- The Tulikivi Group´s sales rose by 34.2% in the January-June
period.  Growth in the Group´s comparable sales was 20.3%.
- Sales for the report period totalled EUR 37.2 (27.7) million.
The comparable sales were EUR 33.3 million.
- The Group´s profit before taxes amounted to EUR 3.3 (1.7)
million. The comparable profit before taxes was EUR 3.5 million.
- The cash flow from operating activities before investments was
EUR 4.0 (1.4) million.
- The order book at the close of the period amounted to EUR 12.6
(5.0) million.
- The integration of Kermansavi Oy´s business operations has gone
according to plan.

Changes in the Group´s structure and segment reporting
Tulikivi Corporation acquired all the shares in Kermansavi Oy on
April 3, 2006.
The Group´s business operations are now divided into three
business segments, namely the Soapstone Fireplaces Business, the
Natural Stone Business and the Ceramic Products Business.  The
Soapstone Fireplaces Business supplies soapstone fireplaces and
stone lining for heaters. The Natural Stone Products Business
supplies interior stone products for homes and delivers stone to
construction sites.   The Ceramic Products Business produces
Kermansavi stoves and utensils.

Sales and result
The Group´s sales totalled EUR 37.2 (27.7) million. Sales grew by
34.2 per cent during the report period, while the comparable
growth in sales was 20.3 per cent.  The Soapstone Fireplaces
Business posted sales of EUR 29.5 (24.2) million, the Natural
Stone Products Business sales of EUR 3.8 (3.5) million and the
Ceramic Products Business sales of EUR 3.9 million.

The share of sales accounted for by exports was EUR 20.0 (14.0)
million, or 53.8 (50.5) per cent of total sales.   The Soapstone
Fireplaces Business´s exports grew by 42.4 per cent during the
report period.  The largest countries for exports were Germany and
Sweden.  Domestic sales were EUR 17.2 (13.7) million.

The Group´s operating profit was EUR 3.4 (1.8) million.  The
Soapstone Fireplaces Business posted an operating profit of EUR
5.1 (3.0) million, the Natural Stone Products Business an
operating profit of EUR 0.1 (0.2)  million and the Ceramic
Products Business an operating loss of EUR 0.2 million,  while
unallocated expenses totalled EUR 1.6 (1.4) million.   The Ceramic
Products Business´s result was affected by non-recurring expenses
of EUR 0.4 million resulting from the acquisition cost of the
shares of Kermansavi Oy to inventories and the order book.  The
Group´s profit before taxes was EUR 3.3 (1.7) million. The Group´s
comparable profit before taxes was EUR 3.5 million.  Earnings per
share amounted to EUR 0.07 (EUR 0.03).

Financing and investments
The Group´s financial position is good.  Cash flow from operating
activities before investments amounted to EUR 4.0 (1.4) million.
The working capital of the Group increased by EUR 0.8 (1.5)
million during the period.  The Group´s net finance costs amounted
to EUR 0.2 (0.1) million.

The equity ratio was 44.3 per cent (55.8 per cent at June 30,
2005). The ratio of interest-bearing net debt to shareholders´
equity, or gearing, was 58.5 (28.0) per cent.  The current ratio
was 1.7 (1.7). Shareholders´ equity per share amounted to EUR 0.74
(EUR 0.61).

The Group invested EUR 5.0 (2.6) million in production and
quarries.

The most significant capital item is the ongoing investment in a
factory in Juuka.  The new factory will be put into operation
during September.

During the report period, the company presented to the market a
new generation of fireplaces boasting combustion technology and
efficiency that are the best among their peers.   The products
will be manufactured at the new factory and will become available
for sale during September.

During the  report period,  the company acquired all of Kermasavi
Oy´s shares in order to expand its product range and potential
clientele,  among other things. The purchase price was EUR 13.1
million, of which EUR 2.1 million was paid in Tulikivi
Corporation´s Series A shares.   In addition to the purchase
price, the acquisition cost of Kermansavi Oy´s shares includes a
total of EUR 0.4 million expenses resulting from the acquisition.
The shareholders´ equity of Kermansavi Oy at the time of the
acquisition was EUR 4.3 million.  In addition to the carrying
amounts of asset and liability items, EUR 6.1 million of the
expense from the acquisition has been allocated to distribution
channels and the brand, EUR 1.8 million to machinery and
equipment, EUR 0.4 million to inventories and the order book,  EUR
3.0 million to goodwill and EUR 2.2 million to deferred tax
expenses.

The report period also saw the company begin prospecting
activities in Russia under a permit that authorizes the company to
prospect for stone and to utilize it in production.

Personnel
The Group employed an average of 638 (499) people during the
report period and 759 (550) people at its close.  The figure also
includes Kermansavi Oy´s personnel, which totalled 156 people at
the close of the report period.

Resolutions of the Annual General Meeting

Dividend payout
The Annual General Meeting of Tulikivi Corporation on 6 April 2006
resolved to pay a dividend,  in accordance with the Board of
Directors´ proposal, of EUR 0.280 on Series A shares and EUR 0.273
on Series K shares,  or a total of EUR 2.5 million.

Governing bodies
Elected to seats on the Board of Directors of the parent company
and the operating subsidiaries were Bishop Ambrosius, Juhani Erma,
Eero Makkonen,  Aimo Paukkonen, Heikki Vauhkonen, Reijo Vauhkonen
and Matti Virtaala.   From amongst
its members, the Board of Directors elected Matti Virtaala
chairman and Heikki Vauhkonen vice chairman. The firm of
independent public accountants PricewaterhouseCoopers Oy of
Helsinki was elected the company´s auditor.

Increase in the number of shares and amendments to the Articles of
Association
The Annual General Meeting accepted the Board of Directors´
proposal to quadruple the number of shares without raising the
share capital by dividing each old share into four new shares.
The share´s new nominal value is EUR 0.17. The increase in the
number of shares entered into force on April 21, 2006.  The Annual
General Meeting accepted amendments to Articles 3 and 4 of the
Articles of Association in connection with the increase in the
number of shares.

Authorization to buy back and transfer the company´s own shares
The Annual General Meeting granted the Board of Directors an
authorization to buy and, similarly, to transfer treasury shares.
A maximum of 2,688,552 Series A shares and a maximum of 954,000
Series K shares will be bought back.

Authorization for increasing the share capital
The Annual Genereal Meeting authorized the Board of Directors to
decide on the increase of the share capital,  so that the share
capital can be increased by a maximum of EUR 1,238,468 by offering
a maximum of 7,285,108 new Series A shares for subscription at the
price determined by the Board of the Directors and under other
terms set by the Board.   The authorization includes the right to
waive the pre-emptive subscription right of shareholders provided
there are weighty financial reasons for the company to do so.

Rate development and exchange of Series A shares.
During the period, 2,944,895 shares were traded. The value of
share turnover was EUR 16.5 million. The highest rating for the
share was EUR 4.05 and the lowest was EUR 2.04. At the end of the
report period, the rating was EUR 3.16.

Share capital
During the report period, the company’s share capital was raised
by EUR 122,133.10, the equivalent of 718,430 new Series A shares,
through a directed share issue in connection with the terms of the
Kermansavi Oy acquisition. The difference between the share’s
subscription price and its nominal value, a total of EUR
1,928,866.90, was booked to the share premium fund. The increase
of the share capital was recorded in the Trade Register on June
30, 2006. Following the subscription, the company’s share capital
stands at EUR 6,314,474.90, and the number of its shares totals
37,143,970. The increase in the share capital was made on the
basis of an authorization by the Annual General Meeting to the
Board of Directors on April 6, 2006.

Outlook for the future
The active construction sector and the high cost of energy are set
to underpin demand for fireplace products. The new products range
will have a positive effect on the Group´s competitiveness.
Tulikivi´s sales will continue to grow both in its main and in new
markets. The Groups´s sales and earnings are set to develop
favourably over the full year.

At the close of the report period, the order book amounted to EUR
12.6 (5.0) million.

The interim report has been prepared in accordance with the
recognition and measurement principles of International Financial
Reporting Standards (IFRS).   Tulikivi Corporation has applied the
same financial reporting principles to this Interim Report as the
ones applied to the 2005 Annual Report.

CONSOLIDATED INCOME STATEMENT
MEUR
                     1-6/   1-6/Change,  1-12/   4-6/   4-6/Change
                     2006   2005      %   2005  2006    2005     %

Sales                37.2   27.7   34.2   58.6   20.9   14.6  43.3
Other operating
Income                0.3    0.1           0.3    0.2
Increase/decrease in
inventories in
finished goods and
in work in progress  -0.1   -0.4          -1.0
Production for
own use               0.5    0.6           1.2    0.3    0.5
Raw materials and
consumables           6.4    4.7           9.7    3.8    2.6
External services     4.2    3.1           6.6    2.6    1.6
Personnel expenses   13.7   10.3          21.0    7.8    5.5
Depreciation          2.4    1.9           4.0    1.4    0.9
Other operating
expenses              7.8    6.1          11.5    4.1    2.9

Operating profit      3.4    1.8   92.0    6.3    1.7    1.5  15.5
Percentage of sales   9.2    6.5          10.7    8.2   10.2
Finance costs -net   -0.2   -0.1          -0.1   -0.2   -0.1
Share of the profit of
associated company                        -0.1

Profit before tax     3.3    1.7   93.8    6.1    1.5    1.4   8.5
Percentage of sales   8.8    6.1          10.3    7.4    9.8
Direct taxes         -0.9   -0.5           1.7   -0.4   -0.3

Profit for the period 2.4    1.2   98.0    4.4    1.1    1.1   1.5

Earnings per share
Attributable to the
equity holders of the
parent company, EUR
basic and diluted    0.07   0.03          0.12

CONSOLIDATED BALANCE SHEET
MEUR                                06/06       06/05        12/05
ASSETS
Non-current assets
Property, plant and equipment
Land                                  0.9         1.0          1.0
Buildings                             7.7         6.4          6.2
Machinery and equipment              11.6         7.8          8.1
Other tangible assets                 0.7         0.8          0.8
Prepayments                           2.7         0.7          0.2
Intangible assets
Goodwill                              3.6         0.6          0.6
Other intangible assets              10.4         3.5          4.1
Investment properties                 0.3         0.2          0.2
Available-for-sale investments        0.2         0.1          0.1
Receivables                                                    0.2
Deferred tax assets                   0.5         0.6          0.5
Total non-current assets             38.6        21.7         22.0

Current assets
Inventories                          10.3         7.3          7.0
Trade receivables                     9.4         8.2          6.5
Other receivables                     1.5         1.5          0.8
Prepayments                                       0.1          0.2
Cash and cash equivalents             2.1         1.4          4.1
Total current assets                 23.3        18.5         18.6
Total assets                         61.9        40.2         40.6

EQUITY AND LIABILITIES
Equity
Share capital                         6.3         6.2          6.2
Share premium                         7.3         5.4          5.4
Translation differences                           0.1
Retained earnings                    13.8        10.7         13.9
Total equity                         27.4        22.4         25.5
Non-current liabilities
Deferred income tax liabilities       2.9         0.8          0.8
Provisions                            0.4         0.2          0.3
Interest-bearing debt                17.1         5.3          1.8
Other debt                            0.4         0.4          0.4
Total non-current liabilities        20.8         6.7          3.3
Current liabilities
Trade and other payables             12.5         8.7         10.2
Current income tax liabilities        0.2                      0.1
Short-term interest-bearing debt      1.0         2.3          1.5
Total current liabilities            13.7        11.0         11.8
Total liabilities                    34.5        17.7         15.1
Total equity and liabilities         61.9        40.1         40.6

CONSOLIDATED CASH FLOW STATEMENT
MEUR                               01-06/      01-06/       01-12/
                                     2006        2005         2005
Cash flows from operating activities
Profit for the period                 2.4         1.2          4.4
Adjustments:
Non-cash transactions                 2.3         1.9          4.0
Interest expenses
and income and taxes                  1.0         0.6          1.8
Change in working capital            -0.8        -1.5          1.8
Interest paid and received
and taxes paid                       -0.9        -0.8         -1.5
Net cash flow from operating
activities                            4.0         1.4         10.5

Cash flows from investing activities
Acquistion of subsidiaries less cash and
cash equivalents at the time of
acquistion                          -10.6
Acquistion of associated companies
and loans granted to them                                     -0.1
Investment in property, plant and
equipment and intangible assets      -5.4        -2.9         -5.1
Grants received for investments
and sales of property, plant and
equipment                             0.4         0.1          0.3
Sale of financial assets at fair
value through profit
and loss (net)                                    0.8          0.8
Net cash flow from investing
activities                          -15.6        -2.0         -4.1

Cash flows from financing activities
Loans received                       14.1         1.7
Repayment of loans                   -1.9        -2.7         -5.3
Dividends paid                       -2.6        -2.1         -2.1
Net cash flow from financing
activities                            9.6        -3.1         -7.4

Change in cash and cash
equivalents                          -2.0        -3.7         -1.0

Cash and cash equivalents at
beginning of period                   4.1         5.1          5.1

Cash and cash equivalents at
end of period                         2.1         1.4          4.1

KEY FINANCIAL RATIOS AND
SHARE RATIOS
                                    06/06        06/05     12/2005
Outstanding orders
(30 June), MEUR                      12.6         5.0          9.2
Gross investment, MEUR               17.2         2.9          5.1
Gross investment, % of sales         46.1        10.3          8.7
Average number of staff               638         499          514

Earnings per share, EUR              0.07        0.03         0.12
Equity per share, EUR                0.74        0.61         0.70
Equity ratio, %                      44.3        55.8         63.0
Gearing, %                           58.5        28.0         -3.1
Current ratio                         1.7         1.7          1.6

Number of shares average         36425540    36425540     36425540
Number of shares 30 June         37143970    36425540     36425540

STATEMENT OF CHANGES IN EQUITY
MEUR
                     Share   Share Trans-  Divi-   Retained  Total
                   capital prenium lation  dends   earnings
                              fund  diff.   paid

Equity 1 January 2006  6.2     5.4                     13.9   25.5
Translation
differences                           0.0                      0.0
Items recognised directly
in equity                                              -0.1   -0.1
Profit for the period                                   2.4    2.4
Dividends paid                              -2.5              -2.5
Share issue            0.1     2.0                             2.1
Equity 30 June 2006    6.3     7.4    0.0   -2.5       16.2   27.4

Equity 1 January 2005  6.2     5.4                     11.6   23.2
Translation
differences                           0.1                      0.1
Profit for the period                                   1.2    1.2
Dividends                                   -2.1              -2.1
Equity 30 June 2005    6.2     5.4    0.1   -2.1       12.8   22.4

BUSINESS SEGMENTS            01-06/      01-06/       1-12/
MEUR                          2006        2005         2005
Sales                          37.2        27.7        58.6
Soapstone Fireplaces
Business                       29.5        24.2        52.2
Natural Stone Products
Business                        3.8         3.5         6.4
Ceramic Products business       3.9

Operating profit                3.4         1.8         6.3
Soapstone Fireplaces
Business                        5.1         3.0         8.8
Natural Stone Products
Business                        0.1         0.2         0.2
Ceramic Products Business      -0.2
Unallocated group expenses     -1.6        -1.4        -2.7

BUSINESS SEGMENTS QUARTERLY
MEUR                            Q2/   Q1/   Q4/   Q3/   Q2/    Q1/
                               2006  2006  2005  2005  2005   2005

Sales                          20.9  16.3  17.6  13.4  14.6   13.1
Soapstone Fireplaces
Business                       14.9  14.6  15.9  12.1  12.8   11.4
Natural Stone Products
Business                        2.1   1.7   1.7   1.3   1.8    1.7
Ceramic Products Business       3.9

Operating profit                1.7   1.7   2.7   1.7   1.5    0.3
Soapstone Fireplaces
Business                        2.8   2.3   3.2   2.5   2.1    0.9
Natural Stone Products
Business                        0.0   0.1   0.1  -0.1   0.1    0.1
Ceramic Products Business      -0.2
Unallocated group expenses     -0.9  -0.7  -0.6  -0.7  -0.7   -0.7

COLLATERAL AND SECURITIES GIVEN
AND OTHER COMMITMENTS
MEUR                               6/2006  6/2005              12/
                                                              2005
Loans from credit institutions
and other non-current liabilities,
secured by mortgages and pledges     18.0     7.4              2.9
Mortgages and pledges given          26.7    10.8             10.8
Other mortgages and pledges given
by the company on its own behalf      1.7     1.7              1.7
Leasing commitments                   0.1
Derivatives
Interest rate swaps;
nominal value                         8.3
Interest rate swaps; fair value       0.0
Forward contracts; nominal value      0.2
Forward contracts; fair value         0.0
The fair value of derivatives is equivalent to a profit or loss
from the closing of the contract calculated on the basis of the
market price at June 30.

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.

LARGEST SHAREHOLDERS ON 30 JUNE 2006

Name of shareholder                        Shares       Proportion
                                                          of total
                                                              vote
Vauhkonen Reijo                         4 160 146           24.3 %
Vauhkonen Heikki                        2 998 206           24.1 %
Elo Eliisa                              2 957 020            5.9 %
Virtaala Matti                          2 420 346           11.9 %
Mutual Pension Insurance
Company Ilmarinen                       1 902 380            1.5 %
Mutanen Susanna                         1 663 100            7.2 %
Vauhkonen Mikko                           800 700            3.6 %
Paatero Ilkka                             718 430            0.6 %
Nuutinen Tarja                            674 540            3.5 %
Fondita Nordic Small Cap
Placfond                                  652 400            0.5 %
Other shareholders                     18 196 702           16.9 %

The interim report has not been audited.

The companies included in the Group are the parent company
Tulikivi Corporation and subsidiaries Kermansavi Oy, 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 Deutschland. 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