PANOSTAJA GROUP INTERIM REPORT 1 NOVEMBER 2007 - 31 JULY 2008


Panostaja Oyj    Interim report, 12th September 2008		17.00 pm              


PANOSTAJA GROUP INTERIM REPORT 1 NOVEMBER 2007 - 31 JULY 2008                   

- Net turnover stood at EUR 85.3 million (EUR 43.5 million), equivalent to 96% 
  growth. 
- Operating profit stood at EUR 3.3 million (EUR 1.9 million), equivalent to
  77% growth. 
- Earnings per share (basic) were 24.8 cents (9.9 cents). 
- Earnings per share (diluted) were 21.4 cents (8.0 cents). 
- Equity per share was EUR 0.90 (EUR 0.78) and the equity ratio was 36.4%
  (38.1%). 
- During the reporting period Panostaja Oyj sold its shares in Arme Oy and 
  expanded into digital printing services and environmental technology as a
  result of acquisitions 
- Net turnover for continuing business operations for the financial year will 
  increase significantly due to business acquisitions made. 
- Operating profit for continuing business operations for the financial year
  will be up on the previous year. 

This Interim Report was prepared in compliance with the recognition and         
measurement principles of the International Financial Reporting Standards (IFRS)
and in accordance with the same accounting policies as the financial statements 
for 2007.                                                                       

GROUP                                                                           

FINANCIAL PERFORMANCE                                                           

Panostaja Group's net turnover for the reporting period was EUR 85.3 million    
(EUR 43.5 million). Growth in net turnover mainly resulted from acquisitions    
made during the previous financial year.                                        

The Group's operating profit was EUR 3.3 million (EUR 1.9 million), while profit
before taxes was EUR 1.6 million (EUR 1.3 million). The Group's operating profit
improved due to the rise in net turnover. The operating margin was 3.9% (4.3%). 

Owing to the acquisition realised on 3 July 2008, the Arme Group disappeared    
entirely from the results for continuing business operations for the Panostaja  
Group in the financial year and reference period. Arme's overall contribution to
Panostaja's profits for the year 1.11.2007 - 31.10.08 is EUR 10.5 million, as   
the profit from the sale of the shares is treated as taxable income.            

The Group's net financial expenditure was about EUR 1.7 million. It employed an 
average of 730 (522) staff during the reporting period                          


INVESTMENTS AND FINANCING                                                       

The Group's gross capital expenditure during the reporting period was EUR 20.5  
million (EUR 14.3 million). The most important investment during the reporting  
period was the acquisition of Hervannan Koneistus Oy by Takoma Oyj.             

The Group's equity ratio was 36.4% (38.1%). Dividends distributed during the    
period amounted to EUR 3.97 million. Dividends paid to minority shareholders in 
subsidiaries amounted to EUR 0.47 million. The Equity Rebate paid to the        
shareholders amounted to 14.0% of Takoma Oyj's share capital, equivalent to EUR 
3.75 million at the time of the decision.                                       

During the reporting period, the Group acquired an interest-rate cap agreement  
to act as a hedge against the loans raised by Group companies during the        
financial year 2007, totalling EUR 24.82 million.                               


CHANGES TO THE GROUP STRUCTURE                                                  

Takoma Oyj (formerly Suomen Helasto Oyj), Panostaja Oyj's publicly listed       
subsidiary, purchased the share capital of Hervannan Koneistus Oy from Kimmo    
Korhonen and the business operation of Tampereen Laatukoneistus Oy from         
Panostaja Oyj through transactions carried out on 1 November 2007. Acquisitions 
were made on the basis of authorisations granted by Takoma Oyj's Annual General 
Meeting on 17th October 2007.                                                   

Takoma Oyj signed a share exchange agreement with Kimmo Korhonen, owner of      
Hervannan Koneistus Oy, whereupon Mr. Korhonen surrendered the entire share     
capital of Hervannan Koneistus Oy to Takoma. To this end, Takoma Oyj's Board of 
Directors decided to increase the company's share capital by EUR 159,775.50 to  
EUR 939,855.96 by launching a share issue disapplying shareholders' pre-emption 
rights and to give Kimmo Korhonen 2,662,925 new Takoma Oyj shares at a          
subscription price of EUR 1.84 per share in exchange. The value of the share    
exchange, according to the closing price of Suomen Helasto Oyj's share on 31    
October 2007, was EUR 4.9 million. Disapplication of pre-emption rights was     
authorised by the General Meeting and there were pressing financial reasons for 
following this course of action from the Company's point of view. New shares    
were issued as part of an acquisition relating to restructuring. The new shares 
surrendered to Kimmo Korhonen were entered in the Trade Register on 28 November 
2007, meaning that Panostaja Oyj's holding in Takoma Oyj dropped to 79.19%, thus
causing Panostaja Oyj to forfeit its right and obligation of redemption as a    
majority shareholder under Chapter 18, section 1 of the Finnish Companies Act in
respect of Takoma Oyj shares.                                                   

On 1st November 2007, Takoma Oyj's subsidiary, Causatak Oy, purchased the       
business operation of Tampereen Laatukoneistus Oy, part of the Panostaja Group, 
at a price of EUR 3.7 million. Assets outside the ordinary course of business,  
including premises owned by the company, remained with the selling company as   
part of the deal.                                                               

Panostaja Oyj purchased the entire share capital of Kopijyvä Oy with a bill of  
sale signed on 29 April 2008 and the deal became binding on both parties on 2   
May 2008. Kopijyvä Oy is one of Finland's biggest companies providing digital   
printing services. After 30 years in the business, the firm has sound experience
of copying, construction drawings, posters and four-colour as well as black and 
white print products.  The group's annual turnover is around EUR 11 million.    
Kopijyvä employs about 130 staff and has offices in Jyväskylä, Kuopio, Joensuu, 
Varkaus, Kouvola, and - as from September 2008 - Mikkeli. But, thanks to its    
affiliates/associated companies and network of partners, the firm operates in a 
total of 16 locations. There are also offices abroad - in St Petersburg and     
Tallinn. Heimo Viinanen, CEO of Kopijyvä Oy, will continue to run the company   
and be a significant minority shareholder. The final price of the deal was      
confirmed between the parties on 22 May 2008 at EUR 16,983,490.60.              

On 2 May 2008 Panostaja Oyj signed an agreement to acquire the business         
operation of Ecosir Oy, a company established in 1996 specialising in solutions 
for waste management and property maintenance equipment. With the acquisition,  
Panostaja expanded its operation and established a new business area            
specialising in environmental technology. Furthermore, on 1 July 2008 the entire
share capital of Kospa OY, a company manufacturing waste treatment equipment,   
was purchased. The combined annual turnover for Ecosir and Kospa is around EUR  
5.7 million and the companies employ a total of 32 staff.                       

In its Financial Statements Bulletin of 11 December 2007 the Board of Directors 
of Panostaja Oyj said it had decided to start exploring the possibilities of    
distributing Takoma Oyj shares as dividends to Panostaja Oyj shareholders. The  
exploratory work reached an end on 22 May 2008 and, instead of a distribution of
dividends, the Panostaja Board decided to propose at an extraordinary general   
meeting that the shareholders should be refunded their capital out of the       
invested unrestricted shareholder's capital fund paid either in the form of     
Takoma shares or cash ('Equity Rebate'). The Equity Rebate also involved a sale 
of shares (seasoned equity offering) ('Sale of Shares'). The summary of the     
Equity Rebate and Sale of Shares and the relevant securities note were approved 
by the Financial Supervision Authority on 2 June 2008. In the preliminary ruling
on the Equity Rebate and Sale of Shares the Tax Office for Major Corporations   
decided on the basis of an overall assessment that Panostaja was a capital      
investor (venture capital company) within the meaning of section 6 of the       
Finnish Business Tax Act, meaning that the profit (capital gain) from any sales 
of Takoma shares given in the form of an Equity Rebate was taxable income for   
Panostaja. This interpretation by the tax office would, if adhered to, have an  
impact on the tax treatment of any profits and losses resulting from the        
surrender of Panostaja's other shares in fixed assets. The interpretation would 
not, however, have any impact on the tax treatment of shareholders.             

The proposal by the Board for the Equity Rebate was approved at Panostaja Oyj's 
extraordinary meeting on 9 June 2008. The company reimbursed to shareholders who
owned at least 3,000 Panostaja shares Panostaja-owned Takoma shares according to
the value of their holdings. Those shareholders who owned fewer than 3,000      
Panostaja shares received their Equity Rebate in the form of cash.              

The Equity Rebate involved a total of 2,189,127 Takoma OY shares being          
distributed to 798 Panostaja Oyj shareholders. Cash payments amounted to EUR    
112,231.59. The sale of shares in connection with the Equity Rebate involved the
sale of 1,166 Takoma Oyj shares in all, for a total of EUR 1,935.56.            

As a result of the Equity Rebate, Panostaja Oyj's holding in Takoma Oyj fell to 
65.21% of shares and votes. CEO Kimmo Korhonen's shareholding in the company    
remained at 17%. Following the Equity Rebate, 17.79% of Takoma Oyj shares and   
votes were held by the public. Furthermore, the OMX Nordic Stock Exchange       
Helsinki announced that the problems regarding the pricing of the Takoma share  
had been eradicated. The Takoma Oyj share was therefore removed from the watch  
list on 4 July 2008.                                                            

Together with the other Arme Oy owners, Panostaja Oyj sold its shares in Arme Oy
(69.9% of the share capital) with a bill of sale signed on 3 July 2008 to a fund
managed by Sentica Partners Oy. After costs and expert fees, Panostaja Oyj's    
share of the sale price was EUR 20.0 million. In addition to its liabilities    
connected with the acquisition, Panostaja financed the purchaser with a         
temporary loan of EUR 3.5 million. The contribution of the Arme sale to         
Panostaja Group profits for the year 1.11.2007 - 31.10.08 is approximately EUR  
10.5 million, as the profit from the sale of the shares is treated as taxable   
income.                                                                         

In the preliminary ruling on the Equity Rebate in May 2008 the Tax Office for   
Major Corporations decided on the basis of an overall assessment that Panostaja 
was a capital investor (venture capital company) within the meaning of section 6
of the Finnish Business Tax Act, meaning that the profit (capital gain) recorded
on the sales of Arme Oy shares would be taxable income for Panostaja. If this   
interpretation is adhered to, Panostaja Oyj would have to pay EUR 4.6 million in
capital gains tax. Panostaja Oyj's view is that the company is not a capital    
investor as referred to in the Act.                                             

As a result of the acquisition, the Arme Group disappeared entirely from the    
results for continuing business operations for the Panostaja Group in the       
financial year and reference period. The Panostaja Oyj Board nevertheless       
adhered to its forecast that the profit for continuing operations in the        
financial year will be up on the year previous. The comparable operating profit 
for continuing operations for the Panostaja group in the financial year 2007 was
EUR 3.3 million, ignoring the Arme Group.                                       


EVENTS SUBSEQUENT TO THE REPORTING PERIOD                                       

None.                                                                           


ADMINISTRATION, ANNUAL GENERAL MEETING AND MANAGEMENT                           

Panostaja Oyj's Annual General Meeting was held in Tampere, Finland, on 18      
December 2007. Mr. Matti Koskenkorva, Mr. Jukka Ala-Mello and Mr. Hannu         
Tarkkonen were re-elected to Panostaja Oyj's Board of Directors. New members    
elected to the Board were Mr. Hannu Martikainen, Honorary Counsellor of         
Construction Engineering, and Mr. Hannu Ketola, Master of Social Sciences in    
Political Science. As soon as the Annual General Meeting was concluded, the     
Board of Directors convened for their organisational meeting and appointed Mr.  
Matti Koskenkorva Chairman of the Board and Mr. Jukka Ala-Mello Deputy Chairman.
As auditors, the AGM re-elected Mr. Hannu Pellinen, APA, and                    
PricewaterhouseCoopers Oy, APA, with Mr. Janne Rajalahti, APA, as the           
responsible auditor.                                                            

The AGM approved the financial statements presented for the financial year 1    
November 2006 - 31 October 2007 and the Board's proposal to transfer the profit 
for the period to retained earnings and to distribute EUR 0.09 per share in     
dividends. The record date for dividend distribution was 21 December 2007 and   
the payment date was as from 31 December 2007. In addition, the AGM granted     
discharge in respect of the members of the Board of Directors and the Chief     
Executive Officer.                                                              

The Annual General Meeting revoked all authorisations granted at the Annual     
General Meeting held on 15h December 2006 and authorised the Board of Directors 
to decide on offering no more than 2,725,659 Class A shares and no more than    
62,794,408 Class B shares through a regular or bonus issue or by granting share 
options and other rights referred to in Chapter 10, section 1 of the Companies  
Act, in one or more tranches. The authorisation does not exclude the Board's    
right to decide on private placements or on granting the aforementioned special 
rights. The authorisation covers the Board's right to decide on any terms and   
conditions of the share issue(s) and said special rights, including recipients  
of shares or special rights and the amounts payable in consideration.           

The Annual General Meeting authorised the Board of Directors, within the limits 
of the aforementioned authorisation, to decide on an increase in the share      
capital through one or more share issues or by granting share options and other 
rights referred to in Chapter 10, section 1 of the Companies Act, with a maximum
of 1,000,000 new Class A shares and a maximum of 60,000,000 new Class B shares  
being offered for subscription in the issue(s) at a nominal price of EUR 0.12   
each. The share capital increase cannot exceed EUR 7,320,000.                   

In addition, the Annual General Meeting authorised the Board of Directors,      
within the limits of the aforementioned authorisation, to decide on a share     
issue, granting share options and other rights referred to in Chapter 10,       
section 1 of the Companies Act, with the company offering no more than 1,725,659
and 2,794,408 of its Class A and B shares respectively.                         

The authorisation will be valid for five years as from the decision taken at the
AGM.                                                                            
During the reporting period the Board exercised its authority and sold a total  
of 335,512 Panostaja Oyj Class B shares (trading code: PNABS) to the members of 
the management team. The sale was carried out on 12 March 2008 in after hours   
trading on the Helsinki Stock Exchange. The sale price on 12 March 2008 was the 
closing price, i.e. EUR 1.07 per share for a total of EUR 358, 997.84. The sale 
was effected in order to implement the Panostaja Oy management team's incentive 
scheme.                                                                         

The Annual General Meeting authorised the Board of Directors to decide on buying
back the company's own shares using unrestricted shareholders' equity within 18 
months from the date of the decision taken at the AGM. The shares are to be     
acquired with reference to their classes, with the maximum numbers of shares    
being bought at a nominal value of EUR 0.12 being 1,725,659 Class A shares and  
2,794,408 Class B shares, so that the total number of shares being bought will  
not exceed 10% of the company's total number of shares. The shares will be      
bought in the way and to the extent decided by the Board to be used as          
consideration for possible business acquisitions or other restructuring measures
or when purchasing assets as part of business operations for the company or a   
company in the same Group, for developing the company's capital structure, for  
cancelling shares, or for implementing the incentive scheme for key personnel.  
The shares will be acquired in disproportion to shareholdings in public trading 
organised by the Helsinki Stock Exchange at their current price in public       
trading at the time of purchase.                                                

On 1 February 2008 Heikki Nuutila, Master of Social Sciences, was appointed     
Development Director for Panostaja Oyj and thus invited to become a member of   
the management. He will be responsible for the development of the parent        
company's business processes and the Group's real estate development,           
while also working actively to support business area managers. Mr. Nuutila was  
CEO of Tutor Partners Oy and a Director at Andersen Global Corporate Finance.   
                                                                                

Jarkko Iso-Eskeli was invited to become CEO and shareholder in KL-Varaosat, to  
start from 1 April 2008. He was formerly Export Manager for FennoSteel Oy.      

Jukka Laakso, CEO of LukkoExpert Security Oy, was invited to be a shareholder in
the company on 10 June 2008. Laakso has been CEO of LukkoExpert Security Oy     
since 2005.                                                                     


SHARE CAPITAL AND OWN SHARES                                                    

At the end of the reporting period, Panostaja Oyj's share capital stood at EUR  
5,529,081.60. The numbers of issued Class A and B shares amounted to 17,256,595 
and 28,819,085 respectively (27,944,085 old and 875,000 new).                   

According to a notification received by Panostaja Oyj on 18 March 2008, Olli    
Halmevuo's holding in Panostaja Oyj went under the 5% level that same day. His  
holding was at that point 1,980,943 Class A and 272,634 Class B shares,         
totalling 2,253,577, equivalent to 4.98% of the Panostaja shares and 10.69% of  
the votes.                                                                      

On 18 December 2007 Panostaja Oyj's AGM decided to pay the Board's attendance   
allowance in such a way that approximately 40% of the allowance paid to a member
would be paid in Class B shares on the basis of the Board's authorisation to    
issue shares if the Board member does not own more than 1% of all the company's 
shares on the date of the AGM. If the Board member owns more than 1% on that    
date the total allowance will be paid in cash. In addition, the Board of        
Panostaja Oyj decided at its organisational meeting after the AGM to implement  
the decision taken at the AGM regarding Board members allowances in shares, with
the allowance being paid four times a year and always on the day following      
publication of the interim report/financial statements.                         

On 13 March 2008 Panostaja Oyj distributed a total of 7,569 Class B shares to   
the Board members as payment of their attendance allowance in accordance with   
the decisions taken at the AGM and by the Board of Directors. On 12 June 2008   
they also received a total of 6,530 Class B shares.                             

The number of own shares held by the company at the end of the reporting period 
was 738,389, consisting of 475,000 and 263,389 Class A and B shares             
respectively. The number of acquired Class A shares was equivalent to 1.03% of  
the total number of shares at the end of the reporting period and to 2.54% of   
the total number of votes carried by all shares. The number of Class B shares   
was equivalent to 0.57% and 0.07% of total numbers of shares and votes          
respectively.                                                                   

SUBORDINATED LOAN                                                               

The amount of the 2006 convertible subordinated loan outstanding at the end of  
the reporting period was EUR 17,212,500, entitling holders to subscribe for a   
total of 10,125,000 new Class B shares.                                         

Panostaja Oyj's convertible loan of 2006 was used to subscribe for 875,00 new   
Panostaja Class B shares, the rise in share capital of EUR 105,000 concerning   
which was recorded in the Trade Register on 8 May 2008.                         

The subscribed shares were traded on the Helsinki Stock Exchange on 12 May 2008 
and the total number of new Panostaja Class B shares in 2008 is 875,000.        


SHARE PERFORMANCE AND HOLDINGS                                                  

During the reporting period, the prices of Panostaja Oyj Class A and B shares   
varied between EUR 1.08 and EUR 1.75 and between EUR 1.02 and EUR 1.73          
respectively. The volumes of trading in Class A and B shares amounted to 873,662
and 3,524,895 shares respectively, equivalent to 9.9% of the share capital. July
closing prices for Class A and B shares were EUR 1.20 and EUR 1.15 respectively.
At the end of July, the company's total market capitalisation was EUR 53.8      
million and the company had 2,247(1,259) shareholders.                          


SHORT-TERM RISKS AND UNCERTAINTIES                                              

Panostaja Group's most significant risks are described in the previous financial
statements. Short-term risks relate in particular to the successful integration 
of acquired companies.                                                          


OUTLOOK FOR THE REST OF THE FINANCIAL YEAR                                      
The Panostaja Group will continue to focus on the business idea in line with its
core business strategy and on the development of existing business areas. The   
retirement of the baby-boomers, the ever more dramatic changes in the business  
environment and internationalisation will result in a large number of business  
purchases over the next few years. Panostaja's operating conditions, available  
capital resources and liquid assets are a good basis for intense expansion of   
operations. The increasing number of SMEs operating in traditional industries   
will enable both further expansion into new business areas and growth in        
existing business areas.                                                        

Domestically, the economic situation is expected to remain mostly favourable,   
even though economic growth in key markets has slowed down. The economic outlook
for the current business area sectors is reasonable, given the general economic 
situation. Growing uncertainty in the construction industry might, however, have
an impact on the prospects for some business areas. The Group's net turnover for
continuing operations in the financial year will increase significantly due to  
business acquisitions. In addition, the Group's operating profit for continuing 
operations in the financial year will be up on the previous year.               



Panostaja Oyj                                                                   

Board of Directors                                                              


For further information, please contact Mr. Juha Sarsama, CEO, tel. 010 2173 210
or 040 774 2099.                                                                

Panostaja Oyj                                                                   


Juha Sarsama                                                                    
CEO                                                                             


All forecasts and estimates in this Interim Report are based on the current     
views of the management of the Group and the managers of the business areas on  
the economic climate and developments and the actual results may be             
significantly different. The data provided in this Interim Report is unaudited. 

This stock exchange bulletin is a translation of the original Finnish stock     
exchange bulletin 1th September                                                 


FINANCIAL INFORMATION                                                           


CONSOLIDATED INCOME STATEMENT                                                   

--------------------------------------------------------------------------------
|                                 | 11/07-7/08   | 11/06-7/07   | 11/06-10/07  |
--------------------------------------------------------------------------------
| (EUR 1,000)                     | 9 months     | 9 months     | 12 months    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net turnover                    |       85,297 |       43,482 |       69,135 |
--------------------------------------------------------------------------------
| Other operating income          |          464 |          352 |          683 |
--------------------------------------------------------------------------------
| Total expenses                  |       79,870 |       40,838 |       64,941 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation, amortisation and  |        2,592 |          925 |        1,610 |
| impairment                      |              |              |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit                |        3,299 |        1,864 |        3,267 |
--------------------------------------------------------------------------------
| Financial income and expenses   |        -1701 |         -569 |       -1,097 |
--------------------------------------------------------------------------------
| Profit before taxes             |        1,598 |        1,295 |       2,170, |
--------------------------------------------------------------------------------
| Income taxes                    |         -430 |         -350 |          509 |
--------------------------------------------------------------------------------
| Profit from continuing          |        1,168 |          948 |        1,661 |
| operations                      |              |              |              |
--------------------------------------------------------------------------------
| Profit from discontinued        |       10,538 |        3,554 |        4,273 |
| operations                      |              |              |              |
--------------------------------------------------------------------------------
| Profit for the period           |       11,706 |        4,502 |        5,934 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:                |              |              |              |
--------------------------------------------------------------------------------
| Equity holders of the parent    |       11,053 |        3,225 |        4,295 |
| company                         |              |              |              |
--------------------------------------------------------------------------------
|  Minority interest              |          653 |        1,277 |        1,638 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share on           |        0.248 |        0.099 |        0.120 |
| continuing and discontinued     |              |              |              |
| operations, EUR - basic         |              |              |              |
--------------------------------------------------------------------------------
| Earnings per share on           |        0.214 |        0.080 |        0.104 |
| continuing and discontinued     |              |              |              |
| operations, EUR - diluted       |              |              |              |
--------------------------------------------------------------------------------
| Earnings per share on           |        0.236 |        0.109 |        0.119 |
| discontinued operations, EUR -  |              |              |              |
| basic                           |              |              |              |
--------------------------------------------------------------------------------
| Earnings per share on           |        0.193 |        0.075 |        0.091 |
| discontinued operations, EUR -  |              |              |              |
| diluted                         |              |              |              |
--------------------------------------------------------------------------------
| Earnings per share on           |        0.012 |       -0.010 |        0.001 |
| continuing operations, EUR -    |              |              |              |
| basic                           |              |              |              |
--------------------------------------------------------------------------------
	                                                                               

CONSOLIDATED BALANCE SHEET                                                      
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000)                                  | 07/2008 | 07/2007  | 10/2007  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                                       |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets                           |         |          |          |
--------------------------------------------------------------------------------
|   Intangible assets                          |  29,024 |   14,056 |   13,759 |
--------------------------------------------------------------------------------
|   Property, plant and equipment              |  18,897 |   15,980 |   17,826 |
--------------------------------------------------------------------------------
|   Interests in associates                    |    1740 |      977 |      975 |
--------------------------------------------------------------------------------
|   Other non-current assets                   |    5633 |      218 |      230 |
--------------------------------------------------------------------------------
|   Interest-bearing receivables               |         |       15 |       15 |
--------------------------------------------------------------------------------
| Total non-current assets                     |  55,294 |   31,246 |   32,345 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                               |         |          |          |
--------------------------------------------------------------------------------
|   Stocks                                     |  23,143 |   21,058 |   21,100 |
--------------------------------------------------------------------------------
| Trade and other non-interest-bearing         |  19,421 |   14,754 |   20,226 |
| receivables                                  |         |          |          |
--------------------------------------------------------------------------------
|   Short-term investments                     |  27,868 |  26,255, |   16,289 |
--------------------------------------------------------------------------------
|   Cash and cash equivalents                  |  18,329 |   5,450, |   24,985 |
--------------------------------------------------------------------------------
| Total current assets                         |  88,761 |   67,518 |   82,600 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets                                 | 144,055 |   98,764 |  114,945 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES                       |         |          |          |
--------------------------------------------------------------------------------
|  Share capital                               |   5,529 |    4,905 |    5,424 |
--------------------------------------------------------------------------------
|  Other equity                                |  35,403 |   27,001 |   29,846 |
--------------------------------------------------------------------------------
| Total                                        |  40,932 |   31,906 |   35,270 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest                            |  11,128 |    4,610 |    4,290 |
--------------------------------------------------------------------------------
| Total equity                                 |  52,060 |   36,516 |   39,560 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities                                  |         |          |          |
--------------------------------------------------------------------------------
|  Deferred tax liabilities                    |   1,616 |    1,336 |    1,452 |
--------------------------------------------------------------------------------
|  Convertible loan                            |  16,842 |   20,476 |   18,074 |
--------------------------------------------------------------------------------
|  Non-current liabilities                     |  45,068 |   16,197 |   14,797 |
--------------------------------------------------------------------------------
|  Current liabilities                         |  28,469 |   24,238 |   41,062 |
--------------------------------------------------------------------------------
| Total liabilities                            |  91,995 |   62,248 |   75,385 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities                 | 144,055 |   98,764 |  114,945 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------



CONSOLIDATED CASH FLOW STATEMENT                                                

--------------------------------------------------------------------------------
|                                              | 07/2008 | 07/2007  | 10/2007  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities          |   1,289 |    8,696 |    8,618 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow used in investing activities       |  -1,728 |   -7,939 |  -10,840 |
--------------------------------------------------------------------------------
| of which discontinued operations             |  12,829 |      350 |      350 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase in creditors                        |  30,400 |   26,450 |   45,410 |
--------------------------------------------------------------------------------
| Decrease in creditors                        | -20,096 |   -3,334 |   -8,961 |
--------------------------------------------------------------------------------
| Dividends paid                               |  -4,439 |   -4,373 |   -4,373 |
--------------------------------------------------------------------------------
| Other changes in equity                      |    -203 |     -224 |   -1,009 |
--------------------------------------------------------------------------------
| Total cash flow from financing activities    |   5,662 |   18,519 |   31,067 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents          |   5,223 |   19,276 |   28,845 |
--------------------------------------------------------------------------------


Cash flow statement for the Arme Group sold off in the reporting period:        

--------------------------------------------------------------------------------
|                                              | 06/2008 | 07/2007  | 10/2007  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities          |     513 |    7,293 |    7,368 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow used in investing activities       |  -1,953 |     -257 |   -1,026 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total cash flow from financing activities    |    -575 |   -1,932 |   -2,105 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents          |  -2,015 |    5,105 |    4,237 |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
--------------------------------------------------------------------------------
| (EUR 1,000) | Shar | Own  | Share | Investe | Trans | Retai | Minori | Total |
|             | e    | shar | premi | d       | ­lati | ned   | ty     |       |
|             | capi | es   | um    | unrestr | on    | earni | intere |       |
|             | tal  |      | accou | icted   | diffe | ngs   | st     |       |
|             |      |      | nt    | equity  | r­enc |       |        |       |
|             |      |      |       | fund    | es    |       |        |       |
--------------------------------------------------------------------------------
| Shareholder | 3,56 |      | 2,683 |         |       | 11,90 |  2,154 | 20,31 |
| s' equity   |    8 |      |       |         |       |     9 |        |     4 |
| as at 31st  |      |      |       |         |       |       |        |       |
| Oct. 2006   |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Increase in |  407 |      | 1,964 |         |       |       |        | 2,371 |
| share       |      |      |       |         |       |       |        |       |
| capital     |      |      |       |         |       |       |        |       |
| relating to |      |      |       |         |       |       |        |       |
| convertible |      |      |       |         |       |       |        |       |
| subordinate |      |      |       |         |       |       |        |       |
| d loan      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Equity      |      |      |       |     860 |       |       |        |   860 |
| component   |      |      |       |         |       |       |        |       |
| of          |      |      |       |         |       |       |        |       |
| convertible |      |      |       |         |       |       |        |       |
| subordinate |      |      |       |         |       |       |        |       |
| d loan      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Share-based |      |      |       |      57 |       |       |        |    57 |
| incentive   |      |      |       |         |       |       |        |       |
| schemes     |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Profit for  |      |      |       |         |       | 3,225 |  1,277 | 4,502 |
| the period  |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Dividends   |      |      |       |         |       | -3,86 |   -509 | -4,37 |
| paid        |      |      |       |         |       |     5 |        |     4 |
--------------------------------------------------------------------------------
| Share issue |  930 |      |       |  10,781 |       |       |        | 11,71 |
|             |      |      |       |         |       |       |        |     1 |
--------------------------------------------------------------------------------
| Acquisition |      | -609 |       |         |       |       |        |  -609 |
| of own      |      |      |       |         |       |       |        |       |
| shares      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Currency    |      |      |       |         |    -4 |       |        |    -4 |
| translation |      |      |       |         |       |       |        |       |
| differences |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Acquisition |      |      |       |         |       |       |  1,688 | 1,688 |
| of minority |      |      |       |         |       |       |        |       |
| interests   |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Shareholder | 4,90 | -609 | 4,647 |  11,269 |    -4 | 11,26 |  4,610 | 36,51 |
| s' equity   |    5 |      |       |         |       |     9 |        |     6 |
| as at 31    |      |      |       |         |       |       |        |       |
| July 2007   |      |      |       |         |       |       |        |       |
|             |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Shareholder | 5,42 | -1,3 | 4,647 | 14,219, |    35 | 12,33 |  4,290 | 39,56 |
| s' equity   |    4 |   94 |       |         |       |     9 |        |     0 |
| as at 31    |      |      |       |         |       |       |        |       |
| October     |      |      |       |         |       |       |        |       |
| 2007        |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Increase in |  105 |      |       |   1,383 |       |       |        | 1,488 |
| share       |      |      |       |         |       |       |        |       |
| capital     |      |      |       |         |       |       |        |       |
| connected   |      |      |       |         |       |       |        |       |
| with        |      |      |       |         |       |       |        |       |
| convertible |      |      |       |         |       |       |        |       |
| subordinate |      |      |       |         |       |       |        |       |
| d loan      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Share of    |      |      |       |    -148 |       |       |        |  -148 |
| equity in   |      |      |       |         |       |       |        |       |
| convertible |      |      |       |         |       |       |        |       |
| subordinate |      |      |       |         |       |       |        |       |
| d loan      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Share-based |      |      |       |      81 |       |       |        |    81 |
| incentive   |      |      |       |         |       |       |        |       |
| schemes     |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Profit for  |      |      |       |         |       | 11,05 |    653 | 11,70 |
| the period  |      |      |       |         |       |     3 |        |     6 |
--------------------------------------------------------------------------------
| Dividends   |      |      |       |         |       | -3,97 |   -469 | -4,43 |
| paid        |      |      |       |         |       |     0 |        |     9 |
--------------------------------------------------------------------------------
| Equity      |      |      |       |  -2,833 |       |       |  2,722 |  -111 |
| Rebate      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Acquisition |      | -450 |       |         |       |       |        |  -450 |
| of own      |      |      |       |         |       |       |        |       |
| shares      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Sale of own |      |      |       |     359 |       |       |        |  ,359 |
| shares      |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Currency    |      |      |       |         |    82 |       |        |    82 |
| translation |      |      |       |         |       |       |        |       |
| differences |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Discontinue |      |      |       |         |       |       | -2,099 | -2,09 |
| d           |      |      |       |         |       |       |        |     9 |
| operations  |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Acquisition |      |      |       |         |       |       |  6,030 | 6,030 |
| of minority |      |      |       |         |       |       |        |       |
| interests   |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------
| Shareholder | 5,52 | -1,8 | 4,647 |  13,061 |   117 | 19,42 | 11,127 | 52,05 |
| s' equity   |    9 |   44 |       |         |       |     2 |      , |     9 |
| as at 31    |      |      |       |         |       |       |        |       |
| July 2008   |      |      |       |         |       |       |        |       |
--------------------------------------------------------------------------------




KEY INDICATORS                                                                  
--------------------------------------------------------------------------------
|                                              | 07/2008 | 07/2007  | 10/2007  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share, EUR                        |    0.90 |     0.78 |     0.78 |
--------------------------------------------------------------------------------
| Average number of shares during the period   |  44,565 |   32,546 |   34,964 |
| (000's)                                      |         |          |          |
--------------------------------------------------------------------------------
| Number of shares at end of period (000's)    |  45,337 |   40,872 |   44,383 |
--------------------------------------------------------------------------------
| Share issues / convertible during the period |         |          |   15,466 |
| (000's)                                      |         |          |          |
--------------------------------------------------------------------------------
| Average number of shares (000's)- diluted    |  54,720 |   45,046 |   45,965 |
--------------------------------------------------------------------------------
| Return on equity (ROE), %                    |    34.1 |     19.5 |     18.6 |
--------------------------------------------------------------------------------
| Return on investment (ROI), %                |    19.2 |     16.2 |     14.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross capital expenditure                    |         |          |          |
--------------------------------------------------------------------------------
| on non-current assets (MEUR)                 |    20.5 |     14.3 |     21.9 |
--------------------------------------------------------------------------------
| % of net turnover                            |    24.0 |     23.9 |     24.1 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities                 |  64,314 |   39,724 |   50,653 |
--------------------------------------------------------------------------------
| Equity ratio, %                              |    36.4 |     38.1 |     34.9 |
--------------------------------------------------------------------------------
| Average number of employees                  |     730 |      522 |      571 |
--------------------------------------------------------------------------------

Key indicators have been calculated eliminating own shares held by the company. 



GROUP'S QUARTERLY PERFORMANCE                                                   
--------------------------------------------------------------------------------
| (EUR million) | IFRS | IFRS  | IFRS  | IFRS  | IFRS  | IFRS  | IFRS  | IFRS  |
--------------------------------------------------------------------------------
|               | 4Q/0 | Q1/07 | Q2/07 | Q3/07 | Q4/07 | Q1/08 | Q2/08 | Q3/08 |
|               | 6    |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net turnover  | 29.1 |  10.1 |  10.2 |  23.1 |  25.7 |  25.9 |  28.4 |  31.0 |
--------------------------------------------------------------------------------
| Other         |  0.0 |   0.0 |   0.1 |   0.2 |   0.4 |   0.2 |   0.1 |   0.1 |
| operating     |      |       |       |       |       |       |       |       |
| income        |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Total         | 26.8 |   9.8 |    10 |  21.1 |  24.0 |  24.9 |  26.6 |  28.3 |
| expenses      |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Depreciation  |  0.8 |   0.3 |   0.2 |   0.4 |   0.7 |   0.7 |   0.7 |   1.2 |
| and           |      |       |       |       |       |       |       |       |
| amortisation  |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Operating     |  1.5 |   0.0 |   0.1 |   1.8 |   1.4 |   0.5 |   1.2 |   1.6 |
| profit        |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Financial     | -0.6 |   0.0 |  -0.2 |  -0.4 |  -0.5 |  -0.4 |  -0.6 |  -0.7 |
| items         |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Profit before |  0.9 |   0.0 |  -0.1 |   1.4 |   0.9 |   0.1 |   0.6 |   0.9 |
| taxes         |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Taxes         |  0.3 |   0.0 |   0.0 |   0.3 |   0.2 |  -0.1 |   0.9 |   0.6 |
--------------------------------------------------------------------------------
| Minority      |  0.8 |   0.3 |   0.6 |   0.4 |   0.3 |   0.3 |   0.7 |  -0.4 |
| interest      |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Profit from   |  1.3 |  -0.3 |  -0.6 |   1.8 |   0.7 |   0.0 |  -0.7 |   1.9 |
| continuing    |      |       |       |       |       |       |       |       |
| operations    |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Profit from   |  2.9 |   0.9 |   2.0 |   0.7 |   0.7 |   0.7 |   1.7 |       |
| discontinued  |      |       |       |       |       |       |       |   8.1 |
| operations    |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Profit for    |  4.2 |   0.6 |   1.4 |   2.5 |   1.4 |   0.7 |   1.0 |  10.0 |
| the period    |      |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------


CONTINGENT LIABILITIES                                                          
--------------------------------------------------------------------------------
| EUR 1,000                                    | 07/2008 |  07/2007 |   2007   |
--------------------------------------------------------------------------------
| Collateral given on behalf of group          |         |          |          |
| companies                                    |         |          |          |
--------------------------------------------------------------------------------
| Mortgages                                    |   4,555 |    7,201 |    7,938 |
--------------------------------------------------------------------------------
| Floating charges                             |  26,707 |    6,896 |    4,117 |
--------------------------------------------------------------------------------
| Pledges given                                |   7,421 |    4,060 |   14,610 |
--------------------------------------------------------------------------------
| Rental liabilities                           |   4,929 |    1,276 |    1,354 |
--------------------------------------------------------------------------------
| Other liabilities                            |     685 |          |      514 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Amounts payable under lease contracts        |         |          |          |
--------------------------------------------------------------------------------
| Payable within one year                      |     613 |      490 |      564 |
--------------------------------------------------------------------------------
| Payable after one year but within five years |   3,435 |      605 |      852 |
--------------------------------------------------------------------------------

The Group has agreed interest rate swaps at a nominal value of EUR 1.2 million. 

Liabilities have been measured at the nominal or book value of collateral.      


SEGMENT INFORMATION                                                             

The Group's primary reporting segment is the business segment. The Group        
reported on five business segments for the financial year. The Group does not   
have a secondary reporting segment.                                             


--------------------------------------------------------------------------------
| EUR 1,000                                            |    7/2008 |    7/2007 |
--------------------------------------------------------------------------------
| NET TURNOVER                                         |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Industrial services                                  |    16,068 |    10,017 |
--------------------------------------------------------------------------------
| Joinery industry                                     |     5,846 |     6,951 |
--------------------------------------------------------------------------------
| Wholesale trade                                      |    33,081 |    17,047 |
--------------------------------------------------------------------------------
| Takoma                                               |    13,292 |           |
--------------------------------------------------------------------------------
| Other                                                |    17,009 |     9,467 |
--------------------------------------------------------------------------------
| Total                                                |    85,297 |    43,482 |
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS                                |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Industrial services                                  |     1,324 |     1,207 |
--------------------------------------------------------------------------------
| Joinery industry                                     |       181 |       297 |
--------------------------------------------------------------------------------
| Wholesale trade                                      |     2,049 |       760 |
--------------------------------------------------------------------------------
| Takoma                                               |       598 |           |
--------------------------------------------------------------------------------
| Other                                                |      -853 |      -400 |
--------------------------------------------------------------------------------
| Total                                                |     3,299 |     1,864 |
--------------------------------------------------------------------------------


SEGMENT INFORMATION BY QUARTER                                                  
--------------------------------------------------------------------------------
| (EUR million)      | Q1/07 | Q2/07 | Q3/07 | Q4/07 | Q1/08 | Q2/08  | Q3/08  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net turnover       |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Industrial         |   2.5 |   2.5 |   5.0 |   5.2 |   4.6 |    5.2 |    6.3 |
| services           |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Joinery industry   |   2.2 |   2.5 |   2.2 |   2.5 |     2 |    2.2 |    1.6 |
--------------------------------------------------------------------------------
| Wholesale trade    |   3.6 |   3.4 |  10.1 |  12.6 |  10.1 |   11.3 |   11.7 |
--------------------------------------------------------------------------------
| Takoma             |   0.0 |   0.0 |   0.0 |   0.0 |   4.6 |    4.6 |    4.1 |
--------------------------------------------------------------------------------
| Other              |   1.8 |   1.9 |   5.8 |   5.2 |   4.6 |    5.1 |    7.3 |
--------------------------------------------------------------------------------
| Total              |  10.1 |  10.2 |  23.1 |  25.7 |  25.9 |   28.4 |   31.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating          |       |       |       |       |       |        |        |
| profit/loss        |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Industrial         |   0.1 |   0.0 |   1.0 |   0.5 |   0.4 |    0.2 |    0.7 |
| services           |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Joinery industry   |  -0.1 |   0.0 |   0.2 |   0.3 |  -0.1 |    0.2 |    0.0 |
--------------------------------------------------------------------------------
| Wholesale trade    |   0.0 |   0.1 |   0.6 |   0.8 |   0.6 |   0.0  |    1.6 |
--------------------------------------------------------------------------------
| Takoma             |   0.0 |   0.0 |   0.0 |   0.0 |   0.0 |    0.4 |    0.2 |
--------------------------------------------------------------------------------
| Other              |  -0.1 |   0.0 |   0.0 |  -0.2 |  -0.4 |    0.4 |   -0.9 |
--------------------------------------------------------------------------------
| Total              |   0.0 |   0.1 |   1.8 |   1.4 |   0.5 |    1.2 |    1.6 |
--------------------------------------------------------------------------------


Panostaja Oyj is a multi-sector holding company. The company invests in Finnish 
small and medium-sized enterprises operating in traditional industries.         
Investments are mostly carried out through acquisitions. The Panostaja Group    
invests business resources and strategic know-how in companies. The objective is
to raise the target company to become a major player in its field according to a
pre-determined schedule. Once this schedule has elapsed, the enterprise         
continues to operate as an independent growth company.                          

At present, the company operates in 13 business areas. Oy Alfa-Kem Ab           
manufactures and markets industrial chemicals, cleaning agents and institutional
kitchen detergents. Ecosir Oy and Kospa Oy are companies specialising in        
solutions for waste management and property maintenance equipment. The          
Heatmasters Group delivers metal heat treatment services in Finland and         
internationally and manufactures, develops and markets heat treatment           
technology. Fittings companies Suomen Helakeskus Oy and Seinäjoen               
Rakennustarvike ja Lukko Oy are key wholesalers of construction and furniture   
fittings in Finland. Fastenings companies Helsingin Laaturuuvi Oy, Porin Pultti 
Oy and Ruuvipojat Oy serve retailers throughout Finland. KL-Varaosat specialises
in the import, wholesale and retail of OEM spare parts and accessories for      
Mercedes-Benz and BMW cars. Kopijyvä Oy is one of Finland's biggest companies   
providing digital printing services. LukkoExpert Security Oy is an expert in    
locks, door automation and security technology and services. Lämpö-Tukku Oy     
specialises in wholesale heating, plumbing and ventilation equipment. Suomen    
Puunjalostus Oy operates in the joinery industry, solid wood interior doors and 
wooden staircases being its main products. Takoma Oyj is a listed mechanical    
engineering group based on an entrepreneur-driven business model. Toimex Oy     
manufactures and sells heating, plumbing and ventilation supports. Vallog Oy    
specialises in Finnish metal industry manufacturing and logistics services.