* The Tulikivi Group’s sales grew by 6.1% in 2005 and amounted to
EUR 58.6 million (EUR 55.3 million in 2004).
* The Group’s comparable earnings improved by 20.2% and the profit
before taxes was EUR 6.1 (5.0 comparable with 2004) million.
* Cash flow from operating activities before investments was EUR
10.5 (6.5) million.
* The order book grew and amounted to EUR 9.2 (5.4) million at the
end of the review period.
* In the fourth quarter, the Group’s sales grew by 10.7% and
comparable earnings improved by 54.7%.

Transition to IFRS
The financial statements have been prepared in accordance with the
recognition and measurement principles of International Financial
Reporting Standards (IFRS). The Tulikivi Group has applied IFRS
standards in its reporting as from 1 January 2005. A release on
the transition was published on 3 March 2005. The comparative
figures presented in this report are the IFRS figures for 2004
published in the release.

Sales and result
In 2005, the Tulikivi Group’s sales increased by 6.1 per cent to
EUR 58.6 million (EUR 55.3 million in 2004). The sales of the
Fireplace Business was EUR 52.2 (49.0) million, up 6.5 per cent.
Virtually all growth was generated by fireplace exports. The
Architectural Stone Business posted sales of EUR 6.4 (6.3)
million.

The share of sales accounted for by exports was EUR 30.7 (27.7)
million, or 52.4 (50.0) per cent. The main export countries were
Germany and Sweden. The greatest relative growth was achieved in
France, Russia and the Baltic countries. Finland accounted for EUR
27.9 (27.6) million of the sales.

Profit before taxes amounted to EUR 6.1 million, or 10.3 per cent
of sales. The comparable result for 2004 was EUR 5.0 million. The
difference with the published result, which was EUR 6.1 million,
is due to the non-recurring reduction of the disability pension
obligation, amounting to EUR 1.2 million, in the final quarter of
2004 due to the change in the pension system under the Employees’
Pensions Act (TEL). The comparable result improved by 20.2 per
cent.

The Group’s operating profit was EUR 6.3 (published: 6.3,
comparable: 5.1) million. The Fireplace Business posted operating
profit of EUR 8.8 (7.5) million and the Architectural Stone
Business EUR 0.2 (0.2) million. Unallocated expenses amounted to
EUR 2.7 million (EUR 1.5 million including the non-recurring
reduction of the disability pension obligation).

The Group’s return on investment was 20.7 (published: 20.3,
comparable: 16.5) per cent. Earnings per share were EUR 0.48
(published: 0.48, comparable: 0.39).

Trend in sales and earnings in the last quarter
Consolidated sales grew by 10.7 per cent in the October-December
period compared with the corresponding period of the previous year
and amounted to EUR 17.6 (15.9) million. The Group’s profit before
taxes was EUR 2.6 (comparable: 1.7) million and the comparable
improvement in earnings was 54.7 per cent.

Cash flow and financing
The Group’s financing position remained good. Cash flow from
operating activities before investments was EUR 10.5 (6.5)
million. The working capital of the Group declined by EUR 1.8
million during the financial year. The current ratio was 1.6
(1.9). The equity ratio was 63.0 (55.3) per cent. The ratio of
interest-bearing net liabilities to equity (gearing) was –3.1
(12.1) per cent. Equity per share was EUR 2.80 (2.54). Financial
income during the financial year amounted to EUR 0.1 million and
financial expenses to EUR 0.3 million. The share of associated
company losses was EUR 0.1 million negative.

Changes in the Group structure
A subsidiary named OOO Tulikivi Russia was established during the
financial year.

Investments and development
The Group invested EUR 4.8 (3.9) million in production and
quarries. The major investments were earmarked for a cutting line
that will promote the use of smaller blocks of stone as well as
machinery to upgrade productivity and product finishing.

R&D expenditure totalled EUR 1.7 (1.5) million. The main thrust of
product development was on the next generation of products. The
new products will be unveiled in March 2006. During the financial
year we brought to market fireplaces representing the latest
design as well as a coated white soapstone fireplace. The product
concept of the Architectural Stone Business was expanded by
rounding out the range of interior decoration stones and launching
paving stones.

Personnel
During the financial year, the Group employed an average of 514
(513) persons and at the end of the year, the Group’s personnel
numbered 533 (535) persons. Of these employees, 483 (490) worked
for the Fireplace Business and 50 (45) for the Architectural Stone
Business. Incentive pay will be paid to employees from the Group’s
result for 2005, which had an impact on earnings of EUR 0.7
million including social expenses.

Board of Directors, Managing Director and Auditors
At Tulikivi Corporation’s Annual General Meeting, held on 31 March
2005, Bishop Ambrosius, Mr. Juhani Erma, Mr. Eero Makkonen, Mr.
Aimo Paukkonen, Mr. Heikki Vauhkonen, Mr. Reijo Vauhkonen and Mr.
Matti Virtaala were elected to serve on the Board of Directors.
From amongst its number, the Board of Directors appointed Mr.
Matti Virtaala as Chairman and Mr. Reijo Vauhkonen as Vice
Chairman. The Managing Director of Tulikivi Corporation is Mr.
Juha Sivonen. The regular auditor is PricewaterhouseCoopers Oy,
Authorized Public Accountants.

Own shares
The Board of Directors of Tulikivi Corporation has an
authorization from the Annual General Meeting to both buy back and
transfer a maximum of 336,069 of the company’s Series A shares and
a maximum of 119,250 of the company’s Series K shares. The company
did not possess any of its own shares on 31 December 2005.

Quotation and trading of the Series A share
In 2005, a total of 1,216,490 Tulikivi Corporation Series A shares
were traded on the Helsinki Stock Exchange. The total value of
share turnover was EUR 8.8 million. The highest trading price of
the share was EUR 9.00 and the lowest EUR 5.55. The closing rate
for the report period was EUR 8.16.

Major business risks
The company has evaluated its key risks. They are related to the
nature of business operations and concern, but are not limited to,
amendments to laws and changes in the business environment as well
as product liability.

Environmental obligations
On the basis of the Mining Act and environmental legislation,
Tulikivi Corporation has landscaping obligations that must be met
when quarries are eventually shut down. In accordance with the
operating principles of the Group, the actions required under
these landscaping obligations are carried out continuously. Thus,
they do not result in significant additional costs.

Major events after the end of financial year
A factory investment valued at about EUR 5 million has been
started up in Juuka. The investment will be completed in the
autumn of the present year.

The exploration of stone reserves has been expanded into Russia as
well. In the January of the present year, we were granted a
license for the prospecting and industrial utilization of
soapstone in Russia. The financial potential of the project can be
assessed once the research results have been completed.

The Board’s dividend proposal
The Group’s distributable funds amount to 11.3 million euros and
the parent company’s to 9.8 million euros. The Board of Directors
will propose to the Annual General Meeting that will convene on 6
April 2006 that a dividend of EUR 0.280 per share be paid for the
Series A shares and EUR 0.273 per share for the Series K shares,
to a total of EUR 2.5 million.

Outlook for the future
Tulikivi’s sales are still rising in both its main and new
markets. The company is making further outlays on the development
of distribution channels and marketing. Uncertainties regarding
the distribution of energy and its rising price increase the
demand for fireplaces. The trend in the Group’s sales and earnings
is positive at the annual level.

At the end of the review period, the order book was EUR 9.2 (5.4)
million, of which the Fireplace Business accounted for EUR 8.9
(4.9) million and the Architectural Stone Business for EUR 0.3
(0.5) million.

CONSOLIDATED INCOME STATEMENT
MEUR
1-12/  1-12/Change, 10-12/ 10-12/Change
2005   2004      %   2005  2004       %

Sales                58.6   55.3    6.1   17.6   15.9   10.7
Other operating
income                0.3    0.5           0.1    0.1
Increase/decrease in
inventories in
finished goods and
in work in progress  -1.0    0.5          -0.2    0.3
Production for
own use               1.2    0.8           0.3    0.0
Raw materials and
consumables           9.7    8.9           2.8    2.5
External services     6.6    7.0           1.9    2.0
Personnel expenses   21,0   19.2           6.1    4.6
Depreciation          4.0    4.0           1.0    1.0
Other operating
expenses             11.5   11.7           3.3    3.4

Operating profit      6.3    6.3           2.7    2.8   -3.6
Percentage of sales  10.7   11.4          15.5   17.8
Finance costs -net   -0.1   -0.2           0.0    0.0
Share of the profit of
associated companies -0.1                 -0.1

Profit before taxes   6.1    6.1   -1.0    2.6    2.8   -5.8
Percentage of sales  10.3   11.1          15.0   17.6
Income taxes          1.7    1.8           0.8    0.8

Profit for the year   4.4    4.4    0.4    1.8    2.0   -8.5

Earnings per share
attributable to the
equity holders of the
parent company, EUR
Basic and diluted    0.48   0.48

CONSOLIDATED BALANCE SHEET
MEUR                                12/05   12/04
ASSETS
Non-current assets
Property, plant and equipment
Land                                  0.9     1.0
Buildings                             6.2     6.2
Machinery and equipment               8.4     8.3
Other tangible assets                 0.8     0.6
Intangible assets
Goodwill                              0.6     0.6
Other intangible assets               4.1     3.3
Investment properties                 0.2     0.2
Available-for-sale investments        0.1     0.1
Receivables                           0.2
Deferred tax assets                   0.5     0.7
Total non-current assets             22.0    21.0

Current assets
Inventories                           7.0     7.5
Trade receivables                     6.5     6.8
Current income tax receivables                0.1
Other receivables                     1.0     0.4
Prepaid expenses                              0.3
Financial assets at fair value
through profit and loss                       0.7
Cash and cash equivalents             4.1     5.1
Total current assets                 18.6    20.9
Total assets                         40.6    41.9

EQUITY AND LIABILITIES
Equity
Share capital                         6.2     6.2
Share premium                         5.4     5.4
Retained earnings                    13.9    11.6
Total equity                         25.5    23.2
Non-current liabilities
Deferred income tax liabilities       0.8     0.7
Provisions                            0.3     0.2
Interest-bearing debt                 1.8     6.1
Other debt                            0.4     0.4
Total non-current liabilities         3.3     7.4
Current liabilities
Trade and other payables             10.2     8.8
Current income tax liabilities        0.1
Short-term interest-bearing debt      1.5     2.5
Total current liabilities            11.8    11.3
Total liabilities                    15.1    18.7
Total equity and liabilities         40.6    41.9

CONSOLIDATED CASH FLOW STATEMENT
MEUR                                1-12/   1-12/
2005    2004
Cash flows from operating activities
Profit for the period                 4.4     4.4
Adjustments:
Non-cash transactions                 4.0     2.8
Interest expenses
and income and taxes                  1.8     1.9
Change in working capital             1.8    -0.6
Interest paid and received
and taxes paid                       -1.5    -2.0
Net cash flow from operating
activities                           10.5     6.5
Cash flows from investing activities
Acquisition of subsidiaries and
Associated companies and loans
granted to them                      -0.1    -0.1
Investments in property, plant and
equipment and intangible assets      -5.1    -3.5

Grants received for investments
and sales of property, plant and
equipment                             0.3     0.2
Investments in/proceeds on
financial assets at fair
value through profit
and loss, change                      0.8
Net cash flow from investing
activities                           -4.1    -3.4

Cash flows from financing activities
Loans received                                5.6

Repayment of loans                   -5.3    -4.8
Dividends paid                       -2.1    -4.6
Net cash flow from financing
activities                           -7.4    -3.8

Change in cash and cash
equivalents                          -1.0    -0.7
Cash and cash equivalents at
beginning of period                   5.1     5.8
Cash and cash equivalents at
end of period                         4.1     5.1

KEY FINANCIAL RATIOS AND
SHARE RATIOS
12/05   12/04
Order book
(31 Dec.), MEUR                       9.2     5.4
Gross investments, MEUR               4.8     3.9
Gross investment, % of sales          8.1     7.1
Average number of staff               514     513

Earnings per share, EUR              0.48    0.48
Equity per share, EUR                2.80    2.54
Return on investment, %              20.7    20.3
Equity ratio, %                      63.0    55.3
Gearing, %                           -3.1    12.1
Current ratio                         1.6     1.9
Number of shares average          9106385 9106385
Number of shares 31 Dec.          9106385 9106385

STATEMENT OF CHANGES IN EQUITY
MEUR
Share     Share    Trans-  Retained    Total
capital   premium    lation  earnings
fund     diff.

Equity 1 January 2005   6.2       5.4                11.6     23.2
Translation differences                     0.0                0.0
Profit for the year                                   4.4      4.4
Dividends paid                                       -2.1     -2.1
Equity 31 Dec. 2005     6.2       5.4       0.0      13.9     25.5

Equity 1 January 2004   6.2       5.4                11.9     23.5
Translation differences                    -0.1               -0.1
Profit for the year                                   4.4      4.4
Dividends paid                                       -4.6     -4.6
Equity 31 Dec. 2004     6.2       5.4      -0.1      11.7     23.2

BUSINESS SEGMENTS             1-12/       1-12/
MEUR                          2005        2004
Sales                          58.6        55.3
Fireplace business             52.2        49.0
Architectural stone business    6.4         6.3

Operating profit                6.3         6.3
Fireplace business              8.8         7.5
Architectural stone business    0.2         0.2
Unallocated group expenses     -2.7        -1.5

BUSINESS SEGMENTS QUARTERLY
Q4/   Q3/   Q2/   Q1/     Q4/   Q3/   Q2/  Q1/
2005  2005  2005  2005    2004  2004  2004 2004

Sales              17.6  13.4  14.6  13.1    15.9  13.3  12.8 13.3
Fireplace business 15.9  12.1  12.8  11.4    14.3  11.6  11.0 12.1
Architectural stone
business            1.7   1.3   1.8   1.7     1.6   1.7   1.8  1.2

Operating profit    2.7   1.8   1.5   0.3     2.8   1.7   0.9  0.8
Fireplace business  3.2   2.5   2.1   0.9     2.2   2.3   1.4  1.6
Architectural stone
business            0.1  -0.1   0.1   0.1     0.1   0.1   0.1 -0.1
Unallocated group
expenses           -0.6  -0,7  -0.7  -0.7     0.5  -0.7  -0.6 -0.7

GIVEN GUARANTEES, CONTINGENT LIABILITIES
AND OTHER COMMITMENTS
MEUR                              12/2005 12/2004

Loans from credit institutions
and other non-current liabilities,
secured by mortgages and pledges      2.9     7.6
Mortgages and pledges given          10.8    10.8
Other mortgages and pledges given
by the company on its own behalf      1.7     1.7

Derivatives
The impact of off-balance sheet derivatives is immaterial.

LARGEST SHAREHOLDERS ON 31 DECEMBER 2005

Name of shareholder                     Number of       Proportion
shares        of total
votes
Vauhkonen Reijo                         1,039,673           24.4 %
Vauhkonen Heikki                          749,938           23.8 %
Elo Eliisa                                724,255            5.4 %
Virtaala Matti                            604,723           12.0 %
Mutual Pension Insurance
Company Ilmarinen                         515,595            1.7 %
Mutanen Susanna                           449,375            7.3 %
Investment Fund Phoebus                   220,800            0.7 %
Vauhkonen Mikko                           200,175            3.6 %
Nuutinen Tarja                            168,635            3.5 %
Fondita Nordic Small Cap
Placfond                                  163,100            0.5 %
Other shareholders                      4,270,116           17.1 %

The Financial Statements have not yet been audited.

The companies included in the Group are the parent company
Tulikivi Corporation and subsidiaries Kivia Oy, AWL-Marmori Oy,
Tulikivi U.S. Inc. and OOO Tulikivi Russia. Group companies
include also Tulikivi Vertriebs GmbH and The New Alberene Stone
Company, Inc., which are dormant. Parent company has a fixed place
of business in Germany, Tulikivi Oyj Niederlassung Deutchland. The
Group has a associated company Stone Pole Oy.

TULIKIVI CORPORATION

Board of directors
Matti Virtaala,  Chairman of the Board

Distribution: Helsinki Stock Exchange
Central Media

Additional information: Tulikivi Corporation, 83900 Juuka, tel.,
+358-207-636 000, www.tulikivi.com
– Chairman of the Board of Directors Matti Virtaala
– Managing Director Juha Sivonen