TietoEnator's new business area comparison figures for 2005

TietoEnator Corporation Stock Exchange Announcement 6 April 2006 10.30 AM EET

In late 2005 TietoEnator announced a reorganization of some of its business areas taking effect at the beginning of 2006. Forest and Energy, previously business units within the Production & Logistics business area, now form a business area called Forest & Energy. The remaining verticals within Production & Logistics - Manufacturing and Retail - form a new business area with Government called Government, Manufacturing & Retail. Forest & Energy had net sales of EUR 160.4 million in 2005 and employed 1 279 full-time employees at the end of the year. Government, Manufacturing & Retail's net sales totalled EUR 238.8 million last year and it had 1 996 employees at the end of 2005.

Besides the changes in business area structure, Digital Innovations, TietoEnator's centre for digitalized self-services was strengthened with the addition of the Group's business process and information integration services and new-generation voice application services. These internal moves involved altogether around 295 people from Banking & Insurance, Telecom & Media and Processing & Network. Digital Innovations now employs around 590 people. Its financial figures are equally divided to each vertical business area in TietoEnator's external reporting. These changes then impact the financial history of all business areas except for Personec Group.

TietoEnator also established two new Group-level units called Strategic Customer Operations and Operational Excellence at the beginning of 2006. Strategic Customer Operations includes the Strategic Customer Programme, Strategic Offering, Strategic Marketing and the Executive Advisors units. Operational Excellence is responsible for global sourcing, process development, purchasing and vendor management, technical infrastructure and applications, and centralized administrative services. These functions together with the CEO's Office are reported outside of the business areas as Group Operations.

TietoEnator started to apply IFRIC 4, International Financial Reporting Interpretations Committee's intepretation on IAS 17 (Leases) at the beginning of 2006. IFRIC 4 determines whether a certain part of an outsourcing contract has to be treated as a lease between the customer and the supplier of IT services. TietoEnator has applied IFRIC 4 also retroactively for 2005. This reduces TietoEnator's net sales for 2005 by EUR 5.0 million and depreciation by EUR 4.6 million in the business area Processing & Network. The impacts on operating profit and financial income are not material, and there is no impact on earnings per share.

TietoEnator's business area level financial reporting for 2005 has been adjusted for the changes. TietoEnator's Q1 2006 interim report will be according to an organisation including all these changes.

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