Amer Group PLC's interim report January - June 2004 (IFRS)

Sports equipment business's sales grew by 4%

- For the January - June 2004 period, Amer Group's net sales were EUR 519.1 million (January - June 2003: EUR 530.8 million).
- Earnings before interest and taxes (EBIT) amounted to EUR 52.5 million (2003: EUR 35.2 million) and earnings per share were EUR 1.49 (2003: EUR 0.95).
- Exiting from the tobacco business improved EBIT by EUR 14.2 million but reduced net sales by 6% compared to the first half last year. The sports equipment business's sales grew by 4% and EBIT by 10%.
- Amer Group's sports equipment business's good sales growth is expected to continue during the remainder of the year. The sports equipment business's EBIT is also expected to grow compared to 2003 (excluding the 2003 patent litigation settlement).

EUR million	Jan-June 2004	Jan-June 2003	change %	Jan-Dec 2003
NET SALES	519.1	530.8	-2	1,094.1
GROSS PROFIT	203.6	204.1		420.8
EBIT	52.5	35.2	49	117.7
Financing income and expenses	-0.9	-4.1		-8.2
PROFIT BEFORE TAXES AND MINORITY INTEREST	51.6	31.1	66	109.5
NET RESULT	35.2	22.1	59	78.1
Earnings per share, EUR	1.49	0.95		3.35
ROCE, % *)	24.3	17.7		21.0
ROE, %	16.4	11.1		18.8

*) 12 months rolling average

Roger Talermo, President & CEO, Amer Group:

"Amer Group's sports equipment business's net sales grew by 4% in the first half of the year. In local currency terms this growth was 11%.

Overall, Amer Group's net sales declined by 2% between January and June due to effect of the exit from the tobacco business in March.

Activity in the current year has started more positively in the sports equipment market than was the case last year. Demand for sports equipment has strengthened and this has also been reflected in Amer Group's business. Growth in fitness equipment has been especially strong with net sales in local currencies growing by 31% in the January-June period. In addition, both the Racquet Sports Division and Team Sports Division have also continued to grow.

The good initial progress made by the Golf Division, which was evident in January-March, was not sustained in the second quarter of the year. Sell-through to consumers was slower than expected. In addition, its sales figures were negatively affected as deliveries were earlier than last year, meaning that they were pulled forward into the first quarter. Our primary goal for the Golf Division in 2004 is profitability. In terms of net sales, our goal is to match last year's level in local currency terms.

In the Winter Sports Division, the coming season's ski deliveries are about to start, the busiest months being September and October. On the basis of the deliveries made at the beginning of the year as well as the level of pre-orders received, we expect that the Winter Sports Division's net sales for the year as a whole, stated in local currencies, will grow by approximately 10%. Net sales during the remainder of the year will however also be affected by snow conditions and the level of re-orders. Sales growth has been weighted towards lower margin products. In addition, the Company hasn't been able to pass on in full its euro-denominated manufacturing costs in terms of selling prices in North America, which is depressing sales margins slightly.

Sales of Suunto's wristop computers were similar to last year's whereas sales of diving instruments grew by 15%.

For the year as a whole we expect that the good growth in sales reported by Amer Group's sports equipment business will continue during the remainder of the year. Excluding the 2003 patent litigation settlement of EUR 20.5 million, Amer Group's sports equipment business's EBIT is also expected to grow compared to 2003."

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