EVOX RIFA GROUP OYJ STOCK EXCHANGE RELEASE
February 12, 2002 at 11:00 a.m.

EVOX RIFA GROUP FINANCIAL PERFORMANCE 1.1. – 31.12.2002

• Net sales were EUR 69.8 million (EUR 69.0 million in 2001)
  
• Operating loss was EUR 8.9 million (loss EUR 4.8 million in 2001)
  
• Loss before extraordinary items was EUR 9.7 million (loss EUR 6.4 million)
  
• Earnings per share was EUR -0.068 (EUR -0.059)
  
• The Board of Directors proposes that no dividend be distributed from the fiscal period

STRUCTURAL CHANGES IN THE GROUP STRUCTURE

In May, 2002 Evox Rifa acquired the total share capital of the British company, BHC Aerovox Ltd. (currently BHC Components Ltd.).

FINANCIAL DEVELOPMENT

Net sales

The net sales of the group were EUR 69,8 million at the end of the fiscal year 2002(EUR 69,0 million in 2001). The share of BHC Components Ltd. of the total net sales was 14,1 MEUR.

The net sales decreased most in the North American market. The acquisition of BHC Components in May 2002 strengthened Evox Rifa’s position in the European market and the total sales remained at the same level as the year before. Evox Rifa’s sales on the Asian market continued at the same level as in 2001 regardless of increased price competition.The Business Area Electrolytic Capacitors increased its share of Evox Rifa’s total turnover. Electrolytic capacitors constituted nearly 44% of the total turnover. Out of the Evox Rifa Group’s customer sectors, the share of automotive and industrial electronics constituted 56% of the total sales in 2002.

Profit

Evox Rifa Group made an operating loss of EUR 8.9 million (loss EUR 4.8 million in 2001). Loss before extraordinary items was EUR 9.7 million (EUR 6.4 million in 2001). The operating profit of BHC Components Ltd. was EUR 0,4 million. A smaller than expected orders received in November – December contributed to a bigger loss in the fourth quarter compared to the previous quarters. The loss includes costs of EUR 1,5 million due to inventory re-valuation and reorganisation of which EUR 0,7 million during the fourth quarter.

Cost reduction programs were continued during the whole year. Further increases in price competition partially negated the effect of cost savings.

Earnings per share was EUR -0.068 (EUR -0.059) and shareholders’ equity per share EUR 0.125 (EUR 0.296).Order backlog

The order backlog of Evox Rifa Group decreased in November – December compared to the previous quarter, and was EUR 13.6 million at the end of the year 2002 (EUR 10.5 million at the end of 2001).

FINANCIAL STATUS AND CAPITAL EXPENDITURE

The financial status of Evox Rifa Group weakened during 2002 due to the weak market situation and incurred losses. Gross investments into fixed assets were EUR 7,1 million during 2002, of which EUR 5,3 million were invested in the acquisition (BHC). The main part of rest of the investments were made for the new Chinese factory.

At the end of the year, the group’s liquid assets were EUR 5.9 million. The group’s equity ratio was 36.5 % (47.5% in 2001). The change of equity during the year 2002 includes –1,3 MEUR translation differences due to the translation of the financial statements of foreign subsidiaries.

SHARES AND SHARE CAPITAL

The Extraordinary General Meeting of Evox Rifa Group Oyj on May 31, 2002 decided to increase the share capital of the company by not less than EUR 0.05 and not more than EUR 4,334,275.45 by issuing a minimum of one and a maximum of 86,685,509 new shares with a nominal value of EUR 0.05 each. The General Meeting decided that the subscription price for the new shares is EUR 0.07 per share. The increase in the share capital EUR 4.334.275,45 was registered with the trade register on July 10, 2002.

The nominal value of the shares of Evox Rifa Group Oyj is EUR 0.05. On December 31, 2002 the number of shares was 173.371.018 and the share capital was EUR 8 668 550.90.PERSONNEL
The number of personnel of Evox Rifa Group at the end of the fiscal year was 1253 (1186 in 2001) and the average figure was 1288 (1336).

The increase in the number of group’s personnel is due to the growth of the number of personnel in Asia: 509 (460 in 2001), and due to the acquisition of BHC Components Ltd., which employed 173 persons at the end of the period.

The cost saving programs concerning personnel were continued during 2002. During the year, 48 persons were made redundant at the Suomussalmi factory in Finland. 33 persons on the average have been on temporary lay-offs during 2002. Temporary lay-offs continue. During the spring of 2002 about 100 people were made redundant at the Swedish subsidiary of Evox Rifa and an agreement was reached in January 2003 on further lay-offs of 50 persons.

THE BOARD’S PROPOSAL FOR DIVIDEND DISTRIBUTION

The Board of Directors propose to the Annual Shareholders’ Meeting to be held on April 2, 2003 that no dividend be distributed from the fiscal period.OUTLOOK FOR 2003

Financial outlook

In spite of the fact that the order backlog of Evox Rifa has been increasing during January of 2003, pressures for lowering prices are still strong. For this reason, cost savings projects are continued. The outlook for the year 2003 is still uncertain. The actual turn into better in the market is not expected until the autumn.

The financial result of the first quarter of 2003 will remain negative.

Cost savings resulting from the European production transfers to Asia and lay-offs within the Business Area Film Capacitors will have financial effect only gradually beginning the second quarter of 2003. Adapting costs to the present market situation will continue during 2003.
The profitability of Business Area Electrolytic Capacitors will face a quicker recovery during 2003. Production volumes of the new Chinese factory are growing and BHC Components will continue its strong, positive performance.

Marketing and R & D

Marketing cooperation has been started with several partners:
Marketing cooperation with Matsushita (better known from its Panasonic brand) has recently started and is expected to lead into licensed manufacturing of Matsushita capacitors by Evox Rifa in the long run.

Earlier, marketing cooperation was started with Darfon Electronics and Micro Analog Systems in the US. The joint marketing is expected to bring considerable increases in sales in 2003.

The latest partner is an Indian company, Alcon, which now supplies snubber capacitors under the brand of Evox Rifa. Distribution of these products to Europe has already started.

Research and development work has brought several new product series to the market such as: a completely new snap-in product family in electrolytic capacitors; new surface mounted capacitors, a new pulse capacitor series, as well as a new X1 capacitor family for three-phase and industrial network use.

Evox Rifa has put strong efforts into tens of customized development projects, of which over half led to orders during 2002 and will bring profit from 2003 onwards.

Evox Rifa participates in EU’s Procure project which is led by DaimlerChrysler and develops passive components for extremely high temperatures.

INCOME STATEMENT OF THE GROUP

Unaudited

BALANCE SHEET OF THE GROUP

Unaudited

KEY FIGURES OF THE GROUP

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 derivative contracts made to hedge the exchange rate fluctuations (1000 EUR):
Currency options

ANNUAL SHAREHOLDERS’ MEETING

The Annual Shareholders’ Meeting of Evox Rifa Group Oyj will be held on Wednesday April 2, 2003 at 9:00 a.m., at the Auditorio Corona, Lars Sonckin kaari 16, 02600 Espoo. The balancing date of the meeting is March 21, 2003.

ANNUAL REPORT 2002

Evox Rifa Group Oyj’s annual report will be published during week 14, 2003.In Espoo, February 12, 2003

Evox Rifa Group Oyj’s Board of Directors

Evox Rifa Group Oyj

Tuula Ylhäinen
President & CEO

Further information:
Evox Rifa Group Oyj,
Tuula Ylhäinen, President & CEO
tel.: +358 9 5406 5001
tuula.ylhainen@evoxrifa.com

DISTRIBUTION:
Helsinki Exchanges
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