Interim Report January - June 2003

                                    7 August, 2003 10.00 a.m.

KCI Konecranes Group
Interim Report January - June 2003


After a weak Q1/03, Q2 operative result is approaching 2002 levels (Q2
EBIT before restructuring costs now 5.7 EURm compared to Q2/02 6,7

First half year operating income reserved for restructuring

American sales volume stable on last year’s level, Europe declining,
Asia growing fast

Order book increased 4.2 % from year-end

                       First half               LTM           LY
MEUR               1-6/   1-6/  Change  7/02-  7/01-  Change 1-12/
SALES                03     02       %   6/03   6/02       %    02
 Maintenance                                            -1.4  372.
 Services         165.4  173.8    -4.8  364.0   369.             4
 Equipment         88.4   96.8    -8.7  196.1   224.   -12.6  204.
                                                   3             5
 Special Cranes    91.1  106.6   -14.5  193.7   227.   -14.8  209.
                                                   3             2
 Internal Sales   -32.4  -30.4     6.6  -74.5      -    -2.2     -
                                                76.2          72.5
Sales total       312.5  346.8    -9.9  679.3  744.7    -8.8 713.6
Income from                                                       
(EBITA)             2.0   15.1   -87.0   27.8   51.6   -46.2  40.9
amortisation       -1.5   -1.9   -20.0   -3.0   -3.8   -22.1  -3.3
Operating income                                                  
(EBIT)              0.5   13.3   -96.3   24.8   47.8   -48.1  37.6
EBIT before                                                       
restruct. costs     7.5
Financial income                                                  
and expenses       -1.0   -0.6    71.8   -1.5   -2.3   -32.5  -1.1
Income before                                                     
taxes and                                                         
interest           -0.5   12.7  -104.0   23.3   45.5   -48.9  36.5

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Net income         -0.5    8.6  -105.9   15.6   30.5  -48.9  24.6
Earnings per                                                     
share (EUR)       -0.04   0.58  -106.1   1.08   2.07  -48.1  1.69
ORDERS RECEIVED                                                  
 Services         156.6  167.3    -6.4  299.5  306.4   -2.3 310.2
 Equipment         99.3  104.9    -5.3  197.6  208.8   -5.4 203.2
 Special Cranes    74.0   91.2   -18.9  137.7  191.1  -27.9 154.9
 Internal Orders  -31.2  -36.1   -13.6  -64.5  -70.2   -8.1 -69.4
Orders Received                                                  
total             298.7  327.3    -8.7  570.3  636.1  -10.3 598.9
Order book at                                                    
end of period     214.6  269.6   -20.4      -      -      - 206.0

Comment on first half year results:

After a slow start of the year in Q1, operations improved in Q2 and
the operative results roughly matched those of Q2/02. Margins in all
Business Areas improved from their Q1/03 levels. Sales in the European
countries, in spite of a small orders growth in Germany, continued to
decline (-13.4 % compared to H1/02). The American business level was
stable (reported decline in sales reflects the USD/EUR development
only) and Asia-Pacific area sales gained considerably (+39.0 %). The
order book improved 4.2 % from the end of last year, on stronger
modernisation orders.

Comment on year-end results:

With low production capacity utilisation in most customer industries,
there is no immediate market recovery in sight. The Group therefore
decided to step up its efficiency improvement program. The program
includes a further consolidation of European production facilities.
Corresponding restructuring costs were included in H1/03 accounts in
total EUR 7 million.

The business environment remains challenging.
Group operating income generation during the second half of the year
is expected to be stronger than it was for the second half of last
year. However, it is doubtful whether the profit level of 2002 can be
reached even if restructuring costs are fully exempted. Group market
shares are increasing. Acquisitions are likely to continue.

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Stig Gustavson, President and CEO

Focus on internal improvements

Through several acquisitions, the Group has built up a substantial
presence in the big countries of Europe.

Alongside that market expansion we have pursued a rationalisation and
concentration of the production resources.
Our policy has been to phase out old acquired production capacity, and
to introduce Group (global) product ranges at a slow pace in order to
safeguard acquired market shares.

Now, market acceptance of our modern product ranges has been quick,
and we have arrived at a position when the phase-out can be
accelerated. Also, the weak market development, with no quick recovery
around the corner, has contributed to the restructuring need.

We close our operations in Frankfurt, Germany, as our modern plant in
Berlin can handle also that demand. We will close further capacity in
Europe (to be identified later). We will trim our manning in Finland.
Our Chinese component operations are ramped up.

In the US, our long awaited operative service management system is
going live in more and more locations, reducing the need for back-
office support personnel.

In all through the current program, Group employment is estimated to
be reduced with 200 persons, with no effect on production capacity.

In total, restructuring this time will cost an estimated EUR 7
million. The majority of the costs are related to severance payments
(including early retirements) for redundant personnel.

It is Group Policy, always to stay on top in production efficiency,
and to restructure when needed.

Earlier, restructuring costs have been balanced against one-off gains.
This time this has not been possible.

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First half year 2003
General overview

(Numbers in brackets are corresponding values from the same time last
year unless otherwise indicated.)

Group total sales January to June was EUR 312.5 million, which is 9.9
% less compared to the same period last year (EUR 346.8 million).
Maintenance Services sales grew in volume (counted in local
currencies) but the reported sales number in euros decreased as a
direct consequence of currency changes (translational effect).
Standard Lifting Equipment and Special Cranes sales declined also in
terms of volume. The total sales volume development, disregarding
currency movements, was a slight decrease of 3.3 %.

Group operating income (EBIT) was EUR 0.5 million (EUR 13.3 million).
Approximately EUR 7 million in new restructuring costs were charged
against EBIT (see stock exchange releases of June 25 and 26, 2003).
Excluding these costs EBIT for the first half of 2003 was EUR 7.5
million. Accordingly, the EBIT during the second quarter was EUR 5.7
million (EUR 6.7 million).

Lower operational profits were mainly a consequence of a lower sales
volume in new equipment business areas and in modernisations (part of
Maintenance Services). The sales price development was also slightly
negative. The translational effect of the stronger euro had an impact
on Maintenance Services’ operating income, but for the whole Group the
impact on operating profit was marginal.

Group financing costs (net of costs and income) were EUR -1.0 million.
Financing costs were EUR 0.4 million higher than during H1/2002,
mainly due to an increase in working capital.

Group income after financing items was EUR –0.5 million (EUR 12.7
million) or EUR 6.5 million excluding costs relating to restructuring
actions. Group income taxes are reported at 0 (EUR 4.1 million) for
the period. The effective tax rate for the whole year is estimated to
approximately 35 % on income before taxes. Group net income January to
June was EUR –0.5 million (EUR 8.6 million).

The Free cash flow was EUR 7.5 million (EUR 20.7 million) and the Cash
flow from operations was EUR –10.1 million (EUR 19.0 million). The
Cash flow before financing was EUR –22.1 million (EUR 8.6 million).
The negative cash flow development was mainly due to a growing working
capital, a lower generation of income financing and higher investment
expenditures. Investments included acquisitions of own shares at EUR
5.48 million. The value of inventories (stock and work-in-progress)
increased approximately by EUR 11 million compared to year-end 2002
anticipating growing production levels.
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Mainly because of the negative cash flow the net interest bearing debt
increased to EUR 72.4 million (EUR 59.4 million) at the end of June
and gearing was 47.4 % (35.4 %). Group solidity was 40.0 % compared to
42.8 % year ago.

The return on capital employed was 1.5 % or 7.5 % before restructuring
charges (12.6 %) and the return on equity was –0.6 % or approximately
5 % excluding restructuring charges (10.1 %).

The order intake during H1/2003 was EUR 298.7 million, which is EUR
28.6 million or 8.7 % less than H1/2002 (EUR 327.3 million). All three
business areas reported lower numbers compared to last year, but
excluding the translational effect of the stronger euro only Special
Cranes had a lower order intake whereas Maintenance Services grew by
volume and Standard Lifting orders were at last year’s level. By
market the order intake remained strong in China. Also Germany and
America (counted in USD) reported growing orders albeit still at a low

Group total order book was EUR 214.6 million which is 20.4 % less
compared to one year ago (EUR 269.6 million) but 4.2 % or EUR 8.6
million more than what it was at the end of 2002. The order book for
Special Cranes is now lower, but the order book for Maintenance
Services (modernisations, large repairs etc.) and Standard Lifting
Equipment increased. The Maintenance contract base continued its
positive development. There are now 217,575 hoisting equipment
included in our contract base. This is 8 % more compared to one year
ago and 4.5 % over the count at the end of 2002.

The Group continued its efforts to adjust its operations to the
changing environment and to take advantage of our global reach of
various sales and supply markets. During the second quarter 2003 the
Group took decisions to intensify and speed-up several efficiency
increasing measures including capacity rationalisation actions. These
actions focus on the Group’s new equipment operations in Europe and in
the Americas. Altogether these actions are expected to cost
approximately EUR 7 million in one time charges. These costs are now
booked in full into Group overheads.

The Group employed 4443 persons at the end of June (4372 one year ago
and 4441 at the end of 2002). Since June 2002 the employment number
has grown approximately by 150 persons as a direct consequence of
acquired operations and Asian expansion. Excluding these new
activities there was a decline in the Group headcount by 79 persons.

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Business Area Review

Maintenance Services

January to June orders received was EUR 156.6 million, which is 6.4 %
lower compared to the H1/2002 level (EUR 167.3 million). At comparable
currency rates orders grew by 3.2 %.

The order intake during the second quarter was 10 % stronger than
during the first quarter. Orders for modernisation projects and port
services grew strongly.

Sales during H1/2003 was EUR 165.4 million (EUR 173.8 million), which
is 4.8% less than one year ago. However, there was volume growth in
Maintenance Services. At unchanged currency rates the growth was 4.8
%. The sales of field services grew, but the sales of modernisation
projects decreased.

EBIT was EUR 6.3 million or 3.8 % on sales (EUR 9.5 million or 5.5 %
on sales). The stronger euro (translational effects), a decline in the
modernisation volume and a lower capacity utilisation in many customer
industries, especially in the North America were the main reasons for
a clear decrease in EBIT. Acquired operations added approx. EUR 5
million compared to the sales during the same period last year. The
average profitability of these new operations has not yet reached the
Group average. The profit margin was 4.3 % in Q2/2003 compared to 3.3
% in Q1/2003.

Many profit improving actions have been initiated in the Business
Area. The number of employees was 2718 at the end of June (2621).
During the second quarter the employment number decreased by 25 in
spite of the KUBI acquisition in Germany, which added 36 new employees
to the staff of Maintenance Services.

The favourable development relating to the annual maintenance contract
base continued. The number of hoisting equipment included in the
contract base increased to 217,575 at the end of June. This is 8 %
more than a year ago (201,515) and 4.5 % more compared to the end of
December 2002. The fastest growth related to harbour cranes.

Standard Lifting Equipment

Orders received in January to June was EUR 99.3 million, which is a
decrease of 5.3 % compared to H1/2002 (EUR 104.9 million). At
comparable currency rates the order intake was at last year’s level.
Q2/2003 orders were EUR 50.0 million compared to EUR 49.3 million in

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H1/2003 Sales decreased by 8.7 % to EUR 88.4 million from EUR 96.8
million in H1/2002. The currency effect in the sales development was
marginal. Sales grew from EUR 41.7 million in Q1/2003 to EUR 46.7
million in Q2/2003 and is now catching up with the level of the order

EBIT was EUR 6.9 million or 7.8 % on sales compared to EUR 8.9 million
or 9.2 % in H1/2002. The decrease in profit is mainly due to a lower
sales volume. The negative effect of lower volume on EBIT was
successfully mitigated by the competitiveness of the new wire rope
hoist line and other efficiency improvement measures. During the
second quarter EBIT was both in absolute value and in proportion to
sales better than during the corresponding period last year in spite
of lower sales volumes (EUR 4.0 million or 8.6 % on sales compared to
EUR 3.8 million or 7.8 % on sales). The pricing environment remained

The program to improve selling and production efficiency continues.
The number of employees at the end of June was 950 (973). Excluding
the growth in the number of employees in the Chinese and the South-
Korean operations there has been a reduction in headcount by
approximately 220 (or 20 %) since the end of 2001.

Special Cranes

January to June orders received was EUR 74.0 million, which is a
decrease of 18.9 % compared to H1/2002 (EUR 91.2 million). At
comparable currency rates the order intake contracted by 14.5 %. Even
though the quotation activity remained high no big new projects
matured to order during Q2.

Sales was EUR 91.1 million, which is a decrease of 14.5 % compared to
H1/2002 (EUR 106.6 million). Sales decreased by 12.0 % at comparable
currency rates.

EBIT was EUR 4.5 million or 4.9 % on sales compared to EUR 7.4 million
or 6.9 % on sales in H1/2002. The decrease in EBIT is due to lower
sales. Cost cutting and productivity enhancing actions will improve
the situation towards the end of the year. One-off costs relating to
these restructuring efforts are booked to Group overheads. The
strengthening euro had only a marginal impact on the profit
development. The pricing environment remained demanding.

The order book for Special Cranes remained at reasonable level.
However, considerable differences in capacity utilisation exists
between operating units and product groups. Subsequent remedial
actions have not only been continued, but the restructuring program
has been accelerated and extended.
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The number of employees was 663 at the end of June (673). As a
consequence of restructuring efforts the employment number will
decline further.

Group Costs and Consolidation Items

The Group overheads, which are not charged directly to the Business
Areas, consist of costs relating to R&D, administration, financing and
legal affairs. January to June Group costs amounted to EUR 16.0
million, which is EUR 4.5 million more than during the same period
last year (EUR 11.5 million). The cost increase is due to the
restructuring program, which is estimated at EUR 7 million.
Restructuring costs have been booked in full to Group costs.

Group consolidation items, which consist of Group goodwill
amortisation, elimination of internal profit and our share of
associated companies’ result were EUR 1.2 million (EUR 1.0 million).
The small increase in the consolidation items is caused by an increase
in intra-group work-in-progress and therefore increasing eliminations
of internal profit.

Sales by Market

Sales by different market areas developed as follows:

             H1/2003      %    H1/2002      %  Change %
Europe         162.9   52.1      188.1   54.2     -13.4
America        108.6   34.7      129.2   37.3    -16.0*
Asia-Pacific    41.0   13.1       29.5    8.5     +39.0
Total          312.5  100.0      346.8  100.0      -9.9

* At unchanged currency rates –0.5 %.

Comment on currencies

All transactions in currencies other than the euro have been hedged as
an average by approx. one year ahead, or currency risks are covered by
other means. Therefore, the recent strengthening of the euro,
especially against the US dollar, has yet had only a small impact on
the Group’s profitability development. The current value of the US
dollar against euro is still reasonable in a historical perspective,
but it could sharpen competition between euro and non-euro producers
in the global market. The Group has taken various actions to improve
its competitive position in this respect.

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The average consolidation rates in some important currencies developed
as follows:

        June 2003   June 2002   Change
USD       1.10504     0.89812   -18.73
CAD        1.6049      1.4131   -11.95
GBP       0.68572     0.62178    -9.32
SEK        9.1625      9.1574    -0.06
NOK        7.7615       7.663    -1.27
SGD        1.9295      1.6325   -15.39
AUD        1.7924      1.6791    -6.32

Important Events

On April 4, 2003 KCI Konecranes acquired the crane service company
KUBI GmbH of Germany. KUBI specialises in maintenance services for
large cranes in inland terminals and is active also in seaports. KUBI
was included in the Group figures during Q2/2003.

On April 25, 2003 the final closing of the Japanese Joint Venture
agreement with Meidensha Corporation of Japan was approved. KCI
Konecranes owns 49% of the Joint Venture’s “Meiden Hoist System
Company Ltdö shares with an option to increase our holding to 65%
before 31 March 2008.

During the second quarter KCI Konecranes’ joint venture Jiangyin
Dingli High Tech Industrial Crane in China became operative.

On June 2nd, 2003 KCI Konecranes issued a release on winning its
motion to compel arbitration of the claims brought against it by
Invensys and Baan in the United States District Court in California,
USA. KCI Konecranes requested the whole motion to be dismissed or to
be referred to arbitration in Stockholm as the dispute concerns the
same project, which already is in arbitration in Stockholm. The United
States District Court in California granted KCI Konecranes motion and
referred all aspects of the dispute between Plaintiffs and KCI
Konecranes Plc and Konecranes, Inc. to arbitration before the
Arbitration Institute of the Stockholm Chamber of Commerce. The
arbitration process in Stockholm against Baan Company N.V. continues.
In the arbitration KCI Konecranes claims damages from Baan for a
software project in 1998, which failed. Baan has a counterclaim
against KCI Konecranes.
According to Invensys it has completed the sale of its Baan business
to SSA Global Technologies, Inc. This sale is not expected to affect
the arbitration.

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Important Orders

Here are some examples on orders received during April-June 2003. The
list illustrates our reach, both in terms of customer base and
geographical coverage.

Konecranes VLC Corporation received an order for a Ship-to-Shore (STS)
container crane to be delivered to Muuga Container Terminal, Port of
Tallinn, Estonia. AS Hansa Liising Eesti who will lease the crane to
Muuga Container Terminal placed the order.

Port of Houston Authority in Texas, USA, placed a repeat order for
five Konecranes Rubber Tyred Gantry Cranes (RTG) with Konecranes VLC.

KCI Konecranes won two major contracts to up-grade altogether 8
Panamax Ship-to-Shore cranes in the Port of Felixstowe (UK) and at
Patrick Stevedores terminals in Sydney and Melbourne (Australia).

A supply and procurement services company in USA ordered a Rail
Mounted Gantry (RMG) crane to handle containers and logistics.

D&R AB ordered one waste-to-energy crane to Finspång plant in Sweden.

The City of Toulouse ordered two waste-to-energy cranes to replace
existing ones at the C.V.D.U refuse handling plant located in
Toulouse, France.

Babcock Wilcox Volund ordered two waste-to-energy cranes to Linköping
plant in Sweden.

NCC ordered one waste-to-energy crane to Borås plant in Sweden.

One 140 ton powerhouse crane was sold to Hyundai Heavy Industries for
delivery to Barbados, USA.

GE Energy ordered three powerhouse cranes for three power stations in

Siemens ordered a total of 20 cranes for Az Zour Power Plant in

AvestaPolarit ordered one fully automated coil handling crane to its
steel mill in Tornio, Finland.

13 steel mill cranes were ordered for the Phu My Cold Rolling Mill
project in HCM City, which is the first cold rolling mill in Vietnam
and the largest project yet undertaken by Vietnam Steel Corporation.

Krupp Stainless Steel in China ordered five steel mill cranes.
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Sahaviriya Steel Industries in Thailand ordered five EOT cranes.

Bechtel on behalf of ALBA (Aluminium Bahrain) has ordered two cranes
and hoists for the ALBA expansion project in Bahrain.

Corus at Scunthorp, UK, has ordered an electrical refurbishment of a
mill bay crane.

Fuji Electric of Japan ordered specialised lifting equipment for
handling of turbines and condensers at Lough Ree and West Offaly power
plants in Ireland.

Geneglace/Frigo France, a subsidiary of the German Group GEA, ordered
six standard cranes for an ice generator manufacturing plant in
Nantes, France

Takenaka Europe GmbH (Hungary Branch Office) ordered a 30 ton crane
for the stamping shop at the SUZUKI car factory in Hungary.

A first maintenance contract was signed with Michelin for 162 hoisting
units including overhead cranes, monorails and jib cranes at the plant
in Troyes, France. The cranes are used in the manufacturing of cast
iron or aluminium wheels for cars.

Nissan in Newcastle, UK renewed its maintenance contract with KCI
Konecranes covering cranes, hoists, swing jibs and workstations cranes
which total up to 165 items and other lift tooling equipment totalling
398 items at eight assembly or manufacturing plants.

Share price performance and trading volume

During January-June 2003 KCI Konecranes’ share price decreased by 7.69
% and closed at EUR 21.50. The highest share price during the first
six months of 2003 was EUR 25.01, the lowest was EUR 17.20 and the
average share price was EUR 20.15. During the same period HEX All-
Share Index decreased by 4.43 %, HEX Portfolio Index decreased by 4.30
% and HEX Metal & Engineering Index decreased by 0.89 %.

Total market capitalisation at the end of June was EUR 307.6 million,
the 36th highest market value of companies listed on Helsinki

The trading volume totalled 7,501,215 shares of KCI Konecranes, which
represents 52.42 % of the outstanding shares. In monetary terms
trading was EUR 151.2 million, which was the 22nd largest trading of
companies listed on Helsinki Exchanges.

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The non-Finland-based shareholding at the end of June 2003 was 56.20

On May 22, 2003 The Capital Group Companies, Inc.’s informed KCI
Konecranes Plc that its shareholding in KCI Konecranes Plc has fallen
below 5 % to 4.87% (697,433 shares) of the paid up share capital and
the voting rights of the Company.

On June 13, 2003 Varma-Sampo Mutual Pension Insurance Company informed
KCI Konecranes Plc that its shareholding in KCI Konecranes Plc has
exceeded 5 % to 5.15% (736,620 shares) of the paid up share capital
and the voting rights of the Company.

The company’s own shares

At the end of June 2003 the company held 264,100 shares with a total
nominal value of EUR 528,200 and a total purchase price of EUR 5.7
million which is 1.85 % of the total amount of shares and votes. The
shares were bought back between February 20 and March 5, 2003 at an
average price of EUR 20.75 per share.

Hyvinkää, August 7, 2003

The Board of Directors

Formal statement

Certain statements in this report are forward looking and are based on
management’s expectation at the time they are made. Therefore they
involve risks and uncertainties and are subject to change due to
changes in general economic or industry conditions.

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Statement of Income (MEUR)
                               1-6/2003      1-6/2002   1-12/2002
Sales                             312.5         346.8       713.6
Share of result of                                               
participating interest                                           
undertakings                       -0.2          -0.1        -0.2
Depreciation                       -8.1          -8.0       -15.5
Other operating expenses      -303.7 (1        -325.4      -660.3
Operating income                    0.5          13.3        37.6
Interests, net                     -1.4          -1.1        -2.0
Other financial income                                           
and expenses                        0.4           0.5         0.8
Income before taxes                -0.5          12.7        36.5
Taxes                              -0.0       -4.1 (2       -11.8
Net Income for the period          -0.5           8.6        24.6
Profit /share (EUR)               -0.04          0.58        1.69

1) Includes 7.0 MEUR restructuring charges
2) According to estimated tax rate

Consolidated Balance Sheet (MEUR)
                               6/2003         6/2002        12/2002
Fixed Assets                     97.8           99.6           93.5
Inventories                      84.4           82.2           73.9
Receivables and other                                              
current assets                  211.8          227.8          214.6
Cash in hand and at banks        13.0           10.3           15.2
Total assets                    407.0          419.9          397.1
Equity                          158.2          175.0          173.2
Minority Interest                 0.1            0.1            0.1
Provisions                       17.5           11.2           12.0
Long-term debt                   33.7           42.2           31.4
Current liabilities             197.6          191.4          180.4
Total shareholders’                                                
equity and liabilities          407.0          419.9          397.1
Gearing                         47.4%          35.4%          19.1%
Solidity                        40.0%          42.8%          45.5%
Return on capital                      LTM 03         LTM 02       
employed (3                      1.5%   11.7%  12.6%   21.1%  17.8%
Equity/share(EUR)               10.88          11.40          12.11

3) Calculated on annual basis

In accordance with the decision of the Annual General Meeting, the
company bought back between 20 February and 5 March,2003 264,100 of
its own shares at an average price of EUR 20.75 per share. At 30 June
2003, the company held 264,100 shares with a total nominal value of
EUR 528.200 and a total purchase price of MEUR 5,5 which is 1.85 % of
total amount of shares and votes.
                                                           14 (17)

Consolidated cash flow (MEUR)

                               1-6/2003     1-6/2002    1-12/2002
Free Cashflow                       7.5         20.7         46.2
Change in working capital         -17.6         -1.7         20.1
Cashflow from operations          -10.1         19.0         66.3
Net Investments                   -12.1        -10.5        -31.0
Cashflow before financing         -22.1          8.6         35.4
Change in debt,increase                                          
(+), decrease (-)                  33.8         -0.9        -22.4
Dividend paid                     -13.3        -13.2        -13.2
Correction items (1                -0.6         -1.0         -1.4
Net financing                      -2.2         -6.5         -1.6
Cash and bank deposits at                                        
beginning of period                15.2         16.8         16.8
Cash and bank deposits at                                        
end of period                      13.0         10.3         15.2
Change of Cash                     -2.2         -6.5         -1.6

1) Translation difference in cash in hand and at banks

Contingent Liabilities and Pledged Assets (MEUR)

                                    6/2003     6/2002    12/2002
Mortgages and pledged assets                                    
  For own debts                        5.9        5.9        5.9
  For commercial guarantees            0.7        0.9        0.9
Own commercial guarantees            141.4      106.3      141.6
  For associated company’s debt        0.8        0.8        0.8
  For others                           0.1        0.1        0.1
Leasing liabilities                   17.1       18.4       18.8
Other liabilities                      1.4        1.1        1.0
Total                                167.4      133.5      169.1

Notional Amounts of Derivative Financial Instruments (MEUR)

                             6/2003         6/2002         12/2002
Foreign exchange                                                  
forward contracts             445.9          452.5           411.4
Interest rate swap             25.0           25.0            25.0
Currency options              187.3          109.2             0.0
Total                         658.2          586.7           436.4

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Derivatives are used for currency and interest rate hedging only. The
notional amounts do not represent amounts exchanged by the parties and
are thus not a measure of the exposure. A clear majority of the
transactions relate to closed positions, and these contracts set off
each other. The hedged order book and equity represent approximately
one half of the total notional amounts.

                            1-6/2003    1-6/2002     1-12/2002
Total (excl. acquisitions                                     
of subsidiaries) (MEUR)          7.7         8.0          13.9


Sales by Business Area (MEUR)

                  1-6/2003  1-6/2002    LTM (*       LTM  1-12/2002
                                                Year ago
Services             165.4     173.8     364.0     369.3      372.4
Standard Lifting                                                   
Equipment             88.4      96.8     196.1     224.3      204.5
Special Cranes        91.1     106.6     193.7     227.3      209.2
./. Internal         -32.4     -30.4     -74.5     -76.2      -72.5
Total                312.5     346.8     679.3     744.7      713,6

Operating Income by Business Area (MEUR)

                    1-6/2003     1-6/2002   1-12/2002  LTM(*  LTM(*
                   MEUR     %   MEUR    %   MEUR   %    MEUR   MEUR
Services              6.3  3.8    9.5  5.5   26.2  7.0   23.0   24.7
Standard Lifting                                                    
Equipment             6.9  7.8    8.9  9.2   19.5  9.5   17.5   23.9
Special Cranes        4.5  4.9    7.4  6.9   16.7  8.0   13.8   17.2
Group costs       -16.0(1       -11.5       -23.8       -28.3  -16.0
items                -1.2        -1.0        -1.0        -1.2   -1.9
Total                 0.5        13.3        37.6        24.8   47.8

*) LTM = last 12 months (full year 2002 ./. six months 2002 + six
months 2003)
1) Includes 7.0 MEUR restructuring charges

                                                           16 (17)

Personnel by Business Area (at the End of the Period)

                              6/2003         6/2002        12/2002
Maintenance Services           2,718          2,621          2,698
Standard Lifting                                                  
Equipment                        950            973            949
Special Cranes                   663            673            685
Group staff                      112            105            109
Total                          4,443          4,372          4,441
Average number of                                                 
personnel during                                                  
period                         4,457          4,373          4,396

Order Intake by Business Area (Excl. Service Contract Base)(MEUR)

                  1-6/2003  1-6/2002    LTM (*       LTM  1-12/2002
                                                Year ago
Services             156.6     167.3     299.5     306.4      310.2
Standard Lifting                                                   
Equipment             99.3     104.9     197.6     208.8      203.2
Special Cranes        74.0      91.2     137.7     191.1      154.9
./. Internal         -31.2     -36.1     -64.5     -70.2      -69.4
Total                298.7     327.3     570.3     636.1      598.9

*) LTM = last 12 months (full year 2002 ./. six months 2002 + six
months 2003)

Order Book (Excl. Service Contract Base)

                              6/2003         6/2002        12/2002
Total (MEUR)                   214.6          269.6          206.0

Sales by Market (MEUR)

                   1-6/2003  1-6/2002    LTM (*       LTM  1-12/2002
                                                 Year ago
Nordic and                                                          
Eastern Europe         77.1      86.5     169.9     197.0      179.4
EU (excl. Nordic)      85.8     101.6     205.2     214.8      220.9
Americas              108.6     129.2     221.9     257.6      242.4
Asia-Pacific           41.0      29.5      82.4      75.4       70.9
Total                 312.5     346.8     679.4     744.8      713.6

*) LTM = last 12 months (full year 2002 ./. six months 2002 + six
months 2003)
                                                           17 (17)


An international teleconference will be arranged today on 7 August,
2003 at 4.00 p.m. Finnish time (2.00 p.m. London time). The dial-in
number is +44-(0)20 8401 1043. Please call in at 3.50 p.m. The
graphics of the presentation are attached to the report on the
Internet. A replay of the teleconference will be available for the
next 48 hours at +44-(0)20 8288 4459, code 976622.


This report is also available on the Internet at An
audio recording of Mr Gustavson’s presentation at the teleconference
will be available on the Internet later on 7 August.

Next report

Interim report January-September will be published on 30 October, 2003
at 10.00 a.m. Finnish time (8.00 a.m. London time).


A graphical presentation of this report is available on the Internet


Franciska Janzon
IR Manager

Mr Stig Gustavson, President & CEO, tel. +358-20 427 2000
Mr Teuvo Rintamäki, Chief Financial Officer, tel. +358-20 427 2040
Ms Franciska Janzon, IR Manager, tel. +358-20 427 2043

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