H1/2007 |       H1/2006 |          2006 |
--------------------------------------------------------------------------------
| Book value at 1 Jan           |        352.4 |         317.1 |         317.1 |
--------------------------------------------------------------------------------
| Increase                      |         55.6 |          30.0 |          71.4 |
--------------------------------------------------------------------------------
| Increase (acquisitions)       |        213.5 |           6.3 |             - |
--------------------------------------------------------------------------------
| Decrease                      |         -9.6 |          -2.4 |          -5.2 |
--------------------------------------------------------------------------------
| Depreciation and impairment   |        -27.2 |         -14.1 |         -30.5 |
--------------------------------------------------------------------------------
| Transfer to other             |              |               |               |
--------------------------------------------------------------------------------
| balance sheet items           |          0.1 |           0.1 |          -0.4 |
--------------------------------------------------------------------------------
| Book value at 30 Jun          |        584.8 |         337.0 |         352.4 |
--------------------------------------------------------------------------------


INVENTORIES                                                                     

--------------------------------------------------------------------------------
|                               |      H1/2007 |       H1/2006 |          2006 |
--------------------------------------------------------------------------------
| Materials and supplies        |         57.5 |          45.6 |          39.0 |
--------------------------------------------------------------------------------
| Unfinished products           |          7.2 |           1.4 |           4.3 |
--------------------------------------------------------------------------------
| Finished products             |         72.1 |           7.9 |          12.7 |
--------------------------------------------------------------------------------
| Goods                         |          0.1 |           0.4 |           0.1 |
--------------------------------------------------------------------------------
| Prepayments                   |          1.4 |           1.3 |           1.7 |
--------------------------------------------------------------------------------
| Other inventories             |          1.0 |           0.4 |           0.5 |
--------------------------------------------------------------------------------
| Total inventories             |        139.3 |          57.0 |          58.3 |
--------------------------------------------------------------------------------


NOTES TO SHAREHOLDERS' EQUITY                                                   

--------------------------------------------------------------------------------
|             |   Number of |      Share |          |  Treasury |              |
--------------------------------------------------------------------------------
| Share       |      shares |    capital |     IUEF |    shares |         Tot. |
| capi-tal    |             |            |          |           |              |
| and share   |             |            |          |           |              |
--------------------------------------------------------------------------------
| premium     |             |            |          |           |              |
| reserve     |             |            |          |           |              |
--------------------------------------------------------------------------------
| 1.1.2007    |  34 463 193 |       58.6 |      0.0 |           |         58.6 |
--------------------------------------------------------------------------------
| Directed    |   4 843 000 |        8.2 |     66.7 |           |         74.9 |
| issue       |             |            |          |           |              |
--------------------------------------------------------------------------------
| Acquisition |             |            |          |           |              |
| of          |             |            |          |           |              |
--------------------------------------------------------------------------------
| treasury    |    -100 000 |            |          |      -1.8 |         -1.8 |
| shares      |             |            |          |           |              |
--------------------------------------------------------------------------------
| 30.6.2007   |  39 206 193 |       66.8 |     66.7 |      -1.8 |        131.7 |
--------------------------------------------------------------------------------



INTEREST-BEARING LIABILITIES                                                    

At the end of Q2, HKScan signed a EUR 550 million multi-currency financing      
agreement with an international syndicate of banks. The loan facility comprises 
a EUR 275 million seven-year amortising term loan and a EUR 275 million         
five-year credit limit. This arrangement refinanced most of HKScan's current    
loan portfolio and will support the company's future financing needs. It will   
extend the average loan period of the Group's loan stock. The loans to be drawn 
in this arrangement are subject to variable interest rates. At 30 June 2007, EUR
163 million remained to be drawn upon. In addition, the Group had other untapped
credit lines of EUR 48 million at the time. The EUR 100 million commercial paper
programme had been drawn upon in the amount of EUR 28.8 million.                

FINANCIAL RISKS                                                                 

The Group has not modified its financial risk management principles during the  
period under review. The principles remain the same as presented in the Group's 
2006 Annual Report.                                                             



CONSOLIDATED CONTINGENT LIABILITIES                                             
(EUR mill.)                                                                     
--------------------------------------------------------------------------------
|                                      |    30 June |     30 June |         31 |
|                                      |       2007 |        2006 |   Dec.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by                     |            |             |            |
--------------------------------------------------------------------------------
| pledges or mortgages                 |            |             |            |
--------------------------------------------------------------------------------
| - loans from financial institutions  |       44.1 |        63.1 |       50.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Given as security                    |            |             |            |
--------------------------------------------------------------------------------
| - real estate mortgages              |       52.7 |        52.5 |       47.9 |
--------------------------------------------------------------------------------
| - pledges                            |        7.9 |        12.1 |       13.5 |
--------------------------------------------------------------------------------
| - floating charges                   |       13.7 |        12.3 |       10.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For associates                       |            |             |            |
--------------------------------------------------------------------------------
| - guarantees                         |        4.3 |         4.0 |        3.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Security for debts                   |            |             |            |
--------------------------------------------------------------------------------
| - guarantees and pledges             |       12.6 |         6.6 |        8.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other contingencies                  |            |             |            |
--------------------------------------------------------------------------------
| Leasing commitments                  |        5.9 |         0.5 |        1.1 |
--------------------------------------------------------------------------------
| Rent liabilities                     |        2.3 |         0.0 |        2.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instrument liabilities    |            |             |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of derivatives        |            |             |            |
--------------------------------------------------------------------------------
| Forward foreign-exchange contracts   |        7.8 |         0.4 |        4.2 |
--------------------------------------------------------------------------------
| Interest swap contracts              |      144.7 |         0.0 |        0.0 |
--------------------------------------------------------------------------------
| Forward electricity contracts        |        5.8 |         5.3 |        6.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of derivative            |            |             |            |
| instruments                          |            |             |            |
--------------------------------------------------------------------------------
| Forward foreign-exchange contracts   |        0.0 |         0.0 |        0.0 |
--------------------------------------------------------------------------------
| Interest swap contracts              |        0.2 |         0.0 |        0.0 |
--------------------------------------------------------------------------------
| Forward electricity contracts        |        0.6 |         2.0 |        0.2 |
--------------------------------------------------------------------------------



BUSINESS TRANSACTIONS WITH ASSOCIATES                                           

--------------------------------------------------------------------------------
|                                      |    H1/2007 |     H1/2006 |       2006 |
--------------------------------------------------------------------------------
| Sales to associates                  |       21.0 |         0.8 |        1.8 |
--------------------------------------------------------------------------------
| Purchases from associates            |       17.6 |         4.2 |        8.5 |
--------------------------------------------------------------------------------
| Trade and other receivables          |        1.8 |         0.1 |        0.2 |
--------------------------------------------------------------------------------
| Trade payables and other liabilities |        5.3 |         0.5 |        0.4 |
--------------------------------------------------------------------------------



BUSINESSES ACQUIRED                                                             

During the first half of the year, in January 2007, the company acquired the    
entire business of Swedish Meats. The deal was financed with a directed issue to
Swedish Meats valued at EUR 75 million and a cash consideration of EUR 76       
million (SEK 692 million).                                                      

The current view is that purchase price will be allocated to intangible assets  
under brands. The company will announce the final allocation of the purchase    
price in 2007.                                                                  


HKScan Corporation                                                              


Kai Seikku                                                                      
CEO                                                                             


Further information is available from CEO Kai Seikku. Please leave any messages 
for him to call with Katja Backman on +358(0)10 570 2428                        




DISTRIBUTION:                                                                   
Helsinki Exchanges                                                              
Financial Supervision Authority                                                 
Main media                                                                      
www.hkscan.com

About Us

HKScan is a Nordic meat and meals company. We employ over 7 300 professionals in striving to serve the world ìs most demanding consumers, maintaining quality throughout the full chain of operations, From Farm to Fork. HKScan produces, markets and sells high-quality, sustainably produced pork, beef, poultry and lamb products, as well as charcuterie and meals, with strong consumer brands, including HK®, Scan®, Rakvere®, Kariniemen®, Rose®, Pärsons® and Tallegg®. Our customers are the retail, food service,industrial and export sectors, and our home market comprises of Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. In 2017, HKScan had net sales of EUR 1.8 billion, making us one of Europe’s leading meat and meals companies.www.hkscan.com

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