TECNOMEN?S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2004

Tecnomen Corporation                STOCK EXCHANGE RELEASE
                                    27 October 2004 at 8.30 am

TECNOMEN’S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2004

Tecnomen’s net sales in the review period increased 33.5 per cent to
EUR 37.8 (28.3) million. The operating result for the review period
was EUR 2.1 (-6.6) million.

SUMMARY, JULY-SEPTEMBER

- Net sales EUR 12.5 (9.1) million
- Operating result EUR 0.9 (-1.9) million
- Order book EUR 8.9 (7.2) million
- Cash flow EUR 0.2 (-1.2) million
- Cash funds EUR 31.6 (33.1) million

KEY FIGURES

                           7-9/04  7-9/03   1-9/04  1-9/03     2003

Net sales, MEUR              12.5     9.1     37.8    28.3     45.3
Net sales, change %          36.9   -28.0     33.5    -3.3     13.6
Operating result, MEUR        0.9    -1.9      2.1    -6.6     -7.0
   % of net sales             7.2   -21.3      5.5   -23.3    -15.6
Result before                 1.3    -1.7      2.5    -6.0     -6.4
extraordinary items,
appropriations and
taxes, MEUR
   % of net sales            10.6   -18.6      6.6   -21.3    -14.2
Result for the period         1.1    -2.0      2.1    -6.3     -7.3
                                                                   
Personnel at end of           350     437      350     437      398
period
                                                                   
Earnings per share, EUR      0.04   -0.03     0.04   -0.11    -0.13
Equity per share, EUR        1.18    1.15     1.18    1.15     1.13
Net interest-bearing        -31.0   -31.9    -31.0   -31.9    -34.1
liabilities, MEUR

Unless otherwise stated, all figures presented below are for the
review period 1-9/2004 and the figures for comparison are for the
corresponding period 1-9/2003.

MARKETS

Demand for all of Tecnomen’s products, in particular for the next
generation messaging and data charging solutions, increased during the
third quarter of 2004 from the previous quarters. Market growth in
Latin America was sustained throughout the period, and increasing
demand was witnessed in the Middle East, Africa and Eastern Europe,
and also in the Asia-Pacific region, where demand has been relatively
low for several years. Competition and the caution shown by operators
in making investment decisions maintained pressure on prices and
margins.

Messaging

Net sales of the Messaging product line during the review period rose
19 per cent to EUR 23.4 (19.6) million.

Some of the major system deliveries were: an expansion for the voice
mail system to Indosat (Indonesia) and an expansion and a system
update to Vodafone Ireland, including further enhancements to their
"Vodafone Mail" product. One encouraging regional breakthrough was
made in the growing mobile market in Pakistan: Telenor Pakistan
purchased Voice Mail and MMSC systems from Tecnomen. The PMR Messaging
business has remained stable.

Tecnomen has sales cooperation agreements with third party SMSC
providers to include an SMSC in its sales offering. Several contracts
with customers have already been signed, and the current offer
situation is very promising. As well as sales of individual SMSCs,
this cooperation has opened up access for Tecnomen to mobile operators
who wish to purchase complete messaging systems (Voice Mail, MMSC,
SMSC, Download Centre, WAP gateway) from a single system vendor.

The transfer of the outsourced functions to Accenture Service Oy was
completed in August. Cooperation in outsourcing with Accenture
continues as planned.

Charging

Net sales of the Charging product line during the review period rose
66.4 per cent to EUR 14.4 (8.7) million.

The main market area for Tecnomen Charging solutions continues to be
in Latin America. Several operators in the area have expanded or are
expanding their systems. Some of the largest system deliveries made
during the third quarter were expansions of prepaid systems to PCS
Digital in Guatemala and Nicaragua and to Porta in Ecuador.

Tecnomen’s ongoing sales efforts in the Asian and African markets have
increased the interest of potential customers in the company's
products. Data solutions such as real-time MMS billing are proving to
be particularly popular.

SALES AND NET SALES

Tecnomen’s net sales in the review period increased 33.5 per cent to
EUR 37.8 (28.3) million. The company’s net sales in the third quarter
totalled EUR 12.5 (9.1) million, or 36.9 per cent higher than the year
before. Some 70 per cent of net sales came from 10 customers. Sales to
new customers accounted for 27.1 per cent (13.1%) of net sales.

Total net sales and their distribution among the different product
lines and geographical regions vary greatly from one quarter of the
year to another, due to the seasonal nature of the business and the
timing of project deliveries.

Net sales by product line

             1-9/2004           1-9/2003        
                 MEUR       %       MEUR       %
Messaging        23.4    61.8       19.6    69.3
Charging         14.4    38.2        8.7    30.7
TOTAL            37.8   100.0       28.3   100.0

Net sales by region

             1-9/2004           1-9/2003        
                 MEUR       %       MEUR       %
Americas         17.3    45.7        7.4    26.3
EMEA             18.4    48.6       17.4    61.5
APAC              2.1     5.7        3.5    12.2
TOTAL            37.8   100.0       28.3   100.0

The performance in different geographical regions varied considerably.
The biggest change during the review period took place in South
America, where sales grew 132.2 per cent. In EMEA (Europe, Middle East
and Africa) sales grew 5.6 per cent. Sales declined 38.2 per cent in
APAC (Asia Pacific).

Sales through global partners totalled EUR 5.6 (4.9) million or 
14.9 per cent (17.2%) of net sales.

Maintenance and service sales together accounted for EUR 5.6 million
or 14.9 per cent (21.4%) of net sales.

The order book increased 24.9 per cent and stood at EUR 8.9 (7.2)
million at the end of the review period. The Messaging product line
accounted for EUR 6.1 million or 68.4 per cent (74.6%) of the order
book and Charging for EUR 2.8 million or 31.6 per cent (25.4%). The
order book grew encouragingly especially in South America, which
accounted for 53.9 per cent (34.7%) of the order book.

OPERATING RESULT

The operating result for the review period was EUR 2.1 (-6.6) million.
The company’s operating result in the third quarter totalled EUR 0.9 
(-1.9) million.

The result for the period before extraordinary items, appropriations
and taxes was EUR 2.5 (-6.0) million.

Earnings per share were EUR 0.04 (-0.11). Equity per share at the end
of period was EUR 1.18 (1.15).

FINANCING AND INVESTMENTS

Tecnomen’s financial position is strong. Liquid assets were EUR 31.6
(33.1) million. The balance sheet total on 30 September 2004 stood at
EUR 78.6 (75.1) million. Interest bearing liabilities amounted to 
EUR 0.6 (1.2) million. The debt to equity ratio (gearing) was -46.0 
per cent (-48.8%). The balance sheet structure remained strong and 
the equity ratio on 30 September 2004 was 87.7 per cent (88.8%).

Tecnomen’s gross capital expenditure during the review period was 
EUR 1.2 (1.6) million, or 3.2 per cent (5.6%) of net sales.

Financial income and expenses during the review period totalled 
EUR 0.4 (0.6) million and that consists mainly of interest income.

Change in working capital

                                             1-9/04    1-9/03
Trade receivables and advances, incr.          -3.6       2.9
(-)/ decr. (+)
Other short-term receivables, non-              0.0       0.2
interest bearing, incr. (-)/ decr. (+)
Inventories, incr. (-)/ decr. (+)              -0.5       0.2
Accounts payable and advances, incr. (+)/       0.2       0.1
decr. (-)
Other current liabilities, non-interest        -2.0      -0.3
bearing, inc. (+)/ decr. (-)
CHANGE IN WORKING CAPITAL, TOTAL               -6.0       3.1

RESEARCH AND DEVELOPMENT

R&D costs during the review period were EUR 8.3 (7.0) million,
corresponding to 22.1 per cent (24.9%) of net sales. R&D related costs
have been recorded directly as costs.

PERSONNEL

At the end of September 2004, Tecnomen employed 350 (437) people
worldwide, 134 (234) in Finland and 216 (203) abroad. The company
employed on average 355 (440) people during the review period. During
the first quarter 59 people transferred to the employment of Accenture
Services Oy in consequence of an outsourcing agreement.

TECNOMEN SHARES AND SHARE CAPITAL

At the end of September 2004 the shareholders’ equity of Tecnomen
Corporation stood at EUR 67.4 (66.1) million and the share capital was
EUR 4,647,406.24, divided into 58,092,578 shares. The company held
400,000 of these shares, representing 0.69 per cent of the company’s
share capital and votes. The nominal value of the shares held by the
company totalled EUR 32,000. Equity per share was EUR 1.18 (1.15).

A total of 26,632,490 Tecnomen shares (EUR 36,570,989) were traded on
the Helsinki Exchanges during the period 2 January - 30 September
2004, or 45.8 per cent of the total number of shares.

The highest share price quoted in the period was EUR 1.82 and the
lowest was 1.11. The average quoted price was EUR 1.37 and the closing
price on 30 September 2004 was 1.32. The share stock had a market
value of EUR 76,682,203 at the closing price.

CURRENT AUTHORISATIONS

The Annual General Meeting held on 24 March 2004 authorised the Board
of Directors to dispose of the company’s own shares and increase the
share capital. The Board had not exercised these authorisations by the
date of publication of this Interim Report.

STOCK OPTION PROGRAMME

The company has a current 2002 stock option programme approved by the
Annual General Meeting of Shareholders on 11 April 2002, which is
divided into four stock option series, the 2002A, 2002B, 2002C and
2002D stock options. A maximum of 4,100,000 stock options may be
issued that entitle holders to subscribe to a total of 4,100,000
Tecnomen Corporation shares. As a result of subscriptions with the
2002 stock options, the company's share capital can rise by a maximum
of EUR 328,000. The share subscription price for stock option 2002D
was set at 1.33 euros, the Tecnomen trade volume weighted average
share price on the Helsinki Exchanges between 1 March and 31 March
2004. The subscription period for the 2002A stock options started on 
1 April 2003 and for the 2002B options on 1 April 2004. During the
review period no share subscriptions were made with the 2002A or 2002B
stock options. The subscription periods for the 2002C and 2002D stock
options had not started in the review period.

ADOPTION OF IFRS STANDARDS

Tecnomen will adopt IFRS standards in its financial reporting on 1
January 2005. The opening balance and comparison figures for 2004 will
be published during the first quarter of 2005.

According to preliminary estimates, the standards that have the
biggest impact on the 2004 opening balance are IAS 11, 18 Principles
for Revenue Recognition, IAS 19 Provisions for Disability Pension
under the Employees’ Pension Act, and changes in the classification of
provisions based on IAS 37.

PROSPECTS FOR 2004

Tecnomen expects net sales in 2004 to exceed EUR 50 million and the
result for the fourth quarter to be positive.

FINANCIAL INFORMATION

Tecnomen is holding a conference to announce its third quarter results
at 10.00 am on 27 October 2004 in the Pavilion room at the Scandic
Hotel Simonkenttä. The material presented at the press conference will
be available at 10.00 am on Tecnomen’s website at
www.tecnomen.com/investor.

TECNOMEN CORPORATION


Board of Directors


FURTHER INFORMATION
Mr Jarmo Niemi, President and CEO, tel. +358 (0)9 8047 8799
Ms Riitta Järnstedt, CFO, tel. +358 (0)9 8047 8650

DISTRIBUTION
Helsinki Exchanges
Main media


CONSOLIDATED INCOME STATEMENT

MEUR                            1-9/2004     1-9/2003         2003
Net sales                           37.8         28.3         45.3
Operating expenses                  34.0         32.5         49.3
Depreciation                         1.8          2.3          3.0
Operating result                     2.1         -6.6         -7.0
   % of net sales                    5.5        -23.3        -15.6
Financial income and expenses        0.4          0.6          0.6
Result before extraordinary          2.5         -6.0         -6.4
items
Result before taxes and              2.5         -6.0         -6.4
minority interest
Taxes                               -0.4         -0.3         -0.8
                                                                  
Result for the period                2.1         -6.3         -7.3


CONSOLIDATED BALANCE SHEET

MEUR                           30.9.2004    30.9.2003   31.12.2003
Fixed assets                         9.6         10.6         10.1
Current assets                                                    
   Inventories                       2.6          3.4          2.2
   Trade receivables                31.5         24.6         27.0
   Cash and bank balances           31.6         33.1         34.8
   Other financial assets            3.3          3.4          3.4
Assets                              78.6         75.1         77.5
                                                                  
Shareholders’ equity                67.4         66.1         65.2
Provisions                           0.6          0.0          0.6
                                                                  
Liabilities                                                       
   Interest-bearing                  0.6          0.8          0.7
   liabilities
   Non-interest bearing              9.8          8.2         10.9
   liabilities
   Deferred tax                      0.2          0.0          0.1
   liabilities
Equity and liabilities              78.6         75.1         77.5


CONSOLIDATED CASH FLOW STATEMENT

MEUR                            1-9/2004     1-9/2003         2003
Cash flow, business operations      -1.8         -0.5          1.9
Cash flow from investments          -1.3         -1.0         -1.6
Cash flow from financing            -0.1         -0.1         -0.2
Increase (+) and decrease (-)       -3.2         -1.6          0.1
in liquid funds
                                                                  
Liquid funds on 1 Jan.              34.8         34.7         34.7
Liquid funds on 30 September/       31.6         33.1         34.8
31 December
Change                              -3.2         -1.6          0.1


KEY FINANCIAL FIGURES

MEUR                             1-9/2004    1-9/2003         2003
Return on investment, %               5.0       -11.3         -9.1
Return on equity, %                   4.2       -12.2        -10.5
Equity ratio, %                      87.7        88.8         85.2
Debt/equity ratio (gearing), %      -46.0       -48.8        -52.3
Investments                           1.2         1.6          1.9
   % of net sales                     3.2         5.6          4.2
Research and development              8.3         7.0          9.4
   % of net sales                    22.1        24.9         20.8
Order book                            8.9         7.2         10.0
Personnel, average                    355         440          440
Personnel, at end of period           350         437          398


KEY FIGURES PER SHARE

MEUR                             1-9/2004    1-9/2003         2003
Earnings per share, EUR              0.04       -0.11        -0.13
Equity per share, EUR                1.18        1.15         1.13
Number of shares at end of         58,093      58,093       58,093
period, x 1,000
Number of shares on average,       58,093      58,093       58,093
x 1,000
Share price, EUR                                                  
   Average price                     1.37        0.59         0.86
   Lowest price                      1.11        0.39         0.39
   Highest price                     1.82        0.92         1.59
Share price at end of period         1.32        0.83         1.37
Market value of issued stock at      76.7        48.2         79.6
end of period, MEUR
Share turnover, million shares       26.6        17.9         32.4
Share turnover, % of total           45.8        30.9         55.8
Share turnover, MEUR                 36.6        10.5         27.9


CONTINGENT LIABILITIES

MEUR                             1-9/2004    1-9/2003         2003
Pledges given                         0.9                      0.5
For own debts                                                     
  Real estate mortgages               0.7         0.7          0.7
Pledges given to cover other                                      
company commitments
  Mortgages                           1.3         1.3          1.3
  Real estate mortgages               0.2         0.2          0.2
Other company liabilities             2.3         2.3          2.7
                                                                  
Derivative contracts                                              
  Currency forward contracts                                      
    Market value                     18.7        12.7         15.7
    Value of underlying              18.8        13.3         16.7
    instrument
  Currency options                                                
    Market value                      0.0         2.6          0.0


KEY FIGURES PER QUARTER

                                 3Q/03  4Q/03  1Q/04  2Q/04  3Q/04
Net sales, MEUR                    9.1   17.0   11.7   13.6   12.5
Net sales, change %              -28.0   59.9   53.8   17.4   36.9
Operating result, MEUR            -1.9   -0.5   -0.8    2.0    0.9
   % of net sales                -21.3   -2.7   -7.2   14.9    7.2
Result before extraordinary       -1.7   -0.4   -0.7    1.8    1.3
items, appropriations and
taxes, MEUR
                                                                  
Personnel at end of period         437    398    343    347    350
                                                                  
Earnings per share, EUR          -0.03  -0.02  -0.01   0.02   0.04
Equity per share, EUR             1.15   1.13   1.12   1.16   1.18
Net interest-bearing             -31.9  -34.1  -29.5  -30.8  -31.0
liabilities, MEUR
                                                                  
Order book, MEUR                   7.2   10.0   16.7   11.1    8.9

The financial figures in the balance sheet, income statement and key
indicators have been rounded up or down to the nearest million euro.
The figures shown here have been calculated using exact values.

The figures are not audited.


SHAREHOLDERS

The company’s ten largest shareholders, excluding nominee
registrations, on 30 September 2004:

                                      No. of shares         %
Henki-Sampo Insurance Fund                3,083,400      5.31
Hammaren Lars-Olof                        2,164,300      3.73
Sumelius Henning                          2,022,300      3.48
FIM Fenno Fund                            1,285,000      2.21
Sumelius Johanna Marina                   1,122,400      1.93
Oy Investsum AB                             954,100      1.64
Estate of Suutarinen Helena                 901,200      1.55
Kaleva Mutual Insurance Company             900,000      1.55
Sumelius Maria                              790,600      1.36
Mandatum Suomi Kasvuosake Fund              736,348      1.27
TOTAL                                    13,959,648     24.03

Ownership of Tecnomen shares, 30 September 2004

Shares             Holders        %      Shares and         %
                                              votes
1-500                3,316    46.95         746,173      1.28
501-1,000            1,180    16.71         938,237      1.62
1,001-5,000          1,723    24.39       4,390,654      7.56
5,001-10,000           399     5.65       3,053,497      5.26
10,001-50,000          293     4.15       6,270,058     10.79
50,001-100,000          56     0.79       4,070,974      7.01
100,001-500,000         77     1.09      17,973,746     30.94
500,001<                19     0.27      20,611,639     35.48
Joint account                                37,600      0.06
Total                7,063   100.00      58,092,578    100.00

Ownership structure by sector, 30 September 2004

                                      No. of shares         %
Companies                                 6,844,445     11.78
Finance houses and insurance             12,946,701     22.29
companies
Public sector                             1,554,112      2.68
Non-profit making associations            3,260,422      5.61
Households and private persons           31,999,242     55.08
Foreign holders                           1,450,056      2.50
TOTAL                                    58,054,978     99.94
Joint account                                37,600      0.06
Share capital                            58,092,578    100.00
Nominee registrations                     2,204,509      3.80


About Us

Tecnotree is a global provider of IT solutions for the management of services, products, customers and revenue for Communications Service Providers. Tecnotree helps customers to monetise and transform their business towards a marketplace of digital services. Together with its customers, Tecnotree empowers people to self-serve, engage and take control of their own digital life. Tecnotree is listed on Nasdaq Helsinki (TEM1V). For more information, please visit www.tecnotree.com.

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