Wulff-Group Plc Interim Report 1 January – 30 September 2008

WULFF-GROUP PLC INTERIM REPORT NOVEMBER 6, 2008 AT 9.00 AM

WULFF-GROUP PLC INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2008

Wulff-Group’s net sales and operating profit saw year-over-year growth. The
Group’s net sales in January-September were up 8.0 % and totalled EUR 56.0
million (EUR 51.9 million). Operating profit grew by 18.0 % and amounted to EUR
1.54 million (EUR 1.31 million). Net profit totalled EUR 0.07 million (EUR 0.41
million). Earnings per share (EPS) were EUR 0.01 (EUR 0.06).

Wulff-Group’s third quarter net sales were at the level of last year’s
corresponding period, totalling EUR 16.2 million (EUR 16.4. million). Operating
profit was up 50.2 % on the comparison period and amounted to EUR 0.31 million
(EUR 0.20 million), which represents 1.9 % of net sales (1.2 %). Earnings per
share were EUR -0.01 (EUR 0.00).

NET SALES AND PROFIT DEVELOPMENT

Wulff-Group Plc’s net sales saw a year-over-year growth of 8.0 %. The Group’s
net sales in January-September 2008 amounted to EUR 56.0 million (EUR 51.9
million). The net sales were boosted by well-continued contract sales and the
acquisition of Entre Marketing in May 2007.

Wulff-Group’s operating profit was EUR 1.54 million (EUR 1.31 million),
representing 2.7 % (2.5 %) of net sales. Profit before extraordinary items
increased to EUR 0.84 million (EUR 0.78 million). Net profit after financial
expenses and minority interests amounted to amounted to EUR 0.07 million (EUR
0.41 million). Earnings per share (EPS) were EUR 0.01 (EUR 0.06).

Heikki Vienola, CEO: “I believe that the predicted economic slowdown offers us
an opportunity to help our customers while simultaneously increasing our own
sales. Our service is designed to support and enhance the business of our
customers. For example, Wulff’s MiniBar and other versatile office supplies
services, as well as the business gift service of KB-tuote, offer customers an
efficient and controlled way to acquire office supplies and business gifts.
Enhancing these acquisitions means clear cost savings to customers and helps
them to focus on their core business. In my opinion, the companies that manage
to correctly focus their activities are the ones that will succeed in these
economically challenging times.”

Positive business development continued at Wulff Oy Ab, which accounts for some
40 per cent of Wulff-Group’s net sales. Wulff acquired several new contract
customers during the review period. The company has also been successful in
developing its customer relationships and profitability. The Wulff organisation
continues to be enhanced using tools offered by the Great Place to Work
Institute. In line with its contract customer concept, Wulff sells office
supplies and computer accessories to large and medium-sized businesses,
municipalities, cities and the Finnish government.

The investments that KB-tuote, a specialist in business and promotional gifts,
has made in its product and customer strategy and co-operation with goods
suppliers, have had a positive impact on the company’s profitability. The
company also acquired new contract customers in the review period. KB-tuote Oy
provides major corporations with an outsourced business gift service whereby the
customer can order products designed in line with the company brand though an
electronic order system, among other things.

The profitability of Finnish direct sales developed positively in the third
quarter. In the review period, direct sales emphasised new customer acquisition,
brand work and the improvement of recognition. The direct sales companies and
Wulff Group Plc were highly visible at the Secretary&Assistant trade fair in
September. In accordance with the Group’s strategy, the Wulff brand will be used
in the direct sales companies’ communications in the future. Wulff-Group’s
direct sales business consists of ten direct sales companies in Finland, all of
which sell computer accessories, office supplies, corporate promotional products
and ergonomic products.

Wulff-Group’s Scandinavian operations developed favourably in the Group’s
Norwegian subsidiary. Both sales and financial performance have continued to
develop well in Norway, thanks to the continued good results from telephone
sales. One of the biggest challenges of the Group’s Swedish subsidiary is the
recruiting of skilled sales personnel.

Entre Marketing, a company selling fair and event marketing services, which has
been included in the consolidated financial statements since 9 May 2007, was
unprofitable in the review period. The subsidiary has taken measures to
reinvigorate its operations and improve its performance. As a result of the
cooperation negotiations carried out in June, Entre Marketing cut its headcount
by four. In addition to this, Entre decided to sell its production unit to
Silver Zombie on 1 July 2008. This solution enables Entre to focus on core
business in accordance with its strategy and adds thus to its competitive
capabilities. According to the agreement, 12 employees in Entre Marketing’s
production unit transferred to Silver Zombie. The employees started at Silver
Zombie on 3 July 2008 as old employees.

FINANCING AND INVESTMENTS

Cash flow from business operations amounted to EUR 0.90 million (EUR 0.48
million).

The consolidated balance sheet total at the end of the period amounted to EUR
39.9 million (EUR 41.0 million) and the equity ratio was 48.9 % (43.9 %). Equity
per share was EUR 3.00 (EUR 2.77). The investments in fixed assets entered in
the balance sheet amounted to EUR 0.65 million (EUR 0.90 million), or 1.2 % (1.7
%) of net sales. Investments focused mainly on machinery and equipment.

PERSONNEL

Wulff-Group Plc had 432 (486) employees at the end of the review period and an
average of 450 (480) employees over the period. A total of 96 (104) employees
worked in Sweden, Norway and Estonia.

TREASURY SHARES

The Board of Directors of Wulff-Group Plc decided in its meeting on 22 April
2008 to initiate a share buyback of maximum of 300,000 own shares in accordance
with the authorisation given to it at the Annual General Meeting on 4 April
2008. Treasury share acquisition was initiated on 12 May 2008. By 30 September
2008, a total of 3,901 shares have been acquired with the said authorization.
The acquired shares represent 0.1% of the share capital and votes of
Wulff-Group.

The shares have been purchased through public trading at OMX Nordic Exchange
Helsinki in a proportion other than that of current shareholder holdings. The
shares have been purchased at the market price determined in public trading at
the time of purchase.

The Group’s registered share capital on 30 September 2008 amounted to EUR
2,603,051.20 and the total amount of shares is 6,507,628. Wulff Group held
20,102 of its own shares on 30 September 2008, which represents 0.3% of the
Group’s shares and votes.

After the review period, on 15 October 2008, the Group received 1,425 company
shares previously included in the incentive system for subsidiary sales.

RISKS AND UNCERTAINTIES IN THE NEAR FUTURE

Wulff-Group’s business experiences seasonal change, and a significant share of
the company’s turnover and profit is generated in the fourth quarter. The main
uncertainty factors in the near future are related to the profit development of
Entre Marketing and the economic sentiment. The demand for corporate promotional
products may begin to change, as the general economic sentiment takes a downward
turn.

No other significant changes have affected Wulff-Group’s risks and uncertainty
factors during the review period.

EVENTS AFTER THE REVIEW PERIOD: THE ACQUISITION OF IBERO LIIKELAHJAT OY

Wulff-Group Plc acquired the entire share capital of Ibero Liikelahjat Oy from
Progift Oy by an agreement signed on 1 October 2008. For the financial year
ended on 31 December 2007, Ibero Liikelahjat Oy, a company selling and marketing
business and advertising gifts, posted net sales of EUR 3.3 million, an
operating profit of EUR 0.5 million and a net profit of EUR 0.4 million. The
company’s balance sheet total on 31 December 2007 was EUR 1.7 million, of which
equity stood at EUR 0.5 million. The company’s showroom, operating facilities
and warehouse are located in Pitäjänmäki, Helsinki. Ibero Liikelahjat Oy employs
12 people, five of which are sales professionals.

The basic acquisition price of the acquired shares is EUR 700,000 and 100,000
shares of Wulff-Group. A targeted new issue of shares to the seller party will
be realised during 2008. The new shares will have a so-called lock-up condition
concerning them. 50,000 pieces of the shares will be released from the transfer
restriction in December 31, 2009, and the remaining 50,000 shares in December
31, 2011. The final acquisition price will be based on the financial performance
during the years 2008 to 2011. Ibero Liikelahjat will continue its operations as
an independent unit in its own business premises. Tanu Rautio will continue as
the Managing Director of Ibero Liikelahjat Oy.

The acquisition will strengthen the Group’s business and advertising gift sales
and its position in the corporate promotional products market. The acquisition
is expected to have a positive impact on the Wulff Group’s earnings per share
already in 2008.

OUTLOOK FOR THE REST OF 2008

The weaker economic situation has also affected the demand for office supplies.
Nevertheless, the company management believes that the Group’s turnover will
increase in 2008 and that the company is positioned to achieve better
year-over-year results from business operations.

ACCOUNTING PRINCIPLES APPLIED IN THE INTERIM REPORT

This interim report has been prepared in compliance with the recognition and
measurement principles of the IFRS standards, but not all the requirements of
IAS 34 have been taken into account in preparations. The tables of this interim
report are presented in a so-called condensed version. The accounting principles
are the same as those used in the financial statements for 2007. This interim
report has not been audited.

FINANCIAL REPORTING

The financial statements for 2008 will be released on 6 February 2009, at 9:00
a.m.

INVESTOR AND ANALYST MEETING

Wulff-Group Plc will arrange a meeting with investors and analysts in the
company’s premises in the Autotalo building in Helsinki, at Salomonkatu 17 B,
12th floor, on 6 November 2008 starting at noon.

CONDENCED FINANCIAL STATEMENTS AND NOTES

——————————————————————————–
| Wulff-Group Plc | (1000 euro) |
——————————————————————————–
——————————————————————————–
| CONSOLIDATED BALANCE | 7-9/08 | 7-9/07 | 1-9/08 | 1-9/07 | 1-12/07 |
| SHEET | | | | | |
——————————————————————————–
——————————————————————————–
| TURNOVER | 16 170 | 16 358 | 56 024 | 51 887 | 74 087 |
——————————————————————————–
| | | | | | |
——————————————————————————–
| Other operating income | 97 | 60 | 675 | 190 | 3 727 |
——————————————————————————–
——————————————————————————–
| Materials and services | 9 169 | 9 052 | 31 083 | 27 699 | 39 456 |
——————————————————————————–
| Employee benefits | 3 574 | 3 888 | 13 624 | 12 351 | 17 644 |
| expenses | | | | | |
——————————————————————————–
| Depreciation and | 252 | 337 | 804 | 961 | 1 735 |
| amortization | | | | | |
——————————————————————————–
| Other operating | 2 965 | 2 938 | 9 648 | 9 762 | 13 581 |
| expenses | | | | | |
——————————————————————————–
——————————————————————————–
| OPERATING PROFIT | 307 | 204 | 1 540 | 1 305 | 5 399 |
——————————————————————————–
——————————————————————————–
| Financial income and | -191 | -264 | -702 | -521 | -852 |
| expenses | | | | | |
——————————————————————————–
——————————————————————————–
| PROFIT BEFORE | 116 | -60 | 838 | 784 | 4 547 |
| EXTRAORDINARY ITEMS AND | | | | | |
| TAXES | | | | | |
——————————————————————————–
| | | | | | |
——————————————————————————–
| Extraordinary items | 0 | 0 | 0 | 0 | 0 |
——————————————————————————–
| | | | | | |
——————————————————————————–
| PROFIT BEFORE TAXES | 116 | -60 | 838 | 784 | 4 547 |
——————————————————————————–
| | | | | | |
——————————————————————————–
| Income taxes | 170 | -65 | 522 | 303 | 1 353 |
——————————————————————————–
| Minority interest | 42 | 10 | 249 | 68 | 166 |
——————————————————————————–
| | | | | | |
——————————————————————————–
| NET PROFIT | -97 | -5 | 66 | 412 | 3 028 |
——————————————————————————–

——————————————————————————–
| CONSOLIDATED BALANCE SHEET | | (1000 euro) |
——————————————————————————–
——————————————————————————–
| Assets | 9/2008 | 9/2007 | 12/2007 |
——————————————————————————–
| | | | |
——————————————————————————–
| FIXED ASSETS | | | |
——————————————————————————–
——————————————————————————–
| Intangible assets | 564 | 511 | 587 |
——————————————————————————–
| Goodwill | 7 204 | 7 737 | 7 204 |
——————————————————————————–
| Tangible assets | 2 368 | 5 450 | 2 829 |
——————————————————————————–
| Investments held for sale | 282 | 339 | 310 |
——————————————————————————–
| Investments | 133 | 152 | 144 |
——————————————————————————–
| Deferred tax assets | 803 | 1 095 | 954 |
——————————————————————————–
| | | | |
——————————————————————————–
| TOTAL FIXED ASSETS | 11 355 | 15 285 | 12 028 |
——————————————————————————–
——————————————————————————–
| CURRENT ASSETS | | | |
——————————————————————————–
| Inventories | 10 743 | 11 010 | 10 903 |
——————————————————————————–
| Trade receivables | 9 623 | 9 915 | 8 292 |
——————————————————————————–
| Other receivables | 3 077 | 3 868 | 4 796 |
——————————————————————————–
| Cash and cash equivalents and | 5 100 | 961 | 6 316 |
| financial | | | |
| assets recognised at fair value | | | |
——————————————————————————–
——————————————————————————–
| TOTAL CURRENT ASSETS | 28 543 | 25 753 | 30 307 |
——————————————————————————–
——————————————————————————–
| TOTAL ASSETS | 39 898 | 41 037 | 42 335 |
——————————————————————————–
——————————————————————————–
——————————————————————————–
| Equity and liabilities | 9/2008 | 9/2007 | 12/2007 |
——————————————————————————–
——————————————————————————–
| EQUITY | | | |
——————————————————————————–
| Share capital | 2 603 | 2 603 | 2 603 |
——————————————————————————–
| Share premium fund | 7 662 | 7 662 | 7 662 |
——————————————————————————–
| Retained earnings | 8 055 | 6 388 | 6 293 |
——————————————————————————–
| Net profit | 66 | 412 | 3 028 |
——————————————————————————–
——————————————————————————–
| Minority interest | 1135 | 946 | 1048 |
——————————————————————————–
——————————————————————————–
| TOTAL EQUITY | 19 521 | 18 012 | 20 634 |
——————————————————————————–
——————————————————————————–
| LIABILITIES | | | |
——————————————————————————–
| Long-term interest-bearing | 7 638 | 10 640 | 7713 |
| liabilities | | | |
——————————————————————————–
| Short-term liabilities | 12 739 | 12 386 | 13987 |
——————————————————————————–
——————————————————————————–
| TOTAL LIABILITIES | 20 377 | 23 026 | 21 700 |
——————————————————————————–
——————————————————————————–
| TOTAL EQUITY AND LIABILITIES | 39 898 | 41 037 | 42 335 |
——————————————————————————–

——————————————————————————–
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Jan 1st-Sept 30th 2008 |
——————————————————————————–
| | | | | | (1000 euro) |
——————————————————————————–
——————————————————————————–
——————————————————————————–
——————————————————————————–
——————————————————————————–
| | Share | Share | Retain- | Total | Minor- | Total |
| | capita | premiu | ed | | ity | |
| | l | m fund | earn- | | inte- | |
| | | | ings | | rest | |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Equity on Jan 1st | 2 603 | 7 662 | 9 321 | 19 586 | 1 048 | 20 634 |
| 2008 | | | | | | |
——————————————————————————–
——————————————————————————–
| Net profit | | | 66 | | 249 | 315 |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Dividends paid | | | -1 168 | | -159 | -1 327 |
——————————————————————————–
——————————————————————————–
| Investments | | | -28 | | | -28 |
| available for | | | | | | |
| sale: Valuation | | | | | | |
| gains or losses | | | | | | |
| recognised under | | | | | | |
| shareholders’ | | | | | | |
| equity | | | | | | |
——————————————————————————–
——————————————————————————–
| Translation | | | 1 | | -3 | -2 |
| differences | | | | | | |
——————————————————————————–
——————————————————————————–
| Treasury share | | | -71 | | | -71 |
| acquisition | | | | | | |
——————————————————————————–
——————————————————————————–
| Equity on Sept | 2 603 | 7 662 | 8 121 | 18 386 | 1 135 | 19 521 |
| 30th 2008 | | | | | | |
——————————————————————————–

——————————————————————————–
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Jan 1st-Sept 30th 2007 |
——————————————————————————–
| | | | | | (1000 euro) |
——————————————————————————–
——————————————————————————–
——————————————————————————–
——————————————————————————–
——————————————————————————–
| | Share | Share | Retain- | Total | Minor- | Total |
| | capita | premiu | ed | | ity | |
| | l | m fund | earn- | | inte- | |
| | | | ings | | rest | |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Equity on Jan 1st | 2 603 | 7 662 | 7 036 | 17 301 | 889 | 18 190 |
| 2007 | | | | | | |
——————————————————————————–
——————————————————————————–
| Net profit | | | 412 | | 68 | 480 |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Dividends paid | | | -781 | | -86 | -867 |
——————————————————————————–
——————————————————————————–
| Investments | | | 78 | | | 78 |
| available for | | | | | | |
| sale: Valuation | | | | | | |
| gains or losses | | | | | | |
| recognised under | | | | | | |
| shareholders’ | | | | | | |
| equity | | | | | | |
——————————————————————————–
——————————————————————————–
| Financial | | | 34 | | | 34 |
| instruments | | | | | | |
| recognised under | | | | | | |
| shareholders’ | | | | | | |
| equity | | | | | | |
——————————————————————————–
——————————————————————————–
| Translation | | | 21 | | | 21 |
| differences | | | | | | |
——————————————————————————–
——————————————————————————–
| Changes in | | | 0 | | 74 | 74 |
| shareholdings | | | | | | |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Equity on Sept | 2 603 | 7 662 | 6 800 | 17 065 | 946 | 18 012 |
| 30th 2007 | | | | | | |
——————————————————————————–

——————————————————————————–
| KEY RATIOS | | | | (1000 euro) |
——————————————————————————–
——————————————————————————–
| | 7-9/08 | 7-9/07 | 1-9/08 | 1-9/07 | 1-12/07 |
——————————————————————————–
——————————————————————————–
| Turnover | 16 170 | 16 358 | 56 024 | 51 887 | 74 087 |
——————————————————————————–
| Increase in turnover % | -1.2 % | 22.7 % | 8.0 % | 20.2 % | 19.4 % |
——————————————————————————–
——————————————————————————–
| Operating profit | 307 | 204 | 1 540 | 1 305 | 5 399 |
——————————————————————————–
| % of turnover | 1.9 % | 1.2 % | 2.7 % | 2.5 % | 7.3 % |
——————————————————————————–
——————————————————————————–
| Profit before tax | 116 | -60 | 838 | 784 | 4 547 |
——————————————————————————–
| % of turnover | 0.7 % | -0.4 % | 1.5 % | 1.5 % | 6.1 % |
——————————————————————————–
——————————————————————————–
| Net profit | -97 | -5 | 66 | 412 | 3 028 |
——————————————————————————–
| % of turnover | -0.6 % | 0.0 % | 0.1 % | 0.8 % | 4.1 % |
——————————————————————————–
——————————————————————————–
| Equity ratio % | | | 48.9 % | 43.9 % | 48.7 % |
——————————————————————————–
——————————————————————————–
| Investments in fixed | 170 | 90 | 650 | 903 | 1 171 |
| assets | | | | | |
——————————————————————————–
| % of turnover | 1.1 % | 0.6 % | 1.2 % | 1.7 % | 1.6 % |
——————————————————————————–
——————————————————————————–
| Average number of | | | 450 | 480 | 440 |
| personnel | | | | | |
——————————————————————————–
| Number of personnel at | | | 432 | 486 | 467 |
| the end of period | | | | | |
——————————————————————————–
——————————————————————————–
| Earnings per share, | -0.01 | 0.00 | 0.01 | 0.06 | 0.47 |
| euro | | | | | |
——————————————————————————–
——————————————————————————–
| Equity per share, euro | | | 3.00 | 2.77 | 3.17 |
——————————————————————————–

The company does not have any items that dilute earnings per share.

——————————————————————————–
| CONSOLIDATED CASH FLOW | | (1000 euro) |
——————————————————————————–
——————————————————————————–
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
——————————————————————————–
——————————————————————————–
| Cash flow from operations: | | | |
——————————————————————————–
| Payments received from sales | 56 012 | 50 519 | 74 328 |
——————————————————————————–
| Payments received from other operating | 201 | 145 | 227 |
| income | | | |
——————————————————————————–
| Amounts paid from operating expenses | -54 855 | -49 811 | -71 820 |
——————————————————————————–
| Cash flow from business operations | 1 357 | 853 | 2 735 |
| before financial items and taxes | | | |
——————————————————————————–
| Financial costs paid | -480 | -427 | -641 |
——————————————————————————–
| Interest received from operations | 96 | 114 | 146 |
——————————————————————————–
| Direct taxes paid | -74 | -60 | -131 |
——————————————————————————–
| Cash flow from operations | 899 | 480 | 2 109 |
——————————————————————————–
——————————————————————————–
| Cash flow from investment activities: | | | |
——————————————————————————–
| Investments in tangible and intangible | -622 | -840 | -1 070 |
| assets | | | |
——————————————————————————–
| Sale of tangible and intangible assets | 812 | 479 | 6 709 |
——————————————————————————–
| Acquisition of shares in subsidiaries | -78 | -1 326 | -1 373 |
——————————————————————————–
| Sale of shares in subsidiaries | 0 | 0 | 0 |
——————————————————————————–
| Sale of other investments | 0 | 0 | 0 |
——————————————————————————–
| Cash flow from investment activities | 112 | -1 687 | 4 266 |
——————————————————————————–
——————————————————————————–
| Cash flow from financing activities: | | | |
——————————————————————————–
| Dividends paid | -1 327 | -867 | -867 |
——————————————————————————–
| Received dividends | 74 | 465 | 465 |
——————————————————————————–
| Short-term investments | 460 | 42 | -198 |
——————————————————————————–
| Loss from the sale of short-term | -486 | -604 | 0 |
| investments | | | |
——————————————————————————–
| Loan withdrawals | 0 | 3 771 | 1 501 |
——————————————————————————–
| Loan repayments | -918 | -300 | -2 300 |
——————————————————————————–
| Cash flow from financing activities | -2 197 | 2 507 | -1 399 |
——————————————————————————–
——————————————————————————–
| Change in liquid assets | -1 186 | 1 300 | 4 976 |
——————————————————————————–

——————————————————————————–
| TREASURY SHARES | | | |
——————————————————————————–
| | 9/2008 | 9/2007 | 12/2007 |
——————————————————————————–
| Number of treasury shares held by the | 20 102 | 0 | 0 |
| Group | | | |
——————————————————————————–
| % of share capital and votes | 0.3 % | 0.0 % | 0.0 % |
——————————————————————————–
| Number of shares at the end of the | 6 507 628 | 6 507 628 | 6 507 628 |
| review period | | | |
——————————————————————————–

——————————————————————————–
| KEY RATIOS PER QUARTER |
——————————————————————————–
——————————————————————————–
| | 7-9/08 | 4-6/08 | 1-3/08 | 10-12/ | 7-9/07 | 4-6/07 |
| | | | | 07| | |
——————————————————————————–
| Turnover | 16 170 | 20 706 | 19 148 | 22 200 | 16 358 | 18 604 |
| (1000 euro) | | | | | | |
——————————————————————————–
| Operating profit | 307 | 854 | 378 | 4 095 | 204 | 928 |
| (1000 euro) | | | | | | |
——————————————————————————–
| Net profit | -97 | 354 | -192 | 2 616 | -5 | 487 |
| (1000 euro) | | | | | | |
——————————————————————————–
| Earnings per | -0.01 | 0.05 | -0.03 | 0.40 | 0.00 | 0.07 |
| share, euro | | | | | | |
——————————————————————————–

WULFF-GROUP PLC
Board of Directors

www.wulff-group.com

Further information:

Heikki Vienola, CEO
Tel. +358 9 5259 0050 or +358 50 65 110
e-mail: heikki.vienola@wulff.fi

Sirpa Väisänen, IR Officer
Tel. +358 9 5259 0050 or +358 400 943 243
e-mail: sirpa.vaisanen@wulff.fi

Distribution:
NASDAQ OMX Helsinki
Key media
www.wulff-group.com