The Tulikivi Group’s profit before extraordinary items increased
over 14% during the financial year and amounted to MEUR 4.9
million (MEUR 4.3 in 2003). Return on investment was 16.2 (13.7)
%. The Group’s net sales were MEUR 55.3 (53.6).  The cash flow
from operating activities before investments was MEUR 6.6 (8.2).

Net sales and result
In 2004, the Tulikivi Group’s net sales increased by 3.1 per cent
to EUR 55.3 million (EUR 53.6 million in 2003). The net sales of
the Fireplace Business were EUR 49.0 million (45.3), up 8.2 per
cent. Sales of lining stones and fireplaces grew equally well.
Lining stones account for a significant share of the Group’s net
sales. Kivia Oy’s share of the Group’s net sales was EUR 3.0
million. The net sales of the Architectural Stone Business were in
line with the target and amounted to EUR 6.3 million (8.3).

The share of aggregate net sales derived in Finland was EUR 27.6
million (27.7), or 50.0 per cent (51.7). Exports yielded net sales
of EUR 27.7 million (25.9). The biggest export countries were
Germany and Sweden. Exports of fireplaces to Germany declined.

The Group’s operating profit improved by 19.2 per cent to EUR 5.0
million (4.2). The Group’s profit before extraordinary items
amounted to EUR 4.9 million (4.3), representing 8.8 per cent (7.9)
of net sales. The result of the Fireplace Business amounted to EUR
5.0 million (5.2). The result of the Architectural Stone Business
was EUR -0.1 million (-0.9). Kivia’s result was in the black.

The Group’s return on capital employed stood at 16.2 per cent
(13.7). Earnings per share amounted to EUR 0.38 (0.34). The taxes
included in the calculations are the taxes of the Group companies
for the financial year.

Cash flow and financing
The Group’s financial position remained good. The cash flow from
operating activities before investments was EUR 6.6 million (8.2).
The Group’s working capital grew by EUR 0.8 million (-1.2) during
the financial year. The current ratio was 1.9 (1.8). The equity
ratio was 56.1 per cent (58.7). The ratio of interest-bearing net
debt to shareholders’ equity, or gearing, was 12.1 per cent (5.5).
Own capital investment ratio was 1.8 per cent (3.1). Equity per
share amounted to EUR 2.55 (2.68). Financial income during the
financial year amounted to EUR 0.2 million and financial expenses
to EUR 0.3 million.

Investments and development activities
The Group’s fixed assets investments amounted to EUR 3.9 million
(2.9). The major investments were earmarked for machinery to
develop productivity and product finishing as well as for the
opening and exploration of quarries.

R&D expenditure totalled EUR 1.5 million (1.3). The main focus in
R&D was on the development of a new generation of products
designed from the ground up to make use of different types of
soapstone. In addition to new soapstone fireplaces, the company
brought to market a new lightweight fireplace and tiled soapstone
fireplaces during financial year.

Personnel
During the financial year, the Group employed an average of 513
persons (555) and at the end of the year, the Group’s personnel
numbered 535 persons (562). Of these employees, 490 (494) worked
for the Fireplace Business and 45 (68) for the Architectural Stone
Business. Thanks to the Group’s result for 2004, personnel can be
paid incentive pay. The effect on earnings of the incentive pay
and the related social expenses amounts to EUR 0.7 million.

Board of Directors, Managing Director and Auditors
At Tulikivi Corporation’s Annual General Meeting, held on 20 April
2004, 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 auditors are PricewaterhouseCoopers Oy,
Authorised Public Accountants.

Own shares
The Board of Directors of Tulikivi Corporation has an
authorisation 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 2004.

Quotation and trading of the Series A share
In 2004, a total of 1,333,481 Tulikivi Corporation Series A shares
were traded on the Helsinki Stock Exchange. The total value of
share turnover was EUR 9.0 million. The highest trading price of
the share was EUR 8.20 and the lowest EUR 5.25. The closing rate
for the report period was EUR 6.32.

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 continuously carried out as part
of production quarrying. Thus, no significant additional costs are
expected.

Adoption of IFRS
The Tulikivi Group will adopt IFRS reporting from the beginning of
2005. On 3 March 2005, the company will publish a separate
bulletin on the transition to IFRS as well as on the effects of
the transition on shareholders’ equity on 1 January 2004 and 31
December 2004 and on the result for 2004. The Group’s
shareholders’ equity on 31 December 2004 under IFRS does not
significantly deviate from the shareholders’ equity presented
under the current accounting principles.

The Board’s dividend proposal
The Board of Directors will propose to the Annual General Meeting
that will convene on 31 March 2005 that a dividend of EUR 0,23 per
share be paid for the Series A shares and EUR 0,22 per share for
the Series K shares, to a total of EUR 2,1 million.

Outlook for the future
In Finland, economic growth is expected to remain moderate. Growth
in the construction of single-family houses is ongoing. Economic
growth is slower in continental Europe. The company is improving
its distribution system in Germany; this is expected to have a
positive effect in the future. Growth is expected to continue in
the other export countries. The trend in the Group’s net sales and
earnings will remain positive at the annual level.

The order book at the end of the report period was EUR 5.4 million
(7.1), of which the Fireplace Business accounted for EUR 4.9
million (6.4) and the Architectural Stone Business for EUR 0.5
million (0.7).

CONSOLIDATED INCOME STATEMENT
ME                                 01-12/         01-12/   Change,
2004           2003         %
Net sales                            55.3           53.6       3.1
Change in inventories
of finished products                  0.5            0.4
Production for own use                0.8            0.4
Other operating income                0.5            0.5

Materials and external charges       16.0           14.9
Personnel expenses                   20.1           20.7

4(7)
Depreciation and value adjustments    4.3            4.1
Other operating expenses             11.7           11.0

Operating profit                      5.0            4.2      19.2
% of net sales                        9.1            7.9

Financial income and expenses        -0.1            0.1

Profit before extraordinary items     4.9            4.3      14.4
% of net sales                        8.8            7.9

Income taxes                          1.4            1.3

Profit for the year                   3.5            3.0      14.0

CONSOLIDATED BALANCE SHEET
ME                                12/2004        12/2003
Assets
Fixed assets and other non-
current investments
Intangible assets                     3.8            3.3
Goodwill                              0.3            0.6
Tangible assets
Land areas                            1.1            1.1
Buildings                             6.3            6.4
Machinery and equipment               8.3            8.8
Other tangible assets                                0.1
Investments                           0.1            0.1
Fixed assets and other non-current
investments total                    19.9           20.4
Current assets
Inventories                           7.5            7.0
Long term receivables
Deferred tax assets                   0.6            0.7
Current receivables
Trade receivables                     6.8            6.6
Other current receivables             1.1            0.5
Financial asset securities            0.7            0.7
Cash in hand and at banks             5.1            5.8
Total current assets                 21.8           21.3
Total assets                         41.7           41.7

Liabilities and shareholders´equity
Shareholders´equity
Capital stock                         6.2            6.2
Other shareholders´equity            17.0           18.2
Total shareholders´equity            23.2           24.4
Provisions                            0.2            0.1

Liabilities
Non-current liabilities
Deferred tax liabilities              0.5            0.7
Loans from credit institutions        6.1            5.0
Other non-current liabilities         0.4
Total non-current liabilities         7.0            5.7
Current liabilities
Loans from credit institutions        2.5            2.8
Account payables                      1.7            1.0
Other current liabilities             7.1            7.7
Total current liabilities            11.3           11.5
Total liabilities and
Shareholders´ equity                 41.7           41.7

Interest bearing liabilities          8.6            7.8
Advance received                      0.4            0.1

CASH FLOW STATEMENT                01-12/         01-12/
ME                                   2004           2003
Profit before extraordinary
items                                 4.9            4.3
Depreciation and other
adjustments                           4.5            4.1
Change in net working capital        -0.8            1.2
Financial items and taxes            -2.0           -1.4
Cash flow from operating activities   6.6            8.2

Investments in fixed assets          -3.7           -2.6
Investments in other investments     -0.1           -0.8
Proceeds from sale of fixed assets
and other changes in fixed assets     0.3            0.1
Net cash used in investing
activities                           -3.5           -3.3

Cash flow before financing
activities                            3.1            4.9

Long-term borrowing                   5.6
Repayment of long-term loans         -4.8           -2.1
Dividends paid                       -4.6           -4.2
Net cash flow from financing
activities                           -3.8           -6.3

Net increase (+)/decrease(-)
in cash and cash equivalents         -0.7           -1.4
Cash and cash equivalents at the
beginning of the period               5.8            7.2
Cash and cash equivalents at the
end of the period                     5.1            5.8

KEY RATIOS DESCRIBING ECONOMIC
DEVELOPMENT AND KEY INDICATORS PER SHARE

12/2004        12/2003
Order stock (December 31), ME         5.4            7.1
Gross investments, ME                 3.9            2.9
Gross investments, %/net sales        7.1            5.4
Average number of personnel           513            555
Number of personnel at the end
of year                               535            562
Earnings per share, Euro             0.38           0.34
Equity/share, Euro                   2.55           2.68
Solvency ratio, %                    56.1           58.7
Gearing, %                           12.1            5.5
Current ratio                         1.9            1.8
Return on capital employed           16.2           13.7
Average number of shares          9106385        9106385
Number of outstanding shares
on December 31                    9106385        9106385

CONTINGENT LIABILITIES
MEUR
012/2004        12/2003
Loans from credit institutions
and other non-current liabilities
for which mortgages and pledges
have been given                       7.6            6.0
Given mortgages and pledges          10.8            8.0
Other mortgages and pledges
given on behalf of own liabilities    1.7            1.7

Off-balance sheet financial instruments
The significance of off-balance sheet financial instruments is
minor.

QUARTERLY DEVELOPMENT OF THE GROUP
EUR million           Q4/   Q3/   Q2/   Q1/   Q4/   Q3/   Q2/  Q1/
2004  2004  2004  2004  2003  2003  2003 2003

Net sales            15.9  13.3  12.8  13.3  15.3  13.8  12.6 11.9
Operating profit      1.7   1.7   0.7   0.9   1.7   1.6   0.6  0.3
Result before extra-
ordinary items        1.7   1.6   0.7   0.9   1.8   1.6   0.6  0.3

QUARTERLY DEVELOPMENT OF BUSINESSES AREAS
EUR million
Q4/   Q3/   Q2/   Q1/   Q4/   Q3/   Q2/  Q1/
2004   2004  2004  2004  2003  2003  2003 2003
Fireplace business
Net sales            14.3  11.6  11.0  12.1  13.6  11.6  10.4  9.7
Result before extra-
ordinary items        1.7   1.5   0.7   1.1   1.9   2.1   0.7  0.5

Architectural stone business
Net sales             1.6   1.7   1.8   1.2   1.7   2.2   2.2  2.2
Result before extra-
ordinary items        0.0   0.1   0.0  -0.2  -0.1  -0.5  -0.1 -0.2

LARGEST SHAREHOLDERS ON 31 DECEMBER 2004
Name of shareholder                     Number of    Proportion of
shares       total vote
Vauhkonen Reijo                         1,038,977          24.4 %
Vauhkonen Heikki                          749,242          23.8 %
Vauhkonen Eliisa                          724,255           5.4 %
Virtaala Matti                            604,027          12.0 %
Mutual Pension Insurance Company
Ilmarinen                                 515,595           1.7 %
Mutanen Susanna                           449,375           7.3 %
Investment Fund Phoebus                   212,000           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                      4,281,004          17.1 %

The audit has not yet been performed.

The companies included in the Group are the parent company
Tulikivi Corporation, Kivia Oy, AWL-Marmori Oy and Tulikivi U.S.
Inc. Group companies include also Tulikivi Vertriebs GmbH and The
New Alberene Stone Company. Inc. which are dormant.

TULIKIVI CORPORATION

Board of directors

Distribution: Helsinki Stock Exchange
Central Media

Additional information: Tulikivi Corporation, 83900 Juuka, tel.
+358-13-68 11 11, www.tulikivi.com
– Chairman of the Board of Directors Matti Virtaala
– Managing Director Juha Sivonen