Raisio Group plc    Stock Exchange Release
                    May 5, 2003 at 10.30 Finnish time       1 (9)


Higher turnover but worse result

Key figures                                                
                                     Q1/2003  Q1/2002   2002
Turnover EURm                         201.0    194.9  843.1
Operating profit/loss EURm             -6.7      7.5   20.6
Profit/loss before income taxes EURm   -9.2      4.6    9.3
Earnings per share EUR                -0.06     0.01   0.03
Equity ratio %                        33.7%    38.6%  34.4%
Cash flow from operations EURm        -15.6      1.7   45.4

CEO Rabbe Klemets:

"2003 got off to a difficult start in all three business sectors.
The Raisio Chemicals result was weighed down by trends in the
prices of petrochemical raw materials and low demand. Raisio
Nutrition sales were eroded by industrial disputes and delivery
problems, while Raisio Life Sciences still had to wait for new
customers to launch their products. However, our turnover grew
during the first quarter and stocks have decreased. Raisio
Nutrition continued to rationalize its operations by divesting the
ice-cream and almond paste businesses. The recent acquisition of
Diffchamb will open up new opportunities for Raisio in the new and
fast growing market for rapid testing in food diagnostics.

In my opinion there will be light at the end of the tunnel later
this year. Raisio Chemicals has managed to compensate for higher
raw material costs through its current sales prices in the second
quarter. Its rationalization programmes will slightly improve
profitability this year, and the full impact of these measures
will show in 2004. With the decisions made in April on Raisio
Nutrition investments, we can start developing new potato products
and launch competitive production on the Russian margarine market.
Raisio Life Science’s new customers have moved forward in their
regulatory processes, and this will increase sales towards the end
of the year."


Raisio Group turnover grew by 3% in January-March to EUR 201.0
million (EUR 194.9m Q1 2002). Most of the growth in turnover
derives from the acquisition of Latexia in August 2002. Turnover
from outside Finland accounted for 53.0% (53.0%), or EUR 106.5
million (EUR 103.2m).

The consolidated operating result for January-March was EUR -6.7
million (EUR 7.5m). The change in accounting practices due to IAS-
based evaluation of inventories improved the operating profit for
the comparison period by EUR 2.7 million. The consolidated result
before taxes was EUR -9.2 million (EUR 4.6m).

Research and development expenditure for the Group in January-
March came to EUR 5.8 million (EUR 4.5m).

Net financial expenses in January-March totalled EUR 2.5 million
(EUR 2.9m). This included EUR 0.5 million in exchange rate gains
as against a loss of EUR 0.4 million a year earlier. The higher
volume of loans increased interest expenses during the period
under review.

Cash flow from Group business operations was EUR -15.6 million
(EUR 1.7m). Cash flow after investments stood at EUR -23.2 million
(EUR -2.6m). Gross investments came to EUR 8.6 million (EUR 5.9m);
the largest single investments related to the construction of
paper chemical plants in China, rationalization of margarine
production, and development of Raisio Chemicals’ Coating
Technology Center CTC.

Net interest-bearing liabilities at the end of the period came to
EUR 302.4 million (EUR 281.4m end 2002). Contrary to the former
practice, the Group credit facility has now been entered under non-
current liabilities to present a clearer picture of the terms
affecting it. The equity ratio was 33.7% (34.4% end 2002) and the
gearing ratio 125.3% (109.4% end 2002).


Raisio Chemicals

Raisio Chemicals turnover rose to EUR 103.2 million (EUR 86.3m) in
January-March. This was largely attributable to the acquisition of
Latexia. The geographical region showing greatest growth in Raisio
Chemicals turnover was Asia. Overall turnover suffered from low
sales of starch binders, which was partly due to slack demand and
partly due to giving up the sales company in Germany in summer
2002; this reduced the volume of starch invoicing that earlier
offered a very narrow gross margin.

Raisio Chemicals turnover by business area, EURm

                       Q1/2003     Q1/2002     2002
Starch binders            22.4        31.1    106.6
Latex binders             47.4        21.2    127.7
Specialty chemicals       33.4        34.0    135.8

The operating result fell to EUR –3.2 million (EUR 3.8m) in
January-March. The change in accounting practices due to IAS-based
evaluation of inventories improved the operating profit for the
comparison period by EUR 0.9 million. The higher prices of
petrochemical raw material did not find reflection in sales prices
yet during the first quarter, which reduced profitability, as did
higher energy costs and the lower margins on starch binders.

To improve profitability, Raisio Chemicals launched a programme
aiming at annual cost savings of EUR 15 million. These savings
will be affected in full as of the beginning of 2004. With these
measures, Raisio Chemicals aims to adjust to current demand,
eliminate overlapping operations, improve efficiency and bring
about a tangible rise in profitability. The need for staff
reductions has been calculated as affecting 100 persons globally.
Raisio Chemicals also aims at more efficient capital management
and reducing working capital by EUR 15 million.

The construction of latex and specialty chemical plants in China
is progressing according to timetable, as is the construction of
the Future Printing Center in Raisio.

Raisio Nutrition

Raisio Nutrition turnover decreased to EUR 94.2 million in January-
March (EUR 106.1m), largely due to weak sales trends in the
Margarine and Food Potato businesses, as well as in the Malt
business area. For Margarine, low sales were due to structural
changes, problems with the quality of packaging, industrial
disputes and reduced export volumes; in Poland, sales focused on
cheaper products. The main export regions related to the Malt
business area suffered from a cold winter, which meant lower
consumption of beer and thus lower sales of malt. Grain Starch
sales were affected by low demand in the paper industry.

Raisio Nutrition turnover by business areas and businesses
(internal sales included), EURm

                Q1/2003    Q1/2002     2002
Food               56.6       65.2    265.3
  Margarine        31.9       39.6    160.6
  Milling          19.2       18.5     77.1
  Food Potato       4.8        6.7     25.0
  Others            2.7        1.3      9.5
Animal Feeds       36.1       35.9    159.4
Malt                2.8        4.2     30.2
Grain Starch        3.5        5.4     20.6

The Raisio Nutrition operating loss was EUR -1.4 million (EUR
+3.9m) in January-March; this includes EUR 1.2 million in profit
from sale of the ice-cream business. The change in accounting
practices due to IAS-based evaluation of inventories improved the
operating profit for the comparison period by EUR 1.6 million.
Profitability declined in all businesses except Milling, mostly
because of low sales volumes, industrial disputes and higher
energy costs.

The Raisio Nutrition result - Animal Feeds and Margarine in
particular - was reduced by a food industry workers’ strike at the
Raisio plant. To minimize the strike’s impact on margarine supply
in Sweden, Raisio Nutrition decided to continue production at
Carlshamn Mejeri in Sweden through the spring, contrary to what
was originally planned. This means that the benefits expected from
centralized production will not emerge until the autumn.

As set out in the letter of intent, Raisio Group sold its ice-
cream business (turnover in 2002 about EUR 15m) to Åhus Glass AB
(publ). Manufacture of ice-cream at the factory will continue with
Raisio Group acting as a subcontractor until the summer. In
addition, the almond paste business (annual turnover about EUR 1m)
was sold to Scandibaker AB on April 1, 2003.

Raisio Life Sciences

Raisio Life Sciences turnover was EUR 6.3 million (EUR 6.2m) in
January-March; it showed an operating loss of EUR -1.6 million
(EUR -0.1m). This decline was largely due to the narrower gross
margin resulting from higher raw material prices, for instance,
and heavier investments in the European market and the field of
diagnostics. The change in accounting practices due to IAS-based
evaluation of inventories improved the operating profit for the
comparison period by EUR 0.2 million.

Raisio Life Sciences launched several new Benecol products. One of
them, the first grain product containing stanol ester, was the
Benecol pasta specially designed for the Finnish market and
created in cooperation with Raisio Nutrition. Also a Benecol
cheese was launched in partnership with the Finnish Valio. There
was also growing interest in cholesterol-reducing functional foods
on central and southern European markets, and Raisio’s partners in
Spain and Portugal introduced a Benecol yoghurt drink.
Unfortunately, the regulatory processes in different countries
vary and are time-consuming.

On February 28, 2003 the Raisio Group made a public offer for the
entire share capital of the international food diagnostics company
Diffchamb AB. Raisio now owns more than 99% of Diffchamb.
Diffchamb will be consolidated into the Raisio Group accounts from
the beginning of the second quarter. Raisio has begun the
redemption proceedings required by Swedish legislation to obtain
the remaining shares. The last day of trading in Diffchamb shares
on the Stockholm Stock Exchange was April 24, 2003.

Diffchamb is an international biotechnology company which
develops, manufactures and markets food diagnostics. One of its
core businesses is to sell rapid and efficient analysis systems to
the food industry. The company’s turnover in 2002 was about EUR 13
million and its profit before taxes EUR 0.5 million. The company
personnel numbered about 100 at the end of 2002.


Raisio Group employed a total personnel of 2,746 (2,477) on March
31, 2003, with 43.9% (41.6%) of them working outside Finland. The
increase in personnel is mainly due to the Latexia acquisition and
investments in China. At the end of March, Raisio Chemicals
employed 1,171 people, Raisio Nutrition 1,369 and Raisio Life
Sciences 94.

Codetermination talks aimed at making the Group administration
more efficient, which had begun in November, were concluded in
January, with 26 jobs cut from the administration.

At a meeting on January 29, 2003, the Supervisory Board decided to
release Antti Haavisto from his duties as a member of the Board of
Directors. No new member was elected to replace him.


The Raisio Group Annual General Meeting on March 21, 2003 approved
the annual accounts for 2002 and discharged those accountable from
liability. The AGM decided to extend the share-issue
authorizations and decided on payment of a EUR 0.02 dividend per
share. The dividends were paid out on April 2, 2003.

The AGM authorized the Board of Directors to decide on a raise in
share capital. Share capital may be raised by issuing a maximum
total of 20,000,000 new shares with no more than 5,000,000
restricted shares. The authorization was entered in the Trade
Register in April 11, 2003, but has not yet been used.

The confirmed number of members of the Supervisory Board was 29.
The members in turn to resign who were re-elected were Matti
Hakala, Mikael Holmberg, Taisto Korkeaoja, Paavo Myllymäki, Teemu
Olli, Juha Saura, Tuula Tallskog, Johan Taube, Juhani Torkkomäki
and Jukka Tuori. The Chairman and Deputy Chairman of the
Supervisory Board were ordered to form a committee to examine the
possibility of reducing the number of members of the Supervisory
Board to a level closer to the minimum number of 21 stipulated in
the Articles of Association. The committee is due to report on
this at the next general meeting of shareholders.

The AGM re-elected Johan Kronberg and Mika Kaarisalo, both
Authorized Public Accountants, as regular auditors for the
financial year 2004, with Authorized Public Accountants
PricewaterhouseCoopers Oy and Kalle Laaksonen as deputies.


A total of 11,611,276 Raisio Group plc free shares were traded on
Helsinki Exchanges in the January-March period, totalling EUR 11.8
million at an average price of EUR 1.01. The final quotation at
the end of March 2003 was EUR 0.86. The price had fallen by 18%
since January 1.

Altogether 63,886 restricted shares were traded, for a total of
EUR 83,142 at an average price of EUR 1.30. The final quotation at
the end of March 2002 was EUR 1.20. The price had fallen by 9%
since January 1.

On March 31, 2003 the company had a total of 48,349 registered
shareholders. 7.9 per cent of its shares were owned by foreign


As Raisio has decided to expand the production of special potato
products, the municipality of Vihanti is to build an extension to
the existing plant for a total investment of EUR 3 million and
lease it to Raisio Nutrition for 18 years. This strengthens
Raisio’s position in the growing market for potato products.

To start margarine production in Russia, Raisio Nutrition has
bought a dairy plant in Istra, some 60 kilometres from Moscow.
Once the purchase is approved by the Russian competition
authorities, this EUR 2 million investment will give a significant
boost to Raisio’s competitiveness on the market and improve the
market position of Raisio’s well-known products in Russia.
Production of margarine is expected to begin by the end of 2003.


Raisio Group turnover for the whole of 2003 is expected to
increase compared with 2002, thanks to the acquisition of Latexia
and Diffchamb and startup of the specialty chemicals plant in
China in the summer. At Raisio Nutrition, however, turnover will
be affected by sale of the ice-cream and almond paste businesses
and the manufacture of industrial margarine in Sweden.

The measures being taken to improve efficiency are expected to
boost Raisio’s performance toward the end of the year. In the
second quarter, the outlook for Raisio Chemicals in particular is
considerably better than in the first quarter. The Group’s full
year result before taxes is estimated to be positive.
Nevertheless, there are several risks related to the development
of results, especially price trends in petrochemical raw
materials, the cost of energy and the degree to which the demand
picks up.

Raisio, May 5, 2003

Board of Directors

Additional information:
Taru Narvanmaa, EVP, Communications and Investor Relations,
tel. +358 50 590 9398
Antti Salminen, CFO, Tel. +358 40 535 1216

Raisio Group, P.O. Box 101, FIN-21201 Raisio, Finland
tel. +358 2 443 2111, www.raisiogroup.com

The Figures in this review have not been audited.

(EURm)                               1-3/2003  1-3/2002       2002

Turnover                                201.0     194.9      843.1

 Income and expenses from
 business operations                   -194.5    -176.1     -772.3
 Depreciations and write-downs          -13.1     -11.4      -50.1
 Share of associated companies’ results  -0.1       0.1       -0.1

Operating result                         -6.7       7.5       20.6
 % of turnover                          -3.3%      3.8%       2.4%

 Financial items                         -2.5      -2.9      -11.3

Result before extraordinary items
and taxes                                -9.2       4.6        9.3
 % of turnover                          -4.6%      2.4%       1.1%

 Extraordinary items                      0.0       0.0        0.0

 Result before taxes                     -9.2       4.6        9.3
 % of turnover                          -4.6%      2.4%       1.1%

 Income taxes                             0.0      -2.4       -2.9
 Minority interest                       -0.1       0.2       -0.9

Consolidated result for the period       -9.3       2.3        5.4
 % of turnover                          -4.6%      1.2%       0.6%

Taxes are calculated based on the appropriate tax on the result.

(EURm)                              31.3.2003 31.3.2002 31.12.2002

Non-current assets
 Intangible assets                       83.3      74.3       85.5
 Tangible assets                        282.3     255.5      289.7
 Investments                             13.3      14.2       12.9

Current assets
 Inventories                            142.0     147.1      153.6
 Receivables                            173.2     167.7      165.4
 Securities under financial assets       13.0      18.2       30.0
 Cash in hand and at banks                9.8      12.2       12.2

Assets                                  716.9     689.2      749.4

 Share capital                           27.8      27.8       27.8
 Other shareholders’ equity             190.4     215.3      205.7
 Minority interest                       23.3      22.1       23.6
 Non-current liabilities                268.3     149.8      121.2
 Current liabilities                    207.1     274.3      371.0

Liabilities                             716.9     689.2      749.4

                                     1-3/2003  1-3/2002       2002

Cash flow before change in
working capital                           6.4      16.2       69.9
Change in working capital               -18.3     -11.6       -6.7
Financial items and taxes                -3.7      -2.9      -17.9
Cash flow from business operations      -15.6       1.7       45.4

Investments                              -9.5      -5.7      -69.2
Proceeds from sales of fixed assets       1.9       1.4        4.3
Cash flow from investments               -7.6      -4.3      -64.9

Change in non-current loans              -0.7      -4.6      -24.3
Change in current liabilities             4.3      -3.7       46.9
Change in non-current loan receivables    0.0       0.1        0.2
Dividend paid                             0.0       0.0       -3.0
Cash flow from financial operations       3.7      -8.2       19.8

Unallocated items                         0.2       0.3        0.9

Change in liquid funds                  -19.4     -10.6        1.2

Liquid funds at beginning of period      42.2      41.0       41.0
Liquid funds at end of period            22.8      30.4       42.2

                                    31.3.2003 31.3.2002 31.12.2002

Return on equity, ROE, %                -14.7       3.3        2.4
Return on investment, ROI, %             -3.5       6.4        4.5

Net interest-bearing liabilities
at end of period, EURm                    302       237        281
Gross investments, EURm                   8.6       5.9       81.0
 % of turnover                            4.3       3.0        9.6
R & D expenditure, EURm                   5.8       4.5       20.3
 % of turnover                            2.9       2.3        2.4
Personnel average                       2,747     2,472      2,654
Equity ratio, %                          33.7      38.6       34.4
Gearing, %                              125.3      89.4      109.4

Earnings/share, EUR                     -0.06      0.01       0.03
Cash flow/share, EUR                    -0.09      0.01       0.27
Equity/share, EUR                        1.32      1.47       1.41
Average number of shares during
the period, in 1000s
 Free shares                          129,765   129,759    129,761
 Restricted shares                     35,384    35,390     35,388
 Total                                165,149   165,149    165,149
Market capitalization of shares at end
of period, EURm
 Free shares                            111.6     181.7      138.8
 Restricted shares                       42.5      64.0       50.2
 Total                                  154.1     245.7      189.0

(EURm)                              31.3.2003 31.3.2002 31.12.2002

Assets given as security
 For the company
   Mortgages on real estate              10.3      61.4       10.5
   Corporate mortgages                   47.9      49.0       22.8

Contingent off-balance-sheet liabilities
 Leasing liabilities
 Amounts outstanding on leasing contracts
   Falling due during 2003                3.9       3.4        4.5
   Falling due later                      7.7       6.7        6.2
 Contingent liabilities for the Group companies
   Guarantees                            67.5       6.0       67.5
 Contingent liabilities for the Company  13.0      13.3       14.4
 Contingent liabilities for associated companies
   Guarantees                             0.0      15.5        0.0
 Contingent liabilities for others
   Guarantees                             0.3       1.1        0.2
 Liabilities arising from derivative contracts
   Raw material futures: market value    -0.1      -0.3       -0.3
   Raw material futures:
   value of underlying instruments        7.9      13.0       11.6
   Forward electricity contracts:
   market value                         -0.5                  0.0
   Forward electricity contracts:
   value of underlying instruments        2.2                  0.5
   Currency futures: market value         0.3      -0.1        0.4
   Currency futures:
   value of underlying instruments       25.5      18.6       26.7
   Interest-rate swaps: market value     -1.9       0.2       -1.5
   Interest-rate swaps:
   value of underlying instruments       80.0      60.0       80.0

(EURm)                               1-3/2003  1-3/2002       2002

Raisio Chemicals                        103.2      86.3      370.1
Raisio Nutrition                         94.2     106.1      456.9
Raisio Life Sciences                      6.3       6.2       30.3
Others                                    0.4       0.4        1.6
Interdivisional                          -3.0      -4.1      -15.8

Turnover, total                         201.0     194.9      843.1

(EURm)                        % of              % of          % of
                             turn-             turn-         turn-
                   1-3/2003   over   1-3/2002   over    2002  over

Finland                94.5   47.0       91.7   47.0   401.4  47.6
Scandinavia            18.7    9.3       20.6   10.6    77.3   9.2
Europe (excl. Finland
and Scandinavia)       62.5   31.1       58.7   30.1   258.3  30.6
The Americas           11.1    5.5       13.6    7.0    52.6   6.2
Asia                   14.1    7.0        9.6    4.9    52.0   6.2
Other                   0.1    0.1        0.8    0.4     1.6   0.2

Total                 201.0  100.0      194.9  100.0   843.1 100.0

(EURm)                               1-3/2003  1-3/2002       2002

Raisio Chemicals                         -3.2       3.8       10.7
Raisio Nutrition                         -1.4       3.9       10.7
Raisio Life Sciences                     -1.6      -0.1        0.5
Others                                   -0.5      -0.2       -1.3

Operating profit, total                  -6.7       7.5       20.6

(EURm)                         1-3/    4-6/    7-9/  10-12/   1-3/
                               2002    2002    2002    2002   2003
Consolidated turnover
Raisio Chemicals               86.3    85.8    95.6   102.4  103.2
Raisio Nutrition              106.1   115.5   117.9   117.3   94.2
Raisio Life Sciences            6.2     7.1     7.6     9.3    6.3
Others                          0.4     0.9     0.2     0.1    0.4
Interdivisional                -4.1    -3.8    -4.0    -4.0   -3.0

Turnover, total               194.9   205.5   217.5   225.2  201.0

Consolidated operating profit
Raisio Chemicals                3.8     2.1     2.3     2.5   -3.2
Raisio Nutrition                3.9     3.1     5.5    -1.8   -1.4
Raisio Life Sciences           -0.1     0.0     0.4     0.2   -1.6
Others                         -0.2    -0.2    -0.5    -0.4   -0.5

Operating profit, total         7.5     5.0     7.6     0.6   -6.7
 Financial items               -2.9    -0.3    -4.0    -4.2   -2.5
Result before extraordinary
items and taxes                 4.6     4.7     3.6    -3.6   -9.2
 Extraordinary items            0.0     0.0     0.0     0.0    0.0
Result before taxes             4.6     4.7     3.6    -3.6   -9.2
 Income taxes                  -2.4    -1.9    -1.1     2.5    0.0
 Minority interest              0.2    -0.2    -0.4    -0.5   -0.1
Consolidated result for the period
                                2.3     2.6     2.1    -1.6   -9.3