– The Tulikivi Group’s sales rose by 24.5 per cent during the
first quarter and amounted to EUR 16.3 (13.1) million.
– Exports grew by 60 per cent.
– The Group’s profit before taxes was EUR 1.7 (0.3) million.
– The Group’s flow of orders has remained good. The order book
amounted to EUR 9.7 (6.6) million at period’s end.

Sales and result
The Group’s sales came in at EUR 16.3 million (EUR 13.1 million in
the January-March period of 2005). Sales growth is organic. The
Fireplaces Business racked up sales of EUR 14.6 (11.4) million and
the Natural Stone Products Business (the former Architectural
Stone Business) had sales of EUR 1.7 (1.7) million.

The share of sales accounted for by exports was EUR 9.7 (6.0)
million, or 59.4 (45.9) per cent. The largest export countries
were Germany and Sweden. Sales in Finland amounted to EUR 6.6
(7.1) million.

The Group’s operating profit was EUR 1.7 (0.3) million. The
Fireplaces Business posted operating profit of EUR 2.3 (0.9)
million and the Natural Stone Products Business EUR 0.1 (0.1)
milllion, with unallocated expenses amounting to EUR 0.7 (0.7)
million. The Group’s profit before taxes was EUR 1.7 (0.3)
million.

Financing activities and investments

The Group’s financing position is favourable. Cash flow from
operating activities before investments was EUR -0.4 (-3.0)
million. The working capital of the Group increased by 2.8 (3.9)
million during the period.

The equity ratio was 64.1 per cent (51.6 per cent on March 31,
2005 after reduction of dividend). The ratio of interest-bearing
net liabilities to equity (gearing) was 5.5 (33.3) per cent. The
current ratio was 1.6 (1.5). Equity per share was EUR 2.94 (2.33).

The Group invested EUR 1.8 (1.3) million in production and
quarries. A factory investment valued at about EUR 5 million was
started up in Juuka during the review period. The factory is
slated for completion in autumn 2006. It will manufacture the next
generation of Tulikivi products. This collection was unveiled at
the Verona fireplace trade fair in March.

In January 2006 Tulikivi was granted a license for the prospecting
and industrial utilization of stone reserves in the Republic of
Karelia in Russia. Research will start during the summer.

Quotation and trading of the Series A share
Share turnover during the review period amounted to 648 596, with
the value of turnover being EUR 6.9 million. The highest trading
price of the share was EUR 12.50 and the lowest EUR 8.16. The
closing rate for the report period was EUR 12.00.

Major events after the end of the report period
On April 3, 2006, Tulikivi Corporation acquired all the shares in
Kermansavi Oy, whose main business is the manufacture of tiled
stoves. The transaction bolsters Tulikivi’s market leadership in
heat-retaining fireplaces and rounds out Tulikivi’s product range.
In 2005, Kermansavi Oy had sales of about EUR 16 million and its
profit before taxes was EUR 1.5 million. The selling price was EUR
13.1 million.

Tulikivi Corporation’s Annual General Meeting, held on 6 April
2006, resolved that a dividend of EUR 0.280 be paid on Series A
shares and EUR 0.273 on Series K shares. The former Board members
were re-elected. The Annual General Meeting accepted the proposal
of the Board of Directors to quadruple the number of shares
without raising the share capital, effective as from April 21,
2006. The Annual General Meeting also approved the Board’s
proposals to authorize the

Board of Directors to acquire and dispose of the company’s own
shares as well as to raise the share capital.

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. It is estimated that the
acquisition of Kermansavi Oy will have a slightly positive effect
on the Group’s result for 2006.

At the end of the review period, the order book was EUR 9.7
million, of which the Fireplaces Business accounted for EUR 9.3
(5.9) million and the Natural Stone Business for EUR 0.4 (0.7)
million.

The Interim Report has been drafted in line with IFRS measurement
and recognition principles.

CONSOLIDATED INCOME STATEMENT
MEUR                               01-03/  01-03/ Change,   01-12/
2006    2005       %     2005

Sales                                16.3    13.1    24.1     58.6
Other operating income                0.1     0.1              0.3
Increase/decrease in inventories in
finished goods and in work
in progress                          -0.1    -0.4             -1.0
Production for own use                0.2     0.1              1.2

Raw materials and consumables         2.5     2.1              9.7
External services                     1.7     1.5              6.6
Personnel expenses                    5.9     4.8             21.0
Depreciation                          1.0     1.0              4.0
Other operating expenses              3.7     3.2             11.5

Operating profit                      1.7     0.3   466.7      6.3
Percentage of sales                  10.6     2.3             10.7
Finance costs -net                    0.0     0.0             -0.1
Share of the profit of
Associated company                                            -0.1

Profit before tax                     1.7     0.3   572.8      6.1
Percentage of sales                  10.5     1.9             10.3
Direct taxes                          0.4     0.2              1.7

Profit for the period                 1.3     0.1  1145.1      4.4

Earnings per share attributable
to the equity holders of the
parent company, EUR                  0.14    0.01             0.48
basic and diluted

CONSOLIDATED BALANCE SHEET
MEUR                              03/2006 03/2005          12/2005
ASSETS
Non-current assets
Property, plant and equipment
Land                                  0.9     1.0              0.9
Buildings                             6.7     6.4              6.2
Machinery and equipment               9.0     8.3              8.4
Other tangible assets                 0.7     0.8              0.8
Intangible assets
Goodwill                              0.6     0.6              0.6
Other intangible assets               4.2     3.1              4.1
Investment properties                 0.2     0.2              0.2
Available-for-sale investments        0.1     0.1              0.1
Receivables                                                    0.2

Deferred tax assets                   0.5     0.6              0.5
Total non-current assets             22.9    21.1             22.0

Current assets
Inventories                           7.3     7.2              7.0
Trade receivables                     8.6     9.2              6.5
Current income tax receivables        0.1     0.5              0.0
Other receivables                     1.4     1.7              0.8
Prepaid expenses                              0.2              0.2
Financial assets at fair value
through profit and loss
Cash and cash equivalents             1.4     1.2              4.1
Total non-current assets             18.8    20.0             18.6
Total assets                         41.7    41.1             40.6

EQUITY AND LIABILITIES
Equity
Share capital                         6.2     6.2              6.2
Share premium                         5.4     5.4              5.4
Retained earnings                    15.2     9.6             13.9
Total equity                         26.8    21.2             25.5
Non-current liabilities
Deferred income tax liabilities       0.8     0.8              0.8
Retirement benefit obligations                0.0
Provisions                            0.3     0.2              0.3
Interest-bearing debt                 1.8     5.3              1.8
Other debt                            0.4     0.4              0.4
Total non-current liabilities         3.3     6.7              3.3
Current liabilities
Trade and other payables             10.5    10.3             10.2
Current income tax liabilities        0.1                      0.1
Short-term interest-bearing debt      1.1     2.9              1.5
Total current liabilities            11.7    13.2             11.8
Total liabilities                    15.0    19.9             15.1
Total equity and liabilities         41.8    41.1             40.6

CONSOLIDATED CASH FLOW STATEMENT   01-03/  01-03/           01-12/
MEUR                                 2006    2005             2005

Cash flows from operating activities
Profit for the period                 1.3     0.1              4.4
Adjustments:
Non-cash transactions                 1.0     1.0              4.0
Interest expenses
and income and taxes                  0.4     0.2              1.8
Change in working capital            -2.8    -3.9              1.8
Interest paid and received
and taxes paid                       -0.3    -0.4             -1.5
Net cash flow from operating
activities                           -0.4    -3.0             10.5

Cash flows from investing activities
Acquistion of associated companies and
loans granted to them      -0.1
Investment in property, plant and
equipment and intangible assets      -1.9    -1.4             -5.1
Grants received for investments
and sales of property, plant and
equipment                             0.1     0.1              0.3
Sale of financial asets at fair value
through profit and loss                       0.8              0.8
Net cash flow from investing
activities                           -1.8    -0.5             -4.1

Cash flows from financing activities
Loans received                                1.8
Repayment of loans                   -0.5    -2.3             -5.3
Dividends paid                                                -2.1

Net cash flow from financing
activities                           -0.5    -0.5             -7.4

Change in cash and cash
equivalents                          -2.7    -4.0             -1.0

Cash and cash equivalents
beginning of period                   4.1     5.1              5.1

Cash and cash equivalents at
end of period                         1.4     1.1              4.1

KEY FINANCIAL RATIOS AND
SHARE RATIOS
03/2006 03/2005          12/2005
Outstanding orders
(31 March), MEUR                      9.7     6.6              9.2
Gross investment, MEUR                2.2     1.3              5.1
Gross investment, % of sales         13.4    10.2              8.7
Average number of staff               544     492              514

Earnings per share, EUR              0.14    0.01             0.48
Equity per share, EUR                2.94    2.33             2.80
Equity ratio, %                      64.1    51.6             63.0
Gearing, %                            5.5    33.3             -3.1
Current ratio                         1.6     1.5              1.6
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 2006   6.2     5.4                    13.9   25.5
Translation differences                 0.0                    0.0
Profit for the period                                   1.3    1.3
Equity 31 March 2006    6.2     5.4     0.0            15.2   26.8

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

BUSINESS SEGMENTS                     Q1/     Q1/             1-12
MEUR                                 2006    2005             2005
Sales                                16.3    13.1             58.6
Fireplaces business                  14.6    11.4             52.2
Natural stone products business       1.7     1.7              6.4

Operating profit                      1.7     0.3              6.3
Fireplaces business                   2.3     0.9              8.8
Natural stone products business       0.1     0.1              0.2
Unallocated group expenses           -0.7    -0.7             -2.7

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

Sales                        16.3    17.6    13.4   14.6      13.1
Fireplaces business          14.6    15.9    12.1   12.8      11.4
Natural stone products
business                      1.7     1.7     1.3    1.8       1.7

Operating profit              1.7     2.7     1.7    1.5       0.3
Fireplaces business           2.3     3.2     2.5    2.1       0.9
Natural stone products
business                      0.1     0.1    -0.1    0.1       0.1
Unallocated group expenses   -0.7    -0.6    -0.7   -0.7      -0.7

COLLATERAL AND SECURITIES GIVEN
AND OTHER COMMITMENTS
MEUR                               3/2006  3/2005              12/
2005
Loans from credit institutions
and other non-current liabilities,
secured by mortgages and pledges      2.6     7.4              2.9
Mortgages and pledges given          10.8    10.8             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.

LARGEST SHAREHOLDERS ON 31 MARCH 2006

Name of shareholder                      Number of      Proportion
of
shares       total vote
Vauhkonen Reijo                         1 039 673           24.4 %
Vauhkonen Heikki                          749 938           23.8 %
Elo Eliisa                                739 255            5.9 %
Virtaala Matti                            604 723           12.0 %
Mutual Pension Insurance
Company Ilmarinen                         475 595            1.5 %
Mutanen Susanna                           449 375            7.3 %
Investment Fund Phoebus                   210 000            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                      4 305 916           16.8 %

The interim report has not 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.  Kermansavi Oy is a
part of the Tulikivi Group starting from April 3, 2006.

TULIKIVI CORPORATION

Board of directors
Matti Virtaala,  Chairman of the Board

Distribution: Helsinki Stock Exchange
Central Media