Financial results, 1-9/2007


Harju Elekter's third quarter results were better than expected. Through high-
volume deliveries to the European Union and also beyond, we achieved all-round
decent growth rates for our Estonian and Finnish businesses. In spite of
increasing payroll costs, the growth rates for sales revenue and business
revenue were able to outstrip the growth in business expenditures. A decent
log of orders will secure healthy growth for the coming period as well.
                       million EEK         million EUR        growth %
Key figures         1-9/2007  1-9/2006  1-9/2007 1-9/2006    1-9/2007
Turnover                 525,2    455,0    33,6     29,1         15,5
EBITDA                    55,6     44,9     3,5     2,9          23,8
Operating profit          42,1     32,7     2,7     2,1          29,0
Net profit for the period 81,5     44,2     5,2     2,8          86,6
incl equity holders
of the Parent             79,6     40,9     5,1     2,6          94,6
EPS                   4,74 EEK  2,44 EEK  0,30 EUR  0,16 EUR     94,3

At the end of the period
Total assets             767,6    720,1    49,1     46,0         6,6
Owners'equity            595,6    560,6    38,1     35,8         6,2

Performance indicators
Return of sales before
depreciation                               10,6%     9,9%
Return of sales                             8,0%     7,2%
Net profit margin                          18,3%    10,6%
Equity ratio                               77,6%    77,8%

Average number of employees                437       441

The sales revenue of the Group in the third quarter of 2007 was 195.3 million
kroons (12.5 million euros), growing 22% compared to the same period in the
previous year. During the first 9 months the sales volumes increased 15.4% to
525.2 million kroons (33.6 million euros). The fastest growth pace was in the
third quarter in the Estonian segment. Compared to the third quarter of the
previous year, the sale of Estonian companies increased 47.6% to 109.5 million
kroons (7.0 million euros). The sales revenue of the Estonian segment within
nine months reached 287.4 million kroons (18.4 million euros), growing by
29.8% or 66.0 million kroons (4.2 million euros) compared to the same period
in the previous year.

The favourable condition in Finnish economy, the growth in the given economic
sector and the positive imago of the Finnish subsidiary Satmatic Oy ensured a
continuously large amount of sales orders in the Finnish sector. The sales
volume in the third quarter reached 62.1 million kroons (4.0 million euros),
which is 32.3% more than in the reference period and within the first nine
months products were sold in the total amount of 179.9 million kroons (11.5
million euros), which is 35.2 million kroons (2.3 million euros) more than in
the previous year.

Sales revenue for the Lithuanian segment in the third quarter was 23.7 million
kroons (1.5 million euros), being 15.2 million kroons (1 million euros) less
than the third quarter results in 2006 yet outstripping the comparable result
for 2005 by 70.5%. Sub-contracting was used for equipment installation, to
execute the contracts in a timely and quality manner, which had a significant
effect on the sales volumes for Rifas in 2006. This year's third quarter,
however, may be considered a success for the Lithuanian businesses. Several
important projects became reality: such as Sivacon 8PT low-voltage switch gear
commissioned by a Belarusian enterprise and, in cooperation with a Norwegian
company, equipment for ship-building in Singapore. Also, the nine-month sales
volume of 57.9 million kroons (3.7 million euros) fell one-third short of last
year's results, yet outstripped the same result for 2005 by 1.6 times.

Of the markets, the domestic markets of the Group's companies (Estonia,
Finland and Lithuania) dominated, where 83.2% (Q3 2006: 98.0%) of the Group's
products and services were sold in the third quarter and 89.1% (9M 2006:
97.3%) within nine months. As a result of the successful selling efforts of
the companies in the Estonian segment, the sales in the third quarter and
first 9 months have increased the most in Estonia and the other markets in
European Union. The most important sales growth source on the domestic market
was that 20 more unit substations in Q3 and 63 more in 9M were sold compared
to the same periods in previous year Sales to the European Union grew in the
third quarter by 25.5 million kroons (1.6 million euros) to 26.9 million
kroons (1.7 million euros) and 38.1 million kroons (2.5 million euros) in 9M,
to 44.9 million kroons (2.9 million euros). As a new market, Greece (the EU)
was added in the second quarter Concerning other markets, the growth was
influenced by selling the low voltage distribution equipment of Harju Elekter
Elektrotehnika with the cost of 5.4 million kroons (0.3 million euros) to a US
company that will supply the equipment to Russia and Lithuanian subsidiary's
successful sales to Belarus and Norway.

Business revenue in the third quarter grew 18.5% and 14.1% in nine months,
falling short, in terms of growth rate, of sales revenue (22% and 15.4%,
respectively). High-volume commissioned jobs have entailed a need for
additional labour and also for the use of overtime work. The arrival of new
staff and also an increase in payroll costs affected business expenditures the
most. Third-quarter payroll costs were 28.9 million kroons (1.8 million
euros), which is 38% more than last year, and in nine months 84.1 million
kroons (5.4 million euros) were paid in wages, a 33% increase over last year.

As of the 30 September 2007 balance sheet date, 469 (455) employees were
employed by the Group. The nine-month average number of employees at the Group
was 437 (441), included 59 (89) in Lithuania, 77 (62) in Finland and 301 (291)
in Estonia.

The operating profit for the third quarter increased 57.3% to 20.2 million
kroons (1.3 million euros) and operating profitability was 10.3% (8.0%). The
Group's operating profit within 9 months increased 29.0% to 42.1 million
kroons (2.7 million euros) compared to the same period of the previous year
and the operating profitability was 8.0%, being 0.8% higher in the previous
year.

Third-quarter net profit was 20.1 million kroons (1.3 million euros), a gain
of 76.9%, and the parent company's shareholders' share in third-quarter net
profit increased 96.9% to 19.2 million kroons (1.2 million euros). Basic
earnings per share were 1.14 kroons (0.07 euros) and 0.58 kroons (0.04 euros)
in the comparable quarter. Affected by the profit earned from the sale of PKC
shares in the first half-year (MEEK 32.6 or MEUR 2.1), nine-month consolidated
net profit came in at MEEK 81.5 or MEUR 5.2, MEEK 44.2 or MEUR 2.8 in the
period of comparison. Parent company's shareholders' share in the net profit
was 79.6 million kroons (5.1 million euros) and 40.9 million kroons (2.6
million euros) in the period of comparison. Net profit per share was 4.74
kroons (0.30 euros) and 2.44 kroons (0.16 euros) in the period of comparison.

The amount of the consolidated balance sheet as of 30 September 2007 was 767.6
million kroons (49.1 million euros), increasing by 9.9 million kroons (0.6
million euros) in the first nine months.

The Group invested a total of 37.9 million kroons (2.4 million euros) in
tangible and intangible fixed assets and real estate in the period of nine
months, 19.2 million kroons (1.2 million euros) in the period of comparison,
of which buildings accounted for 15.2 million kroons (0.97 million euros),
land for 2.8 million kroons (0.18 million euros) and manufacturing equipment
and means of transport together for 9.3 million kroons (0.6 million euros). To
execute high-volume projects, in addition to the circulating capital, the
Group has taken out short-term loans in the amount of 17.7 million kroons (1.1
million euros), 1.6 million kroons (0.1 million euros) in the period of
comparison. To finance new construction in Lithuania, the Group took out a
long-term loan in the amount of 2.2 million kroons (142 thousand euros). Long-
term loans were repaid within nine months in the amount of 7.5 million kroons
(0.5 million euros) and in the reference period in the amount of 6.7 million
kroons (0.4 million euros) and leasing payments were paid in the amount of 850
thousand kroons (54 thousand euros) and in the reference period in the amount
of 1.0 million kroons (66 thousand euros).

Andres Allikmäe
Chairman of the Board
+372 674 7400

For more information: Internal report 1-9/2007 of Harju Elekter and Mrs Karin
Padjus, Member of the Board (phone +372 674 7403).

AS HARJU ELEKTER
BALANCE SHEET, 30.09.2007
Consolidated, unaudited

Group
in thousands                         EEK           EUR
ASSETS                           30.09.0731.12.06 30.09.07 31.12.06
Cash and cash equivalents           9 374   6 712      599      429
Trade receivables and other recei 102 816  82 765    6 571    5 290
Prepayments                         2 587     845      165       54
   Inclusive income tax                 2       2        0        0
Inventories                       120 862  79 030    7 724    5 050
TOTAL CURRENT ASSETS              235 639 169 352   15 059   10 823
Investments in associates          25 935  25 187    1 658    1 610
Other long-term financial investm 263 444 344 884   16 837   22 042
Investment property               135 117 127 268    8 636    8 134
Property, plant and equipment     104 081  87 446    6 652    5 589
Intangible assets                   3 416   3 595      219      230
Total non-current assets          531 993 588 380   34 002   37 605
TOTAL ASSETS                      767 632 757 732   49 061   48 428
LIABILITIES AND OWNERS' EQUITY
Interest-bearing loans and borrow  30 234  20 772    1 933    1 328
Trade payables and other payables  94 978  73 496    6 070    4 697
Tax liabilities                    15 992  12 268    1 022      784
   Inclusive income tax             1 952   2 401      125      154
Short-term provision                1 000     100       64        6
TOTAL CURRENT LIABILITIES         142 204 106 636    9 089    6 815
NON-CURRENT LIABILITIES            29 641  26 568    1 894    1 698
Other non-current liabilities         469     469       30       30
Total non-current liabilities      30 110  27 037    1 924    1 728
TOTAL LIABILITIES                 172 314 133 673   11 013    8 543
Share capital                     168 000 168 000   10 737   10 737
Paid-in capital over/under par      6 000   6 000      384      384
Restricted reserves               255 466 331 552   16 327   21 190
Retained earnings                 147 042 100 078    9 398    6 396
Total equity attributable to equity
holders of the Parent             576 508 605 630   36 846   38 707
Minority interests                 18 810  18 429    1 202    1 178
TOT.LIABILIT.AND OWNERS' EQUITY   767 632 757 732   49 061   48 428

INCOME STATEMENT,  1-9/2007
Consolidated,unaudited

EEK'000
GROUP                             Q3 2007 Q3 2006 1-9/2007 1-9/2006

NET SALES                         195 325 160 101  525 224  454 955
Cost of goods sold               -154 539-131 386 -425 379 -374 868
Gross profit                       40 786  28 715   99 845   80 087
Marketing expenses                 -9 053  -6 582  -23 983  -18 930
Administrative expenses           -10 863  -9 236  -32 721  -28 793
Other revenue                         151      61      496      650
Other expenses                       -809    -110   -1 493     -340
Operating profit                   20 212  12 848   42 144   32 674
Net financial incomes/expenses       -497    -508   43 949   16 660
Income from subsidiaries            1 220       7    4 034    2 267
Profit from normal operations      20 935  12 347   90 127   51 601
Corporate Income tax                 -815    -974   -8 676   -7 358
Profit after taxes, incl           20 120  11 373   81 451   44 243
Net profit for the period          19 178   9 739   79 604   40 926
Minority interest                     942   1 634    1 847    3 317
Basic and diluted
earnings per share                   1,14    0,58     4,74     2,44


EUR'000
GROUP                             Q3 2007 Q3 2006 1-9/2007 1-9/2006

NET SALES                          12 484  10 232   33 568   29 077
Cost of goods sold                 -9 877  -8 397  -27 187  -23 959
Gross profit                        2 607   1 835    6 381    5 118
Marketing expenses                   -579    -421   -1 533   -1 210
Administrative expenses              -694    -590   -2 092   -1 840
Other revenue                          10       4       32       42
Other expenses                        -52      -7      -95      -22
Operating profit                    1 292     821    2 693    2 088
Net financial incomes/expenses        -32     -32    2 809    1 065
Income from subsidiaries               78       0      258      145
Profit from normal operations       1 338     789    5 760    3 298
Corporate Income tax                  -52     -62     -554     -470
Profit after taxes, incl            1 286     727    5 206    2 828
Net profit for the period           1 226     623   5 088     2 616
Minority interest                      60     104      118      212
Basic and diluted
earnings per share                   0,07    0,04     0,30     0,16

Karin Padjus
Financial manager
+372 6747 403