– Sales for the Tulikivi Group were EUR 13.1 (13.3) million for
the period.
– Profit before tax was EUR 0.3 (0.8) million.
– The value of outstanding orders increased in March and continues
to increase in April.
– The interim financial report has been prepared in accordance
with the recognition and measurement principles of International
Financial Reporting Standards (IFRS).

IFRS reporting
As from 1 January 2005, the Tulikivi Group has applied IFRS
standards in its reporting. 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 of operations
The Group’s sales were EUR 13.1 million (EUR 13.3 million for the
period January to March 2004). Sales for the fireplace business
were EUR 11.4 (12.1) million and EUR 1.7 (1.2) million for the
architectural stone business. The value of the Group’s outstanding
orders was EUR 6.6 (6.9) million at the end of the period, of
which EUR 5.9 (5.4) million relates to the fireplace business. The
value of outstanding orders for the architectural stone business
was EUR 0.7 (1.5) million. Domestic sales were for EUR 7.1 (6.9)
million, or 54.1 (51.7) per cent, of total sales. Exports amounted
to EUR 6.0 (6.4) million. The main export countries were Germany
and Sweden.

The operating profit for the Group was EUR 0.3 (0.8) million. The
operating profit for the fireplace business was EUR 0.9 (1.6)
million, EUR 0.1 (-0.1) million for the architectural stone
business and the unallocated expenses were EUR 0.7 (0.7) million.
The increase in marketing activities in the early part of the year
had an impact on the expenses of the period of EUR 0.4 million.
The increase in development expenditure was EUR 0.1 million. The
Group’s profit before tax was EUR 0.3 (0.8) million. In addition
to the Group’s current tax for the period, the change in deferred
tax liabilities and assets in respect of taxable temporary
differences has been taken into account.

Financing activities and investments
The Group’s financing position is favourable. Cash flows from
operating activities before investments were EUR -3.0 (-1.6)
million. The working capital of the Group increased by EUR 3.9
(3.2) million during the period. The equity ratio was 51.6 per
cent (56.7 per cent at 31 March 2004). Dividends to be distributed
have been deducted from equity, increasing other current
liabilities respectively during the year. In 2004, the
corresponding general meeting decision was taken in the second
quarter of the year. The ratio of interest-bearing net liabilities
to equity, or gearing, was 33.3 (15.3) per cent. The current ratio
was 1.5 (1.9). Equity per share was EUR 2.33 (2.64).

The Group invested EUR 1.3 (0.7) million in production and stone
reserves. During the period, significant investment begun on a
machinery line which will promote the use of smaller blocks of
stone. Furthermore, investment in machinery to develop
productivity and the finishing of products was continued.
Development projects progressed according to plan. During the
period, a new fireplace design was produced, as well as a novelty
in product development, a previo-coated white soapstone fireplace.
Tulikivi Oyj has exclusive rights to this technology.

Resolutions of the annual general meeting

Dividend distribution and governing bodies
The annual general meeting of Tulikivi Oyj, held on 31 March 2005,
decided to distribute a dividend in accordance with the proposal
of the board of directors of EUR 0.23 on A shares and EUR 0.22 on
K shares, EUR 2.1 million in total.

The following members of the board of directors of the parent
company and the subsidiaries carrying on a business were elected:
Bishop Ambrosius, Juhani Erma, Eero Makkonen, Aimo Paukkonen,
Heikki Vauhkonen, Reijo Vauhkonen and Matti Virtaala.The board
elected Matti Virtaala as its chairman and Reijo Vauhkonen as its
vice-chairman. Certified Public Accountants PricewaterhouseCoopers
Oy from Helsinki were appointed auditors.

Authorization to buy back and transfer the company’s own shares
The annual general meeting granted the board of directors an
authorization to buy back the company’s own shares (treasury
shares). The treasury shares will be purchased with the aim of
developing the company’s capital structure and for use as
consideration in acquisitions or other structural arrangements in
the manner and to the extent decided by the board of directors.
Similarly, the annual general meeting granted the board of
directors an authorization to transfer the treasury shares. The
shares can be transferred as consideration in acquisitions or they
can be used in other structural arrangements in the manner and to
the extent decided by the board of directors. The board of
directors can also decide to sell A shares in public trading on
Helsinki Exchanges in order to obtain funds for possible
acquisitions or to finance capital expenditures. The board of
directors can furthermore propose that the shares be cancelled by
lowering the share capital. No more than a total of 336 069 A
shares and no more than a total of 119 250 K shares will be bought
back. The company’s A shares will be purchased in public trading
on Helsinki Exchanges and the K shares as a rule by making a
tender offer to Series K shareholders in proportion to their
holdings.

The performance and trading of A shares
During the period, 255 500 shares were traded, corresponding to
EUR 1.7 million. The highest share price was EUR 7.11 and the
lowest EUR 5.83. The closing price for the period was EUR 6.20.

Outlook for the future
The increase in the building of single-family houses and
renovation building continues in Finland. After the beginning of
the year, the demand for Tulikivi products in Central Europe has
been markedly better than last year. The number of orders has
continued to increase in April. Expenditure recognised early in
the year will decrease expenses in the latter part of the year.
The Group’s sales and result of operations are showing a positive
annual trend.

CONSOLIDATED INCOME STATEMENT
MEUR                               01-03/  01-03/ Change,   01-12/
2005    2004       %     2004

Sales                                13.1    13.3    -1.9     55.3
Other operating income                0.1     0.2              0.5
Increase/decrease in inventories in
finished goods and in work
in progress                          -0.4     0.2              0.5
Production for own use                0.1     0.3              0.8

Raw materials and consumables         2.1     2.3              8.9
External services                     1.5     1.8              7.0
Personnel expenses                    4.8     5.1             19.0
Depreciation                          1.0     0.9              4.0
Other operating expenses              3.2     3.1             12.0

Operating profit                      0.3     0.8   -65.0      6.2
Percentage of sales                   2.3     6.5             11.4
Finance costs -net                      –       –             -0.1

Profit before tax                     0.3     0.8   -69.6      6.1
Percentage of sales                   1.9     6.3             11.1
Direct taxes                          0.2     0.3              1.8

Profit for the period                 0.1     0.5   -82.2      4.3

Earnings per share attributable
to the equity holders of the
parent company, EUR                  0.01    0.06             0.48
Basic and diluted

CONSOLIDATED BALANCE SHEET
MEUR                              03/2005 03/2004          12/2004
ASSETS
Non-current assets
Property, plant and equipment
Land                                  1.0     0.9              1.0
Buildings                             6.4     6.2              6.2
Machinery and equipment               8.3     8.5              8.3
Other                                 0.8     0.1              0.6
Goodwill                              0.6     0.6              0.6
Other intangible assets               3.1     3.5              3.3
Investment properties                 0.2     0.2              0.2
Available-for-sale investments        0.1     0.1              0.1
Deferred tax assets                   0.6     1.1              0.7
Total non-current assets             21.1    21.2             21.0

Current assets
Inventories                           7.2     7.3              7.5
Trade receivables                     9.2     8.7              6.8
Other receivables                     2.2     1.8              0.5
Prepaid expenses                      0.2                      0.3
Financial assets at fair value
through profit and loss                       0.7              0.7
Cash and cash equivalents             1.2     2.7              5.1
Total non-current assets             20.0    21.2             20.9
Total assets                         41.1    42.4             41.9

EQUITY AND LIABILITIES
Equity
Share capital                         6.2     6.2              6.2
Share premium                         5.4     5.4              5.4
Retained earnings                     9.6    12.4             11.6
Total equity                         21.2    24.0             23.2
Non-current liabilities
Deferred income tax liabilities       0.8     0.7              0.7
Retirement benefit obligations          .     1.2                .
Provisions                            0.2     0.1              0.2
Interest-bearing debt                 5.3     5.1              6.1
Other debt                            0.4                      0.4
Total non-current liabilities         6.7     7.1              7.4
Current liabilities
Trade and other payables             10.3     8.9              8.8
Current income tax liabilities                0.4
Short-term interest-bearing debt      2.9     2.0              2.5
Total current liabilities            13.2    11.3             11.3
Total liabilities                    19.9    18.4             18.7
Total equity and liabilities         41.1    42.4             41.9

CONSOLIDATED CASH FLOW STATEMENT   01-03/  01-03/           01-12/
MEUR                                 2005    2004             2004

Cash flows from operating activities
Profit for the period                 0.1     0.6              4.4
Adjustments:
Non-cash transactions                 1.0     0.9              2.8
Interest expenses
and income and taxes                  0.2     0.3              1.9
Change in working capital            -3.9    -3.2             -0.4
Interest paid and received
and taxes paid                       -0.4    -0.2             -2.1
Net cash flow from operating
activities                           -3.0    -1.6              6.6

Cash flows from investing activities
Investment in property, plant and
equipment and intangible assets      -1.3    -0.7             -3.7
Grants received for investments
and sales of property, plant and
equipment                             0.1       .              0.2
Sale of financial asets at fair value
through profit and loss               0.8
Net cash flow from investing
activities                           -0.4    -0.7             -3.5

Cash flows from financing activities
Loans received                        1.8                      5.6
Repayment of loans                   -2.3    -0.8             -4.8
Dividends paid                                                -4.6

Net cash flow from financing
activities                           -0.5    -0.8             -3.8

Change in cash and cash
equivalents                          -3.9    -3.1             -0.7

Cash and cash equivalents
beginning of period                   5.1     5.8              5.8

Cash and cash equivalents at
end of period                         1.2     2.7              5.1

KEY FINANCIAL RATIOS AND
SHARE RATIOS
03/2005 03/2004          12/2004
Outstanding orders
(31 March), MEUR                      6.6     6.9              5.4
Gross investment, MEUR                1.3     0.7              3.9
Gross investment, % of sales         10.2     5.1              7.1
Average number of staff               492     545              513

Earnings per share, EUR              0.01    0.06             0.48
Equity per share, EUR                2.33    2.64             2.54
Equity ratio, %                      51.6    56.7             55.3
Gearing, %                           33.3    15.3             12.1
Current ratio                         1.5     1.9              1.9
Interest-bearing liabilities,
MEUR                                  8.2     7.1              8.6
Non interest-bearing liabilities,
MEUR                                 11.7    11.3             10.1

Number of shares average          9106385 9106385          9106385
Number of shares 31 March         9106385 9106385          9106385

STATEMENT OF CHANGES IN EQUITY
MEUR
Share   Share  Trans-Dividend     Re-  Total
capital premium  lation distri-  tained
fund   diff.  bution    ear-
nings
Equity 1 January 2005   6.2     5.4                    11.6   23.2
Translation differences                 0.0                    0.0
Profit for the period                                   0.1    0.1
Dividends paid                                 -2.1           -2.1
Equity 31 March 2005    6.2     5.4     0.0    -2.1    11.7   21.2

Share   Share  Trans-Dividend     Re-  Total
capital premium  lation distri-  tained
fund   diff.  bution    ear-
nings
Equity 1 January 2004   6.2     5.4                    11.9   23.5
Translation differences                 0.0                    0.0
Profit for the period                                   0.5    0.5
Dividends
Equity 31 March 2004    6.2     5.4     0.0            12.4   24.0

BUSINESS SEGMENTS                     QI/     Q1/             1-12
MEUR                                2005    2004              2004
Sales                                13.1    13.3             55.3
Fireplace business                   11.4    12.1             49.0
Architectural stone business          1.7     1.2              6.3

Operating profit                      0.3     0.8              6.2
Fireplace business                    0.9     1.6              7.5
Architectural stone business          0.1    -0.1              0.2
Unallocated group expenses           -0.7     0.7             -1.5

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

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

Operating profit              0.3     2.8     1.7    0.9       0.8
Fireplace business            0.9     2.2     2.3    1.4       1.6
Architectural stone business  0.1     0.1     0.1    0.1      -0.1
Unallocated group expenses   -0.7     0.5    -0.7   -0.6      -0.7

COLLATERAL AND SECURITIES GIVEN
AND OTHER COMMITMENTS
MEUR                               3/2005  3/2004              12/
2004
Loans from credit institutions
and other non-current liabilities,
secured by mortgages and pledges      7.4     5.6              7.6
Mortgages and pledges given          10.8     8.0             10.8
Other mortgages and pledges given
by the company on its own behalf      1.7     1.7              1.7

Environmental guarantees
In accordance with the mining and environmental legislation,
Tulikivi Corporation has environmental commitments, which have to
be met when closing a quarry.  The amount of the commitments
cannot be reasonably estimated, but it is not expected to be
material.

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

RECONCILIATION OF THE INCOME STATEMENT AND BALANCE SHEET

CONSOLIDATED INCOME STATEMENT
1 JANUARY 2004 TO 31 MARCH 2004       FAS   IFRS-             IFRS
MEUR                                 1-3/ adjust-             1-3/
2004   ments             2004
Sales                                13.3                     13.3
Other operating income                0.2                      0.2
Increase/decrease in inventories in finished
goods and in work in progress         0.2                      0.2
Production for own use                0.3                      0.3
Raw materials and consumables         2.4                      2.3
External services                     1.8                      1.8
Personnel expenses                    5.1                      5.1
Depreciation                          1.0     0.1              0.9
Other operating expenses              2.8    -0.2              3.1
Operating profit                      0.9    -0.1              0.8
Percentage of sales                   7.1                      6.5
Finance costs (net)                     –                        –
Profit before tax                     0.9    -0.1              0.8
Percentage of sales                   6.8                      6.3
Direct taxes                          0.3                      0.3

Profit for the period                 0.6    -0.1              0.5

CONSOLIDATED BALANCE SHEET 31 MARCH 2005
FAS   IFRS-             IFRS
03/ adjust-              03/
ASSETS                               2004   ments             2004
Non-current assets
Property, plant and equipment        15.7                     15.7
Intangible assets                     4.0     0.1              4.1
Investment properties                 0.2                      0.2
Investments                           0.1                      0.1
Deffered tax assets                   0.7     0.4              1.1
Total non-current assets             20.7     0.5             21.2

Current assets
Inventories                           7.3                      7.3
Trade and other receivables          10.7    -0.2             10.5
Cash and cash equivalents             3.4                      3.4
Total current assets                 21.4    -0.2             21.2

Total assets                         42.1     0.3             42.4

EQUITY AND LIABILITIES
Equity
Share capital                         6.2                      6.2
Share premium                         5.4                      5.4
Retained earnings                     8.8     3.6             12.4
Total equity                         20.4     3.6             24.0

Non-current liabilities
Deferred tax liabilities              0.7                      0.7
Retirement benefit obligations                1.2              1.2
Provisions                            0.1                      0.1
Interest-bearing debt                 5.0     0.1              5.1
Other debt
Total non-current liabilities         5.8     1.3              7.1
Current liabilities
Trade and other payables             13.5    -4.6              8.9

Current income tax liabilities        0.4                      0.4
Short-term interest-bearing debt      2.0                      2.0
Total current liabilities            15.9    -4.6             11.3

Total liabilities                    21.7    -3.3             18.4

Total equity and liabilities         42.1     0.3             42.4

LARGEST SHAREHOLDERS ON 31 MARCH 2005

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 %
Vauhkonen Mikko                           200,175            3.6 %
Nuutinen Tarja                            168,635            3.5 %
The Finnish Cultural Foundation           110,000            1.1 %
Laakkonen Reino                            25,000            0.8 %
Other shareholders                      4,521,104           16.4 %

The interim report has not been audited.

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

TULIKIVI CORPORATION

Board of directors
Matti Virtaala,  Chairman of the Board

Distribution: Helsinki Stock Exchange
Central Media

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