EVOX RIFA GROUP OYJ STOCK EXCHANGE RELEASE
on April 29, 2002 at 10.00 o´clock a.m.

EVOX RIFA GROUP INTERIM REPORT JANUARY 1, 2002 - MARCH 31, 2002

• Net sales of the first quarter of 2002 were EUR 13.3 million (EUR 22.5 million in the first quarter of 2001)

• Operating loss was EUR 2.7 million (profit EUR 1,1 million)

• Loss before extraordinary items was EUR 2.6 million (profit EUR 0.6 million)

• Earnings per share was EUR –0.030 (EUR 0.004)

• Order backlog on March 31, 2002 was EUR 11.3 million (EUR 28.0 million)

ECONOMIC DEVELOPMENT

Net Sales

Net sales of the group were EUR 13.3 million, which is EUR 9.1 million (40.6%) less than during the same period in the previous year.

However, sales developed quite well in the customer sectors of automotive industry and industrial electronics. Evox Rifa’s market share increased in these customer sectors and the company was able to get development projects of new significant product applications.

Film capacitors remained the company’s largest product group.

Compared to the previous year, aluminium electrolytic capacitors increased most their share of the total sales of the group.

Profit

The group’s profitability during the first quarter of 2002 was negative, but cost saving means improved the situation compared to the situation at the end of the previous year. The whole industry still suffers from a weak demand which decreased group’s profits. The group’s operating loss was EUR 2.7 million (profit EUR 1.1 million) and loss before extraordinary items was EUR 2.6 million (profit EUR 0.6 million).

Earnings per share was EUR –0.030 (EUR 0.004)and shareholders’ equity per share was EUR 0.268 (EUR 0.361).

Order backlog

The weak demand in electronics industry affected also Evox Rifa’s order backlog which decreased towards the end of 2001 to about EUR 10 million, and was EUR 11.3 million at the end of the first quarter of 2002 (EUR 28.0 million at the end of first quarter of 2001).  The order backlog has been approximately at the same level during the last six months.

FINANCIAL STATUS AND CAPITAL EXPENDITURE

The financial status of Evox Rifa Group weakened due to the unsatisfactory market situation. Further means will be taken to reduce the working capital. The group’s liquid assets were EUR 6.3 million and the group’s equity ratio was 42.7% at the end of first quarter of 2002.

Gross capital expenditure into fixed assets amounted to EUR 0.8 million. The main part of this were investments in the Chinese joint venture. Capacitor production at the Chinese factory started in April, 2002.

SHARES AND SHARE CAPITAL

The nominal value of the shares of Evox Rifa Group Oyj is EUR 0.05, the number of shares was 86 685 509 on March 31, 2002 and the share capital was EUR 4 334 275.45.

THE ANNUAL SHAREHOLDERS MEETING

The Annual Shareholders’ Meeting held on March 27, 2002 decided according to the proposal of the Company’s Board of Directors not to distribute dividend for 2001.

Mikko J. Aro, Georg Ehrnrooth, Henrik Ehrnrooth, Veikko Laine, Jerker Molander and Jarmo Niemi were elected members of the Board of Directors. Jerker Molander continues as the Chairman of the Board.

The Shareholders Meeting resolved to authorize the Board of Directors to decide to increase the share capital by one or several new issues and/or to take one or several convertible loans, so that in a new issue of shares and/or in convertible loans the share capital may be increased by an aggregate maximum amount of EUR 866,855 or a smaller amount corresponding to a maximum of one-fifth of the registered share capital and the aggregate number of votes attaching to the shares at the time of the authorisation decision of the Shareholders’ Meeting and the decision of the Board of Directors to increase the share capital.  The authorisation is in force for one year from the date of the Annual Shareholders Meeting.

Authorized public accounting firm PricewaterhouseCoopers Oy was appointed auditor of the company.

PERSONNEL

The average number of personnel of Evox Rifa Group during the first quarter of 2002 was 1158 (1479 during the corresponding period in 2001).

SIGNIFICANT EVENTS AFTER MARCH 31, 2002

Evox Rifa Group´s offer to acquire the entire share capital of BHC Aerovox Ltd. has been accepted. The transaction is expected to be completed by early May. With the acquisition of BHC, Evox Rifa becomes the leading European electrolytic capacitor manufacturer. Evox Rifa pays EUR 5.4 million for the shares of BHC Aerovox Ltd. and assumes its debts worth EUR 2.7 million.

In order to secure financing for the acquisition, the Board of Directors of Evox Rifa Group will at a later stage propose to an Extraordinary Shareholders’ Meeting to arrange a rights issue. The largest shareholders comprising of Fennogens SA, Veikko Laine Oy, Procurator Oy and Eläkevakuutusyhtiö Varma-Sampo, have agreed to participate in the proposed rights issue. These shareholders have agreed to underwrite the rights issue whereby one existing share would give the right to subscribe for one new share at a price of 7 cents, up to EUR 6.07 million.

OUTLOOK FOR THE YEAR 2002

The low level of demand at the end of 2001 has continued during the first quarter of 2002. However, order backlog has not decreased during the last six months. There are still no clear signs of stronger demand. Short order-delivery cycles are typical in the current situation.

The result of the second quarter will remain negative due to unsatisfactory market situation.  It is very difficult to estimate future sales development and financial results because customers cannot give any estimates of their orders to us.

Due to the difficult market situation Evox Rifa Group continues to adjust its production volumes and other activities to the level of present and estimated demand. Saving programs and cost cutting activities will be continued in all group’s functions. Cost benefits are obtained by increasing production in Asia where there already are some signs of improved demand.

Actions to reduce inventories and receivables are continued. With the exception of strategic investments (joint venture in China and the acquisition of BHC Aerovox Ltd.), the group will make only necessary maintenance and service investments.

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 April 29, 2002

EVOX RIFA GROUP OYJ

Harri Launonen
President

For further information please contact:
Evox Rifa Group Oyj
Harri Launonen
President
tel. +358 9 5406 5001

DISTRIBUTION
Helsinki Exchanges
Main Media