Glaston Oyj Abp (HEL:GLA1V) Glaston Interim Report 1 January - 30 September 2008

Glaston Oyj Abp (HEL:GLA1V) GLASTON CORPORATION Stock Exchange Release 24.10.2008 9.00 a.m.

Glaston Interim Report 1 January - 30 September 2008

- Orders received in January-September totalled EUR 152.9 (170.7) million. - The order book on 30 September 2008 was EUR 82.6 (125.7) million. - In January-September, the Group's net sales grew by 11% from the corresponding period the previous year to EUR 201.5 (181.0) million. Third quarter net sales totalled EUR 65.8 (57.3) million. - Operating profit in January-September before non-recurring items was EUR 6.5 (9.5) million, i.e. 3.2 (5.2) % of net sales. Third quarter operating profit was EUR 1.1 (4.0) million, i.e. 1.6 (6.9) % of net sales. *) - Return on capital employed (ROCE) was 6.2 (6.4)%. - Earnings per share in January-September were EUR 0.04 (0.04). - Glaston expects full-year net sales to be at the previous year's level and operating profit to be below the 2007 figure.

*) 1-9/2007 non-recurring items EUR -7.3 million.

President & CEO Mika Seitovirta:

"The market situation weakened significantly during the third quarter and in the last week of September we lowered our operating profit forecast for 2008. Demand for the Group's products in the Middle East and South America, however, continues to be strong. Demand in the One-Stop-Partner and particularly the solar energy market continued to be relatively good, but customers' decision-making times have lengthened, influencing the Group's order intake. In North America, demand was still weak and no signs of recovery in the near future are perceptible.

The profitability of the Heat Treatment and Software Solutions business areas was good. The financial performance of the Pre-processing business area fell significantly short of expectations. Service Solutions' maintenance business sales developed positively, with product upgrades and the new maintenance contract concept playing a key role.

The productivity of Glaston's glass processing unit, which operates in Finland, improved in the third quarter and restructuring is proceeding according to plan.

The incorporation of Albat+Wirsam into the Group has been completed in all areas. Utilising Albat+Wirsam software, machines manufactured by Glaston have been integrated to operate together effectively in solutions serving the architectural and solar energy markets. In October, new products were presented at Glasstec, the glass industry's leading fair.

We expect Glaston's full-year net sales to be at the previous year's level and operating profit to be below the 2007 figure."

Markets Glaston's market situation weakened during the final month of the quarter. The strong downturn in the North American market continued. The development of the Asian market took an unfavourable turn. Demand in the South American market continued to grow, and demand for safety glass machines in the EMEA area was good.

Pre-processing The slow-down in the market that began at the end of the previous quarter continued during the third quarter. This negative trend was reflected in orders received and in the business area's result. In addition to North America, demand also weakened in the EMEA area. The South American market developed positively, however.

Orders received in the review period totalled EUR 45.1 (49.9) million. Net sales totalled EUR 66.1 (65.6) million in January-September.

To reinforce its market position, the restructuring and strengthening of the Pre-processing business area's sales organisation continued, with the focus being on the EMEA area.

Assembly of Bavelloni cutting tables and lines began at the Tianjin factory in China and the first products were delivered to the local market during the third quarter. These actions represented the first steps towards a new localised production range through which the Group will be better able to meet local market needs in China and grow its operations in low cost countries.

The emphasis in product development was on product integration and on new products directed at the architectural and solar energy markets. New products, including a cutting machine, edge grinding machine and tools, were presented at Glasstec, the industry's leading fair, in October. Pre-processing machines that operate with Albat+Wirsam software were also presented for the first time at the fair.

Heat Treatment The Heat Treatment business area's market situation weakened substantially at the end of the review period. Uncertainty about economic development and particularly the instability of the financial markets caused customers to delay decisions in a number of market areas. In the EMEA area and in South America especially, demand continued to be strong, however. Activity in the solar energy glass market remained strong throughout the entire review period. To strengthen Heat Treatment's market position, measures to increase production of its machines in China were continued.

In product development, the emphasis was on products aimed at the manufacture of solar energy glass. A marketing campaign was initiated for the CHF Pro, a continuously operating flat tempering machine aimed at the architectural and solar energy glass segment. The product was presented in October at the glass industry's main event, the Glasstec Fair. The building of a global sourcing organisation was continued by strenghtening resources in China.

January-September net sales totalled EUR 114.1 (109.5) million. Business profitability developed favourably compared with the corresponding period in 2007. The number of orders received by the Heat Treatment business area was lower than in the corresponding period last year. Orders received in January-September totalled EUR 96.7 (119.1) million. Most of the new orders came from the EMEA.

During the review period, Glaston and Solel announced a joint project to manufacture parabolic solar reflectors on Glaston's machines.

As part of the re-orientation of Tamglass Glass Processing's operations, the glass processing unit initiated production at its Akaa factory in the late summer. The Akaa facility has two machine lines for the production of solar panels.

Software Solutions The Software Solutions business area's excellent development continued during the third quarter. During the quarter, the Central European market developed positively, which was reflected in the number of orders. Demand outside Europe has grown, particularly in the Middle East, the APAC area and in China. The North American market showed no signs of recovery during the review period, but business in South America developed positively.

January-September net sales totalled EUR 21.5 million and in the third quarter EUR 7.8(7-9/2007: 6.8) million. Orders received totalled EUR 11.1 (1.6) million.

One-Stop-Partner Demand for integrated solutions continued to be good in Eastern and Southern Europe, Asia and the APAC area. In these markets, investment is directed at glass processing production projects. The OSP concept for the needs of solar energy customers was well received in the market. Customers have shown particular interest in flat panels and Glaston's bending technology. The global economic uncertainty has affected the willingness of OSP customers to invest. In addition, decision-making times have lengthened substantially. Total sales for One-Stop-Partner joint deliveries were EUR 20.5 (36.7) million during the review period. The unit's earnings are included in the officially reported segments.

Orders received Glaston's order intake during the financial period was EUR 152.9 (170.7) million. Of orders received, Heat Treatment accounted for 63%, Pre-processing 30% and Software Solutions 7%.

Orders received during the third quarter totalled EUR 37.8 million.

Geographical distribution of orders received, EUR million

+-------------------------------------------+ | | 1-9/2008 | 1-9/2007 | Change, % | |---------+----------+----------+-----------| | EMEA | 104.9 | 108.3 | -3.3 | |---------+----------+----------+-----------| | America | 28.0 | 35.0 | -25.0 | |---------+----------+----------+-----------| | Asia | 20.0 | 27.4 | -36.6 | |---------+----------+----------+-----------| | Total | 152.9 | 170.7 | -11.6 | +-------------------------------------------+



Order book Glaston's order book on 30 September 2008 was EUR 82.6 (125.7) million. The Heat Treatment business area accounted for EUR 59.0 million of the order book, Pre-processing for EUR 19.1 million and Software Solutions for EUR 4.5 million.



+-------------------------------------------------+ | Order book, EUR million | 30.9.2008 | 30.9.2007 | |-------------------------+-----------+-----------| | Pre-processing | 19.1 | 24.4 | |-------------------------+-----------+-----------| | Heat Treatment | 59.0 | 92.6 | |-------------------------+-----------+-----------| | Software Solutions | 4.5 | 8.6 | |-------------------------+-----------+-----------| | Total | 82.6 | 125.7 | +-------------------------------------------------+



Net sales and profit Glaston's net sales in January-September were EUR 201.5 (181.0) million. Pre-processing's net sales were EUR 66.1 (65.6) million, Heat Treatment's net sales EUR 114.1 (109.5) million and Software Solutions' net sales EUR 21.5 (6.8) million.

Third-quarter net sales were EUR 65.8 (57.3) million. Pre-processing's net sales were EUR 20.0 (20.6) million, Heat Treatment's net sales EUR 37.2 (30.2) million and Software Solutions' net sales EUR 7.8 (6.8) million.



+----------------------------------------------------------+ | Net sales, EUR million | 1-9/2008 | 1-9/2007 | 1-12/2007 | |------------------------+----------+----------+-----------| | Pre-processing | 66.1 | 65.6 | 94.1 | |------------------------+----------+----------+-----------| | Heat Treatment | 114.1 | 109.5 | 162.3 | |------------------------+----------+----------+-----------| | Software Solutions | 21.5 | 6.8 *) | 14.7 | |------------------------+----------+----------+-----------| | Parent company, elim. | -0.2 | -0.9 | -1.3 | |------------------------+----------+----------+-----------| | Total | 201.5 | 181.0 | 269.8 | +----------------------------------------------------------+

*) Software Solutions 7-9/2007

Operating profit in January-September excluding non-recurring items was EUR 6.5 (9.5) million, i.e. 3.2 (5.2)% of net sales. Third quarter operating profit was EUR 1.1 (4.0) million.

Pre-processing's operating result excluding non-recurring items was EUR -1.8 (1.2) million in the review period and EUR -1.6 (0.3) million in the third quarter. The weak profit development is explained by intensifying price competition resulting from the market situation as well as a poor sales structure.

Heat Treatment's operating profit excluding non-recurring items was EUR 10.5 (11.9) million in the review period and EUR 3.3 (3.2) million in the third quarter. Tamglass Glass Processing's losses were lower in the third quarter but the company's operating loss, EUR -3.6 million, continues to burden significantly the result of both Heat Treatment and the whole of Glaston. The restructuring of Tamglass Glass Processing's operations will be more effectively continued in the final quarter of the year.

Software Solutions' operating profit was EUR 3.6 (1.6) million in the review period and EUR 1.4 (1.6) million in the third quarter.



+-------------------------------------------------------------------+ | Operating profit, EUR million | 1-9/2008 | 1-9/2007 | 1-12/2007 | |---------------------------------+----------+----------+-----------| | Pre-processing | -1.8 | 1.2 | 1.4 | |---------------------------------+----------+----------+-----------| | Heat Treatment | 10.5 | 11.9 | 19.6 | |---------------------------------+----------+----------+-----------| | Software Solutions | 3.6 | 1.6 | 2.6 | |---------------------------------+----------+----------+-----------| | Parent company, elim. | -5.8 | -5.2 | -7.0 | |---------------------------------+----------+----------+-----------| | Total | 6.5 | 9.5 | 16.6 | |---------------------------------+----------+----------+-----------| | Non-recurring items | - | -7.3 | -4.6 | |---------------------------------+----------+----------+-----------| | Operating profit after | 6.5 | 2.1 | 12.0 | | non-recurring items | | | | +-------------------------------------------------------------------+

The January-September profit was EUR 3.1 (2.7) million. Return on capital employed (ROCE) was 6.2 (6.4)%. Earnings per share were EUR 0.04 (0.04). Earnings per share in the third quarter were EUR -0.01 (0.03)

Financing The Group's financial position was good. The equity ratio on 30 September 2008 was 48.3 (54.0)%. Glaston's Continuing Operations' cash flow from operating activities was EUR -13.7 (3.2) million and cash flow from investing activities was EUR -10.3 (-24.4) million.

Cash flow from financing in January-September was EUR 27.9 (8.8) million, including dividends paid in the review period of EUR 7.8 (7.1) million.

The Group's liquid funds on 30 September 2008 totalled EUR 15.7 (16.4) million. Interest-bearing net debt totalled EUR 43.9 (13.1) million and net gearing was 32.4 (9.9)%.

Capital expenditure Capital expenditure in the review period totalled EUR 13.6 (29.9) million. The most significant capital expenditure items were again in the global ERP project and particularly in product development.

Organisation and personnel In January Henrik Reims was appointed SVP, OSP Deliveries and in May Timo Nieminen was appointed SVP, Service Solutions. Both are members of Glaston's Executive Management Group. Timo Rautarinta was appointed Managing Director of Glaston's glass processing unit Tamglass Glass Processing Oy as of March 2008.

To streamline Finnish operations, Glaston Service Oy's business operations were transferred on 1 January 2008 to Glaston Finland Oy. The transfer had no impact on the number of personnel. Albat+Wirsam France S.A. was merged with Glaston Finland France S.A.R.L. at the end of June.

On 30 July 2008, as part of its restructuring programme, Glaston's Tamglass Glass Processing Ltd, which operates in Finland, initiated statutory employer-employee negotiations, which ended on 10 September 2008. As a result of the negotiations, the glass processing unit will discontinue its working machine and special automotive glass operations and strengthen its architectural glass operations. Operations at the Pihtipudas unit will cease at the end of the year and the fixed-term employment of 17 people will end. In terms of the working machine and special automotive glass operations to be discontinued, the primary adjustment measure is a three-month lay-off period for ten employees during winter 2008/2009. The need for redundancies will be examined further in early 2009.

On 30 September 2008, Glaston Corporation had a total of 1,534 (1,425) employees, of whom 30% were in Finland and 47% elsewhere in Europe, mainly in Germany and Italy. The proportion of Group employees working in Asia was 10% and in the Americas 13%. The average number of employees was 1,507 (1,270).

Shares and share prices Glaston Corporation's paid-up share capital on 30 September 2008 was EUR 12.7 million and the number of issued shares totalled 79,350,000. The company has one series of share. At the end of September, the company held 809,793 of the company's own shares, corresponding to 1% of the total number of issued shares and votes. The counter book value of the own shares held by the company is EUR 129,567. Every share that the company does not hold itself entitles to one vote at the Annual General Meeting. The share has no nominal value. During January-September, a total of 1,940,451 of the company's shares were traded, representing 2.5% of the average number of shares. The lowest price paid for a share was EUR 2.02 and the highest price EUR 3.33. The average price during the period was EUR 2.96 and the closing price EUR 2.02. The equity per share attributable to owners of the parent was EUR 1.73 (1.68). Decisions of the Annual General Meeting The company's Annual General Meeting was held on 11 March 2008. The meeting approved the financial statements for 2007 and released the Board of Directors and the President and CEO from liability for the financial year. The meeting also approved the Board of Directors' proposal to pay a dividend of EUR 0.10 per share, a total of EUR 7.8 million.

Annual General Meeting confirmed that the following will continue on the Board of Directors for a year-long term of office: Claus von Bonsdorff, Klaus Cawén, Carl-Johan Rosenbröijer, Christer Sumelius and Andreas Tallberg. Uponor Oyj's President and CEO Jan Lång and Cargotec Oyj's President and CEO Mikael Mäkinen were elected new members of the Board of Directors. The Annual General Meeting re-elected as auditor the authorised public accounting firm KPMG Oy Ab, with the responsible auditor being Sixten Nyman, APA.



Acquisition and disposal of own shares The 2007 Annual General Meeting authorised the Board of Directors to acquire the company's own shares up to a maximum of 7,605,096 shares. The authorisation is valid until the end of the 2009 Annual General Meeting and remains unexercised in respect of 7,021,500 shares. During January-September, the company did not acquire its own shares. The Annual General Meeting also decided to authorise the Board of Directors to decide on the disposal of own shares in the company's possession (treasury shares). On 23 April 2008, the company transferred 103,707 treasury shares to personnel included in the Group's share-based incentive scheme. The counter book value of the transferred shares was EUR 16,593. The Board of Directors has no other authorisations. Uncertainties in the near future The Group considers that the most significant uncertainties in the near future relate to worldwide economic development as well as the price development and availability of raw materials and components. The rapidly expanding financial market crisis may have a significant impact on the willingness of Glaston's customers to invest. The deteriorating market prospects will also affect the Group's large comprehensive deliveries. Fluctuations in foreign exchange rates, particularly the US dollar exchange rate, have an impact on the Group's result. Outlook Strong changes in the operating environment will be reflected in Glaston's operations in the latter part of the year. The outlook is reasonably positive in the Middle East and South America. In the United States market, demand will continue to be weak and no rapid recovery is expected. Due to the geographical spread of the Group's operations, the economic cycles of Europe, Asia and the Americas will partly balance each other. The architectural glass segment and the solar energy market create a foundation for the Group's growth. Demand for integrated, efficient solutions still exists, but the changing market had an impact on customers' willingness to invest, and decision-making times have lengthened significantly. On 26 September, Glaston announced in a separate stock exchange release that it was lowering its profit forecast for the current year. At the same time, the Group stated that it had initiated efficiency measures to improve profitability. Glaston will outline the content of this programme and its affect on profitability by the end of October.
Glaston expects full-year net sales of 2008 to be at the previous year's level and operating profit of 2008 to be below the 2007 figure.

Helsinki, 24 October 2008 Glaston Corporation Board of Directors



Sender: Glaston Corporation Kimmo Lautanen Chief Financial Officer Tel. +358 10 500 500

Agneta Selroos IR and Communications Manager Tel. +358 10 500 500



Further information: President & CEO Mika Seitovirta, tel: +358 10 500 500 Chief Financial Officer Kimmo Lautanen, +358 10 500 500



Glaston Corporation

Glaston Corporation is a growing, international glass technology company. Glaston is the global market leader in glass processing machines, and a comprehensive One-Stop-Partner supplier to its customers. Its product range and service network are the widest in the industry. Glaston's well-known brands are Bavelloni in pre-processing machines and tools, Tamglass and Uniglass in safety glass machines, and Albat+Wirsam Software in glass industry software.
Glaston's own glass processing unit, Tamglass Glass Processing, is a local Finnish manufacturer of high quality safety glass products.

Glaston's share (GLA1V) is listed on the NASDAQ OMX Nordic Exchange Helsinki Mid Cap List. www.glaston.net
Distribution: OMX Main media www.glaston.net



GLASTON CORPORATION

CONDENSED INTERIM FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 30 SEPTEMBER 2008

These condensed interim financial statements are not audited. As a result of rounding differences, the figures presented in the tables may not add up to the total.

CONDENSED INCOME STATEMENT

7-9/ 7-9/ 1-9/ 1-9/ 1-12/ EUR million 2008 2007 2008 2007 2007
Net sales 65.8 57.3 201.5 181.0 269.8 Other operating income 0.0 0.0 0.4 0.3 0.6 Expenses -62.3 -51.5 -188.9 -167.3 -246.6 Share of joint ventures' result 0.0 - 0.0 - - Depreciation, amortization and impairment -2.5 -1.8 -6.5 -4.6 -7.2 Non-recurring items - 0.0 - -7.3 -4.6 Operating profit / loss 1.1 4.0 6.5 2.1 12.0 Operating profit / loss, excluding non-recurring items 1.1 4.0 6.5 9.5 16.6 Gain from sale of assets held for sale 0.0 - 0.1 - - Other net financial items -1.1 -0.1 0.1 0.2 0.0 Result before income taxes 0.0 3.8 6.7 2.3 12.0 Income taxes -0.6 -2.1 -3.6 -3.4 -5.2 Net result, continuing operations -0.6 1.7 3.1 -1.1 6.9 Net result, discontinued operations - 0.8 - 3.8 3.8 Profit / loss for the period -0.6 2.5 3.1 2.7 10.6 Attributable to: Non-controlling interests 0.0 0.0 0.0 0.0 0.0 Owners of the parent -0.6 2.5 3.1 2.7 10.6 Total -0.6 2.5 3.1 2.7 10.6

Earnings per share, EUR, continuing operations -0.01 0.02 0.04 -0.01 0.09 Earnings per share, EUR, discontinued operations - 0.01 - 0.05 0.05 Earnings per share, EUR, total -0.01 0.03 0.04 0.04 0.14

Operating profit / loss, as % of net sales 1.6 6.9 3.2 1.2 4.5 Operating profit / loss, non-recurring items excluded, as % of net sales 1.6 6.9 3.2 5.2 6.2 Profit / loss for the period, as % of net sales -0.9 4.4 1.5 1.5 3.9



CONDENSED BALANCE SHEET EUR million 30.9.2008 30.9.2007 31.12.2007

Assets Non-current assets Property, plant and equipment 37.4 31.9 32.5 Goodwill 66.3 67.4 67.4 Other intangible assets 20.3 19.3 19.6 Joint ventures 0.8 0.8 0.8 Available-for-sale assets 0.1 0.2 0.3 Other non-current assets 0.1 0.5 - Deferred tax assets 3.9 4.9 4.4 Total non-current assets 129.0 124.9 125.0 Current assets Inventories 59.6 55.2 46.2 Receivables Trade and other receivables 92.5 75.6 91.3 Income tax receivables 3.7 3.3 1.7 Total receivables 96.2 79.0 92.9 Cash equivalents 15.7 16.4 11.4 Assets held for sale 0.2 1.1 0.3 Total current assets 171.7 151.6 150.9 Total assets 300.7 276.6 275.9

30.9.2008 30.9.2007 31.12.2007 Equity and liabilities Equity Share capital 12.7 12.7 12.7 Share premium account 25.3 25.3 25.3 Paid-up unrestricted equity reserve 0.2 0.3 0.3 Treasury shares -3.5 -3.9 -3.9 Fair value reserve 0.0 - - Hedging reserve - 0.1 0.1 Retained earnings and translation differences 97.7 94.9 94.5 Net result attributable to owners of the parent 3.1 2.7 10.6 Equity attributable to owners of the parent 135.5 131.9 139.5 Non-controlling interest 0.1 0.0 0.0 Total equity 135.6 131.9 139.6 Non-current liabilities Non-current interest-bearing liabilities 8.2 2.1 1.9 Non-current interest-free liabilities and provisions 10.5 10.9 9.9 Deferred tax liabilities 8.8 9.1 9.2 Total non-current liabilities 27.4 22.0 21.0 Current liabilities Current interest-bearing liabilities 51.4 27.5 19.4 Current provisions 2.4 1.1 2.6 Trade and other payables 79.4 90.6 89.8 Income tax liabilities 4.5 3.1 3.5 Liabilities held for sale - 0.3 - Total current liabilities 137.6 122.6 115.3 Total liabilities 165.1 144.6 136.3 Total equity and liabilities 300.7 276.6 275.9



CASH FLOW STATEMENT 1-9/ 1-9/ 1-12/ EUR million 2008 2007 2007 Cash flows from operating activities, continuing operations

Cash flow before change in net working capital 8.5 -2.9 10.3 Change in net working capital -22.1 6.1 -1.6 Net cash flow from operating activities -13.7 3.2 8.7 Cash flow from investing activities, continuing operations Acquisition of subsidiaries -0.6 -17.6 -17.7 Other purchases of non-current assets -10.2 -7.0 -11.3 Proceeds from sale of non-current assets 0.4 0.2 1.7 Net cash used in investing activities -10.3 -24.4 -27.3 Cash flow before financing, continuing operations -24.0 -21.2 -18.5 Cash flow from financing activities, continuing operations Changes in non-current liabilities (increase + / decrease -) 3.3 0.0 0.0 Changes in non-current loan receivables (increase - / decrease +) 0.3 0.0 - Short-term financing, net (increase + / decrease -) 32.3 18.5 11.3 Dividends paid -7.8 -7.1 -7.1 Acquisition of treasury shares - -3.9 -3.9 Disposal of treasury shares - 1.3 1.3 Other financing -0.1 - - Net cash used in financing activities, continuing operations 27.9 8.8 1.5 Discontinued operations Cash flow from operations - 7.6 7.6 Cash flow from investments - 10.7 10.7 Cash flow from discontinued operations - 18.3 18.3

Effect of exchange rate fluctuations 0.3 0.0 -0.3 Net change in cash and cash equivalents 4.3 5.8 0.9 Cash and cash equivalents at the beginning of period 11.4 10.5 10.5 Cash and cash equivalents at the end of period 15.7 16.4 11.4 Net change in cash and cash equivalents 4.3 5.8 0.9



CHANGES IN EQUITY

Paid-up Share unrestr. Fair Share premium equity Treasury value Hedging EUR million capital account reserve shares reserve reserve Equity at 1 January 2007 12.7 25.3 - -1.0 - -0.2 Cash flow hedges, net of tax - - - - - 0.2 Available-for-sale shares, change in fair value - - - - - - Acquisition of treasury shares - - - -3.9 - - Disposal of treasury shares - - 0.4 1.0 - - Tax effect of net income recognized directly in equity - - -0.1 - - - Recognized income and expenses for the period - - 0.3 -3.0 - 0.2 Equity at 30 September 2007 12.7 25.3 0.3 -3.9 - 0.1



Paid-up Share unrestr. Fair Share premium equity Treasury value Hedging capital account reserve shares reserve reserve Equity at 1 January 2008 12.7 25.3 0.3 -3.9 - 0.1 Cash flow hedges, net of tax - - - - - 0.0 Other changes - - - - 0.0 -0.1 Available-for-sale shares, change in fair value - - - - 0.0 - Acquisition of treasury shares - - - - - - Disposal of treasury shares - - -0.1 0.4 - - Tax effect of net income recognized directly in equity - - 0.0 - 0.0 - Recognized income and expenses for the period - - -0.1 0.4 0.0 -0.1 Equity at 30 September 2008 12.7 25.3 0.2 -3.5 0.0 -



Equity attributable Retained Translation to owners of Non-controlling Total earnings differences the parent interest equity Equity at 1 January 2007 102.8 0.4 140.1 0.0 140.1 Cash flow hedges, net of tax - - 0.2 - 0.2 Exchange rate differences - -1.3 -1.3 - -1.3 Gains and losses from hedge of net investments in foreign operations - 0.0 0.0 - 0.0 Available-for-sale shares, change in fair value - - - - - Acquisition of treasury shares - - -3.9 - -3.9 Disposal of treasury shares - - 1.3 - 1.3 Tax effect of net income recognized directly in equity - 0.0 -0.1 - -0.1 Share-based incentive plan 0.1 - 0.1 - 0.1 Share-based incentive plan, tax effect - - - - - Net profit for the period 2.7 - 2.7 0.0 2.7 Recognized income and expenses for the period 2.7 -1.3 -1.0 0.0 -1.0 Dividends paid -7.1 - -7.1 - -7.1 Equity at 30 September 2007 98.4 -0.9 131.9 0.0 131.9



Equity attributable Retained Translation to owners of Non-controlling Total earnings difference the parent interest equity Equity at 1 January 2008 106.4 -1.3 139.5 0.0 139.6 Cash flow hedges, net of tax - - 0.0 - 0.0 Exchange rate differences - 0.6 0.6 0.0 0.6 Other changes 0.0 0.1 0.0 0.1 0.0 Available-for-sale shares, change in fair value - - 0.0 - 0.0 Acquisition of treasury shares - - - - - Disposal of treasury shares - - 0.3 - 0.3 Tax effect of net income recognized directly in equity - - 0.0 - 0.0 Share-based incentive plan -0.2 - -0.2 - -0.2 Share-based incentive plan, tax effect 0.0 - 0.0 - 0.0 Net profit for the period 3.1 - 3.1 0.0 3.1 Recognized income and expenses for the period 2.9 0.7 3.9 0.0 3.9 Dividends paid -7.8 - -7.8 - -7.8 Equity at 30 September 2008 101.5 -0.6 135.5 0.1 135.6





KEY RATIOS

30.9.2008 30.9.2007 31.12.2007 EBITDA, as % of net sales (1 6.5 3.7 7.1 Operating profit / loss (EBIT), as % of net sales 3.2 1.2 4.5 Net result, as % of net sales 1.5 1.5 3.9 Gross capital expenditure, EUR million 13.6 29.9 34.1 Gross capital expenditure, as % of net sales (net sales including discontinued operations) 6.7 15.2 11.9 Equity ratio, % 48.3 54.0 55.4 Gearing, % 44.0 22.4 15.3 Net gearing, % 32.4 9.9 6.9 Net interest-bearing debt, EUR million 43.9 13.1 9.6 Capital employed, end of period, EUR million 195.2 161.5 160.9 Return on equity, %, annualized 3.0 2.6 7.6 Return on capital employed, continuing operations, %, annualized 6.2 1.9 7.9 Return on capital employed, %, annualized 6.2 6.4 11.2 Number of personnel, average, continuing operations 1,507 1,270 1,288 Number of personnel, average 1,507 1,269 1,302 Number of personnel, end of period, continuing operations 1,534 1,425 1,435 Number of personnel, end of period 1,534 1,425 1,435



(1 EBITDA = Operating profit / loss + depreciation, amortization and impairment.

PER SHARE DATA 30.9.2008 30.9.2007 31.12.2007 Number of shares, end of period, treasury shares excluded (1,000) 78,540 78,437 78,437 Number of shares, average, treasury shares excluded (1,000) 78,496 78,765 78,682 EPS, continuing operations, EUR (* 0.04 -0.01 0.09 EPS, discontinued operations, EUR (* - 0.05 0.05 EPS, total, EUR (* 0.04 0.04 0.14 Equity attributable to owners of the parent per share, EUR 1.73 1.68 1.78 Market capitalization, EUR million 158.7 286.3 217.3 Share turnover, % (number of shares traded, % of the average number of shares) 2.5 8.5 10.2 Number of shares traded, (1,000) 1.940 6.703 7.993 Closing price of the share, EUR 2.02 3.65 2.77 Highest quoted price, EUR 3.33 4.53 4.53 Lowest quoted price, EUR 2.02 3.52 2.70 Average quoted price, EUR 2.96 4.03 3.90

(* Glaston Corporation has not issued options or warrants or similar instruments which would dilute the earnings per share.

DEFINITIONS OF KEY RATIOS

Financial ratios

Operating profit / loss (EBIT) = Profit / loss after depreciation, amortization and impairment

EBITDA = operating profit / loss + depreciation, amortization and impairment

Net interest-bearing debt = Interest-bearing liabilities - cash and cash equivalents

Financial expenses = interest expenses of financial liabilities + fees of financing arrangements + foreign currency differences of financial liabilities

Equity = Equity attributable to owners of the parent + non-controlling interest

Capital employed = Equity + interest-bearing liabilities

Equity ratio, % = Equity x 100 / (Balance sheet total - advance payments received)

Gearing, % = Interest-bearing liabilities x 100 / Equity

Net gearing, % = Net interest-bearing debt x 100 / Equity

Return on capital employed, % (ROCE) = (Result before taxes + financial expenses) x 100 / (Equity + interest-bearing liabilities) (average of 1 January and end of the review period)

Return on equity, % (ROE) = (Profit / loss for the period) x 100 / Equity (average of 1 January and end of the review period)

Per share data

Earnings per share (EPS) = Profit / loss attributable to owners of the parent for the review period / Adjusted average number of shares during the review period

Equity attributable to owners of the parent per share = Equity attributable to owners of the parent at the end of the review period / Non-diluted number of shares at the end of the review period

Share turnover = The proportion of number of shares traded during the review period to weighted average number of shares

Market capitalization = Number of shares at the end of the review period x share price at the end of review period

Number of shares at the end of review period = Number of issued shares - treasury shares

ACCOUNTING POLICIES

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), but they do not include all the information required by IAS 34 Interim Financial Reporting. The consolidated interim financial statements do not include all of the information required for annual financial statements.

The accounting principles applied in these condensed interim consolidated financial statements are the same as those applied by Glaston in its consolidated financial statements as at and for the year ended 31 December 2007, with the exception of the following new or revised or amended standards and interpretations, which have been applied from 1 January 2008:

- IFRIC 11 IFRS 2 Group and Treasury Share Transactions - IFRIC 12 Service Concession Arrangements - IFRIC 14 Interpretation IAS 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

The new or amended standards or interpretations are not material for Glaston Group.

Glaston will apply the following new or revised or amended standards and interpretations from 1 October 2008:

- IFRIC 16 Hedges of a Net Investment in a Foreign Operation

Glaston will apply IAS 1 (revised) Presentation of Financial Statements -standard in its financial statements for the financial year 2008. Applying the revised IAS 1 standard will change the presentation of income statement, balance sheet and statement of changes in equity in the financial statements.

Glaston will apply the following new or revised or amended standards and interpretations from 1 January 2009:

- IAS 23 (revised) Borrowing Costs - IFRS 8 Operating Segments - IFRIC 3 Customer Loyalty Programs - Amendments to IFRS 2 Share-based payments: Vesting Conditions and Cancellations - Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation - Improvements to IFRSs - IFRIC 15 Agreements for the Construction of Real Estate - Amendment to IAS 39 Financial Instruments: Recognition and Measurement - Eligible Hedged Items

Glaston estimates that applying IFRS 8 will not have any material effect on the financial information of Glaston.

Applying revised IAS Borrowing Costs will change Glaston's accounting principles from 1 January 2009. From that date on the borrowing costs that are directly attributable to the acquisition, construction or production of an asset will be capitalized to the acquisition cost of the asset. The capitalization will apply mainly to property, plant and equipment.



Other new or amended standards or interpretations are not material for Glaston Group.

Glaston will apply the following new or revised or amended standards and interpretations from 1 January 2010:

- IFRS 3 (revised) Business Combinations - IAS 27 (amended) Consolidated and Separate Financial Statements.

BUSINESS COMBINATIONS

Glaston Corporation acquired on 2 July 2007 all the shares in a German company Albat+Wirsam Software AG. The recognized acquisition cost was EUR 21.7 million and the goodwill EUR 14.2 million at the end of 2007, and they were recognized provisionally. Based on the terms of the share purchase agreement the purchase consideration was decreased during the third quarter of 2008 by EUR 1.2 million. As a result of the lower acquisition cost and changes in the provisionally recognized fair values of the acquired business, the goodwill arising from the acquisition decreased by EUR 1.1 million.

SEGMENT INFORMATION

Glaston Group's primary segment is business segment. The Pre-processing segment includes glass pre-processing machines sold under the Bavelloni brand, maintenance and service operations, as well as tool manufacturing. The Heat Treatment segment includes tempering, bending and laminating machines sold under the Tamglass and Uniglass brands, maintenance and service operations, as well as the glass processing operations of Tamglass Glass Processing. The Software Solutions segment's product offering, sold under the Albat+Wirsam brand, covers enterprise resource planning systems for the glass industry, software for windows and door glass manufacturers, and software for glass processor's intergrated line solutions. Software Solutions has been consolidated to Glaston Group from 1 July 2007.

The Energy business area was divested from Glaston Group in July 2007, and is thus classified as discontinued operations in 2007 figures.

EUR million

1-9/ 1-9/ 1-12/ Net sales 2008 2007 2007 Pre-processing 66.1 65.6 94.1 Heat Treatment 114.1 109.5 162.3 Software Solutions 21.5 6.8 14.7 Parent company and eliminations -0.2 -0.9 -1.3 Total 201.5 181.0 269.8

Operating profit / loss, excluding non-recurring 1-9/ 1-9/ 1-12/ items 2008 2007 2007 Pre-processing -1.8 1.2 1.4 Heat Treatment 10.5 11.9 19.6 Software Solutions 3.6 1.6 2.6 Parent company and eliminations -5.8 -5.2 -7.0 Total 6.5 9.5 16.6 Non-recurring items - -7.3 -4.6 Operating profit / loss 6.5 2.1 12.0 Net financial items 0.2 0.2 0.0 Income taxes -3.6 -3.4 -5.2 Discontinued operations - 3.8 3.8 Net result for the period 3.1 2.7 10.6

Operating profit / loss, excluding non-recurring 1-9/ 1-9/ 1-12/ items, as % of net sales 2008 2007 2007 Pre-processing -2.8% 1.9% 1.5% Heat Treatment 9.2% 10.8% 12.1% Software Solutions 16.8% 23.0% 17.8% Total 3.2% 5.2% 6.2%



Depreciation, amortization and 1-9/ 1-9/ 1-12/ impairment 2008 2007 2007 Pre-processing -1.4 -1.3 -1.9 Heat Treatment -3.2 -2.8 -4.0 Software Solutions -1.3 -0.3 -1.1 Parent company and eliminations -0.6 -0.2 -0.2 Total -6.5 -4.6 -7.2

Assets 30.9.2008 30.9.2007 31.12.2007 Pre-processing 49.0 40.2 39.6 Heat Treatment 72.4 69.9 76.7 Software Solutions 9.3 7.7 6.8 Parent company and eliminations 0.0 -0.7 -0.6 Total segment assets 130.7 117.1 122.5 Non-current assets 125.1 120.0 120.6 Deferred tax assets 3.9 4.9 4.4 Income tax receivables 3.7 3.3 1.7 Other non-allocated receivables 21.5 13.7 15.0 Cash and cash equivalents 15.7 16.4 11.4 Assets held for sale 0.2 1.1 0.3 Total assets 300.7 276.6 275.9

Liabilities 30.9.2008 30.9.2007 31.12.2007 Pre-processing 17.0 17.3 21.8 Heat Treatment 20.6 29.0 22.7 Software Solutions 2.2 5.9 1.9 Parent company and eliminations 0.6 0.3 0.4 Total segment liabilities 40.5 52.5 46.8 Deferred tax liabilities 8.8 9.1 9.2 Provisions 12.4 11.9 12.5 Interest-bearing liabilities 59.6 29.6 21.3 Income tax liabilities 4.5 3.1 3.5 Other non-allocated liabilities 39.3 38.2 43.0 Liabilities held for sale - 0.3 - Total liabilities 165.1 144.6 136.3





1-9/ 1-9/ 1-12/ Orders received 2008 2007 2007 Pre-processing 45.1 49.9 68.7 Heat Treatment 96.7 119.1 141.0 Software Solutions 11.1 1.6 3.0 Total 152.9 170.7 212.7



Order book 30.9.2008 30.9.2007 31.12.2007 Pre-processing 19.1 24.4 20.9 Heat Treatment 59.0 92.6 59.9 Software Solutions 4.5 8.6 6.2 Total 82.6 125.7 87.0



Personnel at the end of the period, continuing operations 30.9.2008 30.9.2007 31.12.2007 Pre-processing 606 559 556 Heat Treatment 646 614 612 Software Solutions 255 239 247 Parent company 27 13 20 Total 1,534 1,425 1,435

Personnel, average, continuing operations 1-9/2008 1-9/2007 1-12/2007 Pre-processing 588 577 572 Heat Treatment 642 605 606 Software Solutions 251 76 97 Parent company 26 12 13 Total 1,507 1,270 1,288

EUR million

1-9/ 1-9/ 1-12/ Net sales by market area 2008 2007 2007 EMEA 132.0 97.7 150.5 America 39.0 56.0 75.6 Asia 30.5 27.3 43.7 Total 201.5 181.0 269.8

1-9/ 1-9/ 1-12/ Net sales by market area, % 2008 2007 2007 EMEA 65.5% 54.0% 55.8% America 19.4% 30.9% 28.0% Asia 15.1% 15.1% 16.2% Total 100.0% 100.0% 100.0%





1-9/ 1-9/ Geographical distribution of orders received 2008 2007 change, % EMEA 104.9 108.3 -3.3% America 28.0 35.0 -25.0% Asia 20.0 27.4 -36.6% Total 152.9 170.7 -11.6%


NET SALES, OPERATING PROFIT /LOSS AND ORDER BOOK OF CONTINUING OPERATIONS BY QUARTER

EUR million

1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ Net sales 2007 2007 2007 2007 2008 2008 2008 Pre-processing 21.7 23.4 20.6 28.5 22.9 23.2 20.0 Heat Treatment 36.6 42.7 30.2 52.8 32.9 44.0 37.2 Software Solutions - - 6.8 7.9 7.3 6.4 7.8 Parent company and eliminations -0.1 -0.5 -0.3 -0.5 0.0 -1.0 0.8 Total 58.2 65.6 57.3 88.8 63.1 72.6 65.8

Operating profit / loss excluding non-recurring 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ items 2007 2007 2007 2007 2008 2008 2008 Pre-processing 1.2 -0.2 0.3 0.2 0.6 -0.7 -1.6 Operating profit / loss, % 5.3% -0.9% 1.3% 0.8% 2.5% -3.1% -8.4% Heat Treatment 3.0 5.7 3.2 7.7 1.9 5.3 3.3 Operating profit / loss, % 8.1% 13.4% 10.5% 14.6% 5.7% 12.0% 8.9% Software Solutions - - 1.6 1.0 1.0 1.2 1.4 Operating profit / loss, % - - 23.1% 13.2% 13.2% 19.3% 18.1% Parent company and eliminations -2.4 -1.7 -1.1 -1.8 -1.8 -2.0 -2.0 Total 1.7 3.8 4.0 7.1 1.6 3.8 1.1 Operating profit / loss, % 2.9% 5.8% 6.9% 8.0% 2.6% 5.2% 1.6%

1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ Operating profit / loss 2007 2007 2007 2007 2008 2008 2008 Pre-processing 1.2 -1.6 0.3 0.3 0.6 -0.7 -1.6 Operating profit / loss, % 5.3% -7.0% 1.3% 0.9% 2.5% -3.1% -8.4% Heat Treatment 3.0 -0.2 3.2 7.7 1.9 5.3 3.3 Operating profit / loss, % 8.1% -0.4% 10.6% 14.6% 5.7% 12.0% 8.9% Software Solutions - - 1.6 1.0 1.0 1.2 1.4 Operating profit / loss, % - - 23.1% 13.2% 13.2% 19.3% 18.1% Parent company and eliminations -2.4 -1.7 -1.1 0.9 -1.8 -2.0 -2.0 Total 1.7 -3.5 4.0 9.9 1.6 3.8 1.0 Operating profit / loss, % 2.9% -5.4% 6.9% 11.2% 2.6% 5.2% 1.6%

1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ Order book 2007 2007 2007 2007 2008 2008 2008 Pre-processing 20.2 25.9 24.4 20.9 21.0 21.9 19.1 Heat Treatment 72.3 90.3 92.6 59.9 65.0 71.0 59.0 Software Solutions - - 8.6 6.2 9.5 6.0 4.5 Total 92.5 116.2 125.7 87.0 95.5 98.9 82.6



DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

The Energy business area was divested from Glaston Group in July 2007, and is thus classified as discontinued operations in 2007 figures.

EUR million



1-9/ 1-9/ 1-12/ Result of the Energy Business Area 2008 2007 2007 Income - 16.0 16.0 Expenses - -11.9 -11.9 Profit before taxes - 4.1 4.1 Income taxes - -1.1 -1.1 Profit after taxes - 3.0 3.0 Gains from disposal of discontinued operations net of tax - 0.8 0.8 Profit for the period. discontinued operations - 3.8 3.8



The impact of the disposal of the Energy Business Area on Glaston Group's financial position in 2007

Carrying amounts of disposed assets and liabilities Property, plant and equipment 13.8 Intangible assets 0.1 Inventories 0.2 Trade payables and other liabilities -0.1 Total assets and liabilities 14.0

Consideration received in cash 10.6 Expenses attributed to disposal -0.3 Cash flow from disposal 10.4 Recognized as a receivable 4.7 Total consideration 15.1

From the sale of the Energy Business Area a receivable of EUR 4.7 million was recognized related to the sale of future CO2 emission rights. The receivable is estimated to be realized in 2009 - 2013.

Assets held for sale 30.9.2008 30.9.2007 31.12.2007

Intangible assets - 0.2 - Property, plant and equipment - 0.2 - Shares 0.2 0.4 0.3 Inventories - 0.2 - Total assets - 1.1 0.3
Liabilities held for sale 30.9.2008 30.9.2007 31.12.2007

Provisions - 0.3 - Total liabilities - 0.3 -

Assets held for sale are related to shares owned by Glaston Corporation. On 30 September 2007, the assets and liabilities held for sale were related to the balcony glazing business and Glaston Corporation's shares.

CONTINGENT LIABILITIES

EUR million 30.9.2008 30.9.2007 31.12.2007 Mortgages On own behalf 0.2 0.2 0.2 Guarantees On own behalf 0.6 1.3 1.4 On behalf of others 0.2 0.6 0.3 Lease obligations 18.2 4.0 18.0 Repurchase obligations 1.4 1.5 3.0



A customer of the US subsidiary Glaston USA, Inc. has made a claim of USD 10 million due to a sale of a machine in 2004. On 25 January 2008, the company received a statement that the customer has increased the claim to USD 22 million. It is Glaston's opinion, that both the original claim and the increased one are unfounded. The matter has been referred to arbitration court in the USA and the court's decision is expected to be received during the first quarter of 2009.

Glaston Group has international operations and can be a defendant or plaintiff in a number of legal proceedings incidental to those operations. The Group does not expect the outcome of any unmentioned legal proceedings currently pending, either individually or in the aggregate, to have material adverse effect upon the Group's consolidated financial position or results of operations.

DERIVATIVE INSTRUMENTS

EUR million 30.9.2008 30.9.2007 31.12.2007 Nominal Fair Nominal Fair Nominal Fair value value value value value value Currency derivatives Currency forwards 10.7 -0.3 16.3 0.4 12.8 0.1



Derivative instruments are used only for hedging purposes. Nominal values of derivative instruments do not necessarily correspond with the actual cash flows between the counterparties and do not therefore give a fair view of the risk position of the Group. The fair values are based on market valuation on the date of reporting.

RELATED PARTY TRANSACTIONS

Glaston Group's related parties include the parent company, subsidiaries and joint ventures. Related parties also include the members of the Board of Directors and the Group's Management Team, the CEO and their family members.

Glaston follows the same commercial terms in transactions joint ventures and other related parties as with third parties.

During the review period Glaston's related party transactions included sales to joint ventures. In addition, the Group has leased premises from companies owned by individuals belonging to the management. The lease payments were in January - September EUR 0.5 million.

During the review period there were no related party transactions whose terms would differ from the terms in transactions with third parties.

Share-based incentive plan

Based on the 2007 share-based incentive plan, Glaston Corporation transferred in April own shares to persons who are considered to be related parties. The shares were transferred to the CEO (19.740 shares) and other members of the Management Team (in total 32.900 shares).

The expenses arising from the 2007 and 2008 plans were EUR 0.2 million in January - September.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



LINK: http://hugin.info/3059/R/1262947/277125.pdf

Glaston Oyj Abp

http://www.glaston.net

ISIN: FI0009010219

Stock Identifier: XHEL.GLA1V