- The Tulikivi Group’s sales rose by 40.5% in the January-
September period. Growth in comparable sales was 19.8%.
- Sales for the report period totalled EUR 57.7 (41.1) million.
Comparable sales were EUR 49.2 million.
- The Group’s profit before taxes amounted to EUR 5.4 (3.4)
million. Comparable profit before taxes was EUR 5.1 million.
- Cash flow from operating activities before investments was EUR
6.1 (3.3) million.
- The order book at the close of the period amounted to EUR 12.4
(8.8) million.

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 Product 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 57.7 million (EUR 41.1 million in
January - September 2005). Sales grew by 40.5 per cent during the
report period, while the comparable growth in sales was 19.8 per
cent.  The Soapstone Fireplaces Business posted sales of EUR 43.7
(36.3) million, the Natural Stone Products Business sales of EUR
5.5 (4.8) million and the Ceramic Products Business sales of EUR
8.5 million.

The share of sales accounted for by exports was EUR 29.1 (20.4)
million, or 50.4 (48.1) per cent of total sales. The Soapstone
Fireplaces Business’s exports grew by 41.0 per cent during the
report period. The largest countries for exports were Germany and
Sweden. Domestic sales were EUR 28.6 (20.7) million.

The Group’s operating profit was EUR 5.8 (3.5) million. The
Soapstone Fireplaces Business posted an operating profit of EUR
7.3 (5.5) million, the Natural Stone Products Business an
operating profit of EUR 0.3 (0.1) million and the Ceramic Products
Business an operating profit of EUR 0.5 million, while unallocated
expenses totalled EUR 2.3 (2.1) million. The third-quarter
expenses of the Soapstone Fireplaces Business included the one-off
recognition of a total of EUR 0.5 million in expenses on brochures
for the new collection. The Group’s profit before taxes was EUR
5.4 (3.4) million. The Group’s comparable profit before taxes was
EUR 5.1 million. Earnings per share amounted to EUR 0.11 (EUR
0.07).

Financing and investments
The Group’s financial position is good. Cash flow from operating
activities before investments amounted to EUR 6.1 (3.3) million.
The Group’s net finance costs amounted to EUR 0.4 (0.1) million.

The equity ratio was 44.9 per cent (58.0 per cent at September 30,
2005). The ratio of interest-bearing net debt to shareholders’
equity, or gearing, was 56.8 (23.2) per cent. The current ratio
was 1.8 (1.8). Shareholders’ equity per share amounted to EUR 0.78
(EUR 0.65).

The Group’s gross investments in the report period amounted to EUR
19.5 (4.0) million. The purchase price paid for Kermansavi Oy’s
shares was EUR 13.1 million. Investments in production and
quarries were EUR 6.2 (3.6) million. The most significant capital
item is the investment in a factory in Juuka, valued at about EUR
5 million, which is currently in the inauguration phase.

Sales and customer deliveries of the new fireplace collection
began during the report period. The new products boast combustion
technology and efficiency that are the best among their peers. The
products will be manufactured at the newly completed factory.

Research at the Medvezhyegorsk deposit, for which the company
received prospecting rights in January 2006, has been completed.
The reason is that it is not economically feasible to use the
soapstone in this deposit for the manufacture of the company’s
current products. Tulikivi has decided to expand its prospecting
operations to new areas in Russian Karelia in cooperation with the
Geology Institute of the Karelian Scientific Centre of the Russian
Academy of Sciences and the Geological Survey of Finland.

Personnel
The Group employed an average of 632 (509) people during the
report period, of whom 96 worked for Kermansavi Oy.

Number of shares, increase in the share capital and Board
authorizations
The number of Tulikivi Corporation’s shares was quadrupled during
the report period 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.

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 new Series A shares were made
available for trading on the stock exchange list on July 3, 2006.

The Board of Directors has 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 can be bought
back.

The Board of Directors has an authorization to increase 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, 3,871,093 shares were traded. The value of
share turnover was EUR 19.7 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 3.69.

Outlook for the future
Construction activity will continue to be brisk in Tulikivi’s
market areas. The price of heating energy will remain high. The
company is making further outlays on developing distribution
channels in different market areas. The new collection will have a
positive effect on the company’s competitiveness. Demand for
fireplace products is expected to remain brisk. The Group’s sales
and earnings in the present year will substantially outperform
2005.

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
                     1-9/   1-9/Change,  1-12/   7-9/   7-9/Change
                     2006   2005      %   2005  2006    2005     %

Sales                57.7   41.1   40.5   58.6   20.5   13.4  53.4
Other operating
income                0.5    0.2           0.3    0.2    0.1
Increase/decrease in
inventories in
finished goods and
in work in progress  -0.3   -0.8          -1.0   -0.2   -0.4
Production for
own use               0.7    0.9           1.2    0.2    0.3
Raw materials and
consumables           9.8    6.9           9.7    3.5    2.2
External services     7.2    4.8           6.6    3.0    1.6
Personnel expenses   20.2   14.8          21.0    6.6    4.5
Depreciation          3.7    3.0           4.0    1.4    1.0
Other operating
expenses             11.9    8.4          11.5    4.1    2.3

Operating profit      5.8    3.5   61.4    6.3    2.3    1.8  30.6
Percentage of sales  10.0    8.7          10.7   11.3   13.3
Finance costs -net   -0.4   -0.1          -0.1   -0.2
Share of the profit of
associated company                        -0.1

Profit before tax     5.4    3.4   56.3    6.1    2.1    1.7  20.4
Percentage of sales   9.3    8.4          10.3   10.3   13.1
Income taxes          1.4    0.9           1.7    0.5    0.4

Profit for the period 4.0    2.5   55.6    4.4    1.6    1.3  17.5

Earnings per share
attributable to the
equity holders of the
parent company, EUR
basic and diluted    0.11   0.07          0.12

CONSOLIDATED BALANCE SHEET
MEUR                                09/06       09/05        12/05
ASSETS
Non-current assets
Property, plant and equipment
Land                                  0.9         0.9          1.0
Buildings                             9.0         6.3          6.2
Machinery and equipment              11.9         8.6          8.1
Other tangible assets                 0.7         0.8          0.8
Prepayments                           1.9                      0.2
Intangible assets
Goodwill                              3.9         0.6          0.6
Other intangible assets              10.3         3.6          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             39.4        21.7         22.0

Current assets
Inventories                          10.6         7.0          7.0
Trade receivables                    10.7         9.0          6.5
Current income tax receivables                    0.5
Other receivables                     1.5         0.7          0.8
Prepayments                                                    0.2
Cash and cash equivalents             2.4         2.0          4.1
Total current assets                 25.2        19.2         18.6
Total assets                         64.6        40.9         40.6

EQUITY AND LIABILITIES
Equity
Share capital                         6.3         6.2          6.2
Share premium                         7.4         5.4          5.4
Translation differences                           0.1
Retained earnings                    15.3        12.0         13.9
Total equity                         29.0        23.7         25.5
Non-current liabilities
Deferred income tax liabilities       2.8         0.8          0.8
Provisions                            0.4         0.2          0.3
Interest-bearing debt                17.9         5.1          1.8
Other debt                            0.4         0.4          0.4
Total non-current liabilities        21.5         6.5          3.3
Current liabilities
Trade and other payables             12.9         8.3         10.2
Current income tax liabilities        0.3                      0.1
Short-term interest-bearing debt      0.9         2.4          1.5
Total current liabilities            14.1        10.7         11.8
Total liabilities                    35.6        17.2         15.1
Total equity and liabilities         64.6        40.9         40.6

CONSOLIDATED CASH FLOW STATEMENT
MEUR                               01-09/      01-09/       01-12/
                                     2006        2005         2005
Cash flows from operating activities
Profit for the period                 4.0         2.5          4.4
Adjustments:
Non-cash transactions                 3.6         3.0          4.0
Interest expenses
and income and taxes                  1.8         1.0          1.8
Change in working capital            -1.8        -2.0          1.8
Interest paid and received
and taxes paid                       -1.4        -1.2         -1.5
Net cash flow from operating
activities                            6.1         3.3         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      -8.2        -4.1         -5.1
Grants received for investments
and sales of property, plant and
equipment                             0.7         0.2          0.3
Sale of financial assets at fair
value through profit
and loss (net)                                    0.7          0.8
Net cash flow from investing
activities                          -18.1        -3.2         -4.1

Cash flows from financing activities
Loans received                       15.4         2.2
Repayment of loans                   -2.5        -3.3         -5.3
Dividends paid                       -2.6        -2.1         -2.1
Net cash flow from financing
activities                           10.3        -3.2         -7.4

Change in cash and cash
equivalents                          -1.7        -3.1         -1.0

Cash and cash equivalents at
beginning of period                   4.1         5.1          5.1

Cash and cash equivalents at
end of period                         2.4         2.0          4.1

KEY FINANCIAL RATIOS AND
SHARE RATIOS
                                    09/06        09/05     12/2005
Outstanding orders
(30 Sept.), MEUR                     12.4         8.8          9.2
Gross investment, MEUR               19.5         4.0          5.1
Gross investment, % of sales         33.8         9.8          8.7
Average number of staff               632         509          514

Earnings per share, EUR              0.11        0.07         0.12
Equity per share, EUR                0.78        0.65         0.70
Equity ratio, %                      44.9        58.0         63.0
Gearing, %                           56.8        23.2         -3.1
Current ratio                         1.8         1.8          1.6

Number of shares average         36667648    36425540     36425540
Number of shares 30 Sept.        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                                   4.0    4.0
Dividends paid                              -2.5              -2.5
Share issue            0.1     2.0                             2.1
Equity 30 Sept. 2006   6.3     7.4    0.0   -2.5       17.8   29.0

Equity 1 January 2005  6.2     5.4                     11.6   23.2
Translation
differences                           0.1                      0.1
Profit for the period                                   2.5    2.5
Dividends                                   -2.1              -2.1
Equity 30 Sept. 2005   6.2     5.4    0.1   -2.1       14.1   23.7

BUSINESS SEGMENTS            01-09/      01-09/       1-12/
MEUR                          2006        2005         2005
Sales                          57.7        41.1        58.6
Soapstone Fireplaces
Business                       43.7        36.3        52.2
Natural Stone Products
Business                        5.5         4.8         6.4
Ceramic Products business       8.5

Operating profit                5.8         3.5         6.3
Soapstone Fireplaces
Business                        7.3         5.5         8.8
Natural Stone Products
Business                        0.3         0.1         0.2
Ceramic Products Business       0.5
Unallocated group expenses     -2.3        -2.1        -2.7

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

Sales                    20.5  20.9  16.3  17.6  13.4  14.6   13.1
Soapstone Fireplaces
Business                 14.2  14.9  14.6  15.9  12.1  12.8   11.4
Natural Stone Products
Business                  1.7   2.1   1.7   1.7   1.3   1.8    1.7
Ceramic Products
Business                  4.6   3.9

Operating profit          2.4   1.7   1.7   2.7   1.7   1.5    0.3
Soapstone Fireplaces
Business                  2.2   2.8   2.3   3.2   2.5   2.1    0.9
Natural Stone Products
Business                  0.2   0.0   0.1   0.1  -0.1   0.1    0.1
Ceramic Products
Business                  0.7  -0.2
Unallocated group
expenses                 -0.7  -0.9  -0.7  -0.6  -0.7  -0.7   -0.7

COLLATERAL AND SECURITIES GIVEN
AND OTHER COMMITMENTS
MEUR                               9/2006  9/2005              12/
                                                              2005
Loans from credit institutions
and other non-current liabilities,
secured by mortgages and pledges     19.2     6.3              2.9
Mortgages and pledges given          28.3    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

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 Sept. 30.

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

LARGEST SHAREHOLDERS ON 30 SEPTEMBER 2006

Name of shareholder                        Shares       Proportion
                                                          of total
                                                              vote
Vauhkonen Reijo                         4 160 146           24.3 %
Vauhkonen Heikki                        2 997 706           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                         1 643 800            7.2 %
Vauhkonen Mikko                           800 700            3.6 %
Paatero Ilkka                             718 430            0.6 %
Nuutinen Tarja                            674 540            3.5 %
Investment Fund Phoebus                   600 000            0,5 %
Other shareholders                     18 268 902           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. 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