Heikki Vauhkonen 12.8.2010

Tulikivi Corporation

Interim Report 01-06/2010

• The Tulikivi Group´s second-quarter net sales were EUR 14.7. million (EUR 13.0 million, 04-06/2009), the operating profit was EUR 0.5 (-0.7) million and the result before taxes was EUR 0.2 (-0.9) million.

• The Groups´s net sales during the report period were EUR 25.4 million (EUR 24.00 million, 1-6/2009), the operating profit was EUR -1.3 (-3.4) million and the result before taxes was EUR -1.7 (-3.9) million.

• Earnings per share amounted to to EUR -0.04 (-0.08) in the report period and EUR 0.00 (-0.02) in the second quarter.

• Cash flow from operating activities was EUR -2.1 (-1.4) million. • Order books at the end of the period were EUR 6.7 million (EUR 6.7.

million on June 30 2009 and EUR 4.8. million on 31 December 2009).• With the company´s recovering sales and improved cost efficiency,

the fullyear net sales are expected to be up from the previous year, and the result for the year is expected to be black.

Managing Director's comments:

• With new building recovering in the second quarter, demand has improved significantly in Finland and the neighbouring regions.

• Demand for lining stone products also increased. • In Central Europe, consumers´ reluctance to make major investment

decisions is having an impact on the sales of fireplaces. • The Group´s net sales will grow in the autumn as a result of normal

seasonal variation and the recovery in the construction sector both in Finland and neighbouring regions, and sales will also be boosted by new products launced during the first half of the year.

• Furthermore, higher energy taxation in Finland will motivate consumers to invest in saving energy.

• The company´s centralisation and productivity improvement programme will continue to improve profitability in the latter half of the year.

Future outlook

• The increase in private house building in Finland will improve the demand for Tulikivi products.

• Exports of lining stone products will continue at a good level. • In Central Europe the demand for fireplaces varies by country but

is expected to remain lower than before as a whole. • New products will improve the company´s net sales during the the

second half of the year.• With the company´s recovering sales and improved cost

efficiency, the fullyear consolidated net sales are expected to be up from the previous year and the 2010 result before taxes is expected to be positive.

Sales 25.4 24.0 5.9

Operating profit -1.3 -3.4 62,2Percentage of sales -5.0 -14.0

Result before tax -1.7 -3.9 56.1Percentage of sales -6.8 -16.3

Profit/loss for the period -1.3 -3.1 56.9

MEUR 01-06/2010 01-06/2009 Change, %

Consolidated Income Statement, Summary

Earnings per share, EUR -0.04 -0.68Equity per share, EUR 0.58 0.62Equity ratio, % 35.8 39.6Gearing, % 84.4 79.3Current ratio 1.8 1.6

Outstanding orders (30 June), MEUR6.7 6.5Gross investments, MEUR 1.2 0.9Gross investment, % of sales 4.8 3.8Average number of staff 374 393

06/2010 06/2009

Number of shares average 3701977037027647Number of shares, 30 June 37019770 37019770

Key Figures

06/2010 06/2009AssetsTotal non-current assets 33.4 35.9Total current assets 27.1 22.4Total assets 60.5 58.3

Equity and liabilitiesTotal Equity 21.6 23.1Total non-current liabilities 24.0 21.1Total current liabilities 14.9 14.1Total equity and liabilities 60.5 58.3

MEUR

Consolidated Balance Sheet

01-06/2010 01-06/2009Cash flows from operating activitiesProfit for the period -1.3 -3.1Adjustments:Non-cash transactions 2.5 2.8Interest expenses and income and taxes 0.0 -0.3Change in working capital -3.0 0.0Interest paid and received and taxes paid -0.3 -0.8Net cash flow from operating activities -2.1 -1.4

Cash flows from investing activitiesInvestments in property, plant andequipment and intangible assets -1.3 -0.9

Grants received for investments and sales of property,plant and equipment 0.1 0.1Net cash flow from investing activities -1.2 -0.8

Cash flows from financing activitiesLoans taken 5.0Repayment of loans -3.0 -3.5Dividends paid and treasury shares -0.9 -1.1Net cash flow from financing activities 1.1 -4.6

Change in cash and cash equivalents -2.2 -6.8

Cash and cash equivalents at beginning of period 10.6 11.7Cash and cash equivalents at end of period 8.4 4.9

MEUR

Consolidated Cash Flow Statement

Tulikivi Corporation83900 JUUKATel. +358 (0) 207 636 000www.tulikivi.com

Thank you!