TietoEnator's codetermination talks for processing services make progress in Finland

TietoEnator Corporation STOCK EXCHANGE RELEASE 23 June 2005, 2.00 pm EET

Codetermination negotiations regarding TietoEnator's Processing & Network business area in Finland have been making progress in a spirit of openness and objectivity between the employer and shop stewards. The parties have agreed on various support options. The employee's side has withdrawn its recommendation for an overtime ban made on 15 June 2005, with the authorisation of Tietoväki, which represents TietoEnator's staff. It has been decided to continue talks until the end of August to look further at retraining, internal mobility and other options.

TietoEnator began negotiations for production and financial reasons on 9 May 2005 as part of its programme to centralise and rationalise processing service functions. (Stock Exchange release of 4 May 2005). The threat of redundancy affected 110 people in Finland at the most. That number has now fallen, thanks to negotiations. The final figure will be known when the talks have been concluded.

The new Processing & Network business model is based on cost-effective management of resources, which will strengthen the company's competitiveness in a tough market. The costs of centralisation are estimated to work out at around 10 million euros in 2005 and, of that, 8 million will be realised in the last three quarters. Costs in the third quarter will be greater than those in the second and fourth. Costs savings resulting from centralisation in the years to come are expected to be more than 10 million euros per annum from 2006 onwards.

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