TietoEnator Corp. : continues on the right track - the second-quarter profits improve substantially

TietoEnator Corporation Press Release 18 July 2008 at 08.05 am EET


This is a press release without tables. You can download the complete
version using this link (pdf).
Interim report 2/2008

TietoEnator's second-quarter net sales grew by 11% to EUR 480.1
(434.2) million. Organic growth was 11%. Operating profit excluding
one-off items improved substantially and amounted to EUR 33.2 (14.8)
million. One-off items were mainly attributable to the Performance
Improvement Programme the company announced in October 2007.

The Performance Improvement Programme has progressed well. By the end
of June, the actions taken amount to annualized savings of EUR 71
million. Almost two thirds of this improvement is employee related. A
major part of the positive impact will start to materialize in the
second half of 2008 and in 2009. TietoEnator estimates that the plan
will generate annualized cost savings of EUR 130 million as from the
end of 2009.

In the second quarter, strongest development was seen in Processing &
Network and Healthcare & Welfare. Processing & Network's net sales
saw organic growth of 16%, clearly outpacing the relevant market. In
Healthcare & Welfare, growth was very strong at 25% in all market
areas and units, except the healthcare business in Finland, where the
comparison figures are high due to exceptionally high license revenue
in 2007. Both business areas concluded several major agreements in
2007 and the first half of 2008. For Processing & Network the most
significant agreements were made with Apoteket and TeliaSonera as
well as Op-Pohjola Group and Ilmarinen. Thanks to the Apoteket
agreement that was signed in June 2007, Sweden was the strongest
growing market for Healthcare & Welfare.

Profit before taxes totalled EUR 23.8 (8.9) million and earnings per
share amounted to EUR 0.26 (0.07) in the second quarter.

TietoEnator's President and CEO Hannu Syrjälä comments on the
second-quarter performance:
"We have just defined our strategy and we started the implementation
of the Performance Improvement Programme at the beginning of this
year. The second-quarter results strengthen our view that we are on
the right track in turning the company around. We have concluded
several major agreements in 2008 and succeeded in outpacing our
market in many areas. This reflects our customers' trust in us as
well as the good momentum within the company."

TietoEnator expects its full-year revenue growth to follow the
overall development in the relevant market. TietoEnator is pursuing
the full turnaround of the company by the end of 2009. The revised
strategy, the Performance Improvement Programme and the actions taken
so far will have a positive impact on the company's profitability in
the future.


For further information, please contact:

Hannu Syrjälä, President and CEO, tel. [phone],
[e-mail]
Åke Plyhm, Deputy CEO, tel. [phone],
[e-mail]
Reeta Kaukiainen, EVP, Communications and Investor Relations, tel.
[phone],
[phone], [e-mail]



TIETOENATOR CORPORATION

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TietoEnator is among the leading architects in building a more
efficient information society and one of the largest IT services
providers in Europe. TietoEnator specializes in consulting,
developing and hosting its customers' business operations in the
digital economy. The Group's services are based on a combination of
deep industry-specific expertise and the latest information
technology. TietoEnator has about 16 000 experts in close to 30
countries.
www.tietoenator.com





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