EVOX RIFA GROUP INTERIM REPORT JANUARY 1, 2001 — JUNE 30, 2001

• Net sales for the first half of 2001 were EUR 40,6 million (EUR 41,0 million in 2000)

• Operating profit was EUR 0,5 million (EUR 1,4 million)

• Loss before extraordinary items was EUR 0,3 million (profit EUR 0,8 million in 2000)

• Earnings per share was EUR -0,004(EUR 0,005)

• Order backlog on June 30, 2001 was EUR 17,8 million (EUR 29,5 million)

FINANCIAL DEVELOPMENT

The financial information presented in this bulletin are given as pro forma figures for the periods of comparison from the previous year due to the fact that the company was established as a result of Finvest Oyj’s demerger on October 20, 2000 and, therefore, actual figures for comparison do not exist.

Net sales

The Group’s net sales were nearly at the same level at the end of the first half of the current year as at the end of the corresponding period of the previous year: EUR 40,6 million in 2001 and EUR 41,0 million in 2000.

The slight downturn of the revenue reflects the general development in the world economy and the negative trend in the market. The relative growth of the revenue was again strongest in the Nordic market comprising more than one fourth of the Group net sales. The rest of Europe still covered more than 30% of the net sales.

Within Evox Rifa Group’s product families, the increase in the sales of electrolytic capacitors continued to be strong - approximately 20% compared to the situation at the beginning of the year. This product group was clearly least affected by the current market slowdown. However, the film capacitors still remained the biggest product line of the Group comprising nearly 40% of its total net sales.

As regards to Evox Rifa’s customer segments, the industrial electronics continued to increase its relative portion of the Group’s net sales compared to the situation at the beginning of the year covering 25% of the total net sales. This customer segment is also the biggest buyer of Evox Rifa’s electrolytic capacitors.

Profit

Evox Rifa Group’s profitability decreased compared to the previous year due to unfavourable market conditions and price pressures. Operating margin was EUR 0,5 million (EUR 1,4 million) and loss before extraordinary items was EUR 0,3 million (profit EUR 0,8 million).

The Group’s earnings per share was EUR -0,004 (EUR 0,005) and shareholders’ equity per share was EUR 0,355 (EUR 0,349).

Order backlog

The order backlog of Evox Rifa Group Oyj continued to decline in accordance with the general market trend. The order backlog was EUR 17,8 million at the end of the first half of 2001 (EUR 29,5 million at the end of the first half of 2000).

FINANCIAL STATUS AND CAPITAL EXPENDITURE

Despite of Evox Rifa’s unsatisfactory level of profitability during the first half of the year, its financial status remained satisfactory. The operating cash flow was positive and remained positive after investments into fixed assets. This was due to rescheduling of the investments and various savings programs. Group’s liquid funds were EUR 5,5 million and equity ratio was at a good level of 49,7%.

Gross capital expenditure into fixed assets amounted to EUR 1,8 million. The investments were used to renew production machinery and to improve efficiency in production.

SHARES AND SHARECAPITAL

The nominal value of the shares of Evox Rifa Group Oyj is EUR 0,05, the number of shares was 86 685 509 on June 30, 2001 and the share capital was EUR 4 334 275,45.

PERSONNEL

The average number of personnel of Evox Rifa Group Oyj during the first half of the year 2001 was 1415 (1325 during the corresponding period in 2000).

SIGNIFICANT EVENTS AFTER JUNE 30, 2001

Evox Rifa acquired the whole share capital of Dectron AB in Sweden effective July 2, 2001. Dectron concentrates on demanding electro-technical solutions. The agreement was signed on June 15, 2001. This acquisition strengthens Evox Rifa’s technical know-how in the development of capacitor-based solutions for specific customer needs. Dectron AB is an independent business unit within the Evox Rifa Group and its financial information will be consolidated to the Group’s financial statement first time at the end of the third quarter of 2001.

Evox Rifa signed a joint venture agreement with the Chinese Jianghai company on July 5, 2001. Evox Rifa’s share of the venture is 80% and it will invest in the joint venture together with Jianghai 4 million euros during the next two years. The new company will concentrate on the production of electrolytic capacitors. The transaction supports Evox Rifa’s growth strategy and it is expected to improve Evox Rifa’s competitive advantage and financial result during the second year of its operation. The joint venture’s annual revenue is expected to reach 20 million euros.

OUTLOOK FOR THE YEAR 2001

Demand in electronics industry seems to have remained at a level which is generally described as the worst within the last few decades. Even the most prominent customers of ours do not want to give their estimates for the rest of the year. Cutting of inventory levels and ordering raw materials and components at the last possible moment is now common among Evox Rifa’s customers.

In case the demand will remain at today’s level for the rest of the year, the result of the latter half of the year is estimated to remain negative. Tight cost cutting program will be continued within the company including e.g. cutting of capital costs, temporary lay-offs and other personnel cost saving actions. For further cost saving Evox Rifa will increasingly concentrate production to Asia.

Strategic investments into China, product development and engineering know-how will be carried out according to schedule in order to be in a better-than-ever competitive shape when the demand recovers.

INCOME STATEMENT OF EVOX RIFA GROUP

Unaudited

BALANCE SHEET OF THE GROUP

Unaudited

EVOX RIFA GROUP KEY FIGURES

Unaudited

DERIVATIVE CONTRACTS

The company uses forward contracts and currency options to hedge foreign currency denominated balance sheet items against exchange rate fluctuations. The maturity of forward contracts and currency options vary from 1 to 3 months.

The market values of off-balance sheet derivative contracts made to hedge the exchange rates fluctuations (1000 EUR):

In Espoo on August 2, 2001

EVOX RIFA GROUP OYJ

Harri Launonen
President

For further information please contact:

Evox Rifa Group Oyj,
Harri Launonen,
President, tel. +358 9 5406 5001,
harri.launonen@evoxrifa.fi

Distribution:
Helsinki Exchange
Main Media