Financial results, 1-3/2008


.                                 million EEK           million EUR
Key figures                    1-3/2008   1-3/2007   1-3/2008   1-3/2007
Sales revenue                  203.9      151.6      13.0       9.7
Operating profit                11.3        9.0       0.7       0.6
Net profit for the period        9.7        8.7       0.6       0.6
incl equity holders of the Parent9.7        8.1       0.6       0.5
EPS                              0.58 EEK  0.48 EEK   0.04 EUR  0.03 EUR

At the end of the period
Total assets                    694.8      691.8      44.4      44.2
Owners' equity                  520.3      552.4      33.3      35.3
(equity holders of the Parent)

Performance indicators
EBIT                                                   5.6%     6.0%
Net profit margin                                      5.2%     5.3%
Equity ratio                                          72.2%    77.1%

Average number of employees on the current period       471      416
Number of employees at the end of the period            507      439


The sales revenue of the Group in the first quarter of 2008 was 203.9 million
kroons (13.0 million euros), growing 34.5% compared to the same period during
the previous year, operating profit 25.6% up to 11.3 million kroons (0.7
million euros) and net profit 12.0% up to 9.7 million kroons (0.6 million
euros).

The fastest growth paces were in the Finnish and Estonian segments (54.2% and
25.9%, respectively). The rapid increase that started last financial year in
orders in the enterprises in Finland and Estonia which produce electronic
equipment has also continued at the beginning of 2008.

The biggest contribution to the increase in sales revenue has been made by
the Finnish segment, the sales volume of which to non-Group customers has
increased by 30.8 million kroons (2.0 million euros) to 87.5 million kroons
(5.6 million euros), constituting 42.9 % (37.4 %) of consolidated sales
revenue. The vast majority of the sales revenue (80%) was derived from the
sale of products directed to the industrial sector (manufacturers of metal
and production equipment). Ship building has become a significant sector.

The sales volume of the of Estonian segment to non-Group customers increased
by 20.1 million kroons (1.2 million euros) over the first three months,
constituting 48.0 % or 97.8 million kroons (6.2 million euros) of the Group's
sales revenue. Additionally, the Estonian segment sold goods and services
valued 13.5 million kroons (0.9 million euros) to other segments, which
exceeded the sales of the period being compared by 10.1 million kroons (0.7
million euros) and which also had a direct impact on the increase in the
sales revenue of the other segments. The main source of growth for the
Estonian segment was the increase in the volumes of the sales of
prefabricated outdoor substations and distribution substations to the energy
sector. During the first three months, the sales to the Estonian market and
the sales to the Finnish market exceeded that of the period being compared by
16 and 27 products respectively, constituting the growth in the sales revenue
of 19.2 million kroons (1.2 million euros).

In the conditions of the increasing competition, the Lithuanian segment
managed to increase their sales volumes by 8.2% from external markets. The
sales on external markets increased by 1.6 million kroons (0.1 million
euros). Supplies to Finland and Byelorussia were added and supplies to Latvia
have increased. Supplies to Norway also continued. Denmark and Poland are
also on the “horizon”.

Of the markets, the domestic markets of the Group's companies prevailed,
where 95.4% (98.2%) of the Group's products and services were sold. The
percentage of other EU and other markets is starting to gradually increase.
This year the sales of goods and services to these countries have exceeded
that of a year ago by 6.5 million kroons (0.4 million euros). The Group has
sold its products to the markets of Latvia, Sweden and Poland, as well as
Byelorussia, Russia and Norway.

In the first quarter, the average number of employees in the Group was 471
(Q1 2007: 416), the salary costs were 32.4 million kroons (2.1 million euros)
and in the comparable period 25.7 million kroons (1.6 million euros). The
average salary in the Group have increased by 2,300 kroons (150 euros)
compared to the same period during the previous year. The costs on labour
force have increased by 24.7% up to 40.4 million kroons (2.6 million euros)
in the first quarter of 2008, compared to the same period of 2007. As of 31
March 2008 there were 507 (439) people working in the Group.

To sum up, the consolidated post-tax profit was 9.7 million kroons or 0.6
million euros (Q1 2007: 8.7 million kroons or 0.6 million euros), of which
the share of the owners of the parent company comprised 9.7 million kroons
(0.6 million euros). Net profit per share in the first quarter was 0.58
kroons or 0.04 euros (Q1 2007: 0.48 kroons or 0.03 euros).

The Group invested a total of 3.8 million kroons (0.2 million euros) in
tangible and intangible fixed assets and real estate in Q1 2008, 5.9 million
kroons (0.4 million euros) in the period of comparison.

Andres Allikmäe
Chairman of the Board
+372 674 7400

For more information: Internal report 1-3/2008 of Harju Elekter and Mrs Karin
Padjus, Member of the Board (phone +372 674 7403).

AS HARJU ELEKTER
BALANCE SHEET, 31.03.2008
Consolidated, unaudited

Group
in thousands                           EEK           EUR
ASSETS                               31.03.0831.12.0731.03.08 31.12.07
Cash and cash equivalents              25 946  26 257     1658     1678
Trade receivables and other receivabl  92 279  84 601    5 898    5 407
Prepayments                              1870    1548      119       99
   Inclusive income tax                   853     717       55       46
Inventories                           137 691 128 639    8 800    8 222
TOTAL CURRENT ASSETS                  257 786 241 045   16 475   15 406
Investments in associates              21 782  21 975    1 392    1 404
Other long-term financial investments 174 198 215 236   11 133   13 756
Investment property                   132 746 133 839    8 484    8 554
Property, plant and equipment         105 216 104 948    6 725    6 707
Intangible assets                       3 061   3 269      196      209
Total non-current assets              437 003 479 267   27 930   30 630
TOTAL ASSETS                          694 789 720 312   44 405   46 036
LIABILITIES AND OWNERS' EQUITY
Interest-bearing loans and borrowings  22 428  27 942    1 433    1 786
Trade payables and other payables     110 407 106 495    7 056    6 806
Tax liabilities                        18 574  12 008     1187      767
   Inclusive income tax                 1 079     672       69       43
Short-term provision                      415    1421       27       91
TOTAL CURRENT LIABILITIES             151 824 147 866    9 703    9 450
NON-CURRENT LIABILITIES                22 664  20 851    1 449    1 332
TOTAL LIABILITIES                     174 488 168 717   11 152   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                   166 221 207 259   10 623   13 246
Retained earnings                     161 629 151 894   10 330    9 708
TOTAL OWNERS' EQUITY                  501 850 533 153   32 074   34 075
Minority interests                     18 451  18 442    1 179    1 179
TOTAL EQUITY                          520 301 551 595   33 253   35 254
TOT.LIABILIT.AND OWNERS' EQUITY       694 789 720 312   44 405   46 036


INCOME STATEMENT,  1-3/2008
Consolidated,unaudited

'000                                 EEK             EUR
GROUP                                Q1 2008 Q1 2007 Q1 2008  Q1 2007

NET SALES                             203 883 151 611   13 030    9 690
Cost of goods sold                   -174 143-125 909  -11 130   -8 047

Gross profit                           29 740  25 702    1 900    1 643

Marketing expenses                     -8 101  -6 667     -518     -426
Administrative expenses               -10 209  -9 819     -652     -628
Other revenue                              37      94        2        6
Other expenses                           -128    -281       -8      -18

Operating profit                       11 339   9 029      724      577

Net financial incomes/expenses           -613    -313      -39      -20
Income from subsidiaries                 -193     352      -12       22

Profit from normal operations          10 533   9 068      673      579

Corporate Income tax                     -789    -365      -50      -23
Profit after taxes, incl
                                         97448 703         623      556
Minority interest
Net profit for the year                 9 735    8087      623      517
                                            9     616        0       39
Basic and diluted
earnings per share                       0,58    0,48     0,04     0,03

Karin Padjus
Financial manager
+372 674 7403
GlobeNewswire