Heikki Vauhkonen 20.10.2010

Tulikivi Corporation

Interim Report 01-09/2010

• Tulikivi Group’s third-quarter net sales were EUR 13.9 million (Q3/2009: EUR 13.5 million), the operating profit was EUR 0.2 (0.6) million and the profit before taxes was EUR 0. (0.4) million.

• The Group’s net sales for January-September were EUR 39.3 million (Jan-Sep/2009: EUR 37.5 million), the operating result was EUR -1.1 (-2.7) million and the result before taxes was EUR -1.6 (-3.5) million.

• Earnings per share amounted to to EUR -0.03 (-0.08) in the report period and EUR 0.00 (-0.01) in the second quarter.

• Cash flow from operating activities was EUR -1.0 (-0.6) million. • Order books at the end of the period were EUR 7.8 million (EUR 6.7.

million on June 30 2009 and EUR 4.8. million on 31 December 2009).

• The Group’s fourth-quarter net sales are expected to be up and profitability to improve, but the 2010 result before taxes may remain slightly in the red.

Managing Director's comments:

• In the third quarter, domestic sales of fireplaces performed very well. The situation in the market was good and our new products have been well received, and in the early autumn we also focused on promoting these products. Thanks to the various measures taken, the market share of Tulikivi products in Finland increased in the early part of the year.

• Lining stone sales were also good in the early autumn, and order books are strong to the end of the year.

• Fireplace exports in the January-September period were lower than expected, and the market environment in Central Europe is still challenging.

• Third-quarter profitability was adversely affected by the early season marketing measures of the new products and by the less favourable composition of sales in relation to a year earlier.

• The strong order books will enable an improvement in net sales and profitability in the final part of the year.

Future outlook

• The growth in private house building in Finland means that the demand for Tulikivi products will continue to be strong.

• The demand for lining stone products will also continue to be good.

• The Central Europe the overall demand for fireplaces has fallen below earlier levels.

• Growth in net sales will be aided by the Tulikivi Green products and the new interior design fireplaces launched during the report period.

• The Group´s fourth-quarter net sales are expected to be up and profitability to improve.

• However, as a result of export demand focusing on products with a lower profit margin, the 2010 result before taxes may remain slightly in the red.

Sales 39.3 37.5 4.7

Operating profit -1.1 -2.7 61.1Percentage of sales -2.7 -7.3

Result before tax -1.6 -3.5 53.5Percentage of sales -4.2 -9.4

Total comprehensiveincome for the period -1.2 -2.9 58.3

MEUR 01-09/2010 01-09/2009 Change, %

Consolidated Income Statement, Summary

Earnings per share, EUR -0.03 -0.08Equity per share, EUR 0.59 0.63Equity ratio, % 36.9 40.8Gearing, % 82.9 77.4Current ratio 1.8 1.7

Outstanding orders (30 Sept.), MEUR7.8 6.1Gross investments, MEUR 2.0 1.5Gross investment, % of sales 5.0 4.0Average number of staff 389 419

09/2010 09/2009

Number of shares average 3701977037025201Number of shares, 30 Sept 37019770 37019770

Key Figures

09/2010 09/2009AssetsTotal non-current assets 32.9 35.0Total current assets 25.9 22.2Total assets 58.8 57.2

Equity and liabilitiesTotal Equity 21.7 23.3Total non-current liabilities 22.9 20.8Total current liabilities 14.2 13.1Total equity and liabilities 58.8 57.2

MEUR

Consolidated Balance Sheet

01-09/2010 01-09/2009Cash flows from operating activitiesProfit for the period -1.2 -3.8Adjustments:Non-cash transactions 3.5 4.1Interest expenses and income and taxes 0.2 0.1Change in working capital -3.1 -1.0Interest paid and received and taxes paid -0.4 -1.0Net cash flow from operating activities -1.0 -0.6

Cash flows from investing activitiesInvestments in property, plant andequipment and intangible assets -2.0 -1.5

Grants received for investments and sales of property,plant and equipment 0.1 0.2Net cash flow from investing activities -1.9 -1.3

Cash flows from financing activitiesLoans taken 5.0Repayment of loans -4.0 -4.0Dividends paid and treasury shares -0.9 -1.1Net cash flow from financing activities 0.1 -5.1

Change in cash and cash equivalents -2.8 -7.0

Cash and cash equivalents at beginning of period 10.6 11.7Cash and cash equivalents at end of period 7.8 4.7

MEUR

Consolidated Cash Flow Statement

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

Thank you!