Stock Exchange Releases

Tulikivi Corporation’s Annual General Meeting held on April 13, 2007: Managing Director Juha Sivonen presents the market outlook for the spring


Growth in the Tulikivi Group’s Q1 revenue did not measure up to
expectations. Revenue amounted to about EUR 19.2 million (EUR 16.3
million in the previous year). Comparable revenue – that is,
revenue in Q1 2007 less Kermansavi’s share – amounted to about EUR
15.5 million. The order book on March 31 was EUR 10.8 (9.7)
million and the comparable order book was EUR 7.5 million.

In 2006, demand for Tulikivi Group fireplace products increased
briskly right up to the end of the year. Demand has slowed in the
first half of this year, especially in Germany and Finland.

There has been a substantial change in German fireplace demand
since the beginning of the year. The three percentage point VAT
increase that came into force at the beginning of 2007 brought
product deliveries forward to the end of last year. The impact of
the VAT increase is temporaryx). The IFO Business Climate Index,
which measures the confidence of construction companies, swung
into a decline in February. Slower demand for fireplaces in
Germany has also been evident in Tulikivi’s lining stone sales.

Sales have risen in other export markets.

Tulikivi overhauled its distribution channel organization in
Finland at the start of 2007. The changes were forecast to slow
soapstone fireplace sales during the first half of the year. The
transition phase has progressed in line with expectations.

Residential construction in Finland increased by almost 6 per cent
in 2006. High house prices and a rise in interest rates limit new
residential construction. Growth of 2 per cent is forecast for
housing production in 2007*). In addition to new construction, the
number of residential renovations carried out has an impact on
fireplace demand.

Tulikivi Corporation’s first quarter result will be released on
Friday, April 20, 2007.

*)Suhdanne 2007:1, ETLA

A listed family company, Tulikivi Corporation and its subsidiaries
form the Tulikivi Group, the world’s largest manufacturer of heat-
retaining fireplaces. The Group is known for its Tulikivi
soapstone fireplaces and natural stone products as well as its
Kermansavi ceramic fireplaces and utility ceramics. The Group’s
revenue amounts to approximately EUR 80 million, about half of
which is accounted for by exports. The Group owns seven production
plants and employs just over 700 people.