Sales and Revenues During the period Q4 Y2008 consolidated net sales of AS Norma totalled 314.0 MEEK (20.1 MEUR).This constitutes a 14.9% (55 MEEK; 3.5 MEUR) decrease in Group's sales compared to Q4 Y2007. Sales to Russian and Ukraine customers decreased by 4.0%, sales to other customers decreased by 25.4%. Sales to parent company Autoliv amounted to 126.4 MEEK (8.1 MEUR), a 27% decrease (47 MEEK; 3.0 MEUR) compared to the same period in 2007. In Q4 Y2008, AS Norma exported 99.1% of its products (Q4 Y2007: 98.8%) - 36% to Sweden and 55% to Russia (Q4 Y2007: respectively 44% and 49%). For Y2008 consolidated sales of AS Norma totalled 1 382 MEEK (88.3 MEUR), an increase 9.4% (118 MEEK; 7.6 MEUR) compared to 2007. Sales to Russian and Ukraine customers increased by 38.1% and sales to other customers declined by 12.5%. Sales to parent company Autoliv reached 566 MEEK (36.2 MEUR), which was 14.1% less compared to the same period in 2007. The main field of activity of Group were production and sale of car safety seatbelts and their components. The Group also manufactured car components, as well as dies and molds for stamping machines, and rendered engineering services related to the design and adaptation of car safety systems and seatbelts. The number of employees at the end of Q4 Y2008 was 918, which was 54 employees less than a year ago and 68 less compared to the beginning of Q4 Y2008. The Group employed a monthly average of 948 people. Assets and liabilities Accounts receivable at the end of Q4 Y2008 totalled 155.6 MEEK (9.9 MEUR), of which 65.5% related to the Russian and Ukrainian customers. Receivables from Autoliv were 47.4 MEEK (3.0 MEUR). AS Norma's payables to Autoliv amounted to 12.4 MEEK (0.8 MEUR). The share of accounts in arrears of total receivables was 12.5%. The reserve for bad debts was established in the amount of 1.4 MEEK (0.09 MEUR). At the end of Q4 Y2008, the consolidated total assets totalled 1082 MEEK (69.1 MEUR), a 24 MEEK(1.6 MEUR) growth during the current year, including a 27 MEEK (1.7 MEUR) increase in current assets. The growth was, above all, due to the changes in short-term financial investments. As of 31.12.2008 the Group deposited at Autoliv AB euros in the amount of 9.9 MEUR (155 MEEK) for the term of maturity less than 3-month and 3-12-month with a 5.5%-5.7% interest rate, and kroons in the amount of 23.0 MEEK (1.5 MEUR) with a 7% interest rate. No additional transactions were made with Autoliv AB during the Q4 Y2008. Short-term liabilities amounted to 103 MEEK (6.6 MEUR) at the end of Q4 Y2008. The Group has no long-term liabilities, all investments were financed from equity. The owners' equity of the Group increased in 2008 by 71 MEEK (4.6 MEUR), amounting to 979 MEEK (62.6 MEUR), which made up 90.5% of total assets. Investments During 2008, AS Norma invested a total of 51 MEEK (3.3 MEUR) to support existing production capacities and assure the future profits. Net Profit and Earnings per Share The Group's consolidated unaudited net profit was 32.4 MEEK (2.1 MEUR) in Q4 Y2008, which was 6 MEEK (0.4 MEUR) less than in Q4 Y2007. Net profit made up 10.3% of sales. A year earlier, the same indicator was 10.4%. For Y2008 net profit amounted to 137 MEEK (8.8 MEUR), having grown by 31.3 MEEK (2.0 MEUR) compared to the same period a year ago. The net profit margin was 9.9% (Y2007: 8.4%). Both, diluted and basic earnings per share were 10.40 EEK (0.66 EUR) as of the end of December, a year earlier EPS was 8.02 EEK (0.51 EUR). Major events The global automotive industry is going through a crisis. Car sales volumes are down in excess of 30% on a monthly basis. Inventories have grown and all car manufacturers are reducing production volumes. AS Norma customers are not excluded from this scenario. In response, the Management decided to introduce reduced working hours from Oct. 20, 2008. Further adjustments were decided on, by terminating 52 employment contracts, effective February. 2009. As the crises in the industry has worsened, the company applied on January 19 to terminate another 111 employee contracts. The Management and the Supervisory Board continue to monitor the development very carefully to adjust capacity and operating cost as needed. Under the current circumstances, it is not likely that the first quarter 2009 will reach break-even. AS Norma has since many years followed a careful financial strategy. As a result the company enters this crisis in the industry with no debts and a strong balance sheet. This provides AS Norma with a backbone to continue to develop the company and pursue it's longer term strategic direction through this severe downturn in the industry. The Q1 Y2009 preliminary financial results will be published on April 20, 2009. Peep Siimon Chairman of the Management Board 6500 442