Reorganised Algol Group posts promising result in 2004

The Algol Group in its first financial statement following restructuring showed
favourable development in 2004. Group turnover amounted to 157.8 million euros,
total sales to 200.6 million euros, and result to 3.6 million euros. Both
turnover and total sales were almost identical to the previous year, despite
the fact that commercial steel operations were divested in the autumn of 2003.
The result improved and regained the level of 2002 after a temporary downturn
due to the restructuring. The Algol Group continues to maintain excellent
solidity.

The restructuring that was introduced on 1 January 2004 combined five previous
sales divisions into three branch companies based on product groupings. The new
companies and their subsidiaries dorm broad-based expert units in technical
trade and the healthcare sector in Finland and neighbouring markets. Group
Management Chairman and managing Director of Algol Magnus Bargum states that
the first year has shown promising signs of the effectiveness of the
restructuring and creates a solid basis for a strong future. It is also
positive that all three Algol branch companies have added to the result.

The economic climate in Finland continued to strengthen in 2004. which
supported directly the development of the technical trade companies within the
Algol Group. During the second half of the year, the rapidly increasing demand
for raw materials and higher price levels helped improve the result of Algol
Chemicals, especially in Finland. After a long period of stagnation, machine
investments in the industrial and transportation sectors picked up and are
reflected in the result and order book of Algol Technics. The result of
pharmaceuticalsd expert Algol Pharma was very good in all its product sectors.

The outlook for this year according to Magnus Bargum is positive for all Algol
Group sectors and home markets. Economic growth in Finland is expected to
continue but stabilise. Increasing industrial production, export demand and
industrial investments suggest a healthy operating climate fotr the technical
trade. The outlook within the healthcare sector is also positive for the main
part. Altogether, Magnus Bargum states that the reorganised Algol Group very
clearly represents Algol´s traditional strengths: broad expertise and diverse
product types that are stimulated in turn by econimic trends. [

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nbsp;Key Figures 2004

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