STRONG SALES GROWTH CONTINUES - The strong growth in sales from the early part of the year continued in the second quarter. - Net sales in January-June were EUR 61.2 million, up 19.9% over the corresponding period last year. The operating profit for the first half of the year was EUR 2.0 million (EUR 1.7 million). - The order book at the end of June 2007 stood at EUR 27.4 million, a growth of 43.8% over last year. BUSINESS ORGANIZATION AND REPORTING The integration process of Rocla warehouse trucks and automated guided vehicles operations will be finalized within 2007. There will be a shift from tailor-made automated guided vehicles to standardized AGV deliveries and the business concept will be phased into the order-delivery process of warehouse trucks. The Group is managed as a one product line business and reporting is based on the concept of one business segment as of the beginning of 2007. GENERAL DEVELOPMENT The strong around one-fifth growth of Rocla consolidated net sales continued in the second quarter of 2007. The second quarter turned out to be the strongest quarter in the history of Rocla in terms of sales and the operating profit was more than double that of the second quarter the year before. Despite the strong sales development and the good level of the order book the materials costs in particular pose a continuous challenge. The development of the new automated guided vehicles concept is proceeding as planned. The first customer deliveries will take place at the end of the year 2007. NET SALES, OPERATING PROFIT AND ORDER BOOK The key business indicators of Rocla Oyj developed as follows: Meur 1-6 1-6 Change 1-12 2007 2006 2006 Net sales 61.2 51.1 19.9% 104.4 Operating profit 2.0 1.7 16.6% 1.5 Orders received 50.8 41.9 21.3% 87.6 Order book at the end of the period 27.4 19.1 43.8% 26.8 MARKETS The global demand for warehouse trucks continued to be strong throughout the first half of 2007. Growth on Rocla�s main market, Europe, reached a growth rate of some 20%, a figure clearly exceeded by the growth of Rocla�s warehouse truck order bookings. In the US market demand is declining but Rocla�s order flow has grown in comparison with last year for that market as well. During the first part of the year Rocla has continued to build up its distribution network. In Denmark a significant new dealership agreement was signed with the local truck supplier VB Trucks A/S. The share of international operations in Rocla�s net sales keeps growing. In the case of trucks manufactured by Rocla, business outside Finland accounts for 90% of the volume. As a truck house Rocla operates in a fully global competitive environment with the special advantage of the strong innovation capability of Finnish product development. This is proven especially by the upgraded Humanic truck family that has spearheaded growth in order bookings as well as market shares. RESULTS The net sales for the first half of the year, EUR 61.2 million, exceeded last year�s by one fifth (EUR 51.1 million). The operating profit was EUR 2.0 million (EUR 1.7 million). The operating profit improved over last year but boosting profitability remains the key challenge of the Group. In line with its strategy Rocla aims to improve its profitability especially by global sourcing, continued factory automation and by a dedicated development program to improve lead times and productivity. Consolidated income before taxes was EUR 1.2 million in the first half of the year (EUR 1.4 million) and net income came to EUR 0.9 million (EUR 1.0 million). PROFITABILITY Return on investment, ROI, in the Rocla Group in the first half of 2007 was 7.4% p.a. (7.5 %). Return on equity, ROE, was 7.6% p.a. (8.4% p). Earnings per share, EPS, in the first half of the year were 0.23 euros (0.25 euros). BALANCE SHEET AND FINANCING At the end of June 2007 the consolidated balance sheet total was EUR 83.4 million (EUR 73.2 million). At the turn of the year the balance sheet total was EUR 82.3 million. The main factors behind the growth in the balance sheet are the increased need for working capital following sales growth and especially growth in sales receivables. The need for working capital has been financed by borrowing which reflects in an increase in the gearing ratio. At the end of June 2007 consolidated net debt was EUR 36.2 million (at the end of June 2006 the corresponding sum was EUR 31.0 million), net gearing was 141.5% (132.4%) and the equity to assets ratio 31.1% (32.2%). MANUFACTURING, INVESTMENTS AND PRODUCT DEVELOPMENT The development plan for increasing the efficiency of truck assembly will be speeded up. The target for the MP-10000 plan, an annual level assembly capacity of 10,000 trucks, will be achieved by the end of this year as the outlook now stands. This is augmented by the automation of mast production already in place and the transformation of reach truck assembly to line production from the former one-man-one-truck assembly principle. This transformation has been made possible especially by the growing volume of the Humanic truck family. In June Rocla launched another example of its innovative product development: the h2 tiller arm. In the development of this tiller arm special emphasis has been placed on ergonomy and durability. This new product brings significant novelty to the Rocla warehouse trucks using a tiller arm. The modular product structure of the arm also speeds up production. The share of tiller arm operated warehouse trucks constitutes some four fifths of European market demand. Gross investments in fixed assets in the first half of 2007 were EUR 2,8 million (EUR 3.1 million), out of which product development expenses of EUR 1,0 million (EUR 0.7 million) were carried forward in line with IFRS accounting practices. PERSONNEL During the first half of 2007 the Group had an average of 499 employees (454). At the end of the period personnel strength was 507 persons (460 persons), out of whom 103 (81) worked outside Finland. ANNUAL GENERAL MEETING Financial statements The Annual General Meeting on April 3, 2007 adopted the Board�s proposal to declare a dividend of 0.20 euros per share (0.20 euros). The record-date for the dividend was April 10 and the pay-date April 17, 2007. Authorizations In line with the Board�s proposal the Annual General Meeting authorized the Board to decide on the purchase of 194,535 Rocla Oyj shares and a new share issue, transfer of treasury shares and/or the granting of special rights as defined in the 10th Chapter, 1 � of the Companies Act. Based on this authorization the Board may issue a maximum of 565,000 shares in one or several decisions. The shares issued in the form of new shares or special rights are included in the aforementioned total number. The authorization is for a paid new share issue and is valid until the 2008 Annual General Meeting. SHARES, OPTIONS AND SHARE CAPITAL Shares In the first half of 2007 a total of 243,255 Rocla Oyj shares were traded at the Helsinki Exchanges. This number constitutes around 5.7% of the total number of shares. The highest share price in the period was 12.50 euros and the lowest 10.70 euros. The average price was 11.41 euros and the closing price at the end of June was 11.41 euros. Rocla Oyj�s market capitalization at the end of June 2007 based on the closing share price, excluding treasury shares, was EUR 48.3 million (EUR 45.5 million): Rocla Oyj holds 30,789 of its own shares corresponding to 0.7% of all the shares and votes in the company. The number is the same as at the turn of the year. Option scheme A total of 325,310 shares were subscribed in the period April 10-24, 2007 based on the option rights attached to the Rocla Oyj 1998 warrant bond. As a result of this the share capital grew by 325,310.00 euros and the premium fund by 2,147,046.00 euros. The increase in the share capital was registered in the trade register on May 9, 2007. The new shares carry the same rights as the old shares and they were traded together with the old shares at the Helsinki Exchanges from May 10, 2007. The Rocla Oyj share capital after this increase is 4,264,788 euros and the number of shares is 4,264,788. After the end of the subscription period for the 1998 option scheme Rocla has no ongoing option programs. OWNERSHIP The share subscriptions based on option rights affected the ownership structure by their own weight. After the new shares were registered the holdings of the company�s biggest shareholders decreased in that the holdings of Etra-Invest Oy Ab fell from 25.4% to 23.4% and those of Mitsubishi Caterpillar Forklift Europe B.V. and Mitsubishi Caterpillar Forklift America, Inc. from 15.2% to 14.1%. There was no change in the number of shares held by these shareholders. On June 30, 2007 the ten biggest shareholders of Rocla Oyj were the following: Owner Number of shares % % of shares of votes 1. Etra-Invest Oy Ab 1,000,000 23.4 23.4 2. Mitsubishi Caterpillar 600,000 14.1 14.1 Forklift Europe B.V. 3. Mitsubishi Caterpillar 600,000 14.1 14.1 Forklift America Inc. 4. Aktia Capital Investment Fund 190,000 4.5 4.5 5. Henki-Sampo Insurance Company 171,200 4.0 4.0 6. EVK-Capital Oy 130,000 3.0 3.0 7. City of Turku Indemnity Fund 64,889 1.5 1.5 8. Sr Arvo Finland Value 58,476 1.4 1.4 9. Fennia Mutual Insurance Co 47,000 1.1 1.1 10. El�ke-Fennia Mutual Insurance Co 45,900 1.1 1.1 Total 10 biggest 2,907,465 68.2 68.2 Nominee-registered 536,100 12.6 12.6 Total 4,264,788 100.0 100.0 ORDER BOOK At the beginning of 2007 Rocla�s order book stood at the record level of EUR 26.8 million. At that time it was almost double the one of the same time a year earlier. The order book has continued to build up as the year 2007 has progressed. At the end of June the order book was EUR 27.4 million. The corresponding figure a year ago was EUR 19.1 million. Growth is 43.8%. IMMINENT RISKS AND FACTORS OF UNCERTAINTY The major strategic and operational risks of the Group�s business activities are related to the management of business partnerships, launches of new products and estimations of competitiveness, price development of production factors and the obligations and estimates brought by long-term agreements. In the case of operational risks, materials costs continue to build up and the availability of components also carries risks in an up-cycle. A well-balanced transformation to the new automated guided vehicles concept continues to be an important success factor for the earnings potential of the entire Group. OUTLOOK The good demand for trucks seems to hold out. The growth prospects for the Rocla Group have strengthened during the year. For 2007 net sales are estimated to grow at a rate approaching 20%. The continued rise in the cost of materials and other costs caused by the business cycle pose additional challenges for profitability. The consolidated result for 2007 is estimated to improve over last year as stated in the previous interim report. FINANCIAL INFORMATION ACCOUNTING PRACTICES The Interim Report for the period January-June 2007 is prepared based on the IAS 34 Interim Statement standard. Rocla Oyj has adhered to the same accounting principles and reporting standards as in the Financial Statements for 2006. The key ratios presented in the Interim Report have been computed based on the same principles as the corresponding data presented in the latest financial statements. The calculation principles for the key ratios are presented on page 22 of the Financial Statements section in the Annual Report. The Interim Report is un-audited. CONSOLIDATED INCOME STATEMENT (Meur) 1-6/2007 1-6/2006 Change % 1-12/2006 NET SALES 61.2 51.1 19.9 104.4 Change in finished goods and work in progress -0.6 1.2 2.3 Other operating income 0.1 0.2 0.3 Materials and services -37.5 -31.4 19.5 -65.9 Personnel expenses -11.8 -10.5 12.9 -21.2 Depreciation -3.6 -3.1 16.8 -6.6 Other operating expenses -5.8 -5.9 -1.8 -12.0 OPERATING PROFIT 2.0 1.7 16.6 1.5 Financial expenses (net) -0.8 -0.3 132.7 -1.1 INCOME BEFORE TAXES 1.2 1.4 -10.7 0.4 Income taxes -0.3 -0.4 -22.4 -0.1 NET INCOME FOR THE PERIOD 0.9 1.0 -5.7 0.3 Earnings per share euros 0.23 0.25 0.07 Earnings per share, euros (diluted) - 0.24 0.07 CONSOLIDATED BALANCE SHEET (Meur) 6/2007 6/2006 12/2006 ASSETS NON-CURRENT ASSETS Intangible assets 7.2 7.0 7.2 Consolidated goodwill 2.1 2.1 2.1 Tangible assets 28.4 25.4 26.7 Receivables 0.1 0.3 0.1 NON-CURRENT ASSETS TOTAL 37.9 35.0 36.2 CURRENT ASSETS Inventories 22.2 19.5 21.4 Sales receivables and other receivables 22.6 16.7 22.0 Cash and cash equivalents 0.6 1.8 2.7 CURRENT ASSETS TOTAL 45.5 38.1 46.2 ASSETS TOTAL 83.4 73.2 82.3 EQUITY AND LIABILITIES Share capital 4.3 3.9 3.9 Premium fund 6.8 4.3 4.6 Retained earnings 13.6 14.1 14.1 Income for the period 0.9 1.0 0.3 EQUITY TOTAL 25.5 23.4 23.0 NON-CURRENT LIABILITIES Interest-bearing debt 20.3 12.7 19.2 Deferred taxes 1.4 1.3 1.1 NON-CURRENT LIABILITIES TOTAL 21.7 14.0 20.3 CURRENT LIABILITIES Interest-bearing debt 16.5 20.0 17.1 Provisions 0.4 0.5 0.4 Non interest-bearing debt 19.1 15.2 21.5 CURENT ASSETS TOTAL 36.1 35.7 39.0 LIABILITIES TOTAL 57.8 49.7 59.3 EQUITY AND LIABILITIES TOTAL 83.4 73.2 82.3 CHANGE IN EQUITY A=Share capital, B=Premium fund, C=Translation differences D=Current value fund, E=Retained earnings, F=Income for the period, G=Total 1-6/2007 A B C D E F G Beginning 3.9 4.6 0.0 0.0 14.4 - 22.9 Share subscriptions Option-rights 0.3 2.1 2.4 Dividends -0.8 -0.8 Income for the period 0.9 0.9 Other changes -0.0 0.0 0.0 End 4.2 6.7 0.0 0.1 13.6 0.9 25.5 1-6/2006 A B C D E F G Beginning 3.9 4.2 0.1 0.1 14.9 - 23.1 Dividends -0.8 -0.8 Income for the period 1.0 1.0 Other changes 0.0 -0.0 0.0 0.0 End 3.9 4.3 0.0 0.1 14.1 1.0 23.4 1-12/2006 A B C D E F G Beginning 3.9 4.2 0.1 0.1 14.9 - 23.1 Share subscriptions Option-rights 0.0 0.3 0.4 Dividends -0.8 -0.8 Income for the period 0.3 0.3 Transfer of own shares 0.0 0.0 0.0 Other changes -0.1 -0.0 0.0 End 3.9 4.6 0.0 0.0 14.1 0.3 23.0 CONSOLIDATED FUNDS STATEMENT 1-6/07 1-6/06 1-12/06 Cash flow from operations Income for the period 0.9 1.0 0.3 Adjustments: -Depreciation 3.6 3.1 6.6 -Financial income and expenses 0.8 0.3 1.1 -Taxes 0.3 0.4 0.1 -Other adjustments -0.0 -0.0 0.0 Change in working capital -3.9 0.7 0.2 Interests paid -0.9 -0.7 -1.5 Interests received 0.2 0.0 0.0 Taxes paid -0.1 -0.0 -0.3 NET CASH FLOW FROM OPERATIONS 1.0 4.8 6.5 CASH FLOW FROM INVESTMENTS 2.8 -2.8 -9.8 Cash flow from financing Loans withdrawn 2.6 4.0 11.6 Loans repaid -3.8 -2.5 -2.8 Increase in equity 2.5 0.0 0.4 Sale of treasury shares 0.0 0.0 0.0 Financial leasing debts paid -0.8 -1.5 -3.0 Dividends -0.8 -0.8 -0.8 NET CASH FLOW FROM FINANCING -0.3 -0.7 5.5 CHANGE IN LIQUID FUNDS -2.1 1.2 2.2 Liquid funds, beginning 2.7 0.6 0.6 Liquid funds, end 0.7 1.8 2.7 RELATED PARTY INFORMATION Transactions with holding companies exercising significant influence (Meur) 1-6/2007 1-6/2006 1-12/2006 Sales to closely related parties 29.1 20.2 38.6 Purchases from closely related parties 4.1 3.1 9.0 The Board of Directors decided to extend the share-based management reward system valid in 2006 for the year 2007. CONTINGENT COMMITMENTS (Meur) 06/07 06/06 12/06 For own debt: Mortgages on real estate 0.5 0.5 0.5 Corporate mortgages 9.4 9.4 9.4 Other own commitments: Leasing commitments 0.9 1.1 0.8 Rental commitments 0.0 0.2 0.0 Repurchase commitments 0.7 0.3 0.7 No pledges or other commitments have been extended on behalf of management, shareholders or affiliated companies. INCOME STATEMENT BY QUARTER 4-6 1-3 10-12 7-9 4-6 1-3 2007 2007 2006 2006 2006 2006 NET SALES 30.9 30.3 30.8 22.5 26.0 25.1 Change in finished goods and inventories -0.3 -0.3 0.6 0.5 0.8 0.4 Other operating income 0.1 0.0 0.0 0.1 0.1 0.1 Materials and services -18.8 -18.7 -20.0 -14.5 -16.4 -15.0 Personnel expenses -6.1 -5.8 -5.9 -4.8 -5.4 -5.1 Depreciation -1.8 -1.8 -1.7 -1.8 -1.6 -1.5 Other operating expenses-2.9 -2.9 -3.4 -2.7 -3.2 -2.7 OPERATING PROFIT 1.1 0.9 0.4 -0.6 0.5 1.3 Financial expenses (net) -0.4 -0.4 -0.2 -0.6 -0.2 -0.1 INCOME BEFORE TAXES 0.8 0.5 0.2 -1.2 0.2 1.2 Income taxes -0.2 -0.1 0.0 0.3 -0.1 -0.3 INCOME FOR THE PERIOD 0.6 0.3 0.2 -0.9 0.1 0.8 EARNINGS PER SHARE euros 0.14 0.09 0.06 -0.24 0.03 0.22 EARNINGS PER SHARE euros, diluted - 0.09 0.06 -0.23 0.03 0.21 KEY RATIOS 6/2007 6/2006 12/2006 Net sales, Meur 61.2 51.1 104.4 Operating profit, Meur 2.0 1.7 1.5 % of net sales 3.3 3.4 1.4 Income before taxes, Meur 1.2 1.4 0.4 % of net sales 2.0 2.7 0.4 Equity/share, euros 6.04 6.06 5.88 Equity/assets, % 31.1 32.2 28.4 Return on equity, % p.a. 7.6 8.4 1.2 Return on investment, % p.a.7.4 7.5 3.3 Gross investments, Meur 2.8 3.1 5.9 Personnel, average 499 454 467 Personnel, end of period 507 460 489 OTHER DATA Order book, Meur 27.4 19.1 26.8 Shares, 1,000 average 4,002 3,858 3,860 Shares, 1,000 diluted, average - 4,016 4,014 Shares, 1,000 end of period 4,230 3,860 3,909 Treasury shares are excluded form the number of shares. FINANCIAL DISCLOSURE The Interim Report for January-September will be published on October 25, 2007. Järvenpää, July 17, 2007 ROCLAS OYJ Board of Directors Jussi Muikku President and CEO For additional information, contact: Jussi Muikku, President and CEO, phone +358 20 778 1370 Hilkka Webb, CFO, phone +358 20 778 1316 Distribution: Helsinki Exchanges, The main media