- Continuing operations* net sales for January-June came to 501.2 (547.1)
million euros, a change of -8.4%
- January-June operating profit for continuing operations was 48.3 (72.4)
million euros, a change of -33.3%
- Earnings per share for the company came to 1.01 (0.74) euros
- Return on investment over the period was 43.8% (40.1%), with gearing at 42.7%
(51.0%)
- Guidance: Uponor repeats the guidance, issued on 11 June, for 2008: Net sales
for continuing operations are not expected to quite reach last year's level, and
operating profit is estimated to fall short of the 2007 level.

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


CEO JAN LÅNG COMMENTS ON THE PERFORMANCE:

- Despite the deteriorating market situation in many key market areas, we have
made good progress in building on our new business opportunities. In particular,our high-rise initiative has been successful in big markets like the USA and Spain.

- The building and construction markets remain very difficult. The low demand
has been affecting the new residential market especially, but it is being felt
increasingly in other segments as well, while the impact is simultaneously
expanding to previously untouched countries as well.

- The current low activity levels in the markets necessitate an adjustment to
our cost base. We are starting a company-wide programme through which we target
structural cost reductions in the range of 30 million euros, effective in 2009.
The planned actions are likely to affect more than 200 employees.


Webcast and presentation material

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

Uponor will hold a webcast in English, at 9:00am EET. You can access the webcast
via www.uponor.com. Questions for the webcast can be sent to ir@uponor.com.




Interim report for January-June 2008



Markets

The building and construction market, especially that related to residential
building, continued to be subdued in most of Uponor's key geographic areas in
the second quarter of 2008. With the exception of Eastern Europe, where business
growth remained strong, and Germany, where demand was stable but on a low level,
other key markets exhibited further signs of weakness. New residential spending
continued to decline in the USA and Spain, while in the Nordic countries, a
softening was felt in Sweden and Norway in addition to Denmark and Finland,
where demand had weakened earlier.

New non-residential and public building markets in general continued to perform
well in the second quarter, but with emerging indications of slower growth or
stabilisation within the near term.

In infrastructure, the slowing trend from Q1 that was especially tangible in
Denmark, and to some extent in Finland, continued through Q2, now affecting also
Sweden and Norway.


Net sales

Uponor's continuing operations' net sales for April-June declined by 7.4 per
cent from their level for the comparison period and totalled 267.4 (288.8)
million euros.

Supported by the fairly stable markets, the net sales of Uponor Central Europe
increased slightly from last year's figure, despite lower inter-company sales to
sister regions. A strong growth of local business was recorded in the eastern
parts of the region. The main reasons for increased sales were initiatives to
market the systems offering and stronger pushing of the multi-layer composite
pipe system.

In the Nordic region, net sales lagged behind the equivalent figures for 2007,
reflecting a weaker local market for housing solutions - both residential and
nonresidential - and infrastructure solutions, as well as lower exports to
sister regions. Despite the decline in residential demand, Uponor was able to
expand its housing solutions business in Sweden and Norway and partly compensate
for the decline in residential building by penetrating the high-rise and
renovation sectors.

The net sales of Uponor Europe - West, East, South were also lower than in 2007.
The main reason for this was the weak demand from those Spanish and Portuguese
customers hit by the continued contraction of building and construction spending
in Iberia. In other Southern and Western European markets, solid increases in
net sales were recorded. Growth in Eastern Europe continued at nearly the same
level as in the first quarter, except in the Baltic countries, where the
slowdown indicated in Q1 materialised. The dramatic drop in Iberian market
activity was partially offset by utilising market opportunities efficiently,
actively continuing strategic marketing efforts for new customer groups, and
focusing on sectors not hit by the market slowdown. In Eastern Europe, Uponor's
harmonised sales proposition, along with ongoing customer programmes, received a favourable response, supporting the sales growth.

The net sales of Uponor North America were clearly down from the levels seen in
the equivalent period last year. Factors that influenced net sales development
positively were, among other things, the sustained lively building market in
Canada and the commercial high-rise business development that continued to grow
in the USA.

Events after the period under review

On 12 August, the Board of Directors authorised the management to proceed with a
company-wide cost reduction programme in order to align expenses with the low
activity level in the building and construction industry. The programme targets
structural cost reductions in the range of 30 million euros, effective in 2009.
The planned actions are likely to affect more than 200 employees. The programme
is preliminarily estimated to generate a one-time cost impact of about 10
million euros, which will be split between the years 2008 and 2009.


Risks

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

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


Short-term outlook
In Europe, with the exception of some Eastern European countries, the pace of
the decline in residential construction has accelerated since the end of 2007,
and markets for new residential building are expected to contract or, at best,
remain flat for the second half of 2008.

In the USA, the residential market is expected to continue its 2008 decline,
while nonresidential construction is forecast to be stable or decline only
slightly. Canadian markets, which are on a healthy level, are expected to
maintain their resilience.

Uponor continues to exploit the encouraging trends and opportunities that exist
in some of its growth segments, but, overall, the general building market
development is expected to deteriorate further. Therefore, Uponor repeats the
guidance for 2008, issued on 11 June: Continuing operations' net sales are not
expected to quite reach last year's level, and operating profit is expected to
fall short of the 2007 level.

The Group's capital expenditure plans for the current year have been adjusted to reflect the lower demand, bringing gross investment for the full year down to around 45 million euros.