Börsiteade

Pealkiri

Results of operations of the Ekspress Group, first 3 months of 2008

Teade

INTERIM MANAGEMENT REPORT                                                       
The sales revenue of Ekspress Group grew in the first quarter by 29% as compared
to the same period of the last year. Such a growth is mainly attributable to the
contribution of new companies that were added to Ekspress Group in 2007 as well 
as the growth of the sales revenue of the existing companies.                   
Key figures characterising the activities of Ekspress Group in the first quarter
2008                                                                            
- 	Sales revenue EEK 321.3 million (EUR 20.5 million), year-over-year growth 29%
                                                                                
- 	Gross profit EEK 81.4 million (EUR 5.2 million), year-over-year growth 24%   
                                                                                
- 	EBITDA EEK 40.1 million (EUR 2.6 million), year-over-year growth 31%         
                                                                                
- 	EBIT EEK 25.2 million (EUR 1.6 million), year-over-year growth 13%           
                                                                                
- 	Net profit EEK 10.9 million (EUR 0.7 million), year-over-year change -41%    

Key events of the first quarter 2008                                            
- Launch of automobile portal www.EkspressAuto.ee                               
- Launch of real estate portal www.EkspressKinnisvara.ee                        
- Launch of entertainment portal www.klubas.lt  in Lithuania                    
- Putting into operation of new magazine glueing line in AS Printall            


Overview of the advertising market                                              
According to the survey of the Estonian advertising market conducted by TNS     
Emor, the advertising revenue of the first quarter was EEK 407 million which    
constituted a minimal decline of 1.2% as compared to the same figure in the     
first quarter of 2007, but it must be borne in mind that the first quarter of   
the last year was impacted by the advertising costs for elections. Due to the   
increase of advertising prices at the beginning of 2008, no significant general 
decline of the advertising revenue was observed in the first quarter.           

A decrease of 7% and 8% was demonstrated by newspapers and television           
advertising, respectively, which is also natural, since these two types of media
received the largest proportion of the media advertising money related to the   
elections in the same period of the last year. As compared to the first quarter 
of 2007, which includes elections advertising, the Internet advertising has     
increased the most, i.e. by 35%.                                                

Of the advertising revenue, the newspaper advertising continues to have the     
largest share of 40%, but together with the TV advertising they both have lost  
positions to the Internet advertising, whose share has increased from 7% in the 
first quarter of 2007 to 10% in the first quarter of 2008.                      

Of the types of advertising, the automobile advertising, travel advertising and 
luxury goods advertising were prevailing in the first quarter of 2008.          

Contrary to some cooling-off in the Estonian advertising market, the Lithuanian 
advertising market shows the signs of a rise. According to the survey of the    
Lithuanian advertising market conducted by TNS Emor Lithuania, the Internet     
advertising revenue increased in Lithuania 89% and magazines advertising revenue
25%  in the first quarter as compared to the same period of 2007. Such behaviour
in the Lithuanian advertising market may be explained by the fact that the      
largest economic decline in Lithuania is expected to occur in 2009 according to 
the economic forecast by Hansabank. In Estonia, economy will reach its lowest   
point in autumn 2008 as forecast by Hansabank.                                  

Overview by segments                                                            
In the first quarter 2008, the activities of Ekspress Group continued to focus  
on the five main segments: online media, publishing, printing services, book    
sales and information services. Since 2008, the online media segment includes   
also the web publications of AS Eesti Päevaleht, SLÕhtuleht AS and Eesti        
Ekspress Kirjastus AS, and automobile, real estate and employment web           
environments of Eesti Ekspress Kirjastus AS, which were earlier included under  
the publishing segment.                                                         
The largest growth of sales revenue in absolute terms in the first quarter 2008 
as compared to the same period of 2007 was attained in the online media segment 
related to the addition of Delfi Group to Ekspress Group in September 2007. A   
significant contribution to the growth of the sales revenue in the first quarter
was made by the publishing of newspapers and magazines, partially also by the   
addition of AS Maaleht to the Group in October 2007, and by the segment of      
printing services where the growth of sales revenue was achieved through the    
growth of production capacities upon launching of a new printing press in       
October 2007.                                                                   
A Russian-language news portal (http://ru.delfi.lt), opened in Lithuania in     
November 2007, was characterised in the first quarter 2008 by 52 000 unique     
visits per month. As of the balance sheet date, AS Delfi manages together with  
its Latvian and Lithuanian subsidiaries Estonian and Russian-language portals in
Estonia http://www.delfi.ee and rus.delfi.ee, Latvian and Russian-language      
portals in Latvia http://www.delfi.lv and rus.delfi.lv, Lithuanian and Russian  
language portals in Lithuania http://www.delfi.lt, http://ru.delfi.lt), and a   
news portal in the Ukraine http://www.delfi.ua.                                 
In the first quarter 2008, new automobile and real state combined environments  
in collaboration with Delfi Eesti and Eesti Ekspress were launched. At the end  
of January, an automobile portal www.EkspressAuto.ee was launched which quickly 
became the second most frequently visited automobile portal. In the first       
quarter, the new automobile portal was visited on average by 33 000 unique      
visitors per week. In the middle of February, a real estate portal              
www.EkspressKinnisvara.ee was launched which was visited in the first quarter on
average by 23 000 unique visitors per week. In the first quarter, an            
entertainment portal www.klubas.lt was launched in Lithuania, which is expected 
to attract the active interest of clients, which has already been supported by  
the celebrity magazine with the same name “Klubas”. A new job announcement      
portal www.EkspressJob.ee is planned to be launched in April.                   
The annual growth in the sales revenue of Delfi Group in the first quarter 2008 
was 30%.  EBITDA in the first quarter 2008 remained at the level of the same    
period in 2007 due to the expenses for the launch of Delfi Ukraine. The EBITDA  
margin was 32%, which due to the seasonal nature of the Internet advertising is 
always below the yearly average in the first quarter.                           

The advertising revenues of the publishing segment included the signs of a      
slow-down in the growth of advertising turnover observed in the fourth quarter  
of the last year. Given the seasonal nature of the advertising business, due to 
the growth of advertising revenue from the addition of Maaleht as well as new   
publications the impact of the decline period of the first quarter is more      
pronounced on the segment's economic indicators. The growth of the advertising  
expenses has been a minimal 1.9% as compared to the first quarter 2007. The     
growth in the subscription and sale of periodicals was significant - 27% and    
22%, respectively as compared to the same period in 2007, based on the addition 
of Maaleht as well as other publications in the second half of 2007. The        
slow-down of the advertising revenue has an important impact on the profit of   
the publishing segment, because the gross margin of advertising revenue is      
significantly higher than that of subscriptions. EBITDA margin rose from 11% in 
the first quarter of 2007 to 13% in the same period of 2008. Excluding an       
extraordinary profit from the sale of OÜ Netikuulutused in the first quarter of 
2008 in the amount of EEK 3.5 million (EUR 0.2 million), the EBITDA margin was  
10.3%.                                                                          

In the segment of printing services, the sales growth in the first quarter 2008 
was a significant 12% as compared to the same period in 2007. The export        
turnover demonstrated the largest growth, a significant growth also concerns    
non-Group Estonian customers. The growth of EBITDA is 15%.                      
In the second half of 2007, the modernisation of the magazine production unit   
was commenced, the first stage of which comprised the launching of the magazine 
printing machine Rotoman with the production capacity 55 000 of 16 pages A4     
printsheets per hour. In February 2008, a new glueing line Kolbus, unique in    
Estonia, was put into operation, enabling to simultaneously insert up to three  
advertising sheets and glue one product sample. The production capacity of the  
new glueing line is up to 8000 products per hour.                               
In the second quarter, it is planned to launch a new stitching line, and an     
assembling and packing line of magazines.                                       
The modest sales growth 12% in book sales is a sign of some decline in retail   
trade. The EBITDA growth of 52% is remarkable as compared to the same period in 
2007, which is attained owing to the better conditions for buying-in of books.  
Additional sales revenue is expected in the second half of 2008 as a result of  
the opening of new stores in Tartu, Tallinn and Pärnu.                          
The sales revenue of information services increased in the first quarter of 2008
by 23% as compared to the same period in 2007. EBITDA comprised 29% of the 2007 
level. The decline of EBITDA is related to larger-than-forecast losses of the   
subsidiary of AS Ekspress Hotline located in Romania, which is caused by a small
number of concluded sales contracts. The reason for the not-as-planned beginning
of the business activities in Romania is the postponement of a service          
short-number competition due to the delay in adoption of a new electronic       
communication law.                                                              
Profit                                                                          
Given the seasonal nature of the advertising business, the addition of AS       
Maaleht and Delfi Group has led to significantly increased share of advertising 
revenue in the Group's sales revenue, therefore the impact of the seasonal      
nature on the Group's sales revenue and profit is larger than ever before. The  
impact of the downturn of the advertising business in the first quarter on the  
Group's sales revenue and profit manifested itself in a modest growth in        
advertising revenue and a decline of profit.                                    
EBITDA in the first quarter of 2008 comprised EEK 40.1 million (EUR 2.6         
million), exceeding by 31% the result of the same period in 2007. EBIT in the   
first quarter reached EEK 25.2 million (EUR 1.6 million), increasing by 13% as  
compared to the last year. The operating margin in the first quarter was 8%     
(first quarter 2007: 9%). The slowdown of EBIT results from the growth of       
depreciation related to the intangible assets acquired in the acquisition of    
Delfi and Maaleht.                                                              
The marketing expenses of the Group are increasing due to expansion of the Group
and launching of new products. The annual growth is 23% as compared to the first
quarter 2007. The administrative expenses have increased by 45% in the first    
quarter as compared to the same period last year. The growth is mainly caused by
increased labour expenses, which comprise 49.7% of the level of the first       
quarter. Of this, 31.7% is attributable to the addition of new companies (AS    
Maaleht, Delfi Grupp, TeleTell) and 18% is attributable to the increased number 
of employees in the web publications of newspapers and magazines and raising of 
wages in 2007.                                                                  

The financial expenses of the Group in the first quarter 2008 reached EEK 14.6  
million (EUR 0.9 million). A major part of the financial expenses is made up of 
interest expenses in the amount of EEK 14.1 million (EUR 0.9 million) (first    
quarter 2007: EEK 2.6 million (EUR 0.2 million). The growth of interest expenses
is related to the loan in the amount of EEK 674.4 million (EUR 43.1 million)    
taken from the syndicate of SEB, Sampo Pank and Nordea Pank for the acquisition 
of Delfi and Maaleht by the Ekspress Group in the third quarter 2007.           
Overall, Ekspress Group earned a net profit (after taxes and minority interest) 
in the amount of EEK 10.9 million (EUR 0.7 million) in the first quarter 2008.  
As compared to same period in 2007, the net profit decreased by 41%. Besides the
events influencing EBIT, the slow-down in the growth of net profit is related to
the increased interest expenses in connection with the syndicate loan in the    
amount of EEK 674.4 million (EUR 43.1 million) taken in August 2007.            

Under the conditions of the slow-down of economic growth, with the forecast     
economic growth of 2% in 2008 according to the spring forecast by the Bank of   
Estonia, the effectiveness of business activities and saving of expenses are    
becoming increasingly more important. As a result thereof, the Group has        
prepared a cost saving plan. Of the measures related to cost saving in the      
publishing segment, a decrease of pages of a newspaper, partial replacement of  
colour printing with black and white printing, uniting of inserts with the      
principal part of a publication, etc. are worth mentioning. These measures      
manifest themselves in the saving of paper and printing expenses. Of the fixed  
expenses, the most important source of saving is the labour expenses. Cost      
savings are achieved so that wages increases are postponed, new people are not  
hired to replace those who have left or they are recruited internally. Lay-offs 
of employees will be also carried out.                                          

Balance sheet and investments                                                   
As of 31 March 2008, the consolidated balance sheet total of Ekspress Group was 
EEK 1722.9 million (EUR 110.1), increasing by 1.3 times in a year. The assets   
and liabilities included in the balance sheet have increased as a result of the 
expansion of the Group and the investments made to acquire non-current assets.  
                                                                                
Current assets increased by 17% in a year, reaching EEK 281.9 million (EUR 18.0 
million) as of 31 March 2008. Of the current assets, the Group's inventories    
increased the most, both in percentage and in absolute numbers, reaching EEK    
69.1 million (EUR 4.4 million) at the end of March, the growth in a year being  
46%. The increase of inventories is related to the addition of Maaleht in       
October 2007 and the expansion of production of Printall. Current liabilities   
increased by 46% in a year, reaching EEK 429.0 million (EUR 27.4 million) at the
end of March. Of the current liabilities, trade payables and prepayments        
increased the most, reaching EEK 253.4 million (EUR 16.2 million) at the end of 
March. The increase of trade payables and prepayments was related to the loan   
taken from a related party, the prepayments of customers also increased         
significantly.                                                                  

As of end of March, the long-term borrowings of the Group totalled EEK 712.4    
million (EUR 45.5 million), growing 2.9 times in a year. Of the long-term       
borrowings, bank loans total EEK 585.2 million (EUR 37.4 million) and finance   
lease payables total EEK 127.2 million (EUR 8.1 million).                       
As of the end of March, property, plant and equipment stood at EEK 401.3 million
(EUR 257 million), increasing by 40% in a year. A major part of the growth of   
property, plant and equipment is made up of the cost of the new printing press  
acquired by Printall in the amount of EEK 74.0 million (EUR 4.7 million). As of 
the end of March, intangible assets stood at EEK 1 021.6 million (EUR 65.3      
million), increasing by 6.1 times in a year. Of the growth of intangible assets,
EEK 836.0 million (EUR 53.4 million) is made up of the carrying value of        
trademarks, customer relations and software related to the purchase of Delfi    
Group as well as goodwill which arose in the acquisitions. The carrying value of
the trade mark and the goodwill which arose in the acquisition of Maaleht       
amounts to EEK 39.5 million (EUR 2.5 million).                                  


Employees                                                                       
As of the end of March, the Ekspress Group employed 2 325 people (As of 31 March
2007: 1 964 people). The average number of employees in the first quarter of    
2008 was 2 321 (Q I 2007: 1 940 ). In the first quarter of 2008, wages and      
salaries paid to the employees of the Ekspress Group totalled EEK 70.7 million  
(EUR 4.5 million), (Q I 2007: EEK  48.0 million  (EUR 3.1 million))*.           

*proportional part from joint ventures                                          

Olulisemad finantsnäitajad                                                      
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| Performance indicators (%)      |    |      Q I  2008       |   Q I  2007    |
--------------------------------------------------------------------------------
| Sales growth (%)                |         29%         |         18%          |
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| Gross profit margin (%)         |         25%         |         26%          |
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| Net profit margin (%)           |         3%          |          7%          |
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| Equity ratio (%)                |         34%         |         37%          |
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| ROA (%)                         |         1%          |          3%          |
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| ROE (%)                         |         2%          |          7%          |
--------------------------------------------------------------------------------
| Operating profit margin (%)     |         8%          |          9%          |
--------------------------------------------------------------------------------
| Liquidity ratio                 |        0,66         |         0,82         |
|                                 |                     |                      |
--------------------------------------------------------------------------------
| Debt equity ratio (%)           |        161%         |         108%         |
--------------------------------------------------------------------------------
| Financial leverage (%)          |         59%         |         44%          |
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| (sales 1 kv 2008 -sales  1 kv 2007) / sales 1 kv 2007*100                    |
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| gross profit/ sales*100                                                      |
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| net profit/ sales*100                                                        |
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| equity / (equity + debt) * 100                                               |
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| net profit/assets *100                                                       |
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| net profit/equity *100                                                       |
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| operating profit/ sales*100                                                  |
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| current assets/current liabilities                                           |
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| interest bearing liabilities/equity*100                                      |
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| interest bearing liabilities-cash and cash equivalents/interest bearing      |
| liabilities + equity * 100                                                   |
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Consolidated interim balance sheet (unaudited)                                  
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EEK                                      |
--------------------------------------------------------------------------------
|              31.03.2008 |              31.12.2007 |               31.03.2007 |
--------------------------------------------------------------------------------
| (thousand)                          |                                        |
--------------------------------------------------------------------------------
| ASSETS                              |            |             |             |
--------------------------------------------------------------------------------
| Current assets                      |            |             |             |
--------------------------------------------------------------------------------
| Cash and cash equivalents           |     37 775 |      68 970 |      38 342 |
--------------------------------------------------------------------------------
| Other financial assets at fair      |      5 682 |       4 606 |       6 847 |
| value through profit or loss        |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |    168 652 |     165 828 |     147 987 |
--------------------------------------------------------------------------------
| Inventories                         |     69 147 |      66 161 |      47 358 |
--------------------------------------------------------------------------------
| Assets classified as held for sale  |        670 |           0 |           0 |
--------------------------------------------------------------------------------
| Total current assets                |    281 926 |     305 565 |     240 534 |
--------------------------------------------------------------------------------
| Non-current assets                  |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |     13 624 |      13 671 |       9 706 |
--------------------------------------------------------------------------------
| Investments in associates           |        740 |         964 |         168 |
--------------------------------------------------------------------------------
| Investment property                 |      3 635 |       3 732 |       4 026 |
--------------------------------------------------------------------------------
| Property, plant and equipment       |    401 348 |     404 880 |     360 156 |
--------------------------------------------------------------------------------
| Intangible assets                   |  1 021 625 |   1 023 419 |     144 044 |
--------------------------------------------------------------------------------
| Total non-current assets            |  1 440 972 |   1 446 666 |     518 100 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                        |  1 722 898 |   1 752 231 |     758 634 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES |            |             |             |
--------------------------------------------------------------------------------
| Liabilities                         |            |             |             |
--------------------------------------------------------------------------------
| Current liabilities                 |            |             |             |
--------------------------------------------------------------------------------
| Borrowings                          |    175 595 |     199 013 |     106 148 |
--------------------------------------------------------------------------------
| Trade and other payables            |    253 397 |     240 703 |     188 223 |
--------------------------------------------------------------------------------
| Total current liabilities           |    428 992 |     439 716 |     294 371 |
--------------------------------------------------------------------------------
| Non-current liabilities             |            |             |             |
--------------------------------------------------------------------------------
| Borrowings                          |    712 426 |     741 585 |     182 928 |
--------------------------------------------------------------------------------
| Other long term liabilities         |        308 |          88 |         292 |
--------------------------------------------------------------------------------
| Total non-current liabilities       |    712 734 |     741 673 |     183 220 |
--------------------------------------------------------------------------------
| Total liabilities                   |  1 141 726 |   1 181 389 |     477 591 |
--------------------------------------------------------------------------------
| Equity                              |            |             |             |
--------------------------------------------------------------------------------
| Capital and reserves attributable   |            |             |             |
| to equity holders of the Parent     |            |             |             |
| company                             |            |             |             |
--------------------------------------------------------------------------------
| Share capital                       |    189 711 |     189 711 |     165 232 |
--------------------------------------------------------------------------------
| Share premium                       |    183 495 |     183 495 |           0 |
--------------------------------------------------------------------------------
| Reserves                            |     10 273 |      10 222 |       2 766 |
--------------------------------------------------------------------------------
| Retained earnings                   |    196 820 |     185 981 |     112 714 |
--------------------------------------------------------------------------------
| Currency translation reserve        |        526 |         480 |           0 |
--------------------------------------------------------------------------------
| Total capital and reserves          |    580 825 |     569 889 |     280 712 |
| attributable to equity holders of   |            |             |             |
| the Parent company                  |            |             |             |
--------------------------------------------------------------------------------
| Minority interest                   |        347 |         953 |         331 |
--------------------------------------------------------------------------------
| Total equity                        |    581 172 |     570 842 |     281 043 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES        |  1 722 898 |   1 752 231 |     758 634 |
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Consolidated interim balance sheet (unaudited)                                  
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EUR                                      |
--------------------------------------------------------------------------------
|              31.03.2008 |              31.12.2007 |               31.03.2007 |
--------------------------------------------------------------------------------
| (thousand)                          |                                        |
--------------------------------------------------------------------------------
| ASSETS                              |            |             |             |
--------------------------------------------------------------------------------
| Current assets                      |            |             |             |
--------------------------------------------------------------------------------
| Cash and cash equivalents           |      2 414 |       4 408 |       2 451 |
--------------------------------------------------------------------------------
| Other financial assets at fair      |        363 |         294 |         438 |
| value through profit or loss        |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |     10 779 |      10 598 |       9 458 |
--------------------------------------------------------------------------------
| Inventories                         |      4 419 |       4 228 |       3 027 |
--------------------------------------------------------------------------------
| Assets classified as held for sale  |         43 |           0 |           0 |
--------------------------------------------------------------------------------
| Total current assets                |     18 018 |      19 528 |      15 374 |
--------------------------------------------------------------------------------
| Non-current assets                  |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |        872 |         874 |         620 |
--------------------------------------------------------------------------------
| Investments in associates           |         47 |          62 |          11 |
--------------------------------------------------------------------------------
| Investment property                 |        232 |         239 |         257 |
--------------------------------------------------------------------------------
| Property, plant and equipment       |     25 651 |      25 877 |      23 018 |
--------------------------------------------------------------------------------
| Intangible assets                   |     65 294 |      65 408 |       9 206 |
--------------------------------------------------------------------------------
| Total non-current assets            |     92 096 |      92 460 |      33 112 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                        |    110 114 |     111 988 |      48 486 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES |            |             |             |
--------------------------------------------------------------------------------
| Liabilities                         |            |             |             |
--------------------------------------------------------------------------------
| Current liabilities                 |            |             |             |
--------------------------------------------------------------------------------
| Borrowings                          |     11 223 |      12 719 |       6 784 |
--------------------------------------------------------------------------------
| Trade and other payables            |     16 195 |      15 384 |      12 030 |
--------------------------------------------------------------------------------
| Total current liabilities           |     27 418 |      28 103 |      18 814 |
--------------------------------------------------------------------------------
| Non-current liabilities             |            |             |             |
--------------------------------------------------------------------------------
| Borrowings                          |     45 532 |      47 396 |      11 691 |
--------------------------------------------------------------------------------
| Other long term liabilities         |         20 |           6 |          19 |
--------------------------------------------------------------------------------
| Total non-current liabilities       |     45 552 |      47 402 |      11 710 |
--------------------------------------------------------------------------------
| Total liabilities                   |     72 970 |      75 505 |      30 524 |
--------------------------------------------------------------------------------
| Equity                              |            |             |             |
--------------------------------------------------------------------------------
| Capital and reserves attributable   |            |             |             |
| to equity holders of the Parent     |            |             |             |
| company                             |            |             |             |
--------------------------------------------------------------------------------
| Share capital                       |     12 125 |      12 125 |      10 560 |
--------------------------------------------------------------------------------
| Share premium                       |     11 727 |      11 727 |           0 |
--------------------------------------------------------------------------------
| Reserves                            |        657 |         653 |         177 |
--------------------------------------------------------------------------------
| Retained earnings                   |     12 579 |      11 886 |       7 204 |
--------------------------------------------------------------------------------
| Currency translation reserve        |         34 |          31 |           0 |
--------------------------------------------------------------------------------
| Total capital and reserves          |     37 122 |      36 422 |      17 941 |
| attributable to equity holders of   |            |             |             |
| the Parent company                  |            |             |             |
--------------------------------------------------------------------------------
| Minority interest                   |         22 |          61 |          21 |
--------------------------------------------------------------------------------
| Total equity                        |     37 144 |      36 483 |      17 962 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES        |    110 114 |     111 988 |      48 486 |
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Consolidated interim income statement (unaudited)                               
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|                                     EEK                                      |
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|                             Q I  2008 |                            Q I  2007 |
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| (thousand)                                 |                                 |
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| Sales                                      |        321 338 |        249 592 |
--------------------------------------------------------------------------------
| Costs of sales                             |        239 948 |        184 093 |
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| Gross margin                               |         81 390 |         65 499 |
--------------------------------------------------------------------------------
| Marketing expenses                         |         17 257 |         14 078 |
--------------------------------------------------------------------------------
| Administrative expenses                    |         41 177 |         28 425 |
--------------------------------------------------------------------------------
| Other income                               |          4 751 |          1 226 |
--------------------------------------------------------------------------------
| Other expenses                             |          2 501 |          1 839 |
--------------------------------------------------------------------------------
| Operating profit                           |         25 206 |         22 383 |
--------------------------------------------------------------------------------
| Interest income                            |            277 |            737 |
--------------------------------------------------------------------------------
| Interest expenses                          |       (14 090) |        (2 600) |
--------------------------------------------------------------------------------
| Currency exchange loss                     |          (331) |           (16) |
--------------------------------------------------------------------------------
| Other financial income                     |            175 |            294 |
--------------------------------------------------------------------------------
| Other financial expenses                   |          (175) |            (5) |
--------------------------------------------------------------------------------
| Financial income/expenses total            |       (14 144) |        (1 590) |
--------------------------------------------------------------------------------
| Share of profit (loss )of associates       |          (198) |            334 |
--------------------------------------------------------------------------------
| Profit before income tax                   |         10 864 |         21 127 |
--------------------------------------------------------------------------------
| Income tax expense                         |              0 |          2 564 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR                        |         10 864 |         18 563 |
--------------------------------------------------------------------------------
| Attributable to:                           |                |                |
--------------------------------------------------------------------------------
| Equity holders of the Parent company       |         10 839 |         18 404 |
--------------------------------------------------------------------------------
| Minority interest                          |             25 |            159 |
--------------------------------------------------------------------------------
| Basic and diluted earnings per share for   |           0,57 |           1,11 |
| profit attributable to the equity holders  |                |                |
| of the Company                             |                |                |
--------------------------------------------------------------------------------
Consolidated interim income statement (unaudited)                               
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EUR                                      |
--------------------------------------------------------------------------------
|                            Q I  2008 |                             Q I  2007 |
--------------------------------------------------------------------------------
|  (thousand)                                  |                               |
--------------------------------------------------------------------------------
| Sales                                        |        20 537 |        15 952 |
--------------------------------------------------------------------------------
| Costs of sales                               |        15 335 |        11 766 |
--------------------------------------------------------------------------------
| Gross margin                                 |         5 202 |         4 186 |
--------------------------------------------------------------------------------
| Marketing expenses                           |         1 103 |           900 |
--------------------------------------------------------------------------------
| Administrative expenses                      |         2 632 |         1 817 |
--------------------------------------------------------------------------------
| Other income                                 |           304 |            78 |
--------------------------------------------------------------------------------
| Other expenses                               |           160 |           118 |
--------------------------------------------------------------------------------
| Operating profit                             |         1 611 |         1 431 |
--------------------------------------------------------------------------------
| Interest income                              |            18 |            47 |
--------------------------------------------------------------------------------
| Interest expenses                            |         (901) |         (166) |
--------------------------------------------------------------------------------
| Currency exchange loss                       |          (21) |           (1) |
--------------------------------------------------------------------------------
| Other financial income                       |            11 |            19 |
--------------------------------------------------------------------------------
| Other financial expenses                     |          (11) |             0 |
--------------------------------------------------------------------------------
| Financial income/expenses total              |         (904) |         (102) |
--------------------------------------------------------------------------------
| Share of profit (loss )of associates         |          (13) |            21 |
--------------------------------------------------------------------------------
| Profit before income tax                     |           694 |         1 350 |
--------------------------------------------------------------------------------
| Income tax expense                           |             0 |           164 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR                          |           694 |         1 186 |
--------------------------------------------------------------------------------
| Attributable to:                             |               |               |
--------------------------------------------------------------------------------
| Equity holders of the Parent company         |           693 |         1 176 |
--------------------------------------------------------------------------------
| Minority interest                            |             2 |            10 |
--------------------------------------------------------------------------------
| Basic and diluted earnings per share for     |          0,04 |          0,07 |
| profit attributable to the equity holders of |               |               |
| the Company                                  |               |               |
--------------------------------------------------------------------------------

Additional information:
Priit Leito
Chairman of the Board
AS Ekspress Grupp
Phone: +372 6 698 340
E-mail: [email protected]