* Net sales of the three first quarters of 2006 were EUR 67.2 million (EUR 59.7 million in 2005). Net sales increased by 12.5 percent compared to the previous year. * Operating profit was 0.8 million (loss EUR 4.6 million). Operating profit includes EUR 0.8 million of restructuring costs (EUR 3.1 million), and a EUR 1.2 million capital gain from sales of real estates. * Loss before taxes was EUR 0.8 million (loss EUR 5.6 million) * Earnings per share were EUR -0.008 (EUR -0.034) * Order backlog on September 30, 2006 was EUR 24.7 million (EUR 15.2 million)

ECONOMIC DEVELOPMENT JANUARY 1 - SEPTEMBER 30

Net Sales

Net sales of the Group totalled EUR 67.2 million (EUR 59.7 million in 2005).

Demand remained at a good level in all market areas. Demand was strong especially in industrial electronics during the three first quarters of 2006. An increasing proportion of deliveries to end users were carried out through contract manufacturers.

Profit

Operating profit of the Group was EUR 0.8 million (loss EUR 4.6 million) and loss before taxes was EUR 0.8 million (loss EUR 5.6 million). The operating profit includes EUR 0.8 million of one-time costs related to production transfers and restructuring of the US and European operations. The operating profit of the reporting period also includes capital gains of EUR 1.2 million regarding the sale of company's real estates in Weymouth, U.K. and in Kalmar, Sweden.

Earnings per share were EUR -0.008 (EUR -0.034) and shareholders' equity per share was EUR 0.033 (EUR 0.057).

Order backlog

The order backlog of the Group was EUR 24.7 million at the end of the third quarter (EUR 15,2 million). At the end of 2005 the order backlog was EUR 17.7 million. The order backlog is expected to remain at a good level during the rest of the year 2006.

FINANCIAL STATUS AND CAPITAL EXPENDITURE

Liquid assets of the Group were EUR 0.9 million (EUR 3.2 million) and the equity ratio was 12.0% (18.1%) at the end of the period. If the convertible capital loan is counted as shareholders' equity, the equity ratio was 22.3% (28.2%).

Even though the operative cash flow improved gradually during the year, the Group's financial position continued to be tight. The costs related to the expansion of production at the Finnish plant and the closure of the Kalmar plant in Sweden, the low profitability of the Finnish plant, and the increased need of working capital weakened the Group's liquidity during the first three quarters of the year. Negotiations to ensure sufficient working capital and investment financing are continuing.

In June the Group agreed with its main banks on a EUR 2.2 million working capital financing.

Investments into manufacturing equipment were EUR 0.6 million (EUR 3.6 million).

SHARES AND SHARE CAPITAL

The nominal value of the shares of Evox Rifa Group Oyj is EUR 0.05. A total number of 875,000 new shares were subscribed with Evox Rifa Group option rights that were granted as part of the year 2000 option program. The subscriptions increased Evox Rifa's registered share capital by EUR 43.750. On September 30, 2006 the number of shares was 178.096.018 and the share capital was EUR 8.904.800,90.

PERSONNEL

The average number of personnel in Evox Rifa Group during the three quarters of 2006 was 1386 (1315 in the same period in 2005). The number of operative personnel increased both in Asia and Europe due to increased utilisation rates of the plants.

BUSINESS DEVELOPMENT

Net sales of the electrolytic capacitors product group were EUR 36.2 million (EUR 30.7 million). Profitability of the product group continued at a healthy level, and Nantong plant operations developed positively following the launch of screw terminal production. Capacity utilisation rates of the plants were good in majority of the product groups, and order backlog is estimated to remain at a good level also during the fourth quarter.

Net sales of the film and paper capacitor product group were EUR 31.0 million (EUR 29.0 million in 2005). Order backlog and capacity utilisation rates of the plants were at a good level. The operating result of the product group was still negative mainly due to the operating losses of the Finnish plant. However, also the Finnish plant has improved performance during the third quarter compared to the first and second quarters of the year. Improvements in production efficiency and productivity are the main targets for the rest of the year. It is estimated that this will lead to a reduced need of temporary personnel after the year end at the Finnish plant.

OUTLOOK

The three quarters of 2006 were a period of good demand. Demand is expected to remain at a healthy level especially in industrial and automotive electronics. However, visibility on the real market demand is low because of high inventory levels in the supply chain. High prices of raw materials and energy put pressure on profits.

Evox Rifa Group's most important customers are expected to continue developing at a steady pace, and the growth of the business operations in Asia of the major partners of the Group is expected to continue.

Increased need for working capital and the weak profitability of the Finnish plant have tied up Group's liquid funds. As the run rates of the production plants are expected to remain good, and the growth of the production at the Chinese plant will further tie up working capital, the financial situation of the Group will continue to be tight.

During the next few quarters profitability of the electrolytic capacitors is expected to remain at a good level. The film and paper capacitors are expected to further improve their performance in line with the increasing productivity of the Finnish plant.

The figures of this Financial Report are unaudited.

In Espoo on October 26, 2006

EVOX RIFA GROUP OYJ

Tuula Ylhäinen President & CEO

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

DISTRIBUTION Helsinki Stock Exchange, Media

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