VACON PLC FINANCIAL BULLETIN 1 January - 30 June 2007

Vacon Plc, Stock Exchange Release, 2 August 2007 at 10.00 am


High energy prices boost AC drive sales

April-June summary:

  * Order intake totalled MEUR 60.0, growth of 21.2 % from the
    corresponding period in the previous year (MEUR 49.5).
  * Revenues totalled MEUR 59.8, growth of 32.9 % (MEUR 45.0).
  * Operating profit was MEUR 7.7, an increase of 35.1 % (MEUR 5.7).
  * Cash flow from operations was MEUR 3.7(MEUR 4.2).
  * Earnings per share was EUR 0.35 (EUR 0.26), growth from the
    previous year of 34.6 %.

January-June summary:

  * Order intake totalled MEUR 116.1, growth of 24.0 % from the
    corresponding period in the previous year (MEUR 93.6).
  * Revenues totalled MEUR 112.1, growth of 27.5 % (MEUR 87.9).
  * Operating profit was MEUR 14.0, an increase of 23.9 % (MEUR
    11.3).
  * Cash flow from operations was MEUR 6.2 (MEUR 6.7).
  * Earnings per share was EUR 0.63 (EUR 0.51), growth from the
    previous year of 23.5 %.


The AC drive market continued to grow in the second quarter of 2007.
Demand for AC drives was strong in Europe and Asia. Demand in North
America, which had been weaker at the end of last year and the start
of this year, started to pick up during the second quarter. Market
prospects for the second half of the year are encouraging in all
market areas. High energy prices are boosting investments in
energy-saving equipment, and AC drives are one of the most important
of these.

Vacon's order intake, revenues and operating profit all increased
strongly in the second quarter compared to the corresponding period
in the previous year. Sales grew fastest in Europe and Asia. Sales in
North America fell short of its targets but performed better than in
the first quarter. Direct sales and OEM were the distribution
channels showing strongest growth.

Earnings per share rose to EUR 0.35, an increase of EUR 0.09 on the
previous year. The company improved its profitability through the
strong growth in revenues, even though the US dollar, important for
the company's markets, weakened against the euro.

In June Vacon launched the new Vacon 10 drive family. It is the first
product family of Vacon third product generation. Vacon 10 is one of
the smallest micro drives in size on the market. It can be flexibly
adapted to customer needs. The Vacon 10 gives excellent opportunities
to win new customers in the highly competitive and rapidly growing
micro drive market. The Vacon 10 supports the core issues in our
product leadership strategy: a wide product range, outstanding drives
knowhow, customer relations management, the latest technology and
mass customization.

Prospects

AC drives are one of the most significant means of enhancing the
efficient use of energy. Improving energy efficiency is an important
factor in restricting greenhouse gas emissions, and AC drives play a
key role in this. The long-term demand factors for AC drives are
positive.

Vacon's market prospects for the final half of the year are good.
Based on market surveys Vacon estimates that the AC drive market is
currently growing at an annual rate of 7-9 %. Vacon is growing at a
much faster rate than the market. Vacon considers that potential
risks to its financial performance in 2007 are problems that material
suppliers may have with capacity, difficulties with the availability
of key components, and the weakening of the dollar.

Vacon forecasts that revenues in 2007 will grow by about 20 per cent
and profitability will improve from 2006.

Following interim reports

Vacon will publish its 2007 January-September interim report on
Thursday, 25 October 2007 at 10.00 am.

Formal statement

This release contains certain forward-looking statements that reflect
the current views of the company's management. Due to the nature of
these statements, they contain risks and uncertainties and are
subject to changes in the general economic situation and in the
company's business sector.

The interim report is unaudited.

Vacon was established in 1993 from a passion to create, develop and
produce unique AC drives for demanding needs, globally. We are driven
by a burning desire to serve our customers as they look for ever more
efficient, reliable and easy to use options to save energy and costs.
Vacon provides AC drives in the power range 0.25 kW - 5 MW.


Vaasa, 2 August 2007

VACON PLC

Board of Directors



For more information please contact:

Mr Vesa Laisi, President, phone: +358 (0)40 8371 510,
email: vesa.laisi(at)vacon.com

Mr Mika Leppänen, Vice President, Finance & Control, phone: +358
(0)40 8371 235,
email: mika.leppanen(at)vacon.com



Conference for the media and analysts
Vacon will hold a briefing for analysts and the media on 2 August
2007 at 11.30 am in the Neptun meeting room at the Scandic Marski
Hotel, Mannerheimintie 10, Helsinki.

Dial-in conference for investors and investment analysts
A dial-in conference in English for investors and investment analysts
will be held on 2 August 2007 at 3.00 pm. President Vesa Laisi and
Mika Leppänen, Vice President, Finance and Control, will participate
in the conference. Lines can be booked ten minutes before the
conference by calling the service number +44 207 162 0025. The
conference ID code is "Vacon Oyj". Conference link:
http://wcc.webeventservices.com/view/wl/r.htm?e=36279&s=1&k=0911B13C1544BBFA738DF86B924445F7&cb=genesys
To hear a recording of the conference, available for two working
days, call +44 207 031 4064, ID code 735873.

Distribution:
Helsinki Exchanges
Financial Supervision Authority
Main media