Contact
Uponor International Sales
Industriestrasse 56, 97437 Hassfurt, Germany

Financial Statements bulletin 1-12/2008: Uponor failed to reach targets as markets contracted

Uponor Financial Statements 1-12/2008                                           

Uponor failed to reach targets as markets contracted                            

- Full year net sales and operating profit declined as building markets         
contracted                                                                      
- Q4 2008: decline in net sales and operating profit steepened towards year-end 
- Net sales* Jan-Dec: EUR 949.2m (2007: 1,047.4m), a change of -9.4%            
- Operating profit Jan-Dec: EUR 51.2m (135.7m), down by 62.3%                   
- The company's earnings per share were at EUR 0.99 (EUR 1.39)                  
- In 2009, net sales is expected to remain below the 2008 level and profit for
the year 2009 is expected to be positive 
- The Board's dividend proposal at EUR 0.85/share                               

(* Unless otherwise specified, the figures refer to continuing operations.)     


President and CEO Jyri Luomakoski comments on the performance:                  

- Market developments in 2008 will make a permanent mark in history due to the  
associated, exceptionally wide and strong decline in demand. Uponor's financial 
performance lagged far behind our targets, but thanks to cost savings and their 
careful management, we succeeded in preserving a moderate level of              
profitability.                                                                  

- Our operating profit remained at 8% of net sales, if we exclude non-recurring 
items, a level which is fairly satisfactory in the current market environment.  

- Towards the latter part of the year, we focussed largely on managing our net  
working capital, and were successful in keeping the cash flow at a good level.  
At the end of the year, our inventories and receivables were at a record low.   

- We will continue focussing on strategic growth initiatives much as before. We 
made good progress in the high-rise segment, and our new cooling offering has a 
fine tail wind. Our customers' interest in these is mounting as various         
environmental regulations provide them with competitive support.                


Dividend proposal                                                               
The Board of Directors of Uponor Corporation propose to the Annual General      
Meeting that the company pay a dividend of EUR 0.85 per share, totalling EUR    
62.1 million or 85.7 per cent of the earnings in 2008. With the proposed        
dividend, it is estimated that the company's gearing in 2009 will remain within 
a spread of 30 to 70, as defined in the company's long-term targets. Last year, 
Uponor paid out EUR 1.40 as a dividend per share.                               

Presentation material and the webcast:                                          
Following the release of this report, the presentation material for the results 
briefing will be available at www.uponor.com > Investors > IR material.         

The webcast of the results briefing will be broadcast in English today at 2:00pm
EET (London 12:00noon, New York 7:00am). The link to the webcast can be found at
www.uponor.com. Questions are invited to ir@uponor.com. A recording of the      
webcast will be made available after 18:00pm EET at the latest, at              
www.uponor.com.                                                                 


Performance in Q4 2008                                                          

Demand for Uponor's product groups clearly worsened during the last quarter of  
2008 compared to the situation in the first half of the year. Although demand   
for housing solutions had already weakened in most markets during the preceding 
quarters, the decline steepened in the final quarter. This was a result of      
increasingly stringent financial markets, the low number of new construction    
sites opened, and the closure of many already in progress. The encroaching      
economic drought in the markets was especially noticeable in Eastern Europe,    
where, after a strong start to the year, business came to a practical halt.     
Demand in the public and commercial building segments also softened, and in some
markets growth peaked before turning towards a modest decline. In the Nordic    
countries, infrastructure demand also suffered in certain product categories, as
a result of the decline in house building.                                      


Net sales                                                                       

Uponor's net sales in the final quarter totalled EUR 198.9m (EUR 238.2m), which 
is 16.5 per cent less than in 2007. Net sales contracted in all Regions, with   
the strongest changes taking place in Europe - WES and in North America.        

The reason for this decline was the sharp fall in demand in housing solutions in
all markets. This trend was somewhat offset by the progress made in the         
high-rise sector, mounting interest in Uponor's cooling offering as well as     
advances achieved by the multilayer composite pipe offering in several markets. 


Net sales by Region, October - December:                                        

--------------------------------------------------------------------------------
| EUR million                     |       10-12/ |       10-12/ |       Change |
|                                 |         2008 |         2007 |              |
--------------------------------------------------------------------------------
| Central -Europe                 |         70.8 |         75.7 |        -6.5% |
--------------------------------------------------------------------------------
| Nordic                          |         71.2 |         88.1 |       -19.2% |
--------------------------------------------------------------------------------
| Europe - WES                    |         46.3 |         63.9 |       -27.6% |
--------------------------------------------------------------------------------
| North America                   |         31.2 |         38.7 |       -19.5% |
--------------------------------------------------------------------------------
| (North America, MUSD            |         39.7 |         56.8 |      -30.1%) |
--------------------------------------------------------------------------------
| Eliminations                    |        -20.6 |        -28.2 |              |
--------------------------------------------------------------------------------
| Group                           |        198.9 |        238.2 |      -16.5 % |
--------------------------------------------------------------------------------


Profits and profitability                                                       

Uponor's October -December operating profit came to EUR -19.9m (EUR 25.4m),     
which is EUR 45.3m less than in the comparison period. The main reason for this 
drop was the strong contraction in net sales. However, the Group's expenses     
increased considerably, due to non-recurring items such as the EUR 14.5 million 
provision in North America for plumbing replacements, and the global            
cost-reduction programme that incurred a cost of EUR 4.1 million in the fourth  
quarter.                                                                        
Operating profit suffered in all Regions, especially in North America and the   
Nordic countries.                                                               


Operating profit by Region, October - December:                                 

--------------------------------------------------------------------------------
| EUR million                     |       10-12/ |       10-12/ |       Change |
|                                 |         2008 |         2007 |              |
--------------------------------------------------------------------------------
| Central -Europe                 |          5.0 |          7.1 |       -29.4% |
--------------------------------------------------------------------------------
| Nordic                          |         -4.2 |          7.7 |      -154.0% |
--------------------------------------------------------------------------------
| Europe - WES                    |         -1.6 |          8.8 |      -117.8% |
--------------------------------------------------------------------------------
| North America                   |        -18.4 |          4.0 |      -556.7% |
--------------------------------------------------------------------------------
| (North America, MUSD            |        -27.0 |          5.9 |     -560.3%) |
--------------------------------------------------------------------------------
| Other                           |         -1.1 |         -3.5 |              |
--------------------------------------------------------------------------------
| Eliminations                    |          0.4 |          1.3 |              |
--------------------------------------------------------------------------------
| Group                           |        -19.9 |         25.4 |      -178.4% |
--------------------------------------------------------------------------------


The Group's October-December earnings per share, also diluted, were EUR -0.22   
(EUR 0.29), while they amounted to EUR -0.22 (EUR 0.27) for continuing          
operations. The cash flow generated during the period came to EUR 25.7m (EUR    
29.6m).                                                                         

Review by the Board of Directors                                                
1 January-31 December 2008                                                      


Overview                                                                        

2008 will be remembered both as Uponor's 90th anniversary year and as the year  
when the development of the world economy, and in particular the strong long    
term growth of the construction market, suddenly collapsed. The problems which  
originated in 2007 in the US housing and financial markets gradually started to 
spread so that the epidemic had reached all continents by the end of 2008. This 
change had a dramatic impact not only on Uponor's main markets, i.e. housing    
construction, but it also affected, after a delay, commercial and institutional 
construction and the demand for infrastructure solutions. Due to the sharp      
decline in demand, Uponor's net sales and operating profit clearly fell from the
historic high levels achieved in 2007.                                          

Despite the clear shift in focus towards savings and cost control, Uponor       
continued to implement its internal development programmes mainly according to  
plan. The Company's integration programme advanced well and the ERP project     
initiated in 2005 was for the most part completed during the report year.       
Furthermore, we revised our organisation to enable efficient supply chain       
management on a European scale.                                                 

In the latter half of 2008, we implemented an extensive adjustment programme    
aimed at safeguarding the Company's operational prerequisites in the difficult  
market situation. Combined with the strategic development programmes initiated  
during the last few years, this has made Uponor an integrated and strong company
which has a good starting point for succeeding in the near future's challenging 
market situation and capitalising on the opportunities that exist in the        
markets.                                                                        


Net sales                                                                       

In 2008, Uponor's net sales from continuing operations came to EUR 949.2m (2007:
EUR 1,047.4m), a fall of 9.4 per cent year on year, and ending up clearly behind
the long-term target of over +6 per cent. Fluctuations in foreign currencies,   
mainly the US dollar, the Swedish krona and the UK pound, adversely affected net
sales by approximately EUR 16.7m.                                               

Net sales decreased in all of Uponor's regional organisations, and was felt most
in North America and in Europe - West, East, South, all of these markets        
experiencing a drastic fall in demand from the construction sector. In Central  
Europe, net sales nearly achieved the previous year's level due to the fact that
demand for commercial and institutional construction remained relatively healthy
throughout the year, both in Uponor's main market, Germany, and its neighbouring
countries. In the Nordic countries, the decline in net sales was mainly         
attributable to the weakening of the housing solutions market.                  

In all regional organisations, the fall in net sales remained smaller than the  
decline in the overall market due to the fact that plastic systems and radiant  
heating and cooling solutions achieved market shares.                           

Net sales by region for 1 Jan.-31 Dec. 2008                                     

--------------------------------------------------------------------------------
| EUR million                     |        2008/ |        2007/ |     Reported |
|                                 |         1-12 |         1-12 |    change, % |
--------------------------------------------------------------------------------
| Central-Europe                  |        339.4 |        351.3 |         -3.4 |
--------------------------------------------------------------------------------
| Nordic                          |        365.7 |        397.7 |         -8.0 |
--------------------------------------------------------------------------------
| Europe - WES                    |        234.3 |        272.9 |        -14.1 |
--------------------------------------------------------------------------------
| North America                   |        130.8 |        169.2 |         22.7 |
--------------------------------------------------------------------------------
| (North America, MUSD            |        191.5 |        233.1 |        17.8) |
--------------------------------------------------------------------------------
| Eliminations                    |       -121.0 |        143.7 |              |
--------------------------------------------------------------------------------
| Group                           |        949.2 |      1.047.7 |         -9.4 |
--------------------------------------------------------------------------------


Uponor's continuing operations' net sales by secondary segment decreased to EUR 
751.1m (EUR 839.9m) in housing solutions, representing 79.1 (80.2) per cent of  
total sales, with decline at -10.6 (4.4) per cent. The share of the             
infrastructure solutions was 20.9 (19.8) percent. Its net sales amounted to EUR 
198.1m (EUR 207.5m), a change of -4.6 (+4.1) per cent.                          

The geographical emphasis of Uponor's businesses changed considerably during    
2008. This resulted both from the divestment of the infrastructure business in  
the British Isles and the major changes in markets during the year. Germany,    
where Uponor managed to increase its sales, became the largest country as       
measured in terms of net sales.                                                 

The largest geographical markets and their share of consolidated net sales were 
as follows: Germany 15.0% (13.4), Finland 11.8% (11.0), USA 11.1% (13.6), Sweden
9.1% (8.8), Spain 8.3% (11.3), Denmark 6.1% (6.5) and Italy 5.5% (5.3).         


Results                                                                         

Uponor's consolidated operating profit from continuing operations came to EUR   
51.2m (EUR 135.7m), a fall of -62.3 per cent (+2.1) year on year. Operating     
profit was 5.4 (13.0) per cent of net sales.                                    

This major change in operating profit was attributable to the historic and      
simultaneous weakening of demand from the construction markets in all the main  
markets. A particularly dramatic fall in operating profits was experienced in   
North America and Europe - West, East, South, where both operational adjustments
and various growth initiatives were implemented at the same time. The rate of   
decline in consolidated operating profit accelerated during the fourth quarter  
when the fall in market demand was the steepest.                                

In August, Uponor announced a Group-wide cost-reduction programme to adjust its 
cost structure in line with slackening construction markets. The goal was to    
implement structural measures that would reduce costs by approximately EUR 30m  
by the end of 2009. Of the programme's estimated total cost of EUR 10m, EUR 3.2m
was recorded in the third quarter and EUR 4.1m in the fourth quarter.           

Furthermore, a non-recurring cost provision of EUR 14.5m related to product     
replacement costs was recorded in North America in the fourth quarter.          

Operating profit by region for 1 Jan.-31 Dec. 2008                              

--------------------------------------------------------------------------------
| EUR million                     |        2008/ |        2007/ |     Reported |
|                                 |         1-12 |         1-12 |    Change, % |
--------------------------------------------------------------------------------
| Central -Europe                 |         38.2 |         41.1 |         -7.0 |
--------------------------------------------------------------------------------
| Nordic                          |         23.6 |         49.7 |        -52.5 |
--------------------------------------------------------------------------------
| Europe - WES                    |         15.3 |         42.2 |        -63.7 |
--------------------------------------------------------------------------------
| North America                   |        -16.0 |         16.6 |       -196.1 |
--------------------------------------------------------------------------------
| (North America, MUSD            |        -23.4 |         22.9 |       -202.1 |
--------------------------------------------------------------------------------
| Other                           |        -10.2 |        -13.2 |              |
--------------------------------------------------------------------------------
| Eliminations                    |          0.3 |          0.7 |              |
--------------------------------------------------------------------------------
| Group                           |         51.2 |        135.7 |       -62.3% |
--------------------------------------------------------------------------------

Consolidated profit before taxes decreased by -69.2 per cent, to EUR 41.0m (EUR 
133.1m). At a tax rate of 26.6 (31.3) per cent, income tax totalled EUR 10.9m   
(EUR 41.7m). Consolidated profit for the financial year totalled EUR 72.5m (EUR 
101.9m), of which continuing operations represented EUR 30.1m (91.4m).          

Consolidated net financial expenses increased to EUR 10.2m (EUR 2.6m), of which 
EUR 5.2m resulted from net exchange rate differences.                           

Return on equity stood at 22.7 (30.1) per cent and return on investment         
decreased to 22.2 (39.2) per cent, not meeting the long-term target of at least 
30%.                                                                            

Earnings per share came to EUR 0.99 (1.39), and for continuing operations to EUR
0.41 (1.25). The company's equity per share was EUR 4.18 (4.55). Other          
share-specific information is included in the tables section.                   

As a consequence of the cash flow enhancing measures implemented in the second  
half of the year, both cash flow from operations and especially cash flow before
financing improved from the previous year, even when excluding the proceeds from
the disposal of the UK/Irish infrastructure business which amounted to 76.4     
million euros. Cash flow from operations was EUR 95.4m (EUR 93.8m) while cash   
flow before financing came to EUR 133.6m (EUR 41.1m).                           

Key figures are reported for five years in the financial accounts.              


Investments, research and development, and financing                            

The investment and development programme planned for 2008 was fundamentally     
revised due to the dramatic weakening of the business environment. In           
particular, investments in fixed assets were restricted. Most of the investments
realised were targeted at such process development and efficiency improvement   
projects with a rapid payback. For example, a new distribution centre was built 
in Minnesota, United States, enabling the vacation of facilities elsewhere and  
the realisation of efficiency improvements throughout the supply chain.         

The 2.5-year implementation stage of Uponor's shared, European-wide enterprise  
resource planning (ERP) system was finalised as the system was implemented in   
the UK and in the Nordic countries towards the end of the year. The system is   
now operative in all of Uponor's major sites for the housing solutions systems  
business in Europe. A total of EUR 3.2m (EUR 7.4m) was used in the ERP project  
during the year.                                                                

Gross investments of continuing operations totalled EUR 39.0m (EUR 52.0m), down 
by EUR 13.0m year on year. Net investments totalled EUR 36.4m (EUR 49.8m).      

R&D expenditure, allocated in line with the Group strategy, showed a slight     
increase, totalling EUR 18.6m (EUR 17.2m), accounting for 1.9 (1.6) per cent of 
net sales.                                                                      

As market uncertainty increased, safeguarding of liquidity was set as the main  
goal of our financing activities. Commercial paper markets, which Uponor has    
actively utilised before, weakened during autumn, making this an uncertain way  
of securing financing. Uponor signed an agreement with Varma Mutual Pension     
Insurance Company on borrowing back EUR 80m of its pension contributions for a  
term of five years and paid back most of its short term loans in the form of    
commercial papers. The company also increased its cash liquidity which stood at 
EUR 53.2m (EUR 6.3m) on 31 December 2008. Moreover, a domestic commercial paper 
programme worth EUR 150m continues to be available, should the market situation 
change.                                                                         

Consolidated net interest-bearing liabilities decreased to EUR 60.6m (EUR       
84.5m). The solvency ratio was 51.4 (50.2) per cent and gearing came to 19.8    
(25.4) per cent. The average quarterly gearing was 46.4 (43.9), compared to the 
range of 30-70 set in the company's financial targets.                          


Key events                                                                      

In 2008, Uponor focused its efforts mainly on increasing its operational        
efficiency and adapting its operations to the weakening demand that affected the
housing solutions market in particular.                                         

In January, Uponor opened a training centre in Germany, which is the Group's    
largest facility and the first ever offering training for professionals in the  
company's new focus area, the high-rise segment.                                

In June, Uponor finalised a deal to divest its municipal infrastructure business
for gas and water pipe systems in the UK and Ireland. Net sales of this business
for 2007 amounted to EUR 169.1m, with a total of 473 people transferring to     
another company. The enterprise value of the deal amounted to GBP 100 m, giving 
Uponor a sales gain of EUR 43.5m.                                               

In September, Uponor closed its manufacturing facility in Saint John,           
South-eastern Canada, as part of its cost-reduction programme. The purpose of   
this was to improve Uponor's overall operational effectiveness.                 

In November, Uponor announced its decision to concentrate its European metal    
fittings manufacturing in Hassfurt, Germany, and to gradually phase out its     
production facility in Kungsör, Sweden, by the spring of 2009. Concentrating the
metal fittings manufacture is estimated to bring Uponor savings in production   
and logistics while simplifying the total supply process to customers, the      
majority of whom are located in Central and Southern Europe.                    

Uponor launched a number of new or modernised product systems in 2008. In       
Europe, the most important of these included new, modular fitting solutions for 
large-diameter multi-layer composite pipe manifolds and risers. Moreover, Uponor
introduced composite risers for commercial and institutional construction,      
markedly strengthening its offering. In North America, Uponor substantially     
expanded its control systems supply, for example, by launching an HVAC control  
unit - the first of its kind in the US - by which the home owner or property    
maintenance company can regulate all the housing solutions systems within the   
apartment over the Internet.                                                    

In order to strengthen its market position in Eastern Europe, Uponor opened     
several new business sites and sales offices in this area. In 2008, we opened   
sites, for example, in the Turkish city of Istanbul, and initiated projects to  
open sites in Croatia and Slovakia.                                             


Personnel                                                                       

The Group had a staff of 3,823 (4,743) at the end of the year. As full-time     
equivalents, the number of employees stood at 3,678 (4,581) at year-end, down by
903 from 2007. This decrease includes 491 persons who left the company as a     
result of the divestment of Uponor's infrastructure business in the British     
Isles. With respect to continuing operations, the decrease of staff was 412     
persons, or 10.1 per cent. The annual average number of persons employed        
groupwide was 4,211 (4,497).                                                    

The major decline in staff numbers was attributable to the programme announced  
in August, by which Uponor attempted to adjust its operations to rapidly        
contracting markets, in addition to which it implemented numerous other         
efficiency-enhancing measures. As part of this cost-reduction programme, the    
company closed its production facility in Canada in the autumn and, at the end  
of the year, initiated the phase-down of its metal components plant in Sweden   
during the winter of 2008-09. These closures left 80 staff redundant in Canada  
and 75 in Sweden.                                                               

The largest staff cuts in 2008 affected Uponor units in Spain, North America and
the Nordic countries. In terms of personnel groups, the largest reductions were 
involved in production and, to some extent, marketing and administration. In    
addition to own employees, the number of sales representatives and agency       
workers in continuing operations decreased by 84 (as full-time equivalents).    

The geographical breakdown of personnel was as follows: Germany 1,182 (32.1%),  
Sweden 604 (16.4%), Finland 480 (13.1%), US 399 (10.8%), Spain 239 (6.5%),      
Denmark 152 (4.1%), and other countries 622 (17.0%).                            

A total of EUR 203.3m (EUR 220.2m) was paid in wages and other remunerations    
during the financial period.                                                    

Uponor's CEO Jan Lång announced his resignation in August and left the company  
at the end of October. Jyri Luomakoski, Uponor's CFO and Deputy CEO, was        
appointed as his successor on an interim basis on 27 October; the appointment   
was made permanent on 16 December 2008. Jan Lång served Uponor for a little over
five years. During his term of office, the company's unification proceeded with 
major leaps.                                                                    

At the end of September, Bernhard Brinkmann, Executive Vice President for Uponor
Central Europe, resigned from the company. Due to organisational changes, no    
successor was appointed to replace him.                                         

In October, Uponor implemented a new European organisation which brought about  
changes mainly to the housing solutions business. The purpose of this reform was
to accelerate growth and increase synergy effects in Europe. The new structure  
involved the separation of housing solutions' sales and marketing, product and  
service offering and supply chain into independent organisations. Sales and     
marketing were divided into two regions, one of which consists of the Nordic    
countries and Southern and Western Europe and the other of Central and Eastern  
Europe and international sales. The new supply chain organisation is in charge  
of all housing solutions production, warehousing, logistics and sourcing        
activities in Europe. The product and service offering organisation is          
responsible for the development and integration of supply as well as choices    
related to strategic marketing in Europe.                                       

Through its new European structure, Uponor is seeking to unify its operations   
beyond national borders while enhancing the customer focus of its businesses,   
maximising capitalisation on business opportunities and increasing its          
operational efficiency and transparency. As a result of this reform, Uponor's   
former three regional organisations in Europe will be merged as one, which      
covers both the housing and infrastructure businesses.                          


Risks associated with business                                                  

Uponor's financial results are exposed to a number of strategic, operational,   
financial and hazard risks. A detailed analysis of these risks is available in  
the Annual Report.                                                              

Market risks                                                                    
Uponor's business is concentrated in Europe and North America, where exposure to
political risks is low. Since Uponor's net sales are divided among a large      
number of customers, the majority of which are distributors (wholesalers), the  
end market demand for the company's products is distributed across a wide       
customer base. The largest single customer generates ca 10 per cent of Uponor's 
net sales.                                                                      

Demand for Uponor's end products depends on business cycles in the construction 
sector. Traditionally, Uponor's major end market has been single-family housing.
However, the company's products are increasingly being supplied to the high-rise
segment, representing both residential, commercial and public construction.     
Demand fluctuations often differ between these segments. Fluctuations are also  
offset to a certain degree by demand for renovation projects, which is not      
always as discretionary as new housing projects. Further, one fifth of the      
company's net sales goes to the infrastructure market.                          

Operational risks                                                               
The prices of raw materials used in the manufacture of plastic pipe systems are 
susceptible to other petrochemical and metal product price fluctuations. In     
recent years, Uponor has been capable of passing the effects of such            
fluctuations onto its selling prices with a reasonable delay, in such a way that
this has not resulted in any major income losses. Uponor manages the risk of    
fluctuations in electricity prices at a Nordic level by using financial         
instruments.                                                                    

Uponor manages its organisational and management risks, such as employee        
turnover, distortion of age distribution and needless recruitment, by           
continuously analysing its human resources and ensuring that its organisational 
structure supports efficient operations. Personnel development programmes focus 
in particular on increasing management skills.                                  

We observe an ISO 9000 quality system and an ISO 14000 environmental management 
system or comparable systems in our production facilities, which enhance        
production safety and productivity.                                             

With respect to component and raw material suppliers, Uponor aims to use        
supplies and raw materials available at several suppliers. Any sole supplier    
used must have at least two production plants manufacturing goods used by       
Uponor. Uponor develops and harmonises its sourcing activities in order to      
further improve its productivity and efficiency.                                

Financial risks                                                                 
The uncertainty of financial markets has considerably increased risks related to
the availability of financing. Uponor aims at ensuring the availability and     
flexibility of financing through sufficient credit limit reserves and a         
well-balanced maturity distribution of loans as well as by using several banks  
and various forms of financing to arrange its financing.                        

The Group manages its liquidity through efficient cash management solutions and 
by investing solely in low-risk objects that can be liquidated rapidly and at a 
clear market price.                                                             

Part of Uponor's net sales is created in currencies other than the euro.        
Subsequently, expenses allocated to these net sales are also denominated in the 
same local currencies. The international nature of operations exposes the Group 
to currency risks associated with different currencies. The Group Treasury      
function is responsible for hedging Group-level net currency flows in external  
currency markets, mainly by using currency forward contracts and currency       
options as hedging instruments.                                                 

Moreover, Uponor is exposed to currency translation risk, which manifests itself
in translating non-euro area results into the euro. According to the company's  
hedging policy, non-euro area balance sheet items are not hedged.               

Hazard risks                                                                    
Uponor runs 11 production plants in 6 countries, and products manufactured in   
these plants generate a major proportion of the company's net sales. Uponor     
co-ordinates indemnity and business interruption insurance at Group-level on a  
centralised basis, in order to achieve extensive insurance coverage neutralising
financial damage caused by any risks associated with machine breakdowns, fire   
etc. Another major hazard risk is associated with product liability related to  
products manufactured and sold by Uponor. Product liability is also insured at  
Group level.                                                                    

A provision of EUR 14.5m was booked in the fourth quarter of 2008 for covering  
the costs of residential plumbing replacements to be carried out in the United  
States. These are related to third-party clamps used in pipe joints, previously 
sold under a brand which has since been withdrawn. Uponor has initiated actions 
to attempt to recover the costs of the replacement programme from the clamp     
supplier and the company's then insurance company.                              

Uponor is involved in various judicial proceedings in several countries. The    
year 2008 saw no other materialised risks, pending litigation or other legal    
proceedings or measures by the authorities that could have had a material       
significance for the Group.                                                     


Administration and audit                                                        

The 2008 Annual General Meeting (AGM) of 13 March re-elected the following Board
members for a term of one year: Anne-Christine Silfverstolpe Nordin, Jorma      
Eloranta, Jari Paasikivi, Aimo Rajahalme and Rainer S. Simon. The former        
Chairman of the Board, Pekka Paasikivi, did not stand as candidate for the      
Board. Jari Paasikivi was elected as Chairman and Aimo Rajahalme as Deputy      
Chairman of the Board. The AGM elected KPMG Oy Ab, Authorised Public            
Accountants, as the company's auditor, with Sixten Nyman, Authorised Public     
Accountant, acting as the principal auditor.                                    


Share capital and shares                                                        

At the beginning of 2008, Uponor Corporation's share capital totalled EUR       
146,446,888 and the number of shares stood at 73,206,944. The share capital did 
not change during the year.                                                     

No notifications on changes in holdings were made during the year. Further      
information on shares and shareholdings is reported in the financial statements.

Board authorisations                                                            
The AGM authorised the Board to decide on the buyback of the company's own      
shares, using unrestricted equity. The number of shares to be bought back will  
be no more than 3,500,000 shares, representing approximately 4.8 per cent of the
company's shares. The authorisation is valid for one year from the date of the  
AGM. The company may use such shares in consideration of any business           
acquisitions and other industrial restructuring, for strengthening its capital  
structure or financing investments, or it can dispose of them in some other way 
or invalidate them.                                                             

Treasury shares                                                                 
On 6 November, the Board announced that it will initiate a share buyback with   
the aim of acquiring a maximum of 200,000 of its own shares, based on the       
authorisation given by the AGM. The reason for such buyback was the use of the  
shares as consideration in connection with the company's share-based incentive  
schemes. Accordingly, the company bought back a total of 160,000 own shares     
during the period of 17 November-5 December, with a combined value of ca. EUR   
1.2m at the time of purchase. The average price of the shares bought back was   
EUR 7.28. Uponor did not hold any treasury shares prior to these buybacks.      

Management shareholding                                                         
The members of the Board of Directors and the CEO, as well as corporations known
to the company, in which they exercise control, held a total of 620,615         
(1,094,182) Uponor shares on 31 December 2008. These shares accounted for 0.8   
per cent of all company shares and total votes.                                 

Share-based incentive programme                                                 
On 25 September 2007, Uponor Corporation's Board of Directors launched a        
long-term incentive scheme for members of the company's Executive Committee     
(ExCom). To be eligible to participate in the scheme, an ExCom member must      
acquire a specific number of Uponor shares, as defined under the scheme, by the 
end of August 2008. In November 2008, the Board targeted a new, three-year      
share-based incentive scheme to selected persons holding international manager  
positions at Uponor. To be eligible to participate in the scheme, a person must 
acquire a specific number of Uponor shares, as defined under the scheme, by the 
end of August 2009. Shares based on both schemes will be awarded in the spring  
of 2012. Further information on these schemes is available in the Corporate     
Governance section of this Annual Report.                                       


Events after the financial year                                                 

In January, Uponor announced a provision of EUR 14.5m made in the fourth quarter
of 2008 for covering the costs of residential plumbing replacements in the US.  
One of Uponor's discontinued brands delivered residential plumbing systems in   
the early 2000s, which were fitted using stainless steel clamps sourced from a  
third party. Some installations of these clamps are experiencing failures under 
certain circumstances. Uponor plans to carry out a programme to replace the     
affected installations in order to avoid further damage. Uponor has initiated   
actions to attempt to recover the cost of the replacement programme from the    
clamp supplier and its insurance company.                                       


Outlook for 2009                                                                

During the last 12 months, market developments have been very negative and      
demand is not expected to improve in the near future either. Even at its best,  
demand for Uponor's product range is expected to remain at the level of the     
latter half of 2008. The difficulties experienced by national economies,        
prudence of the financial markets and unwillingness of consumers to commit major
purchases are hindering investments and adversely affecting industrial order    
books. Support measures initiated in various countries have a positive yet      
quantitatively modest impact on overall demand.                                 

As a whole, European residential and commercial construction markets are        
expected to decline this year, leaving the overall market significantly smaller 
than in 2008. Although renovations and modernisations are expected to develop   
favourably, their importance to Uponor's product range is not as significant as 
that of new building. In the United States, the slowdown of the residential     
construction market is expected to continue. Demand for commercial and office   
construction as well as infrastructure solutions is expected to remain clearly  
stronger than that of residential construction, but Uponor does not expect      
growth in its main markets.                                                     

Sales of Uponor products have not declined at the same pace as the markets. The 
main reason for this is that plastic and composite piping systems and radiant   
indoor climate systems are gaining market share from other solutions. Increased 
energy costs and the willingness of consumers and property owners to choose     
pro-environmental solutions whose ecological footprint is in line with current  
requirements, particularly in terms of their entire life cycle, have supported  
demand for Uponor's indoor climate systems, i.e. heating and cooling solutions. 
Uponor is confident that this competitive edge will further sharpen in the years
to come.                                                                        

In the last few years, Uponor has made major strategic investments in the       
so-called high-rise business. The successful timing of this initiative kept     
demand for high-rise solutions at a satisfactory level in 2008, which had a     
positive impact on Uponor's economic performance. Also in 2009, commercial and  
office construction is expected to remain steadier than residential             
construction.                                                                   

During the last few years, Uponor has implemented major structural reforms and  
streamlining programmes. One of these is a European enterprise resource planning
(ERP) system which is now operational in all major Uponor sites involved in the 
housing solutions business. The ERP system is expected to increase customer     
service efficiency and create cost savings. Thanks to the adjustment measures   
taken in 2008, Uponor is relatively well equipped to respond to customer needs  
while at the same time meeting shareholders' expectations regarding the         
company's future. Uponor's ability to meet increasing demand is relatively good,
although such a change is not on the short-term horizon.                        

As a result of the difficult market situation, Uponor expects its net sales to  
remain below the 2008 level, and the profit for the year 2009 is expected to be 
positive. The Group's capital expenditure will not exceed depreciation in 2009, 
and with tight net working capital management, Uponor expects its cash flow to  
remain at a reasonable level.                                                   

Uponor Corporation                                                              
Board of Directors                                                              

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


Uponor Corporation                                                              

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


DISTRIBUTION:                                                                   
NASDAQ OMX Helsinki                                                             
Media                                                                           
www.uponor.com                                                                  

ENCLOSURE: Table part                                                           


The text may contain forward-looking statements, which are based on the present 
business scope and the management's present expectations and beliefs about the  
future. The actual result may differ materially from such statements.           



Information on the financial results bulletin                                   

The figures in brackets in this financial results bulletin are the reference    
figures for the equivalent period in 2007. The change percentages reported in   
the financial results bulletin have been calculated from exact figures, not from
rounded figures published in the financial results bulletin.                    


FINANCIAL RESULTS BULLETIN 1-12/2008                                            


CONSOLIDATED INCOME STATEMENT                                                   

--------------------------------------------------------------------------------
| MEUR                      |      1-12/ |     1-12/ |     10-12/ |     10-12/ |
|                           |       2008 |      2007 |       2008 |       2007 |
--------------------------------------------------------------------------------
| Continuing operations                                                        |
--------------------------------------------------------------------------------
| Net sales                 |      949.2 |   1,047.4 |      198.9 |      238.2 |
--------------------------------------------------------------------------------
| Cost of goods sold        |      607.4 |     640.4 |      136.6 |      146.0 |
--------------------------------------------------------------------------------
| Gross profit              |      341.8 |     407.0 |       62.3 |       92.2 |
--------------------------------------------------------------------------------
| Other operating income    |        1.4 |       5.9 |        0.8 |        0.9 |
--------------------------------------------------------------------------------
| Dispatching and           |       30.2 |      28.8 |        7.1 |        7.7 |
| warehousing expenses      |            |           |            |            |
--------------------------------------------------------------------------------
| Sales and marketing       |      175.0 |     178.5 |       44.0 |       41.6 |
| expenses                  |            |           |            |            |
--------------------------------------------------------------------------------
| Administration expenses   |       50.8 |      51.7 |       11.5 |       12.1 |
--------------------------------------------------------------------------------
| Other operating expenses  |       36.0 |      18.2 |       20.4 |        6.3 |
--------------------------------------------------------------------------------
| Operating profit          |       51.2 |     135.7 |      -19.9 |       25.4 |
--------------------------------------------------------------------------------
| Financial expenses, net   |       10.2 |       2.6 |        5.6 |       -1.5 |
--------------------------------------------------------------------------------
| Profit before taxes       |       41.0 |     133.1 |      -25.5 |       26.9 |
--------------------------------------------------------------------------------
| Income taxes              |       10.9 |      41.7 |       -9.6 |        7.0 |
--------------------------------------------------------------------------------
| Profit for the period     |       30.1 |      91.4 |      -15.9 |       19.9 |
| from continuing           |            |           |            |            |
| operations                |            |           |            |            |
--------------------------------------------------------------------------------
|                                                                              |
--------------------------------------------------------------------------------
| Discontinued operations                                                      |
--------------------------------------------------------------------------------
| Profit for the period     |       42.4 |      10.5 |       -0.1 |        1.4 |
| from discontinued         |            |           |            |            |
| operations                |            |           |            |            |
--------------------------------------------------------------------------------
| Profit for the period     |       72.5 |     101.9 |      -16.0 |       21.3 |
--------------------------------------------------------------------------------
|                                                                              |
--------------------------------------------------------------------------------
| Earnings per share, EUR   |       0.99 |      1.39 |      -0.22 |       0.29 |
--------------------------------------------------------------------------------
| - Continuing operations   |       0.41 |      1.25 |      -0.22 |       0.27 |
--------------------------------------------------------------------------------
| - Discontinued operations |       0.58 |      0.14 |       0.00 |       0.02 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earning per       |       0.99 |      1.39 |      -0.22 |       0.29 |
| share, EUR                |            |           |            |            |
--------------------------------------------------------------------------------
| - Continuing operations   |       0.41 |      1.25 |      -0.22 |       0.27 |
--------------------------------------------------------------------------------
| - Discontinued operations |       0.58 |      0.14 |       0.00 |       0.02 |
--------------------------------------------------------------------------------


CONSOLIDATED BALANCE SHEET                                                      

--------------------------------------------------------------------------------
| MEUR                                           |  31 Dec  2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
| Assets                                                                       |
--------------------------------------------------------------------------------
| Non-current assets                             |               |             |
--------------------------------------------------------------------------------
| Property, plant and equipment                  |         184.5 |       218.9 |
--------------------------------------------------------------------------------
| Intangible assets                              |         101.3 |       101.7 |
--------------------------------------------------------------------------------
| Securities and long-term investments           |           6.3 |         3.6 |
--------------------------------------------------------------------------------
| Deferred tax assets                            |          17.0 |        16.3 |
--------------------------------------------------------------------------------
| Total non-current assets                       |         309.1 |       340.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                                 |               |             |
--------------------------------------------------------------------------------
| Inventories                                    |         104.5 |       150.6 |
--------------------------------------------------------------------------------
| Accounts receivable                            |          91.4 |       144.6 |
--------------------------------------------------------------------------------
| Other receivables                              |          36.7 |        22.3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                      |          53.2 |         6.3 |
--------------------------------------------------------------------------------
| Total current assets                           |         285.8 |       323.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets                                   |         594.9 |       664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities           |               |             |
--------------------------------------------------------------------------------
| Shareholders' equity                           |         305.6 |       333.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                        |               |             |
--------------------------------------------------------------------------------
| Interest-bearing liabilities                   |          77.0 |        14.7 |
--------------------------------------------------------------------------------
| Deferred tax liability                         |           8.1 |        15.0 |
--------------------------------------------------------------------------------
| Provisions                                     |           7.7 |         8.8 |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities        |          21.3 |        28.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities                  |         114.1 |        66.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities                            |               |             |
--------------------------------------------------------------------------------
| Interest-bearing liabilities                   |          36.8 |        76.1 |
--------------------------------------------------------------------------------
| Provisions                                     |          22.3 |         7.4 |
--------------------------------------------------------------------------------
| Accounts payable                               |          50.1 |        75.2 |
--------------------------------------------------------------------------------
| Other liabilities                              |          66.0 |       106.0 |
--------------------------------------------------------------------------------
| Total current liabilities                      |         175.2 |       264.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities     |         594.9 |       664.3 |
--------------------------------------------------------------------------------


CONSOLIDATED CASH FLOW                                                          

--------------------------------------------------------------------------------
| MEUR                                           |         1-12/ |       1-12/ |
|                                                |          2008 |        2007 |
--------------------------------------------------------------------------------
| Net cash from operations                       |          85.0 |       186.0 |
--------------------------------------------------------------------------------
| Change in net working capital                  |          55.7 |       -45.1 |
--------------------------------------------------------------------------------
| Income taxes paid                              |         -39.8 |       -42.7 |
--------------------------------------------------------------------------------
| Interest paid                                  |          -6.8 |        -7.1 |
--------------------------------------------------------------------------------
| Interest received                              |           1.3 |         2.7 |
--------------------------------------------------------------------------------
| Cash flow from operations                      |          95.4 |        93.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments                     |               |             |
--------------------------------------------------------------------------------
| Proceeds from disposal of subsidiaries and     |          76.4 |           - |
| businesses                                     |               |             |
--------------------------------------------------------------------------------
| Purchase of fixed assets                       |         -39.0 |       -58.1 |
--------------------------------------------------------------------------------
| Proceeds from sales of fixed assets            |           0.4 |         5.0 |
--------------------------------------------------------------------------------
| Received dividend                              |           0.2 |         0.2 |
--------------------------------------------------------------------------------
| Loan repayments                                |           0.2 |         0.2 |
--------------------------------------------------------------------------------
| Cash flow from investments                     |          38.2 |       -52.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing                       |               |             |
--------------------------------------------------------------------------------
| Borrowings of debt                             |          19.1 |        57.2 |
--------------------------------------------------------------------------------
| Dividends paid                                 |        -102.5 |      -102.5 |
--------------------------------------------------------------------------------
| Purchase of own shares                         |          -1.2 |           - |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities           |          -2.0 |        -1.9 |
--------------------------------------------------------------------------------
| Cash flow from financing                       |         -86.6 |       -47.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Conversion differences for cash and cash       |          -0.1 |         0.0 |
| equivalents                                    |               |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents            |          46.9 |        -6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at 1 January         |           6.3 |        12.4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period     |          53.2 |         6.3 |
--------------------------------------------------------------------------------
| Change according to balance sheet              |          46.9 |        -6.1 |
--------------------------------------------------------------------------------


STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                                    

--------------------------------------------------------------------------------
| MEUR   |  Share |  Share |   Other | Treasury| Translation| Retained | Total |
|        | capital| premium| reserves|  shares |    reserve | earnings |       |
--------------------------------------------------------------------------------
| Balance|  146.4 |   50.2 |     2.2 |       - |      -24.1 |    158.3 | 333.0 |
|   at   |        |        |         |         |            |          |       |
| 1 Jan  |        |        |         |         |            |          |       |
| 2008   |        |        |         |         |            |          |       |
--------------------------------------------------------------------------------
| Translation differences                      |        5.2 |          |   5.2 |
--------------------------------------------------------------------------------
| Cash flow hedges                                                             |
--------------------------------------------------------------------------------
| - recorded in equity,    |    -1.4 |         |            |          |  -1.4 |
| net of taxes             |         |         |            |          |       |
--------------------------------------------------------------------------------
| Net profit for the period                                 |     72.5 |  72.5 |
--------------------------------------------------------------------------------
| Total recognised income  |    -1.4 |         |        5.2 |     72.5 |  76.3 |
| and expense for the      |         |         |            |          |       |
| period                   |         |         |            |          |       |
--------------------------------------------------------------------------------
| Purchase of own shares             |    -1.2 |            |          |  -1,2 |
--------------------------------------------------------------------------------
| Dividend paid (EUR 1.40 per share)                        |   -102.5 | -102.5|
--------------------------------------------------------------------------------
| Other adjustments                            |        2.5 |     -2.5 |     - |
--------------------------------------------------------------------------------
| Balance|  146.4 |   50.2 |     0.8 |    -1.2 |      -16.4 |    125.8 | 305.6 |
|   at   |        |        |         |         |            |          |       |
| 31 Dec |        |        |         |         |            |          |       |
| 2008   |        |        |         |         |            |          |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance|  146.4 |   50.2 |     1.5 |    -1.6 |      -12.7 |    160.6 | 344.4 |
|   at   |        |        |         |         |            |          |       |
| 1 Jan  |        |        |         |         |            |          |       |
| 2007   |        |        |         |         |            |          |       |
--------------------------------------------------------------------------------
| Translation differences                      |      -11.4 |          | -11.4 |
--------------------------------------------------------------------------------
| Cash flow hedges                                                             |
--------------------------------------------------------------------------------
| - recorded in equity,    |     0.5 |         |            |          |   0.5 |
| net of taxes             |         |         |            |          |       |
--------------------------------------------------------------------------------
| Net profit for the period                                 |    101.9 | 101.9 |
--------------------------------------------------------------------------------
| Total recognised income  |     0.5 |         |      -11.4 |    101.9 |  91.0 |
| and expense for the      |         |         |            |          |       |
| period                   |         |         |            |          |       |
--------------------------------------------------------------------------------
| Cancelling of shares               |     0.3 |            |     -0.3 |     - |
--------------------------------------------------------------------------------
| Dividend paid (EUR 1.40 per share)                        |   -102.5 | -102.5|
--------------------------------------------------------------------------------
| Share based incentive plan         |     1.3 |            |     -1.3 |     - |
--------------------------------------------------------------------------------
| Other adjustments        |     0.2 |         |            |     -0.1 |   0.1 |
--------------------------------------------------------------------------------
| Balance|  146.4 |   50.2 |     2.2 |       - |      -24.1 |    158.3 | 333.0 |
| 31 Dec |        |        |         |         |            |          |       |
| 2007   |        |        |         |         |            |          |       |
--------------------------------------------------------------------------------


NOTES TO THE FINANCIAL RESULTS BULLETIN                                         

ACCOUNTING PRINCIPLES                                                           

The financial results bulletin has been prepared in compliance with             
International Financial Reporting Standards (IFRS) as adopted by EU and IAS 34  
Interim Financial Reporting. In the financial results bulletin Uponor Group     
follows the same principles as in the annual financial statements 2008.         
Divestments of infrastructure business in the UK, Ireland and Germany have been 
classified as discontinued operations.                                          


PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS                             
--------------------------------------------------------------------------------
| MEUR                                          |         1-12/ |        1-12/ |
|                                               |          2008 |         2007 |
--------------------------------------------------------------------------------
| Gross investment                              |          39.0 |         58.1 |
--------------------------------------------------------------------------------
|  - % of net sales                             |           4.1 |          4.8 |
--------------------------------------------------------------------------------
| Depreciation                                  |          31.8 |         37.2 |
--------------------------------------------------------------------------------
| Book value of disposed fixed assets           |           5.2 |          2.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PERSONNEL                                     |               |              |
--------------------------------------------------------------------------------
| Converted to full-time employees              |         1-12/ |        1-12/ |
|                                               |          2008 |         2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average                                       |         4,211 |        4,497 |
--------------------------------------------------------------------------------
| End of period                                 |         3,678 |        4,581 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OWN SHARES                                    |               |              |
--------------------------------------------------------------------------------
|                                               |   31 Dec 2008 |  31 Dec 2007 |
--------------------------------------------------------------------------------
| Own shares held by the company, pcs           |       160,000 |            - |
--------------------------------------------------------------------------------
| - of share capital, %                         |          0.2% |            - |
--------------------------------------------------------------------------------
| - of voting rights, %                         |          0.2% |            - |
--------------------------------------------------------------------------------


SEGMENT INFORMATION                                                             

--------------------------------------------------------------------------------
| Geographical segments                                                        |
--------------------------------------------------------------------------------
|              |                    1-12/2008 |                      1-12/2007 |
--------------------------------------------------------------------------------
| MEUR         | External| Internal| Total    | External | Internal | Total    |
--------------------------------------------------------------------------------
| Segment revenue, continuing operations                                       |
--------------------------------------------------------------------------------
| Central      |   280.3 |    59.1 |    339.4 |    283.7 |     67.6 |    351.3 |
| Europe       |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Nordic       |   305.3 |    60.4 |    365.7 |    325.4 |     72.3 |    397.7 |
--------------------------------------------------------------------------------
| Europe -     |   232.8 |     1.5 |    234.3 |    271.1 |      1.8 |    272.9 |
| West, East,  |         |         |          |          |          |          |
| South        |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| North        |   130.8 |       - |    130.8 |    167.2 |      2.0 |    169.2 |
| America      |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Eliminations |       - |  -121.0 |   -121.0 |        - |   -143.7 |   -143.7 |
--------------------------------------------------------------------------------
| Total        |   949.2 |       - |    949.2 |  1,047.4 |        - |  1,047.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|              |                   10-12/2008 |                     10-12/2007 |
--------------------------------------------------------------------------------
| MEUR         | External| Internal| Total    | External | Internal | Total    |
--------------------------------------------------------------------------------
| Segment revenue, continuing operations                                       |
--------------------------------------------------------------------------------
| Central      |    60.2 |    10.6 |     70.8 |     61.3 |     14.4 |     75.7 |
| Europe       |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Nordic       |    61.5 |     9.7 |     71.2 |     74.6 |     13.5 |     88.1 |
--------------------------------------------------------------------------------
| Europe -     |    46.0 |     0.3 |     46.3 |     63.6 |      0.3 |     63.9 |
| West, East,  |         |         |          |          |          |          |
| South        |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| North        |    31.2 |       - |     31.2 |     38.7 |        - |     38.7 |
| America      |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Eliminations |       - |   -20.6 |    -20.6 |        - |    -28.2 |    -28.2 |
--------------------------------------------------------------------------------
| Total        |   198.9 |       - |    198.9 |    238.2 |        - |    238.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR                             |    1-12/ |    1-12/ |   10-12/ |   10-12/ |
|                                  |     2008 |     2007 |     2008 |     2007 |
--------------------------------------------------------------------------------
| Segment result, continuing operations                                        |
--------------------------------------------------------------------------------
| Central Europe                   |     38.2 |     41.1 |      5.0 |      7.1 |
--------------------------------------------------------------------------------
| Nordic                           |     23.6 |     49.7 |     -4.2 |      7.7 |
--------------------------------------------------------------------------------
| Europe - West, East, South       |     15.3 |     42.2 |     -1.6 |      8.8 |
--------------------------------------------------------------------------------
| North America                    |    -16.0 |     16.6 |    -18.4 |      4.0 |
--------------------------------------------------------------------------------
| Others                           |    -10.2 |    -13.2 |     -1.1 |     -3.5 |
--------------------------------------------------------------------------------
| Eliminations                     |      0.3 |     -0.7 |      0.4 |      1.3 |
--------------------------------------------------------------------------------
| Total                            |     51.2 |    135.7 |    -19.9 |     25.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR                                                   |    1-12/ |    1-12/ |
|                                                        |     2008 |     2007 |
--------------------------------------------------------------------------------
| Segment depreciation and impairments, continuing operations                  |
--------------------------------------------------------------------------------
| Central Europe                                         |      8.3 |      7.7 |
--------------------------------------------------------------------------------
| Nordic                                                 |     10.1 |     10.1 |
--------------------------------------------------------------------------------
| Europe - West, East, South                             |      2.9 |      2.2 |
--------------------------------------------------------------------------------
| North America                                          |      5.6 |      5.6 |
--------------------------------------------------------------------------------
| Others                                                 |      4.1 |      3.3 |
--------------------------------------------------------------------------------
| Eliminations                                           |      0.4 |      0.6 |
--------------------------------------------------------------------------------
| Total                                                  |     31.4 |     29.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment investments, continuing operations             |          |          |
--------------------------------------------------------------------------------
| Central Europe                                         |      8.5 |     11.0 |
--------------------------------------------------------------------------------
| Nordic                                                 |     11.1 |     15.5 |
--------------------------------------------------------------------------------
| Europe - West, East, South                             |      1.1 |      4.0 |
--------------------------------------------------------------------------------
| North America                                          |     14.4 |     13.4 |
--------------------------------------------------------------------------------
| Others                                                 |      3.9 |      8.1 |
--------------------------------------------------------------------------------
| Total                                                  |     39.0 |     52.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR                                                   |   31 Dec |   31 Dec |
|                                                        |     2008 |     2007 |
--------------------------------------------------------------------------------
| Segment assets                                         |          |          |
--------------------------------------------------------------------------------
| Central Europe                                         |    180.9 |    181.4 |
--------------------------------------------------------------------------------
| Nordic                                                 |    152.7 |    185.3 |
--------------------------------------------------------------------------------
| Europe - West, East, South                             |    144.5 |    240.1 |
--------------------------------------------------------------------------------
| North America                                          |    121.8 |    123.7 |
--------------------------------------------------------------------------------
| Others                                                 |    604.6 |    577.9 |
--------------------------------------------------------------------------------
| Eliminations                                           |   -609.6 |   -644.1 |
--------------------------------------------------------------------------------
| Total                                                  |    594.9 |    664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment liabilities                                                          |
--------------------------------------------------------------------------------
| Central Europe                                         |    112.4 |    119.0 |
--------------------------------------------------------------------------------
| Nordic                                                 |    178.2 |    233.5 |
--------------------------------------------------------------------------------
| Europe - West, East, South                             |     47.1 |    101.9 |
--------------------------------------------------------------------------------
| North America                                          |     90.3 |     55.0 |
--------------------------------------------------------------------------------
| Others                                                 |    488.9 |    477.8 |
--------------------------------------------------------------------------------
| Eliminations                                           |   -627.6 |   -655.9 |
--------------------------------------------------------------------------------
| Total                                                  |    289.3 |    331.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                                        |    1-12/ |    1-12/ |
|                                                        |     2008 |     2007 |
--------------------------------------------------------------------------------
| Segment personnel, average                                                   |
--------------------------------------------------------------------------------
| Central Europe                                         |    1,240 |    1,261 |
--------------------------------------------------------------------------------
| Nordic                                                 |    1,352 |    1,380 |
--------------------------------------------------------------------------------
| Europe - West, East, South                             |    1,021 |    1,224 |
--------------------------------------------------------------------------------
| North America                                          |      532 |      573 |
--------------------------------------------------------------------------------
| Others                                                 |       66 |       59 |
--------------------------------------------------------------------------------
| Total                                                  |    4,211 |    4,497 |
--------------------------------------------------------------------------------
| Continuing operations                                  |    4,006 |    4,008 |
--------------------------------------------------------------------------------
| Discontinued operations                                |      205 |      489 |
--------------------------------------------------------------------------------


Business segments                                                               
--------------------------------------------------------------------------------
|                                     |                              1-12/2008 |
--------------------------------------------------------------------------------
| Segment external revenue,           |    Housing |      Infra- |       Total |
| continuing operations               |  solutions |   structure |             |
|                                     |            |   solutions |             |
--------------------------------------------------------------------------------
| Central Europe                      |      280.3 |           - |       280.3 |
--------------------------------------------------------------------------------
| Nordic                              |      119.6 |       185.7 |       305.3 |
--------------------------------------------------------------------------------
| Europe - West, East, South          |      220.4 |        12.4 |       232.8 |
--------------------------------------------------------------------------------
| North America                       |      130.8 |           - |       130.8 |
--------------------------------------------------------------------------------
| Total                               |      751.1 |       198.1 |       949.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     |                              1-12/2007 |
--------------------------------------------------------------------------------
| Segment external revenue,           |    Housing |      Infra- |       Total |
| continuing operations               |  solutions |   structure |             |
|                                     |            |   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                                              |     31 Dec | 31 Dec 2007 |
|                                                   |       2008 |             |
--------------------------------------------------------------------------------
| Group:                                            |            |             |
--------------------------------------------------------------------------------
| Mortgages                                         |            |             |
--------------------------------------------------------------------------------
| - on own behalf                                   |        0.0 |         0.0 |
--------------------------------------------------------------------------------
| Guarantees                                        |            |             |
--------------------------------------------------------------------------------
| - on behalf of others                             |        7.8 |        11.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Parent company:                                   |            |             |
--------------------------------------------------------------------------------
| Guarantees                                        |            |             |
--------------------------------------------------------------------------------
| - on behalf of subsidiaries                       |        9.0 |        10.5 |
--------------------------------------------------------------------------------
| - on behalf of others                             |        7.0 |         9.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING LEASE COMMITMENTS                       |       31.9 |        24.4 |
--------------------------------------------------------------------------------

DERIVATIVE CONTRACTS                                                            

--------------------------------------------------------------------------------
| MEUR                         |   Nominal |      Fair |   Nominal |      Fair |
|                              |     value |     value |     value |     value |
|                              |    31 Dec |    31 Dec |    31 Dec |    31 Dec |
|                              |      2008 |      2008 |      2007 |      2007 |
--------------------------------------------------------------------------------
| Currency derivatives         |     128.9 |       7.7 |      85.9 |       1.7 |
| - Forward agreements         |           |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity derivatives        |       7.4 |      -1.5 |       3.6 |       0.8 |
| - Forward agreements         |           |           |           |           |
--------------------------------------------------------------------------------


SHARE-BASED PAYMENTS                                                            

In November 2008, the Board of Directors approved a 3-year incentive scheme for 
a group of managers with international business responsibility. To be eligible  
to participate in the scheme, a manager must acquire a specific number of Uponor
shares, as defined under the scheme, by the end of August 2009. Depending on the
achievement of the company's financial targets during the years 2009-2011, and  
the number of shares acquired within the scheme, each manager is eligible to be 
awarded Uponor shares in the spring 2012. By the end of January 2009, managers  
had not acquired any Uponor shares under this scheme, and therefore not         
participated in the programme yet.                                              

The incentive plan did not have any impact on the result during the reporting   
period.                                                                         


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 infrastructure business in the
UK and Ireland. The deal included the sale of Uponor Ltd. in the UK, its        
subsidiary Radius Plastics Ltd. in Northern Ireland and the Uponor Ltd's        
business in the Republic of Ireland. In April, Uponor Klärtechnik GmbH in       
Germany was sold.                                                               

--------------------------------------------------------------------------------
| MEUR                                                 |     1-12/ |     1-12/ |
|                                                      |      2008 |      2007 |
--------------------------------------------------------------------------------
| Net sales                                            |       8.9 |     171.9 |
--------------------------------------------------------------------------------
| Expenses                                             |      10.0 |     156.5 |
--------------------------------------------------------------------------------
| Profit before taxes                                  |      -1.1 |      15.4 |
--------------------------------------------------------------------------------
| Income taxes                                         |       0.0 |       4.9 |
--------------------------------------------------------------------------------
| Profit after taxes                                   |      -1.1 |      10.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit from divestment of discontinued           |      43.5 |         - |
| operations                                           |           |           |
--------------------------------------------------------------------------------
| Income taxes                                         |         - |         - |
--------------------------------------------------------------------------------
| Profit from divestment of discontinued operations    |      43.5 |         - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period from discontinued operations   |      42.4 |      10.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from discontinued operations               |           |           |
--------------------------------------------------------------------------------
| Cash flow from operations                            |      -3.4 |      19.1 |
--------------------------------------------------------------------------------
| Cash flow from investments                           |      76.4 |      -6.1 |
--------------------------------------------------------------------------------

Book value of assets disposed                                                   
--------------------------------------------------------------------------------
| MEUR                                                 |     1-12/ |     1-12/ |
|                                                      |      2008 |      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 liabilities       |      33.2 |         - |
--------------------------------------------------------------------------------
| 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                                                 |     1-12/ |     1-12/ |
|                                                      |      2008 |      2007 |
--------------------------------------------------------------------------------
| Continuing operations                                |           |           |
--------------------------------------------------------------------------------
| Purchases from associated companies                  |       2.0 |       2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balances at the end of the period                    |           |           |
--------------------------------------------------------------------------------
| Loan receivable from associated companies            |         - |       1.0 |
--------------------------------------------------------------------------------
| Accounts and other receivables                       |         - |       1.1 |
--------------------------------------------------------------------------------
| Accounts and other liabilities                       |       0.0 |       0.2 |
--------------------------------------------------------------------------------


KEY FIGURES                                                                     

--------------------------------------------------------------------------------
|                                                      |     1-12/ |     1-12/ |
|                                                      |      2008 |      2007 |
--------------------------------------------------------------------------------
| Earnings per share, EUR                              |      0.99 |      1.39 |
--------------------------------------------------------------------------------
| - continuing operations                              |      0.41 |      1.25 |
--------------------------------------------------------------------------------
| - discontinued operations                            |      0.58 |      0.14 |
--------------------------------------------------------------------------------
| Operating profit (continuing operations), %          |       5.4 |      13.0 |
--------------------------------------------------------------------------------
| Return on equity, %, cumulative                      |      22.7 |      30.1 |
--------------------------------------------------------------------------------
| Return on investment, %, cumulative                  |      22.2 |      39.2 |
--------------------------------------------------------------------------------
| Solvency ratio, %                                    |      51.4 |      50.2 |
--------------------------------------------------------------------------------
| Gearing, %                                           |      19.8 |      25.4 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities, MEUR               |      60.6 |      84.5 |
--------------------------------------------------------------------------------
| Equity per share, EUR                                |      4.18 |      4.55 |
--------------------------------------------------------------------------------
| - diluted                                            |      4.18 |      4.55 |
--------------------------------------------------------------------------------
| Dividend per share, EUR                              |    0.85*) |      1.40 |
--------------------------------------------------------------------------------
| Dividend per share ratio, %                          |      85.9 |     100.7 |
--------------------------------------------------------------------------------
| Effective dividend yield, %                          |      11.0 |       8.1 |
--------------------------------------------------------------------------------
| Price-Earnings ratio (P/E)                           |       7.8 |      12.4 |
--------------------------------------------------------------------------------
| Market value of shares, MEUR                         |     563.7 |   1,260.6 |
--------------------------------------------------------------------------------
| Trading prices of shares                             |           |           |
--------------------------------------------------------------------------------
| - low, EUR                                           |      6.10 |     15.31 |
--------------------------------------------------------------------------------
| - high, EUR                                          |     18.91 |     31.45 |
--------------------------------------------------------------------------------
| - average, EUR                                       |     12.04 |     23.76 |
--------------------------------------------------------------------------------
| Shares traded                                        |           |           |
--------------------------------------------------------------------------------
| - 1,000 pcs                                          |    99,227 |    99,423 |
--------------------------------------------------------------------------------
| - MEUR                                               |     1,195 |     2,362 |
--------------------------------------------------------------------------------
| - of average number of shares, %                     |     135.6 |     135.8 |
--------------------------------------------------------------------------------
*) Proposal of the Board                                                        




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 



Dividend per share ratio                                                        

       Dividend per share 
=      --------------------------------------------- 
       Profit per share 



Effective dividend yield                                                        

      Dividend per share 
=     -------------------------------------------- x 100 
      Share price at end of financial period 



Price-Earnings ratio (P/E)                                                      

      Share price at end of financial period 
=     --------------------------------------------- 
      Earnings per share 



Share trading progress                                                          

=     Number of shares traded during the financial year in relation to average
value 
      of the said number of shares 



Market value of shares                                                          

=	Number of shares at end of financial period x last trading price              



Average share price 	
                                                           
      Total value of shares traded (EUR) 
=     ----------------------------------------		 
      Total number of shares traded