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Interim Report 1 January - 30 June 2008

COST PRESSURE CONTINUED

Suominen Corporation's net sales for the second quarter totalled EUR 55.2 million (51.2). Operating profit was EUR 0.6 million (0.5), profit before taxes EUR -0.6 million (-0.4) and profit after taxes EUR -0.4 million (-0.3).

Net sales for the first two quarters totalled EUR 109.6 million (105.5). Operating profit was EUR 0.5 million (1.7), profit before taxes EUR -1.8 million (-0.1) and profit after taxes EUR -1.3 million (-0.1).

Raw material prices levelled off temporarily during the spring, however, quoted prices for supplies for the summer period are back to higher levels. The rise in raw material prices, the delay in transferring these increases over to sales prices, and price reductions based on contracts reduced the value added margin by some EUR 2 million. Energy and payroll costs increased by some EUR 1.5 million compared to six months of 2007. The Company's cost-saving programme has generated some EUR 2.5 million since the previous year.

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