EVOX RIFA GROUP INTERIM REPORT JANUARY 1, 2003 - JUNE 30, 2003

8/5/2003, 9:02 AM (Source: GlobeNewswire)

* Net sales in the first half of 2003 increased by 29.9 percent
totalling EUR 39.3 million (EUR 30.3 million in the corresponding
period of 2002).
* Operating loss was 2.3 million (loss EUR 4.9 million)
* Loss before extraordinary items was EUR 3.0 million (loss EUR 4.9
million)
* Earnings per share was EUR - 0.017 (EUR -0.053)
* Order backlog on June 30, 2003 was EUR 12.8 million (EUR 16.0
million)


ECONOMIC DEVELOPMENT

Net Sales

Net sales of the Group totaled EUR 39.3 million (EUR 30.3 million)
which is EUR 9.0 million more than during the same period in the
previous year. The net sales of BHC Components, which was acquired in
May 2002, amounted to EUR 11.4 million (EUR 3.1 million).


Profit

Operating loss of the Group was EUR 2.3 million (loss EUR 4.9
million) and loss before extraordinary items was EUR 3.0 million
(loss EUR 4.9 million).

Earnings per share was EUR -0.017 (EUR -0.053)and shareholders'
equity per share was EUR 0.115 (EUR 0.154).


Order backlog

The order backlog of the Group was EUR 12.8 million at the end of the
first half of 2003 (EUR 16.0 million at the end of the corresponding
period of 2002; with June 2003 currency rates: EUR 14,8 million). The
utilisation rate of the production capacity was low and almost at the
same level as in the previous year.

Price erosion has been continuous during the period, which partly
explains the decrease in the value of the order backlog. Price
erosion continued due to the strength of the euro. Delivery times are
very short, and key customers are increasingly supplied under JIT
(Just-In- Time) arrangements, which also reduces the order backlog.


FINANCIAL STATUS AND CAPITAL EXPENDITURE

Liquid assets of the Group were EUR 5.4 million (EUR 4.1 million) and
the equity ratio was 34.3 % (39.3 %) at the end of first half of
2003. Translation differences of the equities of foreign group
companies (USD, GBP, SEK, SGD) caused a 0,9 MEUR decrease in equity
compared to the situation at the year end in 2002.

The cash flow of the period includes a EUR 0.7 million gain on sales
of assets and a EUR 0.5 million tax return. The respective gains have
been included in the 2002 income statement.

The capital expenditure of EUR 0.7 million (EUR 6.4 million) includes
replacement investments both in Europe and in Asia.

Operative cash flow is expected to remain positive during the rest of
the year. To improve cost efficiency, efforts have been intensified
to increase turnover of working capital. To improve assets
utilisation Evox Rifa has started investigations to sell some of its
real estates.


SHARES AND SHARE CAPITAL

The nominal value of the shares of Evox Rifa Group Oyj is EUR 0.05,
the number of shares was 173.371.018 on June 30, 2003 and the share
capital was EUR 8.668.550,90.


PERSONNEL

The average number of personnel of Evox Rifa Group during the first
half of 2003 was 1212 (1183 during the corresponding period in 2002).
The decision to make 50 persons redundant at the Kalmar factory in
Sweden was made in January - the cost saving effects will be seen
during the second half of 2003.


BUSINESS AREA ELECTROLYTIC CAPACITORS

Net sales of the Business Area were EUR 20.2 million. Price erosion
increased during the period, and demand in the European market is
slowing down. The JIT concept has enabled more efficient production
planning, and the Business Area has been able to meet the demands of
short delivery times.

Profitability of the Chinese operation has developed as expected,
without major disturbances from the effects of SARS. Profitability of
the Business Area during the second quarter remained at the same
level as in the first quarter of 2003. The ongoing process
development projects will improve profitability in the future.



BUSINESS AREA FILM CAPACITORS

Net sales of the Business Area were EUR 19.3 million. The SARS
outbreak caused a slowdown in the Asian market during the second
quarter. The market is now recovering, but with strong price pressure
conyinuing. Demand in Europe during the second quarter has been lower
than during the first quarter of the year. Uncertainty is expected to
continue in the European market in the near future.

The transfer of the small size plastic film capacitor production from
Sweden to Indonesia was finalised as planned, and the capacity can be
fully utilised from the third quarter on.

Marketing efforts of the full SMD (Surface Mounted Device) product
range according to the Matsushita (Panasonic) agreement continued,
with a positive feedback from the market.

The profitability of the European plants did not improve as expected
during the second quarter, mainly because of the strong euro and low
demand in Europe.



OUTLOOK FOR THE YEAR 2003

Evox Rifa's market environment is continuously uncertain. The
situation is not likely to improve in the USA or Europe during the
third quarter of 2003. The sales reflects the general economic
weakness in Europe and the USA. Growth in Asia will continue, but
with hard price pressures.

Evox Rifa will continue to cut costs and improve the efficiency of
its operations. The synergies within the group will be further
utilised in all business processes, with a strong emphasis on global
logistics and local service.


The figures of this interim report are unaudited.

In Espoo on August 5, 2003

EVOX RIFA GROUP OYJ

Tuula Ylhäinen
President


For further information please contact: Evox Rifa Group Oyj, Tuula
Ylhäinen, President, tel. +358 9 5406 5001

DISTRIBUTION
Helsinki Exchanges, Main Media


The full report including tables can be downloaded from the enclosed
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