. million EEK million EUR Key figures 1-9/2008 1-9/2007 1-9/2008 1-9/2007 Sales revenue 667.0 525.2 42.6 33.6 EBITDA 52.4 55.6 3.4 3.6 EBIT 38.4 42.1 2.5 2.7 Net profit for the period 39.5 81.5 2.5 5.2 incl equity holders of the Parent 37.4 79.6 2.4 5.1 EPS 2.23 EEK 4.47 EEK 0.14 EUR 0.30 EUR At the end of the period Total assets 658.7 767.6 42.1 49.1 Owners' equity 484.3 576.5 31.0 36.8 (Equity holders of the Parent) Average number of employees on the current period 501 437 Number of employees at the end of the 521 469 The Group's consolidated sales revenue for the third quarter was MEEK 226.9 (MEUR 14.5), which exceeded the figure of the reference quarter by MEEK 31.6 (MEUR 2.0). The sales volume of nine months reached MEEK 667.0 (MEUR 42.6), exceeding the figure of the reference period by MEEK 141.8 (MEUR 9.0). Despite the prevailing economic recession, the growth pace of sales revenue was 16% and 27%, respectively, in the third quarter and the nine months as a whole. The Group's profitability in the reporting period was affected by pressure from intensifying competition, price increase of raw materials, fuel and energy, and growth of labour costs. Deterioration of the payment habits of clients also had an impact, therefore the cost from the discounting of claims was larger than usual during the reporting period. The business revenue for 3Q2008 was MEEK 12.9 or MEUR 0.8 (3Q2007: MEEK 20.2 or MEUR 1.3) and the nine- month business revenue was MEEK 38.4 or MEUR 2.5 (9 months of 2007: MEEK 42.1 or MEUR 2.7). The Group's net profit was most influenced by the financial income earned on financial investments. In 2007, an extraordinary profit of MEEK 32.8 (MEUR 2.1) was made from the sale of financial investments. This year no financial assets have been sold. In connection with the payment of dividends, the Estonian companies paid a total of MEEK 8.5 (EUR 541 000) in income tax, which is by MEEK 2.1 (EUR 131 000) more than in 2007. All in all, the income tax expenditure of the Group increased within nine months by MEEK 3.3 (EUR 211 000) up to MEEK 12.0 (EUR 765 000). The Group's net profit for the third quarter was MEEK 11.1 or MEUR 0.7 (3Q2007: MEEK 20.1 or MEUR 1.3) and the net profit for nine months was MEEK 39.5 or MEUR 2.5 (9 months of 2007: MEEK 81.5 or MEUR 5.2). The share of the owners of the parent company in the net profit comprised MEEK 10.3 (EUR 656 000) in the third quarter and MEEK 19.2 (MEUR 1.2) in the reference period. The net profit per share was EEK 0.61 (EUR 0.04) and in the reference period EEK 1.14 (EUR 0.07). Within nine months, net profit per share of EEK 2.23 (EUR 0.14) was earned and in the reference period EEK 4.74 (EUR 0.30), the share of the owners of the parent company in the net profit comprised MEEK 37.4 (MEUR 2.4) and in the reference period the corresponding figure was MEEK 79.6 (MEUR 5.1). As of 30 September 2008 there were 521 employees in the Group, which is 52 employees more than a year ago. In the third quarter, the average number of employees in the Group was 523 (3Q2007: 462) and in 9M 501 (9 months of 2007: 437). Students of vocational schools are temporarily hired during summer months, as a result of which the average number of employees in the third quarter is a little larger and the average salary a little lower compared to the other quarters. In the reporting period the average salary in the Group have increased by EEK 750 (EUR 47.90) up to EEK 22 000 (EUR 1 400) compared to the same period during the previous year. The costs on labour force have increased by MEEK 14.0 (MEUR 0.9) in the nine months of 2008 up to MEEK 127.0 (MEUR 8.1). In 3Q2008, a production and office building will be completed in Lithuania; its construction was commenced in the 2Q2007. During 2008 the volume of construction output amounted to 5.7 million kroons (364 thousand euros). In total, the construction has cost MEEK 12.7 (EUR 813 000). In the nine months, the Group has invested a total of MEEK 13.7 (EUR 873 000) in buildings, MEEK 5.7 (EUR 366 000) in production equipment and means of transport. To finance new construction in Lithuania, the Group took out an additional long-term loan in the amount of MEEK 3.0 (EUR 192 000). AS of 30 September long-term loans have been used in the amount of MEEK 7.4 (EUR 473 000). The loan contract has been concluded for five years. Long-term loans were repaid within nine months in the amount of MEEK 8.4 (EUR 534 000) and in the reference period in the amount of MEEK 7.5 (EUR 481 000). On a financial lease, a total of MEEK 0.8 (EUR 53 000) of machinery and equipment were acquired, and a total of MEEK 1.1 (EUR 70 000) of principal repayments on the financial lease were made in nine months, and on the comparable period MEEK 1.0 (EUR 64 000) and MEEK 0.9 (EUR 54 000), respectively. Andres Allikmäe Chairman of the Board +372 674 7400 For more information: Internal report 1-9/2008 of Harju Elekter and Mrs. Karin Padjus, Member of the Board (phone +372 674 7403). AS HARJU ELEKTER BALANCE SHEET, 30.09.2008 Consolidated, unaudited Group in thousands EEK EUR ASSETS 30.09.08 31.12.0730.09.08 31.12.07 Cash and cash equivalents 23 148 26 257 1 479 1 678 Trade receivables and other receivables 89 279 84 601 5 706 5 407 Prepayments 1 649 1 548 106 99 Inclusive income tax 738 717 46 46 Inventories 107 441 128 639 6 867 8 222 TOTAL CURRENT ASSETS 221 517 241 045 14 158 15 406 Investments in associates 25 718 21 975 1 644 1 404 Other long-term financial investments 162 579 215 236 10 390 13 756 Investment property 130 377 133 839 8 333 8 554 Property, plant and equipment 115 821 104 948 7 402 6 707 Intangible assets 2 647 3 269 169 209 Total non-current assets 437 142 479 267 27 938 30 630 TOTAL ASSETS 658 659 720 312 42 096 46 036 LIABILITIES AND OWNERS' EQUITY Interest-bearing loans and borrowings 13 466 27 942 861 1 786 Trade payables and other payables 100 676 106 495 6 434 6 806 Tax liabilities 16 626 12 008 1 061 767 Inclusive income tax 3 261 672 208 43 Short-term provision 219 1 421 14 91 TOTAL CURRENT LIABILITIES 130 987 147 866 8 370 9 450 NON-CURRENT LIABILITIES 23 266 20 851 1 487 1 332 TOTAL LIABILITIES 154 253 168 717 9 857 10 782 Share capital 168 000 168 000 10 737 10 737 Paid-in capital over/under par 6 000 6 000 384 384 Restricted reserves 158 002 207 259 10 098 13 246 Retained earnings 152 330 151 894 9 737 9 708 TOTAL OWNERS' EQUITY 484 332 533 153 30 956 34 075 Minority interests 20 074 18 442 1 283 1 179 TOTAL EQUITY 504 406 551 595 32 239 35 254 TOT.LIABILIT.AND OWNERS' EQUITY 658 659 720 312 42 096 46 036 INCOME STATEMENT, 1-9/2008 Consolidated,unaudited EEK'000 GROUP Q3 2008 Q3 2007 1-9/2008 1-9/2007 NET SALES 226 904 195 325 666 981 525 224 Cost of goods sold -192 593-154 539 -565 659 -425 379 Gross profit 34 311 40 786 101 322 99 845 Marketing expenses -8 774 -9 053 -27 375 -23 983 Administrative expenses -12 568 -10 863 -35 185 -32 721 Other revenue 115 151 262 496 Other expenses -230 -809 -575 -1 493 Operating profit 12 854 20 212 38 449 42 144 Net financial incomes/expenses -718 -497 9 249 43 949 Income from subsidiaries 259 1 220 3 743 4 034 Profit from normal operations 12 395 20 935 51 441 90 127 Corporate Income tax -1 245 -815 -11 973 -8 676 Profit after taxes, incl 11 150 20 120 39 468 81 451 Net profit for the year 10 269 19 178 37 436 79 604 Minority interest 881 942 2 032 1 847 Basic and diluted earnings per share 0,61 1,14 2,23 4,74 €'000 GROUP Q3 2008 Q3 2007 1-9/2008 1-9/2007 NET SALES 14 502 12 484 42 628 33 568 Cost of goods sold -12 309 -9 877 -36 152 -27 187 Gross profit 2 193 2 607 6 476 6 381 Marketing expenses -561 -579 -1 750 -1 533 Administrative expenses -803 -694 -2 249 -2 092 Other revenue 7 10 17 32 Other expenses -15 -52 -37 -95 Operating profit 821 1 292 2 457 2 693 Net financial incomes/expenses -46 -32 591 2 809 Income from subsidiaries 17 78 239 258 Profit from normal operations 792 1 338 3 287 5 760 Corporate Income tax -80 -52 -765 -554 Profit after taxes, incl 712 1 286 2 522 5 206 Net profit for the year 656 1 226 2 393 5 088 Minority interest 56 60 129 118 Basic and diluted earnings per share 0,04 0,07 0,14 0,30 Karin Padjus Financial manager +372 674 7403