Financial results, 1-3/2009


.                                  million EEK           million EUR
Key figures                      1-3/2009  1-3/2008   1-3/2009  1-3/2008
Sales revenue                     181.8      203.9     11.6       13.0
EBIT                                6.4       11.3      0.4       0.7
Net profit for the period           2.7        9.7      0.2       0.6
incl equity holders of the Parent   2.6        9.7      0.2       0.6
EPS                              0.16 EEK  0.58 EEK 0.01 EUR  0.04 EUR

At the end of the period
Total assets                      556.3      694.8     35.6      44.4
Owners' equity                    411.1      520.3     26.3      33.2

Average number of employees on the current period       461      477
Number of employees at the end of the                   492      507


The consolidated sales profit of the Group in the first quarter was 181.8
million kroons, which was 10.8% less than the result of the comparable
quarter. The core business of the Group is the production and sales of
electrical distribution systems and control panels as well as other
supportive side-activities, which was traditionally the largest share of
sales revenues - 89.9% (86.9%). Of the markets, the domestic markets
(Estonia, Lithuania and Finland) of the Group's companies prevailed, where
93.6% (95.4%) of the Group's products and services were sold. The Group has
sold its products also to the markets of Latvia, Sweden and Poland, as well
as Byelorussia, Russia and Norway. Regardless of the present economic
situation, the financial results of the Group were normal in every way.

The gross profit of the Group amounted to 24.8 million kroons (1.6 million
euros), which was 16.7% less than in the previous period. The total profit
margin was 13.6% (Q1 2008: 14.6%). The operating profit dropped by 43.7% to
6.4 million kroons (408 thousand euros) in the first quarter. The operating
margin was 3.5% (5.6%).

Because of the recession, the sales volume of the affiliated undertaking
decreased considerably, resulting in loss. The Group consolidated from the
affiliated undertaking a loss of 7.5 million kroons (0.5 million euros),
while the loss had been 0.2 million kroons (12 000 euros) in the comparable
period. In the first quarter, the Group sold 100 000 shares of PKC Group Oyj.
The realised gains from the sale of shares were 5.0 million kroons (318 000
euros). No shares were sold in 2008. As a result of the decreasing interest-
bearing obligations, the interest expenses dropped by 155 thousand kroons
(10 000 euros), being 581 thousand kroons (37 000 euros). The consolidated
net profit of the Q1 2009 was 2.7 million kroons or 172 thousand euros (in Q1
2008: 9.7 million kroons or 623 thousand euros), of which the share of the
owners of the parent company was 2.6 million kroons (169 thousand euros). EPS
of the reporting period was 0.16 kroons or 0.01 euros (in Q1 2008: 0.58
kroons or 0.04 euros).

The amount of the consolidated balance sheet as of 31 March 2009 was 556.3
million kroons or 35.6 million euros (31.3.2008:694.8 million kroons or 44.4
million euros). The operating liabilities decreased by 14.5 million kroons
(0.9 million euros) and the inventories by 13.7 million kroons (0.9 million
euros), but cash at bank increased by 4.8 million kroons (0.3 million euros)
up to 28.2 million kroons (1.8 million euros). All in all, the balance sheet
total decreased by 24.2 million kroons (1.5 million euros) current assets to
225.2 million kroons (14.4 million euros) and by 21.4 million kroons (1.4
million euros) regarding cost of fixed assets to 331.1 million kroons (21.2
million euros).

The liability of the Group decreased by 38.0 million kroons (2.4 million
euros) to 145.2 million kroons (9.3 million euros) during the first three
months, and this was mainly on account of interest-bearing liabilities.
During the first three months, the Group companies repaid a total of 8.7
million kroons (0.6 million euros) of the long-term loan and the short-term
loan in the amount of 24.1 million kroons (1.5 million euros) along with the
capital lease in the amount of 0.5 million kroons, i.e. 34 000 euros(Q12008:
0.3 million kroons, i.e. 21 000 euros). All in all, the book value of the
interest-bearing liabilities decreased by 33.3 million kroons (2.1 million
euros).

The equity capital of the Group constituted 74% (in 2008:75%) of the assets,
including the owners' share of 70% in the parent company (in 2008: 72%).

The cash flow from operations amounted to 36.2 million kroons, i.e. 2.3
million euros in the first quarter and 7.1 million kroons, i.e. 0.5 million
euros in the comparable period. The cash flow from investments was a positive
2.0 million kroons, i.e. 127 000 euros in the accounting period, the cash
flow spent during the comparable period was 3.7 million kroons (234 thousand
euros). The cash flow from financial investments was 33.3 million kroons (2.1
million euros) and 3.7 million kroons (0.2 million euros) in the comparable
period.

Cash and cash equivalents increased by 4.8 million kroons (310 thousand
euros) in the first quarter and decreased by 0.3 million kroons (19 000
thousand euros) during the comparable period.

In the first quarter, there was an average of 461 people working in the Group
(Q12008: 477), included 301 (316) employees in Estonia, 77 (74) employees in
Lithuania and 83 (87) employees in Finland. As at the balance day on 31
March, there were 492 people working in the group, which are 23 employees
less than in the beginning of the year and 15 employees less than a year ago.
The average monthly salary within the Group in the first quarter was 24.3
thousand kroons (1.5 thousand euros), which is 1.7 thousand kroons (0.1
thousand euros) more than in comparable period. The main reason behind the
rise of salaries was the company in Finland. All labour cost in Q1 2009 were
40.4 million kroons (2.6 million euros), staying stable in the same level as
the comparable period.

Andres Allikmäe
Chairman of the Board
+372 674 7400

For more information: Internal report 1-3/2008 of Harju Elekter and Mrs.
Karin Padjus, Member of the Board (phone +372 674 7403).


AS HARJU ELEKTER
BALANCE SHEET, 31.03.2009
Consolidated, unaudited

Group
in thousands                           EEK              EUR
ASSETS                               31.03.0931.12.08 31.03.09 31.12.08
Cash and cash equivalents              28 207  23 379     1803     1494
Trade receivables and other receivable 84 977  99 449    5 431    6 356
Prepayments                              2348    3217      150      205
   Inclusive income tax                   180      47       12        3
Inventories                           109 673 123 351    7 009    7 884
TOTAL CURRENT ASSETS                  225 205 249 396   14 393   15 939
Investments in associates              10 362  17 907      662    1 144
Other long-term financial investments  62 859  74 323    4 017    4 750
Investment property                   132 395 133 737    8 462    8 547
Property, plant and equipment         122 636 123 423    7 838    7 889
Intangible assets                       2 897   3 201      185      205
Total non-current assets              331 149 352 591   21 164   22 535
TOTAL ASSETS                          556 354 601 987   35 557   38 474
LIABILITIES AND OWNERS' EQUITY
Interest-bearing loans and borrowings  12 931  41 958      827    2 682
Trade payables and other payables     103 820 112 395    6 635    7 183
Tax liabilities                         15270   11216      976      717
   Inclusive income tax                  1732    1551      111       99
Short-term provision                     1092    1294       70       83
TOTAL CURRENT LIABILITIES             133 113 166 863    8 508   10 665
NON-CURRENT LIABILITIES                12 110  16 381      773    1 046
TOTAL LIABILITIES                     145 223 183 244    9 281  11 711
Share capital                         168 000 168 000   10 737  10 737
Paid-in capital over/under par           6000    6000      384      384
Restricted reserves                    59 447  69 746    3 798    4 457
Retained earnings                     156 081 153 445    9 977    9 808
TOTAL OWNERS' EQUITY                  389 528 397 191   24 896   25 386
Non-controlling interests              21 603  21 552    1 380    1 377
TOTAL EQUITY                          411 131 418 743   26 276   26 763
TOT.LIABILITIES AND OWNERS' EQUITY    556 354 601 987   35 557   38 474


INCOME STATEMENT,  1-3/2009
Consolidated,unaudited

'000                                  EEK              EUR
GROUP                                 Q1 2009 Q1 2008  Q1 2009  Q1 2008

NET SALES                             181 769 203 883   11 617   13 030
Cost of goods sold                   -156 999-174 143  -10 034  -11 130

Gross profit                           24 770  29 740    1 583    1 900

Marketing expenses                     -7 644  -8 101     -489     -518
Administrative expenses               -10 925 -10 209     -698     -652
Other revenue                             316      37       20        2
Other expenses                           -132    -128       -8       -8

Operating profit                        6 385  11 339      408      724

Net financial incomes/expenses           4454    -613      285      -39
Income from subsidiaries                -7545    -193     -482      -12

Profit from normal operations           3 294  10 533      211      673

Corporate Income tax                     -607    -789      -39      -50
Profit after taxes, incl                2 687   9 744      172      623
Attributable to:
    Equity holders of the parent        2 636   9 735      169      623
    Non-controlling interests              51       9        3        0

Basic and diluted
earnings per share (EEK/EUR)             0,16    0,58     0,01     0,04

Karin Padjus
Financial manager
+372 674 7403