VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR 1.9.2006 -

VAAHTO GROUP PLC OYJ STOCK EXCHANGE RELEASE 29.6.2007 at 10.00 a.m.

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR 1.9.2006 - 29.6.2007

In the period under review, the turnover and result for the Vaahto Group
developed as expected. The turnover for the period from 1 September 2006 to 31
May 2007 was 59.6 million euros (44.5 million euros), with an operating profit
of 1.8 million euros (0.4 million euros). The turnover increased by 34% from
that of the reference period. The order book stood at 52.4 million euros on 31
May 2007, which is slightly lower than the amount in the interim report for 28
February 2007 (54.7 million euros). 

Pulp & Paper Machinery 

The turnover of the Pulp & Paper Machinery division for the period under review
was 38.2 million euros, showing an increase of 48% from that of the reference
period. Turnover is expected to remain high also during the last quarter of the
fiscal period. 

The market situation of the Pulp & Paper Machinery division is challenging, and
the demand seems to have peaked out. The division's order book has decreased
from the start of the fiscal period. In spite of the stabilising market
situation, the Vaahto Pulp & Paper Machinery division still has a significant
number of projects in the tender stage. 

Process Machinery

The turnover of the Process Machinery division for the period under review was
21.4 million euros, showing an increase of 15% compared to the reference
period. Turnover is expected to continue to grow in the last quarter of the
fiscal period. 

The market situation for the Process Machinery division continues to be good,
and the order book grew in all product groups (vessels, agitators, spiral heat
exchangers) during the period. 

Significant events during the period

In May 2007, Vaahto Group established a subsidiary in Shanghai, China, to
support the functions of the Pulp & Paper Machinery division in China. Vaahto
Pulp & Paper Machinery Trading/Distribution (Shanghai) Ltd. will handle the
group's sales in the Chinese markets, as well as set up and develop a network
of subcontractors for projects also outside China. 

Forecast for the fiscal period from 1 September 2006 to 31 August 2007

The good order book is expected to result in increased turnover also for the
final quarter of the fiscal period. The result for the fiscal period is
expected to be better than that of the previous fiscal period. 

The information is unaudited.

Lahti, June 29, 2007

VAAHTO GROUP PLC OYJ

Board of Directors  

Information: 
Antti Vaahto
CEO, Vaahto Group Plc Oyj
tel. +358 40 8232835