SCANFIL GROUP’S FINANCIAL STATEMENTS FOR 1 JANUARY-31 DECEMBER 2006

FINLAND


SCANFIL PLC    STOCK EXCHANGE RELEASE     16 February 2007, 8.15 am

SCANFIL GROUP’S FINANCIAL STATEMENTS FOR 1 JANUARY-31 DECEMBER 2006

January - December
- Turnover was EUR 241,4 (321,6 year 2005) million, decrease of 25%
- Operating profit including non-recurring items was EUR 11.4 (27.3)
  million representing 4.7 (8.5)% of turnover
- Net profit was EUR 8.2 (21.5) million
- Earnings per share amounted to EUR 0.14 (0.36)
- Operating profit excluding non-recurring items was EUR 16.9
  million representing 7.0% of turnover and earnings per share
  were EUR 0.23
- The Board of Directors proposes to the Annual General Meeting
  a dividend of EUR 0.10 (0.10) per share

October – December
- Figures include non-recurring items
- Turnover for the fourth quarter totalled EUR 51.5 million (76.8
  in the corresponding period of 2005), a decrease of 33%.
– Operating profit totalled EUR 2.7 (6.2) million, representing 5.2
  (8.1)% of turnover.
- Earnings per share amounted to EUR 0.05 (0.09).


BUSINESS TRENDS

In 2006, business development was affected by the consolidation trend
in the telecommunications sector and the overall and structural
changes in the contract manufacturing market in telecommunications
technology and industrial electronics. The significant restructurings
in the telecommunications sector and the related changes in the
control of customers’ logistics slowed down demand especially in the
last quarter. The network customer market increased globally but
focused on developing markets and service business even more strongly
than in previous years. Due to the changes in the operating
environment, it has been extremely difficult to predict demand.
Reduced turnover in spite of the increased production volumes was also
typical of the past year, due to the increasingly intensive price
competition from lower-cost countries and the more inexpensive and
simpler product structures of the products. Changes in the market also
affected the broadband products market, and the delivery volumes of
the product group remained at a clearly lower level than in the
previous year throughout the year, as predicted.

In the industrial electronics products market, the production volume
developed positively last year. The impact of developing markets was
also apparent in the globalising needs of industrial electronics
customers.  Management of the whole delivery chain, accuracy of
delivery and global material and component acquisition expertise were
emphasised in the manufacturing of industrial electronics products.

As demand and production focused on developing markets and lower-cost
countries, the relative share of Europe in Scanfil’s functions
contracted as well. In Europe, the production operations of the
Belgian plant were discontinued during the third quarter. A
preliminary agreement was concluded on the sale of the property of the
Belgian plant on 14 December 2006. It is anticipated that the sale
will be carried out in the first quarter of 2007 at an approximately
EUR 0.6 million higher price than the balance sheet value of the
property. Most of the production of the Oulu plant was discontinued
during the fourth quarter.

The expansion of the production facilities in the Estonian subsidiary
was completed and taken into use during the final quarter, and the
expansion of the Hungarian subsidiary will be taken into use during
the first quarter of 2007. Thanks to the facility and equipment
investments carried out in the Chinese Hangzhou subsidiary during the
year, the plant is capable of delivering significant volumes of
integrated and tested telecommunications technology enclosure systems.
The Chinese subsidiaries accounted for about 32% of the Group’s sales
(about 20% in 2005), including sales to the Group’s other plants.

On 31 December 2006, 70 (62) per cent of the company’s personnel
worked in foreign subsidiaries and 46 (37) per cent in China. The
proportion of people working in Europe of the entire personnel
contracted during the year, due to the reorganisation of production
implemented in Finland and Belgium. During the review period, the
company carried out statutory employer-employee negotiations in the
Sievi mechanics plant, the Oulu plant and the Belgian subsidiary,
Scanfil N.V.

On 14 November 2006, President Veli Torvinen announced that he will
resign for personal reasons. He will continue in his post until 14 May
2007. After the reviewed period the company’s Board of Directors has
appointed Mr Harri Takanen, MSc(Eng), as the new President. Harri
Takanen will take up his new duties on 15 May 2007.

SCANFIL GROUP’S FINANCIAL PERFORMANCE

The Group’s turnover in 2006 was EUR 241.4 (321.6) million,
representing decrease of 25% over the previous year.
Distribution of turnover based on the location of customers was as
follows: Finland 43 (42)%, rest of Europe 29 (40)%, Asia 25 (12)%, USA
1 (6)% and the others 2 (0)%

Operating profit for the review period totalled EUR 11.4 (27.3)
million, representing 4.7 (8.5)% of turnover. Net profit amounted to
EUR 8.2 (21.5) million, or 3.4 (6.7)% of turnover. Earnings per share
amounted to EUR 0.14 (0.36) and return on investment was 9.0 (18.6)%.

For the first quarter of 2006 has been recorded the non-recurring
expense item of EUR 7.6 million, relating to the discontinuation of
the Belgian subsidiary's production activities. In the third quarter a
fund reimbursement related to the voluntary group pension insurance
and the unused part of a cost provision related to material liability,
totalling EUR 0.8 million, were recognised as income.

In the final quarter, EUR 0.8 million was recognised as income related
to the calculation of fair value according to IFRS. EUR 0.8 million of
capital gains from sale of fixed assets were recorded, the main part
of which was recognised as income in the fourth quarter and was
generated from the sale of the fixed assets of the Belgian subsidiary.
In addition, an expense item of EUR 0.4 million was entered as a
warranty provision at the end of the year.
Operating profit excluding non-recurring items totalling EUR 5.6
million stood at EUR 16.9 million, representing 7.0% of turnover, and
earnings per share was EUR 0.23.

In the parent company an impairment of EUR 2.6 million was entered for
the shares of the Belgian subsidiary.

Owing to the structure of the company’s operations, the effects of
changes in exchange rates on the result were minimal. As growth shifts
to the Asian operations, the impact of fluctuations in the dollar
exchange rate on the company’s operations may increase.

FINANCING AND CAPITAL EXPENDITURE

The Group enjoys still a strong financial position. Liabilities
amounted to EUR 46.2 (66.7) million, EUR 38.7 (48.8) million of which
were non-interest-bearing and EUR 7.5 (17.9) million interest-bearing
liabilities.
Liquid cash assets totalled EUR 31.8 (37.8) million. The equity ratio
was 73.6 (66.5)% and gearing –19.1 (-15.2)%.

Cash flow from operations in the review period was positive at EUR
18.9 (36.8) million. Cash flow from investments was EUR –5.0 (-12.6)
million, and cash flow from funding stood at EUR –19.1 (-22.5)
million. Working capital was released during the financial period to
the amount of EUR 2.9 (5.4) million, long-term loans were amortised by
EUR 10.4 million and dividends for 2005 were paid to the amount of EUR
6.0 million.

Gross investments in fixed assets totalled EUR 8.5 (9.2) million, or
3.5 (2.9)% of turnover. The plant expansions and related machinery
acquisitions by the Estonian and Hungarian subsidiaries and the
machinery and equipment acquisitions by the Hangzhou subsidiary
account for most of the investments. During the financial period the
company sold its industrial property in Ylivieska.

BOARD OF DIRECTORS’ AUTHORISATIONS

On 30 March 2006 the Annual General Meeting decided according to the
Board of Directors’ proposal to authorize the Board of Directors to
decide on the acquisition of the Company’s own shares with
distributable assets and transfer of the Company’s own shares. Added
together, the number of acquired shares and of the shares already held
by the Company shall not exceed ten per cent (10%) of the Company’s
share capital and of the number of voting shares.

On 25 August 2006, Scanfil plc’s Board of Directors decided to
purchase a maximum of one (1) million shares of the Company on the
basis of the authorisation given by the Annual General Meeting

The Board of Directors has no existing share issue authorisations or
authorisations to issue convertible bonds or bonds with warrants.

ACQUISITION OF THE COMPANY’S OWN SHARES

On 31 December 2006, the Company owned a total of 2,000,000 own
shares, of which 1,000,000 were acquired between 4 September and 11
December 2006 through the Helsinki Stock Exchange for purposes defined
in the authorisation received by the Board of Directors at the Annual
General Meeting on 30 March 2006.
The acquisition value of the own shares acquired in 2006 was EUR
2,780,610 and the average price EUR 2.78/share. The acquisition value
of the 1,000,000 own shares acquired in 2005 was EUR 4,109,691 and the
average price EUR 4.11/share. The nominal value of all acquired own
shares totalled EUR 500,000, and they represented 3.3% of the
Company’s share capital and total number of votes.

SHARE TRADING AND SHARE PERFORMANCE

The highest share price during the year was EUR 4.67 and the lowest
EUR 2.30. The share price at the end of the review period was EUR
2.37. A total of 20,400,591 shares were traded during the year,
corresponding to 33.6% of the total number of shares. The market value
of the shares on 31 December 2006 was EUR 143.9 million.

GROUP STRUCTURE

On  31  December  2006, the Scanfil Group consisted of parent  company
Scanfil  plc  (Sievi) and CPS Elektroniikka Inc (Tampere) in  Finland,
Scanfil  N.V.  in Belgium (Hoboken), Scanfil (Suzhou)  Co.,  Ltd.  and
Scanfil  (Hangzhou) Co., Ltd. in China, Scanfil Kft.  (Biatorbagy)  in
Hungary,  and  Scanfil Oü, (Pärnu) in Estonia.  The  Group  holds  the
entire share capital in all of its subsidiaries.

On 11 December 2006, the shareholders’ meeting of CPS Elektroniikka
Inc decided to place the company into voluntary liquidation to
dissolve the company.
The company has not engaged in any production activities since 30
April 2005.

PERSONNEL

At the end of the review period the Group employed 2,073 (2,302)
people, of whom 1444 (1,437) worked abroad. The Group employed an
average 2,213 (2,354) people during the year.

BOARD OF DIRECTORS’ PROPOSALS TO THE ANNUAL GENERAL MEETING

Dividend for 2006
The Board of Directors will propose to the Annual General Meeting that
a dividend of EUR 0.10 per share be paid for the financial year ended
31 December 2006, totalling EUR 5,871,427.00.

The Board proposes that the matching date for payment of dividend be
17 April 2007 and that the dividend is paid on 24 April 2007.

EVENTS SUBSEQUENT TO THE REVIEW PERIOD

Scanfil plc’s Board of Directors appointed Mr Harri Takanen, MSc(Eng),
as the company’s new President. Harri Takanen has worked for the
company in different positions since 1994 and acts at the moment as
the Managing Director of Scanfil’s Chinese subsidiary Scanfil
(Hangzhou) Co., Ltd. He will take up his post on 15 May 2007, until
which time Veli Torvinen will continue as President.

At the beginning of February, Scanfil plc initiated statutory employer-
employee negotiations concerning its Äänekoski and Oulu plants, Group
administration and the salaried employees of its Sievi units due to
production and financial reasons and business restructuring. The goals
of the initiated statutory employer-employee negotiations are to
adjust the Finnish functions to the changed market conditions and to
improve cost-efficiency.  Once implemented, the planned actions are
estimated to have a positive impact on the Company’s performance.

FUTURE PROSPECTS

Major restructurings in the telecommunications sector resulted in
weaker demand in the last quarter of 2006, and they are also expected
to affect demand in early 2007. The biggest companies in the sector
predict that the markets for telecommunication networks and related
services will grow somewhat in euros during the current year. The
possible increase in the service business of customer companies in the
sector may reduce the market growth available to Scanfil.

Tough price competition, market changes and the increase in the share
of deliveries of telecommunications network products with a simpler
and more inexpensive structure will continue in 2007, due to which the
turnover from this product group is expected to decrease in the
current year. Uncertainty in the market has increased and
predictability is extremely poor. Based on available forecasts,
Scanfil plc’s sales for 2007 are expected to fall short of the 2006
level. Profitability for the full year is estimated to be at a
satisfactory level.

Scanfil plc’s primary goals for 2007 are improving and maintaining
profitability as well as developing operations, taking into account
changes in the market and changing customer needs. In addition to
actions directed at profitability, the Company’s good financial
standing provides an opportunity to actively seek various means and
arrangements that will put Scanfil’s operations back on a growth
track.


APPENDICES:

Appendix 1: Consolidated profit and loss statement and balance
            sheet
Appendix 2: Consolidated cash flow statement
Appendix 3: Key indicators
Appendix 4: Calculation of changes in shareholders’ equity
Appendix 5: Segment information
Appendix 6: Consolidated contingent liabilities
Appendix 7: Key indicators quarterly

The figures are unaudited.
The figures have been calculated in accordance with the IFRS entry and
valuation principles.


                                                           APPENDIX 1
CONSOLIDATED PROFIT AND LOSS STATEMENT
EUR million

                                         2006     2005    2006    2005
                                      10 – 12  10 - 12  1 - 12  1 - 12

NET SALES                                51.5     76.8   241.4   321.6
Increase or decrease of
inventory of finished products            0.7      0.6 -   0.4     1.3
Manufacturing for own use                                  0.0     0.1
Other operating income                    1.2      0.3     2.1     0.9
Expenses                               - 49.0  –  68.6 – 223.5 – 286.5
Depreciation                           -  1.7  -   3.0 -   8.3 -  10.1
OPERATING PROFIT                          2.7      6.2    11.4    27.3
Financial income and expenses             0.7      0.2     0.7 -   0.5
PROFIT BEFORE TAXES                       3.3      6.4    12.1    26.8
Direct tax                             -  0.3  -   1.2 -   3.8 -   5.3
NET PROFIT FOR THE PERIOD                 3.0      5.3     8.2    21.5

Attributable to:
  Equity holders of the Company           3.0      5.3     8.2    21.5
  Minority interest

Earnings/share (EPS), EUR                0,05     0,09    0,14    0,36


CONSOLIDATED BALANCE SHEET
EUR million                                    31.12.       31.12.
                                                2006         2005

ASSETS

Long-term assets
 Tangible current assets                        43.1         56.5
 Goodwill                                        2.5          2.5
 Other intangible assets                         1.0          1.1
 Sellable investments                            0.3          0.3
 Receivables                                     0.2          0.3
 Deferred tax receivables                        0.2          0.2
Long-term assets total                          47.4         60.8

Short-term assets
 Inventories                                    41.4         40.8
 Sales and other receivables                    43.0         58.2
 Prepayments                                     0.0          0.0
 Financing assets with result
 impact entered at current value                 8.9         15.6
 Cash and cash equivalents                      22.9         22.2
Short-term assets total                        116.2        136.9

Non-current assets held for sale                10.0

ASSETS TOTAL                                   173.6        197.7


SHAREHOLDERS' EQUITY AND LIABILITIES

Shareholders' equity that belongs
to the owners of the parent company
 Share capital                                  15.2         15.2
 Premium fund                                   16.1         16.1
 Own shares                                  -   6.9       -  4.1
 Other funds                                     1.9          1.3
 Translation differences                     -   0.7          2.5
 Value change fund                               0.1          0.1
 Profits accrued                               101.7        100.0
Shareholders' equity that
belongs to the owners of the
parent company total                           127.4        131.1

Minority interests

Shareholders' equity total                     127.4        131.1

Long-term liabilities
 Deferred tax liabilities                        1.4          1.7
 Reserves                                        8.5          5.4
 Interest-bearing liabilities                    7.5         17.9
Long-term liabilities total                     17.4         24.9

Short-term liabilities
 Procurement and other liabilities              28.2         39.1
 Current income tax
 liabilities                                     0.6          2.6
 Short-term interest-bearing
 liabilities
Short-term liabilities total                    28.8         41.7

Liabilities total                               46.2         66.7

SHAREHOLDERS' EQUITY AND
LIABILITIES TOTAL                              173.6        197.7


                                                           APPENDIX 2


CONSOLIDATED CASH FLOW STATEMENT                    2006       2005
EUR million                                       1 - 12     1 - 12

Cash flow from operations
Net profit                                           8.2       21.5
  Adjustment for the net profit of the period       13.7       15.3
  Change in net working capital                      2.9        5.4
  Interests paid and other financial
  expenses                                       -   0.7   -    0.9
  Interests received                                 0.8        0.7
  Taxes paid                                     -   6.1   -    5.3
Net cash flow from operations                       18.9       36.8

Cash flow from investments
  Investments in tangible and
  intangible assets                              -   7.8   -    9.0
  Proceeds from sale of tangible
  and intangible assets                              2.8        0.1
  Proceeds from sale of other investments            0.0        0.2
  Acquired subsidiaries                                    -    3.9
Net cash flow from investments                   -   5.0   -   12.6

Cash flow from funding
  Acquiring of own shares                       -    2.8   -    4.1
  Repayment of long-term loans                  -   10.4   -    7.5
  Dividends paid                                -    6.0   -   10.9
Net cash flow from funding                      -   19.1   -   22.5

Adjustments to translation difference           -    0.9        1.6

Liquid assets at the beginning
of the period                                       37.8       34.5
Change in assets                                -    6.0        3.3
Liquid assets at the end of the period              31.8       37.8


                                                          APPENDIX 3
KEY INDICATORS
                                                  2006      2005
                                                1 – 12    1 - 12

Return on equity, %                                6.4      17.0
Return on investment, %                            9.0      18.6
Interest-bearing liabilities, MEUR                 7.5      17.9
Gearing, %                                      - 19.1    - 15.2
Equity ratio, %                                   73.6      66.5
Gross investments in fixed
assets, MEUR                                       8.5       9.2
% of net turnover                                  3.5       2.9
Personnel, average                               2 213      2354

Earnings per share, EUR                           0.14      0.36
Shareholders’ equity per share, EUR               2.17      2.19
Dividend per share, EUR                           0.10      0.10
Dividend/earnings, %                              72.4      28.1
Effective dividend yield, %                       4.22      2.28
Price-to-earnings ratio (P/E)                     17.2      12.3

Share price
Year’s lowest share price, euro                  2.30       3.40
Year’s highest share price, euro                 4.67       4.89
Average share price for year, euro               3.46       4.19
Share price at year’s end, euro                  2.37       4.38
Market capitalisation at end of
year, EUR million                               143.9      265.9


Number of shares
at end of period, 000’s                        60 714     60 714
- not counting own shares                      58 714     59 714
- weighted average                             59 557     60 441

The company does not have any liabilities resulting from derivative
instruments.
Owing to the nature of the sector, the company’s order book covers
only a short period of time and does not give an accurate picture of
future development.

                                                           APPENDIX 4

CALCULATION OF CHANGES IN SHAREHOLDERS’ EQUITY
EUR million

A = Share capital
B = Premium fund
C = Own shares
D = Other reserves
E = Translation differences
F = Fair value reserve
G = Retained earnings
H = Total
I = Minority interests
J = Shareholder’s equity total

                 A     B    C    D     E     F     G     H    I     J
SHAREHOLDER’S
EQUITY
31.12.2004    15,2  16,1    0   0.5 – 1.7   0.1  89.3 119.5  3.4 122.8

Valuation at current value                  0.0         0.0        0.0
Translation difference                4.1         0.9   5.0        5.0
NET INCOME RECOGNIZED
DIRECTLY IN EQUITY                    4.1   0.0   0.9   5.0        5.0

Net profit for the period                        21.5  21.5       21.5
TOTAL RECOGNIZED INCOME
AND EXPENCE                           4.1   0.0  22.4  26.6       26.6

Payment of dividend                             -10.9 –10.9       10.9
Transfers to funds              0.8             - 0.8
Acquiring of own shares  -4.1                         - 4.1       -4.1

SHAREHOLDER’S
EQUITY
31.12.2005    15.2  16.1 -4.1   1.3   2.5   0.1 100.0 131.1      131.1



               A     B     C     D     E     F      G     H     J
SHAREHOLDER’S
EQUITY
1.1.2006     15.2  16.1 - 4.1   1.3   2.5   0.1   100.0 131.1 131.1

Translation difference              - 3.1               - 3.1 - 3.1
NET INCOME RECOGNIZED
DIRECTLY IN EQUITY                  - 3.1               - 3.1 – 3.1

Net profit for the period                           8.2   8.2   8.2
TOTAL RECOGNIZED INCOME
AND EXPENCE                         - 3.1           8.2   5.1   5.1

Payment of dividend                               - 6.0 – 6.0 - 6.0
Transfers to funds              0,6               - 0.6     0     0
Acquiring of own shares  - 2.8                          - 2.8 – 2.8

SHAREHOLDER’S
EQUITY
31.12.2006   15,2  16,1 - 6.9   1.9 - 0.6   0.1   101.7 127.4 127.7


                                                            APPENDIX 5

SEGMENT INFORMATION ACCORDING GEOGRAPHICAL AREA
EUR million
                                                  2006       2005
                                                1 – 12     1 - 12
TURNOVER
Europe                                           188.1      281.8
Asia                                              72.5       67.9
Turnover between sectors                        - 19.1    -  28.0
Total                                            241.4      321.6

OPERATING PROFIT
Europe                                             4.9       18.9
Asia                                               6.5        8.4
Total                                             11.4       27.3

The Group operates in single sector.
                                                            APPENDIX 6

CONSOLIDATED CONTINGENT LIABILITIES
EUR million                                        2006       2005
                                                 1 – 12     1 - 12

Real estate mortgages                                6.2       7.2
Business mortgages                                  16.4      16.4
Guarantees pledged                                   0.7       0.8
Rental liabilities                                   0.5       0.4

                                                           APPENDIX 7
KEY INDICATORS QUARTERLY
EUR million

                   Q4/06  Q3/06 Q2/06 Q1/06   Q4/05 Q3/05 Q2/05 Q1/05
Turnover, MEUR      51.5   67.5  62.4  60.1    76.8  83.4  85.4  76.0
Operating
profit, MEUR         2.7   7.0    5.1  -3.4     6.2   7.8   7.9   5.4
Operating profit,%   5.2  10.4    8.2  -5.7     8.1   9.3   9.3   7.1
Net income, MEUR     3.0   6.1    3.7  -4.5     5.3   6.2   5.8   4.3
EPS, EUR            0.05  0.10   0.06 -0.08    0.09  0.10  0.10  0.07



The company’s Annual Report for 2006 will be published in week 14. The
company will publish interim reports in 2007 as follows: January–March
on 27 April, January–June on 2 August and January–September on 25
October.

Scanfil plc’s Annual General Meeting will be held on 12 April 2007 at
the company’s head office in Sievi, Finland, at 2.00 pm.


Scanfil plc


Veli Torvinen
President


For more information please contact:
President Veli Torvinen, tel +358 40 5510 665




DISTRIBUTION       Helsinki Exchanges
                   Major media
                   www.scanfil.com





Not for release over US newswire services. Forward looking statements:
certain statements in this stock exchange release may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements of Scanfil Oyj to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. When used in this stock
exchange release, such statements use such words as "may," "will,"
"expect," "anticipate," "project," "believe," "plan" and other similar
terminology. New risk factors may arise from time to time and it is
not possible for management to predict all of those risk factors or
the extent to which any factor or combination of factors may cause
actual results, performance and achievements of Scanfil Oyj to be
materially different from those contained in forward-looking
statements. Given these risks and uncertainties, investors should not
place undue reliance on forward-looking statements as a prediction of
actual results. The forward-looking information contained in this
stock exchange release is current only as of the date of this stock
exchange release. There should not be an expectation that such
information will in all circumstances be updated, supplemented or
revised, except as provided by the law or obligatory regulations,
whether as a result of new information, changing circumstances, future
events or otherwise.