2010-02-10 07:12:12 -

Tieto CorporationPress release 10 February 2010 at 08.05 am EET

This is a press release without tables. You can download the complete version
using this link (pdf):
hugin.info/3114/R/1382208/341389.pdf


Tieto's fourth-quarter net sales declined by 10% and amounted to EUR 440.6
(492.0) million. Outsourcing activity was strong, but net sales from new
projects remained at a low level. Net sales dropped in most customer industries.
The public and retail sectors performed well and their net sales continued to
grow in the fourth quarter.

Fourth-quarter operating profit amounted to EUR 33.7 (23.6) million. Operating
profit included a net amount of EUR 4.8 million (negative) in one-off items
related to streamlining actions. Operating profit excluding one-off items
amounted to EUR 38.5 (42.4) million, representing a margin of 8.7% (8.6). The
trend in the margin in all   country segments remained positive compared with the
first three quarters of 2009. Profit before taxes totalled EUR 32.2 (6.6)
million and earnings per share amounted to EUR 0.36 (0.02) in the fourth
quarter.

The company has restructured its operations during the year and increased its
resources in offshore locations substantially in 2009. From the beginning of
2009, the number of employees in the global delivery centres has increased by
20% and amounted to about 5 100 (4 280), or 30% (25) of the year-end headcount.
Global operations have grown fast especially in India and China. As a result of
efficient implementation of streamlining actions, the company achieved its EUR
70 million savings target, exclusive of currency effects.

The outsourcing market and the demand for new service models are expected to
remain robust in 2010. The market for larger, new IT projects is expected to
pick up, but only during the second half of 2010. In Finland, the utilities,
healthcare and welfare sectors are anticipated to drive growth, whereas in
Sweden, new outsourcing-related opportunities have opened up especially in the
finance and public sectors. In 2010,Tieto expects its net sales to develop in
line with the IT services market relevant to Tieto and its operating profit to
be higher than in 2009.

President and CEO Hannu Syrjälä:

"The final quarter of 2009 was two-folded for Tieto - we improved our
profitability from the previous three quarters, but at the same time our net
sales continued to decline as a result of lower volumes and price pressure. We
achieved an EBIT margin of 7.6% in the fourth quarter due to disciplined
implementation of planned streamlining measures. Going forward, profitability
improvement will continue to be high on our agenda, but we are starting to focus
more on growth.

On the whole, year 2009 was exceptionally challenging. We implemented a new
operating model and business structure and at the same time we tackled the
impacts of lower demand for our services. Despite the tough market environment,
we reached many of the goals set for 2009. In addition to cutting costs and
improving the efficiency of our onshore operations, we increased our offshoring
according to our plans. By the end of 2009, we had achieved the EUR 70 million
savings target and our offshoring rate, i.e. share of personnel in global
delivery centres, was at 30%.As a result of the work done in the past two years,
Tieto is now a much stronger company and well positioned for the future."

For further information, please contact:
Hannu Syrjälä, President and CEO, tel.+358 2072 68729, hannu.syrjala@tieto.com
<mailto:hannu.syrjala@tieto.com>
Seppo Haapalainen, CFO, tel.+358 2072 63500, seppo.haapalainen@tieto.com
<mailto:seppo.haapalainen@tieto.com>
Reeta Kaukiainen, VP, Communications and Investor Relations, tel. +358
2072 68711,
+358 50 522 0924, reeta.kaukiainen@tieto.com <mailto:reeta.kaukiainen@tieto.com>
Pasi Hiedanpää, Manager, Investor Relations, tel. +358 2072 68088, +358
50 3782228, pasi.hiedanpaa@tieto.com <mailto:pasi.hiedanpaa@tieto.com>


TIETO CORPORATION

DISTRIBUTION
Principal media


Tieto is an IT service company providing IT, R&D and consulting services. With
approximately 16 000 experts, we are among the leading IT service companies in
Northern Europe and the global leader in selected segments. We specialize in
areas where we have the deepest understanding of our customers' businesses and
needs. Our superior customer centricity and Nordic expertise set us apart from
our competitors.
www.tieto.com <http://www.tieto.com/>

 <http://www.tieto.com/>


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