Uponor continues cost management in slow markets

INTERIM REPORT FOR JANUARY-SEPTEMBER 2008                                       

Uponor continues cost management in slow markets                                


- Continuing operations* net sales for January-September came to 750.3 (809.2) 
million euros, a change of -7.3%                                                
- January-September operating profit for continuing operations was 71.1 (110.3) 
million euros, a change of -35.5%                                               
- Earnings per share for the company came to 1.21 (1.10) euros 
- Return on investment over the period, including sales gain from divestment,
was 
36.9% (41.0%), with gearing at 31.1% (37.3%)                                    
- Guidance: In essence, Uponor repeats its guidance, issued on 11 June, for
2008: 
Net sales for continuing operations are not expected to reach last year's level,
and operating profit is estimated to fall short of the 2007 level.              

*) Discontinued operations contain the divested infrastructure business in the  
United Kingdom, effective as of 1 January 2008, the divested infrastructure     
business in the Republic of Ireland, which was sold in an asset deal, effective 
as of 18 June 2008, and the German divestment of Uponor Klärtechnik GmbH.       

CEO Jyri Luomakoski comments on the performance:                                

- The market outlook for new building has turned gloomier during the past 12    
months, and the situation is not expected to improve in 2008 - 2009. The        
slowdown in building activity will require determined efforts to adjust         
operations to lower demand.     
                                                
- The cost reduction programme that we announced earlier has begun according to 
initial plans and we have several initiatives currently ongoing. I am positive  
that we will reach the targets we set for the programme.
                        
- Our strategic initiatives to invest in the cooling business and the commercial
high-rise sector are beginning to pay off. Customers are increasingly interested
to save money and are seeking indoor climate solutions that have attractive     
pay-back times. 
                                                                
- Uponor has a strong balance sheet position and we have secured sufficient     
funding to weather the uncertainties in the debt capital markets.               


Webcast and presentation material                                               
Following the release of this report, the presentation material for the interim 
report will be available at www.uponor.com/investors, under 'IR material'.      

Uponor will hold a webcast in English, at 14:00 EET. You can access the webcast 
via www.uponor.com. Questions for the webcast can be sent to ir@uponor.com.     


Markets                                                                         

The building and construction markets, especially in residential building, have 
continued to experience a slowdown in most of Uponor's key geographic areas in  
the third quarter of 2008.                                                      

In Central Europe, the German market, which showed resilience in the beginning  
of the year, is exhibiting signs of weakening, affected by increasing energy and
component costs as well as the impact of the faltering international financial  
and real estate sectors. There has been negative growth in the number of        
residential building permits issued in Germany, while in the non-residential    
building segment the number of permits has experienced brisk growth. A similar  
development, in many respects, was notable in other Central Europe region       
markets.                                                                        
                                                                                
In the Nordic countries, the downward tendency seems to have levelled out in    
Denmark while a decrease can now be seen in other Nordic countries, particularly
affecting housing solutions demand in the single-family residential sector.     
Increasingly, tighter financial markets are also curbing the start-ups of large 
commercial projects. Although municipal infrastructure demand has remained quite
resilient, the building industry slowdown is hindering the part of the          
infrastructure business that serves new residential development.                

In the Europe - West, East, South region, building activity in Spain continues  
its rapid decline, and the number of new building permits has dropped           
significantly from the equivalent period last year. The contraction of the      
markets has also accelerated somewhat in other southwest European markets. The  
Eastern European markets, including Russia, have largely maintained sound market
growth, although somewhat more weakly than in the previous quarter.             

In North America, US residential building activity remains subdued, with a      
further decline in residential housing starts evident in Q3. Also,              
non-residential construction activity in the US has begun to reflect the        
expected slowing of growth. Compared to the previous year, the Canadian market  
has performed strongly as a result of its relatively stable economy, while also 
showing signs of softening more recently.                                       


Net sales                                                                       

Uponor's continuing operations' net sales for July-September declined by 5.0 per
cent from the comparison period and totalled 249.1 (262.1) million euros.       

Despite the turmoil in the real estate market and the overall negative          
development in the construction market, the net sales of Uponor Central Europe  
increased slightly. This was mainly due to the positive development of the      
business serving non-residential building markets in most Central European      
countries. Sales to other Uponor regions suffered.                              

In the Nordic region, net sales declined, mainly as a result of lower demand for
housing solutions in the local markets as well as diminished exports to other   
Uponor regions. Housing solutions sales dropped, especially in Sweden and       
Norway. Infrastructure net sales developed positively in Norway and Denmark but 
declined slightly in Finland and Sweden year-on-year. This mainly resulted from 
the lack of larger residential developments.                                    

In Uponor Europe - West, East, South, net sales lagged behind last year because 
of the contracted Iberian markets. Despite faltering market demand, which also  
affected other countries in Southern and Western Europe, the Region managed to  
maintain growth in its net sales in those markets in the third quarter. In      
Eastern Europe, net sales increased steadily. Residential building segment sales
continued at a brisk pace, especially in the single-family segment, and in      
particular in Russia. In the Baltic countries, new building remained subdued but
positive signals were evident in the renovation sector.                         

In North America, net sales declined from 2007 despite the relative strength of 
the Canadian housing market. The economic recession continued to impact on sales
for new residential building activity while growth in the commercial building   
market remained steady.                                                         

Net sales by segment, July-September, continuing operations:                    
--------------------------------------------------------------------------------
| MEUR                            | 7-9/2008     | 7-9/2007     | Change       |
--------------------------------------------------------------------------------
| Central Europe                  |         88.1 |         85.9 |        +2.5% |
--------------------------------------------------------------------------------
| Nordic                          |         93.2 |         99.1 |        -5.9% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |         58.6 |         64.9 |        -9.8% |
--------------------------------------------------------------------------------
| North America                   |         38.2 |         44.8 |       -14.7% |
--------------------------------------------------------------------------------
| (North America, MUSD            |         57.0 |         62.0 |       -8.0%) |
--------------------------------------------------------------------------------
| Eliminations                    |        -29.0 |        -32.6 |              |
--------------------------------------------------------------------------------
| Total                           |        249.1 |        262.1 |        -5.0% |
--------------------------------------------------------------------------------

January-September net sales for continuing operations totalled 750.3 (809.2)    
million euros, representing a decline of 7.3%. The impact of currency changes on
net sales, mainly from the USD dollar, was -15.4 million euros. Housing         
solutions net sales reached 590.6 million euros, a decline of 9.1%, while       
Infrastructure solutions net sales remained static at 159.7 million euros, a    
change of 0.0 per cent.                                                         

Net sales by segment, January-September, continuing operations:                 
--------------------------------------------------------------------------------
| MEUR                            | 1-9/2008     | 1-9/2007     | Change       |
--------------------------------------------------------------------------------
| Central Europe                  |        268.6 |        275.6 |        -2.5% |
--------------------------------------------------------------------------------
| Nordic                          |        294.5 |        309.6 |        -4.9% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |        188.0 |        209.0 |       -10.0% |
--------------------------------------------------------------------------------
| North America                   |         99.6 |        130.5 |       -23.7% |
--------------------------------------------------------------------------------
| (North America, MUSD            |        151.8 |        176.3 |      -13.9%) |
--------------------------------------------------------------------------------
| Eliminations                    |       -100.4 |       -115.5 |              |
--------------------------------------------------------------------------------
| Total                           |        750.3 |        809.2 |        -7.3% |
--------------------------------------------------------------------------------


Results and profitability                                                       

Continuing operations' operating profit for July-September totalled 22.8 (37.9) 
million euros, a drop of 39.8%. Gross profit margin continued to be affected by 
higher raw material, component, energy, and transportation costs.               

In August, Uponor announced a group-wide cost-reduction programme to align      
expenses with the low activity level in the building and construction industry, 
with targeted structural cost reductions in the range of 30 million euros,      
taking effect from 2009. Operating profit for the report period is impacted by  
costs related to this programme, amounting to 3.2 million euros.                

In Uponor Central Europe, operating profit improved clearly, driven by the brisk
market activity. In Uponor Nordic, profitability fell, mainly due to decreased  
volumes in the housing solutions and the infrastructure markets, both in        
domestic and export business. Profitability in the Uponor Europe - West, East,  
South region suffered from declining markets and increased material and         
transportation costs, as well as investment in growth initiatives that continued
on a high level. Operating profit in Uponor North America fell from last year,  
mainly due to initiatives aimed at promoting growth in new business segments,   
such as the commercial high-rise market, as well as the costs related to the    
closure of the St. John factory in Canada in September.                         

Operating profit by segment, July-September, continuing operations:             
--------------------------------------------------------------------------------
| MEUR                            | 7-9/2008     | 7-9/2007     | Change       |
--------------------------------------------------------------------------------
| Central Europe                  |         12.5 |         10.6 |        17.8% |
--------------------------------------------------------------------------------
| Nordic                          |          7.9 |         13.0 |       -39.4% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |          4.1 |         12.4 |       -67.4% |
--------------------------------------------------------------------------------
| North America                   |          1.6 |          4.4 |       -62.8% |
--------------------------------------------------------------------------------
| (North America, MUSD            |          2.4 |          6.1 |      -59.4%) |
--------------------------------------------------------------------------------
| Other                           |         -3.4 |         -3.4 |              |
--------------------------------------------------------------------------------
| Eliminations                    |          0.1 |          0.9 |              |
--------------------------------------------------------------------------------
| Total                           |         22.8 |         37.9 |       -39.8% |
--------------------------------------------------------------------------------

Continuing operations' operating profit for January-September declined by 35.5%,
totalling 71.1 (110.3) million euros. The operating profit margin fell to 9.5%  
from 13.6% in the equivalent period for 2007.                                   

Operating profit by segment, January-September, continuing operations:          
--------------------------------------------------------------------------------
| MEUR                            | 1-9/2008     | 1-9/2007     | Change       |
--------------------------------------------------------------------------------
| Central Europe                  |         33.2 |         34.0 |        -2.3% |
--------------------------------------------------------------------------------
| Nordic                          |         27.8 |         42.0 |       -33.9% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |         16.9 |         33.4 |       -49.6% |
--------------------------------------------------------------------------------
| North America                   |          2.4 |         12.6 |       -81.0% |
--------------------------------------------------------------------------------
| (North America, MUSD            |          3.6 |         17.0 |      -78.6%) |
--------------------------------------------------------------------------------
| Other                           |         -9.0 |         -9.7 |              |
--------------------------------------------------------------------------------
| Eliminations                    |         -0.2 |         -2.0 |              |
--------------------------------------------------------------------------------
| Total                           |         71.1 |        110.3 |       -35.5% |
--------------------------------------------------------------------------------

Continuing operations' profit before taxes for January-September came to 66.5   
(106.2) million euros, down 37.4% year-on-year. Taxes remained at 20.5 (34.7)   
million euros, with a tax rate of 31.0 (32.5) per cent.                         

The profit for the period was 88.5 (80.6) million euros, an increase of 7.9     
million euros, reflecting the sales gain from the divestment of the UK and Irish
infrastructure business.                                                        

The Group's earnings per share (basic and diluted) totalled 1.21 (1.10) euros,  
of which continuing operations represented 0.63 (0.98) euros. Equity per share  
was 4.36 (4.32) euros, basic and diluted.                                       

Investment and financing                                                        

Due to the weakening business climate, Uponor curtailed investment into fixed   
assets. As a result, most investments were geared towards process and efficiency
improvements. Altogether, investments in continuing operations totalled 8.2     
(13.7) million euros in July-September.                                         

Gross investment in continuing operations in January-September came to 23.8     
(28.9) million euros, or 3.2 (3.6) per cent of net sales.                       

Gearing declined to 31.1 (37.3) per cent, as net interest-bearing liabilities   
fell to 99.3 (118.0) million euros. The solvency ratio increased to 49.6 (43.0).

The Group's return on investment (ROI) was at 36.9% (41.0%) and return on equity
(ROE) 36.2% (32.5%).                                                            
                                                                                

Key events during the period                                                    

A positive development was recorded in the penetration of radiant heating and   
cooling solutions in high-rise projects in several markets, where they are      
beginning to win market share from traditional solutions. This penetration has  
been supported by favourable regulatory changes and increased awareness and     
demand for energy-efficient indoor climate solutions. As an example, an Uponor  
heating and cooling solution is being installed in one of the biggest shopping  
centres in Portugal. The selected solution has been developed to deliver        
excellent energy-efficiency to the owners as well as indoor climate comfort for 
those visiting the shopping-centre. In North America, Uponor has piloted heating
and cooling projects with large builders and retail chains and a major          
hospitality chain, with potential for business opportunities in the longer-term.

An international Uponor Knowledge Days 2008 event was held in Hamburg, Germany, 
hosting key decision-makers from the high-rise segment from the Eastern European
and international markets. Similarly, several partnerships were signed,         
particularly in Eastern Europe, to enable further growth in the high-rise       
segment.                                                                        

The implementation of the European ERP system continued, with preparations for  
the roll-out later in the year well under way in the UK and Ireland.            

In the United States, a new regulation was passed requiring the installation of 
approved automatic fire sprinkler systems in new one and two-family dwellings   
and townhouses.                                                                 
Uponor is poised to capitalise on this development with its patented domestic   
fire sprinkler system offering.                                                 


Human resources and organisation                                                

The reported number of Group full-time-equivalent employees averaged 4,353      
(4,471) during the period under review, while at the end of the period the Group
had 3,934 (4,558) full-time-equivalent employees, a reduction of 624 persons,   
including the divested infrastructure business in the UK that employed a staff  
of 470.                                                                         

The number of people employed was reduced in all Regions except Europe - WES,   
where the organisation is being built to enable a growing presence in those     
markets.                                                                        
As a result of declining demand in key markets, it has become necessary to      
adjust personnel numbers in all Uponor activities. In August, Uponor announced a
special cost reduction programme that was estimated to affect more than 200     
jobs. A significant reduction, around 80 people, took place in Canada with the  
closure of the St. John plant in New Brunswick in September. During the third   
quarter, the number of employees in the continuing business was reduced by 206  
persons, while at the same time hired agency employees were reduced by 52       
persons.                                                                        

There were two changes in the company's management. President and CEO Jan Lång  
announced his resignation in August, while Bernhard Brinkmann, Executive Vice   
President for Uponor Central Europe, left his position on 30 September 2008.    


Share capital and shares                                                        

The number of Uponor shares traded on the NASDAQ OMX Helsinki stock exchange    
increased in the third quarter to 30.8 (24.8) million shares, and the monetary  
value of the shares exchanged totalled 287.4 (619.4) million euros. The market  
value of the share capital at the end of the period was 0.6 (1.6) billion euros,
and the number of shareholders was 17,715 (9,564).                              

Uponor Corporation's share capital remained constant at 146,446,888 euros and   
the number of shares at 73,206,944.                                             


Events after the period under review                                            

A new organisational structure for the European housing solutions business      
became effective on 1 October 2008. It aims at improving the business focus by  
enhancing the utilisation of growth opportunities and increasing operational    
efficiency and transparency, especially in the supply chain and the sales and   
marketing organisations.                                                        

With effect from 27 October 2008, the Board of Directors appointed Jyri         
Luomakoski, CFO and Deputy CEO, as the company's CEO on an interim basis until  
the Board has completed the search process for the CEO. Luomakoski will also    
retain his position as CFO. President and CEO Jan Lång announced his resignation
in August and will leave the company In October.                                

Uponor has started codetermination negotiations with its employees in Finland   
and Sweden during the autumn, with the purpose of reducing workforce by a       
maximum of 70 persons.                                                          


Risks                                                                           

Uponor's financial results are exposed to a number of strategic, operational,   
financial, and hazard-related risks. A detailed risk analysis can be found in   
Uponor's Annual Report 2007.                                                    

Uponor has various legal proceedings and litigation in progress in different    
countries. The management does not expect these proceedings to have a material  
impact on the company's performance in the foreseeable future.                  


Short-term outlook                                                              

The global building and construction market outlook has deteriorated clearly    
since mid-2007 and no improvement is in sight. In Europe, the leading           
residential construction indicators have continued to worsen and the            
non-residential segment, which maintained its momentum in 2007 is likely to have
passed its peak. Most new residential construction markets in Western Europe are
expected to decline or at best remain flat in 2008 and 2009. In Eastern Europe, 
market growth is expected to continue on a weaker basis.                        

In North America, the residential construction market continues to suffer from a
lack of activity, and the recovery that had generally been predicted for 2009 is
not expected to occur. Also, in the non-residential segment, the long-lasting   
satisfactory trend may no longer be sustainable.                                

Despite the overall weaknesses of the markets, Uponor continues to exploit the  
trends and opportunities that exist in some of its growth segments. Further,    
Uponor aims at increasing its presence in Eastern Europe and growing its market 
share in key European markets and North America, while at the same time         
executing the cost reduction programme to adjust cost base to the expected low  
market demand. Total expenditure in 2008 related to the cost reduction programme
is expected to slightly exceed 7 million euros.                                 

In essence, Uponor repeats its guidance for 2008, issued on 11 June: continuing 
operations' net sales are not expected to reach last year's level, and operating
profit is expected to fall short of the 2007 level.                             

Uponor Corporation                                                              
Board of Directors                                                              


For further information, please contact:                                        
President and CEO Jyri Luomakoski, tel. +358 40 515 4498                        


Tarmo Anttila                                                                   
Vice President, Communications                                                  
Tel. +358 20 129 2852                                                           


DISTRIBUTION:                                                                   
NASDAQ OMX Helsinki                                                             
Media                                                                           
www.uponor.com                                                                  


Information on the interim report                                               

The figures in brackets in this interim report are the refer figures for the    
equivalent period in 2007. The change percentages reported in the interim report
have been calculated from exact figures not from rounded figures published in   
the interim report.                                                             


INTERIM REPORT 1-9/2008                                                         

The figures in this interim report are unaudited.                               


CONSOLIDATED INCOME STATEMENT                                                   

--------------------------------------------------------------------------------
| MEUR                     |    1-9/ |    1-9/ |     7-9/ |    7-9/ |    1-12/ |
|                          |    2008 |    2007 |     2008 |    2007 |     2007 |
--------------------------------------------------------------------------------
| Continuing operations    |         |         |          |         |          |
--------------------------------------------------------------------------------
| Net sales                |   750.3 |   809.2 |    249.1 |   262.1 |  1,047.4 |
--------------------------------------------------------------------------------
| Cost of goods sold       |   470.8 |   494.4 |    158.5 |   161.3 |    640.4 |
--------------------------------------------------------------------------------
| Gross profit             |   279.5 |   314.8 |     90.6 |   100.8 |    407.0 |
--------------------------------------------------------------------------------
| Other operating income   |     0.6 |     5.0 |      0.0 |     4.0 |      5.9 |
--------------------------------------------------------------------------------
| Dispatching and          |    23.1 |    21.1 |      7.3 |     6.9 |     28.8 |
| warehousing expenses     |         |         |          |         |          |
--------------------------------------------------------------------------------
| Sales and marketing      |   131.0 |   136.9 |     40.9 |    44.2 |    178.5 |
| expenses                 |         |         |          |         |          |
--------------------------------------------------------------------------------
| Administration expenses  |    39.3 |    39.6 |     12.9 |    11.3 |     51.7 |
--------------------------------------------------------------------------------
| Other operating expenses |    15.6 |    11.9 |      6.7 |     4.5 |     18.2 |
--------------------------------------------------------------------------------
| Operating profit         |    71.1 |   110.3 |     22.8 |    37.9 |    135.7 |
--------------------------------------------------------------------------------
| Financial expenses, net  |     4.6 |     4.1 |      1.7 |     2.1 |      2.6 |
--------------------------------------------------------------------------------
| Profit before taxes      |    66.5 |   106.2 |     21.1 |    35.8 |    133.1 |
--------------------------------------------------------------------------------
| Income taxes             |    20.5 |    34.7 |      6.6 |    12.5 |     41.7 |
--------------------------------------------------------------------------------
| Profit for the period    |    46.0 |    71.5 |     14.5 |    23.3 |     91.4 |
| from continuing          |         |         |          |         |          |
| operations               |         |         |          |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations  |         |         |          |         |          |
--------------------------------------------------------------------------------
| Profit for the period    |    42.5 |     9.1 |      0.0 |     2.9 |     10.5 |
| from discontinued        |         |         |          |         |          |
| operations               |         |         |          |         |          |
--------------------------------------------------------------------------------
| Profit for the period    |    88.5 |    80.6 |     14.5 |    26.2 |    101.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share,      |    1.21 |    1.10 |     0.20 |    0.36 |     1.39 |
| EUR                      |         |         |          |         |          |
--------------------------------------------------------------------------------
| - Continuing operations  |    0.63 |    0.98 |     0.20 |    0.32 |     1.25 |
--------------------------------------------------------------------------------
| - Discontinued           |    0.58 |    0.12 |     0.00 |    0.04 |     0.14 |
| operations               |         |         |          |         |          |
--------------------------------------------------------------------------------
| Diluted earnings per     |    1.21 |    1.10 |     0.20 |    0.36 |     1.39 |
| share, EUR               |         |         |          |         |          |
--------------------------------------------------------------------------------
| - Continuing operations  |    0.63 |    0.98 |     0.20 |    0.32 |     1.25 |
--------------------------------------------------------------------------------
| - Discontinued           |    0.58 |    0.12 |     0.00 |    0.04 |     0.14 |
| operations               |         |         |          |         |          |
--------------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEET                                                      

--------------------------------------------------------------------------------
| MEUR                                       |    30.9. |    30.9. | 31.12.200 |
|                                            |     2008 |     2007 |         7 |
--------------------------------------------------------------------------------
| Assets                                     |          |          |           |
--------------------------------------------------------------------------------
| Non-current assets                         |          |          |           |
--------------------------------------------------------------------------------
| Property, plant and equipment              |    180.3 |    210.0 |     218.9 |
--------------------------------------------------------------------------------
| Intangible assets                          |    101.1 |     98.7 |     101.7 |
--------------------------------------------------------------------------------
| Securities and long-term investments       |      7.4 |      3.6 |       3.6 |
--------------------------------------------------------------------------------
| Deferred tax assets                        |     15.3 |     20.7 |      16.3 |
--------------------------------------------------------------------------------
| Total non-current assets                   |    304.1 |    333.0 |     340.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                             |          |          |           |
--------------------------------------------------------------------------------
| Inventories                                |    128.0 |    160.4 |     150.6 |
--------------------------------------------------------------------------------
| Accounts receivable                        |    182.5 |    224.1 |     144.6 |
--------------------------------------------------------------------------------
| Other receivables                          |     23.6 |     12.7 |      22.3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                  |      5.1 |      7.4 |       6.3 |
--------------------------------------------------------------------------------
| Total current assets                       |    339.2 |    404.6 |     323.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets                               |    643.3 |    737.6 |     664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities       |          |          |           |
--------------------------------------------------------------------------------
| Shareholders' equity                       |    319.0 |    316.5 |     333.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                    |          |          |           |
--------------------------------------------------------------------------------
| Interest-bearing liabilities               |     17.3 |     19.6 |      14.7 |
--------------------------------------------------------------------------------
| Deferred tax liability                     |     11.4 |     16.0 |      15.0 |
--------------------------------------------------------------------------------
| Provisions                                 |      7.7 |      9.9 |       8.8 |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities    |     20.9 |     25.3 |      28.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities              |     57.3 |     70.8 |      66.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities                        |          |          |           |
--------------------------------------------------------------------------------
| Interest-bearing liabilities               |     87.1 |    105.8 |      76.1 |
--------------------------------------------------------------------------------
| Provisions                                 |      5.5 |      8.5 |       7.4 |
--------------------------------------------------------------------------------
| Accounts payable                           |     68.9 |     82.1 |      75.2 |
--------------------------------------------------------------------------------
| Other liabilities                          |    105.5 |    153.9 |     106.0 |
--------------------------------------------------------------------------------
| Total current liabilities                  |    267.0 |    350.3 |     264.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities |    643.3 |    737.6 |     664.3 |
--------------------------------------------------------------------------------








CONSOLIDATED CASH FLOW STATEMENT                                                

--------------------------------------------------------------------------------
| MEUR                                       |     1-9/ |     1-9/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Net cash from operations                   |     97.5 |    148.4 |     186.0 |
--------------------------------------------------------------------------------
| Change in net working capital              |     -4.4 |    -74.3 |     -45.1 |
--------------------------------------------------------------------------------
| Income taxes paid                          |    -32.9 |    -31.5 |     -42.7 |
--------------------------------------------------------------------------------
| Interest paid                              |     -6.2 |     -5.4 |      -7.1 |
--------------------------------------------------------------------------------
| Interest received                          |      1.1 |      1.7 |       2.7 |
--------------------------------------------------------------------------------
| Cash flow from operations                  |     55.1 |     38.9 |      93.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments                 |          |          |           |
--------------------------------------------------------------------------------
| Proceeds from disposal of subsidiaries and |     76.4 |        - |         - |
| businesses                                 |          |          |           |
--------------------------------------------------------------------------------
| Purchase of fixed assets                   |    -23.8 |    -32.0 |     -58.1 |
--------------------------------------------------------------------------------
| Proceeds from sales of fixed assets        |      0.1 |      4.5 |       5.0 |
--------------------------------------------------------------------------------
| Received dividends                         |      0.0 |      0.0 |       0.2 |
--------------------------------------------------------------------------------
| Loan repayments                            |      0.1 |      0.1 |       0.2 |
--------------------------------------------------------------------------------
| Cash flow from investments                 |     52.8 |    -27.4 |     -52.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing                   |          |          |           |
--------------------------------------------------------------------------------
| Borrowings of debt                         |        - |     89.0 |      58.9 |
--------------------------------------------------------------------------------
| Repayments of debt                         |     -5.1 |     -1.5 |      -1.7 |
--------------------------------------------------------------------------------
| Dividends paid                             |   -102.5 |   -102.5 |    -102.5 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities       |     -1.5 |     -1.5 |      -1.9 |
--------------------------------------------------------------------------------
| Cash flow from financing                   |   -109.1 |    -16.5 |     -47.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Conversion differences for cash and cash   |      0.0 |      0.0 |       0.0 |
| equivalents                                |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents        |     -1.2 |     -5.0 |      -6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at 1 January     |      6.3 |     12.4 |      12.4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period |      5.1 |      7.4 |       6.3 |
--------------------------------------------------------------------------------
| Changes according to balance sheet         |     -1.2 |     -5.0 |      -6.1 |
--------------------------------------------------------------------------------















STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                                    

--------------------------------------------------------------------------------
| MEUR      |  Share |  Share |   Other | Treasur | Trans-l | Retained | Total |
|           | capita | premiu | reserve |       y |   ation | earnings |       |
|           |      l |      m |       s |  shares | reserve |          |       |
--------------------------------------------------------------------------------
| Balance   |  146.4 |   35.6 |    14.3 |       - |   -21.6 |    158.3 | 333.0 |
| at 31 Dec |        |        |         |         |         |          |       |
| 2007      |        |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Translation        |        |         |         |     0.0 |          |   0.0 |
| differences        |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Cash flow hedges   |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| - recorded in      |        |     0.0 |         |         |          |   0.0 |
| equity, net of     |        |         |         |         |          |       |
| taxes              |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Net profit for the |        |         |         |         |     88.5 |  88.5 |
| period             |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Total recognised   |        |     0.0 |         |     0.0 |     88.5 |  88.5 |
| income and expense |        |         |         |         |          |       |
| for the period     |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Dividend paid (EUR |        |         |         |         |   -102.5 | -102. |
| 1.40 per share)    |        |         |         |         |          |     5 |
--------------------------------------------------------------------------------
| Other adjustments  |        |     0.1 |         |    -0.1 |      0.0 |   0.0 |
--------------------------------------------------------------------------------
| Balance   |  146.4 |   35.6 |    14.4 |       - |   -21.7 |    144.3 | 319.0 |
| at 30 Sep |        |        |         |         |         |          |       |
| 2008      |        |        |         |         |         |          |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance   |  146.4 |   42.5 |     6.7 |    -1.6 |   -10.2 |    160.6 | 344.4 |
| at 31 Dec |        |        |         |         |         |          |       |
| 2006      |        |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Translation        |        |         |         |    -6.3 |          |  -6.3 |
| differences        |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Cash flow hedges   |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| - recorded in      |        |     0.2 |         |         |          |   0.2 |
| equity, net of     |        |         |         |         |          |       |
| taxes              |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Net profit for the |        |         |         |         |     80.6 |  80.6 |
| period             |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Total recognised   |        |     0.2 |         |    -6.3 |     80.6 |  74.5 |
| income and expense |        |         |         |         |          |       |
| for the period     |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Cancelling of      |        |         |     0.3 |         |     -0.3 |     - |
| shares             |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Dividend paid (EUR |        |         |         |         |   -102.5 | -102. |
| 1.40 per share)    |        |         |         |         |          |     5 |
--------------------------------------------------------------------------------
| Share based        |        |         |     1.3 |         |     -1.3 |     - |
| incentive plan     |        |         |         |         |          |       |
--------------------------------------------------------------------------------
| Other adjustments  |        |     0.1 |         |         |          |   0.1 |
--------------------------------------------------------------------------------
| Balance   |  146.4 |   42.5 |     7.0 |       - |   -16.5 |    137.1 | 316.5 |
| at 30 Sep |        |        |         |         |         |          |       |
| 2007      |        |        |         |         |         |          |       |
--------------------------------------------------------------------------------




NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS                          

ACCOUNTING PRINCIPLES                                                           

The interim report has been prepared in compliance with International Financial 
Reporting Standards (IFRS) as adopted by EU and IAS 34 Interim Financial        
Reporting. In interim reports Uponor Group follows the same principles as in the
annual financial statement 2007.                                                
Divestments of infrastructure business in UK, Ireland and Germany have been     
classified as discontinued operations.                                          


--------------------------------------------------------------------------------
| PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS                          |
--------------------------------------------------------------------------------
| MEUR                                       |     1-9/ |     1-9/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Gross investment                           |     23.8 |     32.0 |      58.1 |
--------------------------------------------------------------------------------
|  - % of net sales                          |      3.2 |      3.4 |       4.8 |
--------------------------------------------------------------------------------
| Depreciation                               |     23.6 |     27.8 |      37.2 |
--------------------------------------------------------------------------------
| Book value of disposed fixed assets        |      5.3 |      1.5 |       2.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PERSONNEL                                  |          |          |           |
--------------------------------------------------------------------------------
| Converted to full time employees           |     1-9/ |     1-9/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average                                    |    4,353 |    4,471 |     4,497 |
--------------------------------------------------------------------------------
| At the end of the period                   |    3,934 |    4,558 |     4,581 |
--------------------------------------------------------------------------------


SEGMENT INFORMATION                                                             
--------------------------------------------------------------------------------
|  | Geographical segments                                                     |
--------------------------------------------------------------------------------
|  |           | 1-9/2008                    | 1-9/2007                        |
--------------------------------------------------------------------------------
|  | MEUR      | Exter | Inter | Total       | External  | Internal   | Total  |
|  |           | nal   | nal   |             |           |            |        |
--------------------------------------------------------------------------------
|  | Segment revenue, continuing operations  |           |            |        |
--------------------------------------------------------------------------------
|  | Central   | 220.1 |  48.5 |       268.6 |     222.4 |       53.2 |  275.6 |
|  | Europe    |       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | Nordic    | 243.8 |  50.7 |       294.5 |     250.8 |       58.8 |  309.6 |
--------------------------------------------------------------------------------
|  | Europe -  | 186.8 |   1.2 |       188.0 |     207.5 |        1.5 |  209.0 |
|  | West,     |       |       |             |           |            |        |
|  | East,     |       |       |             |           |            |        |
|  | South     |       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | North     |  99.6 |     - |        99.6 |     128.5 |        2.0 |  130.5 |
|  | America   |       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | Eliminati |     - | -100. |      -100.4 |         - |     -115.5 | -115.5 |
|  | ons       |       |     4 |             |           |            |        |
--------------------------------------------------------------------------------
|  | Total     | 750.3 |     - |       750.3 |     809.2 |          - |  809.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |           | 7-9/2008                    | 7-9/2007                        |
--------------------------------------------------------------------------------
|  |           | Exter | Inter | Total       | External  | Internal   | Total  |
|  |           | nal   | nal   |             |           |            |        |
--------------------------------------------------------------------------------
|  | Segment revenue, continuing operations  |           |            |        |
--------------------------------------------------------------------------------
|  | Central   |  74.9 |  13.2 |        88.1 |      71.4 |       14.5 |   85.9 |
|  | Europe    |       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | Nordic    |  77.8 |  15.4 |        93.2 |      82.5 |       16.6 |   99.1 |
--------------------------------------------------------------------------------
|  | Europe -  |  58.2 |   0.4 |        58.6 |      64.3 |        0.6 |   64.9 |
|  | West,     |       |       |             |           |            |        |
|  | East,     |       |       |             |           |            |        |
|  | South     |       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | North     |  38.2 |     - |        38.2 |      43.9 |        0.9 |   44.8 |
|  | America   |       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | Eliminati |     - | -29.0 |       -29.0 |         - |      -32.6 |  -32.6 |
|  | ons       |       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | Total     | 249.1 |     - |       249.1 |     262.1 |          - |  262.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                                         | 1-12/2007                       |
--------------------------------------------------------------------------------
|  | MEUR                                    |     Exter |      Inter |  Total |
|  |                                         |       nal |        nal |        |
--------------------------------------------------------------------------------
|  | Segment revenue, continuing operations  |           |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                          |     283.7 |       67.6 |  351.3 |
--------------------------------------------------------------------------------
|  | Nordic                                  |     325.4 |       72.3 |  397.7 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South              |     271.1 |        1.8 |  272.9 |
--------------------------------------------------------------------------------
|  | North America                           |     167.2 |        2.0 |  169.2 |
--------------------------------------------------------------------------------
|  | Eliminations                            |         - |     -143.7 | -143.7 |
--------------------------------------------------------------------------------
|  | Total                                   |   1,047.4 |          - | 1,047. |
|  |                                         |           |            |      4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                   |  1-9/ |        1-9/ |      7-9/ |       7-9/ |  1-12/ |
|  |                   |  2008 |        2007 |      2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment result,           |             |           |            |        |
|  | continuing operations     |             |           |            |        |
--------------------------------------------------------------------------------
|  | Central Europe    |  33.2 |        34.0 |      12.5 |       10.6 |   41.1 |
--------------------------------------------------------------------------------
|  | Nordic            |  27.8 |        42.0 |       7.9 |       13.0 |   49.7 |
--------------------------------------------------------------------------------
|  | Europe - West,    |  16.9 |        33.4 |       4.1 |       12.4 |   42.2 |
|  | East, South       |       |             |           |            |        |
--------------------------------------------------------------------------------
|  | North America     |   2.4 |        12.6 |       1.6 |        4.4 |   16.6 |
--------------------------------------------------------------------------------
|  | Others            |  -9.0 |        -9.7 |      -3.4 |       -3.4 |  -13.2 |
--------------------------------------------------------------------------------
|  | Eliminations      |  -0.2 |        -2.0 |       0.1 |        0.9 |   -0.7 |
--------------------------------------------------------------------------------
|  | Total             |  71.1 |       110.3 |      22.8 |       37.9 |  135.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | MEUR                                    |      1-9/ |       1-9/ |  1-12/ |
|  |                                         |      2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment depreciation and impairments, continuing    |            |        |
|  | operations                                          |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                          |       6.1 |        5.7 |    7.7 |
--------------------------------------------------------------------------------
|  | Nordic                                  |       7.4 |        7.6 |   10.1 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South              |       2.2 |        1.6 |    2.2 |
--------------------------------------------------------------------------------
|  | North America                           |       4.1 |        4.1 |    5.6 |
--------------------------------------------------------------------------------
|  | Others                                  |       3.0 |        2.4 |    3.3 |
--------------------------------------------------------------------------------
|  | Eliminations                            |       0.4 |        0.5 |    0.6 |
--------------------------------------------------------------------------------
|  | Total                                   |      23.2 |       21.9 |   29.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | Segment investments, continuing         |           |            |        |
|  | operations                              |           |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                          |       5.9 |        8.0 |   11.0 |
--------------------------------------------------------------------------------
|  | Nordic                                  |       6.5 |        9.7 |   15.5 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South              |       0.7 |        2.9 |    4.0 |
--------------------------------------------------------------------------------
|  | North America                           |       8.2 |        5.3 |   13.4 |
--------------------------------------------------------------------------------
|  | Others                                  |       2.5 |        3.0 |    8.1 |
--------------------------------------------------------------------------------
|  | Total                                   |      23.8 |       28.9 |   52.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | MEUR                                    |      1-9/ |       1-9/ |  1-12/ |
|  |                                         |      2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment assets                          |           |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                          |     201.5 |      201.4 |  181.4 |
--------------------------------------------------------------------------------
|  | Nordic                                  |     200.1 |      232.3 |  185.3 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South              |     158.7 |      245.8 |  240.1 |
--------------------------------------------------------------------------------
|  | North America                           |     120.3 |      122.0 |  123.7 |
--------------------------------------------------------------------------------
|  | Others                                  |     509.3 |      634.8 |  577.9 |
--------------------------------------------------------------------------------
|  | Eliminations                            |    -546.6 |     -698.7 | -644.1 |
--------------------------------------------------------------------------------
|  | Total                                   |     643.3 |      737.6 |  664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | Segment liabilities                     |           |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                          |     107.9 |      105.1 |  119.0 |
--------------------------------------------------------------------------------
|  | Nordic                                  |     229.8 |      271.9 |  233.5 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South              |      49.1 |      119.9 |  101.9 |
--------------------------------------------------------------------------------
|  | North America                           |      75.9 |       54.8 |   55.0 |
--------------------------------------------------------------------------------
|  | Others                                  |     425.6 |      584.2 |  477.8 |
--------------------------------------------------------------------------------
|  | Eliminations                            |    -564.0 |     -714.8 | -655.9 |
--------------------------------------------------------------------------------
|  | Total                                   |     324.3 |      421.1 |  331.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                                         |      1-9/ |       1-9/ |  1-12/ |
|  |                                         |      2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment personnel, average              |           |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                          |     1,242 |      1,255 |  1,261 |
--------------------------------------------------------------------------------
|  | Nordic                                  |     1,384 |      1,386 |  1,380 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South              |     1,100 |      1,208 |  1,224 |
--------------------------------------------------------------------------------
|  | North America                           |       560 |        564 |    573 |
--------------------------------------------------------------------------------
|  | Others                                  |        67 |         58 |     59 |
--------------------------------------------------------------------------------
| Total                                      |     4,353 |      4,471 |  4,497 |
--------------------------------------------------------------------------------
| Continuing operations                      |     4,080 |      3,982 |  4,008 |
--------------------------------------------------------------------------------
| Discontinued operations                    |       273 |        489 |    489 |
--------------------------------------------------------------------------------
| Business segments                                                            |
--------------------------------------------------------------------------------
|  |                                | 1-9/2008                                 |
--------------------------------------------------------------------------------
|  | Segment external revenue,      |      Housing |       Infra |       Total |
|  | continuing operations          |    solutions |    structue |             |
|  |                                |              |   solutions |             |
--------------------------------------------------------------------------------
|  | Central Europe                 |        220.1 |           - |       220.1 |
--------------------------------------------------------------------------------
|  | Nordic                         |         94.2 |       149.6 |       243.8 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South     |        176.7 |        10.1 |       186.8 |
--------------------------------------------------------------------------------
|  | North America                  |         99.6 |           - |        99.6 |
--------------------------------------------------------------------------------
|  | Total                          |        590.6 |       159.7 |       750.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                      | 1-9/2007                              |
--------------------------------------------------------------------------------
|  | Segment external revenue,      |      Housing | Infrastruct |       Total |
|  | continuing operations          |    solutions |         ure |             |
|  |                                |              |   solutions |             |
--------------------------------------------------------------------------------
|  | Central Europe                 |        222.4 |           - |       222.4 |
--------------------------------------------------------------------------------
|  | Nordic                         |        103.7 |       147.1 |       250.8 |
--------------------------------------------------------------------------------
|  | Europe West, East, South       |        195.0 |        12.5 |       207.5 |
--------------------------------------------------------------------------------
|  | North America                  |        128.5 |           - |       128.5 |
--------------------------------------------------------------------------------
|  | Total                          |        649.6 |       159.6 |       809.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                                | 1-12/2007                                |
--------------------------------------------------------------------------------
|  | Segment external revenue,      |      Housing | Infrastruct |       Total |
|  | continuing operations          |    solutions |         ure |             |
|  |                                |              |   solutions |             |
--------------------------------------------------------------------------------
|  | Central Europe                 |        283.7 |           - |       283.7 |
--------------------------------------------------------------------------------
|  | Nordic                         |        133.8 |       191.6 |       325.4 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South     |        255.2 |        15.9 |       271.1 |
--------------------------------------------------------------------------------
|  | North America                  |        167.2 |           - |       167.2 |
--------------------------------------------------------------------------------
|  | Total                          |        839.9 |       207.5 |     1,047.4 |
--------------------------------------------------------------------------------


CONTINGENT LIABILITIES                                                          

--------------------------------------------------------------------------------
| MEUR                                       |    30.9. |    30.9. | 31.12.200 |
|                                            |     2008 |     2007 |         7 |
--------------------------------------------------------------------------------
| Group:                                     |          |          |           |
--------------------------------------------------------------------------------
| Mortgages                                  |        - |        - |       0.0 |
| - on own behalf                            |          |          |           |
--------------------------------------------------------------------------------
| Guarantees                                 |          |          |           |
--------------------------------------------------------------------------------
| - on behalf of others                      |      8.6 |     12.0 |      11.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Parent company:                            |          |          |           |
--------------------------------------------------------------------------------
| Guarantees                                 |          |          |           |
--------------------------------------------------------------------------------
| - on behalf of a subsidiary                |      7.6 |     10.2 |      10.5 |
--------------------------------------------------------------------------------
| - on behalf of others                      |      7.1 |      9.4 |       9.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING LEASE COMMITMENTS                |     33.5 |     24.2 |      24.4 |
--------------------------------------------------------------------------------


DERIVATIVE CONTRACTS                                                            

--------------------------------------------------------------------------------
| MEUR          | Nominal | Fair    | Nominal | Fair     |  Nominal | Fair     |
|               |   value |   value |   value |    value |    value |    value |
|               |   30.9. |   30.9. |   30.9. |    30.9. | 31.12.20 | 31.12.20 |
|               |    2008 |    2008 |    2007 |     2007 |       07 |       07 |
--------------------------------------------------------------------------------
| Currency      |   103.2 |     2.8 |    91.4 |      0.0 |     85.9 |      1.7 |
| derivatives   |         |         |         |          |          |          |
| - Forward     |         |         |         |          |          |          |
| agreements    |         |         |         |          |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity     |     5.9 |     1.0 |     5.1 |      0.3 |      3.6 |      0.8 |
| derivatives   |         |         |         |          |          |          |
| - Forward     |         |         |         |          |          |          |
| agreements    |         |         |         |          |          |          |
--------------------------------------------------------------------------------


DISCONTINUED OPERATIONS                                                         

Divested infrastructure businesses in the UK, Ireland and Germany have been     
classified as discontinued operations according to IFRS 5 standard. In June,    
Uponor closed the deal concerning the disposal of the infrastructure business in
UK and Ireland. The deal included the sale of Uponor Ltd. in the UK, its        
subsidiary Radius Plastics Ltd. in Northern Ireland and Uponor Ltd's business in
the Republic of Ireland. In April, Uponor Klärtechnik GmbH in Germany was sold. 

--------------------------------------------------------------------------------
| MEUR                                       |     1-9/ |     1-9/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Net sales                                  |      8.9 |    134.1 |     171.9 |
--------------------------------------------------------------------------------
| Expenses                                   |      9.9 |    120.9 |     156.5 |
--------------------------------------------------------------------------------
| Profit before taxes                        |     -1.0 |     13.2 |      15.4 |
--------------------------------------------------------------------------------
| Income taxes                               |      0.0 |      4.1 |       4.9 |
--------------------------------------------------------------------------------
| Profit after taxes                         |     -1.0 |      9.1 |      10.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit from divestment of discontinued |     43.5 |        - |         - |
| operations                                 |          |          |           |
--------------------------------------------------------------------------------
| Income taxes                               |        - |        - |         - |
--------------------------------------------------------------------------------
| Profit from divestment of discontinued     |     43.5 |        - |         - |
| operations                                 |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period from discontinued    |     42.5 |      9.1 |      10.5 |
| operations                                 |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from discontinued operations     |          |          |           |
--------------------------------------------------------------------------------
| Cash flow from operations                  |     -3.6 |     15.4 |      19.1 |
--------------------------------------------------------------------------------
| Cash flow from investments                 |     76.4 |     -2.9 |      -6.1 |
--------------------------------------------------------------------------------


DISPOSAL OF BUSINESSES                                                          

Disposal of businesses includes the divestment of the infrastructure business in
the UK, Ireland and Germany, classified as discontinued operations.             

Book value of assets disposed                                                   
--------------------------------------------------------------------------------
| MEUR                                       |     1-9/ |     1-9/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Property, plant and equipment              |     33.7 |        - |         - |
--------------------------------------------------------------------------------
| Deferred tax asset                         |      1.9 |        - |         - |
--------------------------------------------------------------------------------
| Inventories                                |     17.8 |        - |         - |
--------------------------------------------------------------------------------
| Accounts receivable and other receivables  |     25.1 |          |           |
--------------------------------------------------------------------------------
| Cash and cash equivalent                   |      1.1 |        - |         - |
--------------------------------------------------------------------------------
| Total assets                               |     79.6 |        - |         - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deferred tax liability                     |      3.1 |        - |         - |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities    |      4.3 |        - |         - |
--------------------------------------------------------------------------------
| Accounts payable and other current         |     33.2 |        - |         - |
| liabilities                                |          |          |           |
--------------------------------------------------------------------------------
| Total liabilities                          |     40.6 |        - |         - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets                                 |     39.0 |        - |         - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash received from sales                   |     77.5 |        - |         - |
--------------------------------------------------------------------------------
| Cash and cash equivalent disposed of       |      1.1 |        - |         - |
--------------------------------------------------------------------------------
| Cash flow effect                           |     76.4 |        - |         - |
--------------------------------------------------------------------------------

In addition to the cash received from sales, a 5.0 MEUR vendor loan note was    
issued at closing of the deal. Total sales price of the transaction was 82.5    
MEUR.                                                                           


RELATED-PARTY TRANSACTIONS                                                      

--------------------------------------------------------------------------------
| MEUR                                       |     1-9/ |     1-9/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Continuing operations                      |          |          |           |
--------------------------------------------------------------------------------
| Purchases from associated companies        |      1.7 |      1.7 |       2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balances at the end of the period          |          |          |           |
--------------------------------------------------------------------------------
| Loan receivable from associated companies  |        - |      1.1 |       1.0 |
--------------------------------------------------------------------------------
| Accounts and other receivables             |        - |      0.7 |       1.1 |
--------------------------------------------------------------------------------
| Accounts payables and other liabilities    |      0.1 |      0.2 |       0.2 |
--------------------------------------------------------------------------------


KEY FIGURES                                                                     

--------------------------------------------------------------------------------
|                                            |     1-9/ |     1-9/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Earnings per share, EUR                    |     1.21 |     1.10 |      1.39 |
--------------------------------------------------------------------------------
| - continuing operations                    |     0.63 |     0.98 |      1.25 |
--------------------------------------------------------------------------------
| - discontinued operations                  |     0.58 |     0.12 |      0.14 |
--------------------------------------------------------------------------------
| Operating profit (continuing operations),  |      9.5 |     13.6 |      13.0 |
| %                                          |          |          |           |
--------------------------------------------------------------------------------
| Return on equity, %, cumulative            |     36.2 |     32.5 |      30.1 |
--------------------------------------------------------------------------------
| Return on investment, %, cumulative        |     36.9 |     41.0 |      39.2 |
--------------------------------------------------------------------------------
| Solvency ratio, %                          |     49.6 |     43.0 |      50.2 |
--------------------------------------------------------------------------------
| Gearing, %                                 |     31.1 |     37.3 |      25.4 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities           |     99.3 |    118.0 |      84.5 |
--------------------------------------------------------------------------------
| Equity per share, EUR                      |     4.36 |     4.32 |      4.55 |
--------------------------------------------------------------------------------
| - diluted                                  |     4.36 |     4.32 |      4.55 |
--------------------------------------------------------------------------------
| Trading price of shares                    |          |          |           |
--------------------------------------------------------------------------------
| - low, EUR                                 |     8.21 |    20.00 |     15.31 |
--------------------------------------------------------------------------------
| - high, EUR                                |    18.91 |    31.45 |     31.45 |
--------------------------------------------------------------------------------
| - average, EUR                             |    12.67 |    26.97 |     23.76 |
--------------------------------------------------------------------------------
| Shares traded                              |          |          |           |
--------------------------------------------------------------------------------
| - 1,000 pcs                                |   87,076 |   64,213 |    99,423 |
--------------------------------------------------------------------------------
| - MEUR                                     |    1,104 |    1,732 |     2,362 |
--------------------------------------------------------------------------------




DEFINITIONS OF KEY RATIOS                                                       



Return on Equity (ROE), %	                                                      
			                                                                             
Profit before taxes - taxes                                                     
=	----------------------------------------	x 100                                
	Shareholders' equity + minority interest, average                              


Return on Investment (ROI), %                                                   

	Profit before taxes + interest and other financing costs                       
=	---------------------------------------------------	x 100                     
	Balance sheet total - non-interest-bearing liabilities, average                


Solvency, %                                                                     

	Shareholders' equity + minority interest                                       
=	-----------------------------------------	x 100                               
	Balance sheet total - advance payments received                                

Gearing, %                                                                      

	Net interest-bearing liabilities                                               
=	------------------------------------------	x 100                              
	Shareholders' equity + minority interest                                       


Net interest-bearing liabilities                                                

=	Interest-bearing liabilities - cash, bank receivables and financial assets    


Earnings per share (EPS)                                                        

	Profit for the period                                                          
=	-------------------------------------------------                             
Number of shares adjusted for share issue in financial period                   
excluding treasury shares                                                       

Equity per share ratio                                                          

	Shareholders' equity                                                           
=	-------------------------------------------------------                       
	Average number of shares adjusted for share issue at end of year               

Average share price                                                             

	Total value of shares traded (EUR)                                             
=		---------------------------                                                  
	Total number of shares traded