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ELISA REORGANISES ITS STRUCTURE AND INIT

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ELISA CORPORATION                   STOCK EXCHANGE RELEASE
                                28 OCTOBER 2003 AT 8:05 am


ELISA REORGANISES ITS STRUCTURE AND INITIATES PERSONNEL
NEGOTIATIONS

The Elisa Group will streamline its organisation, reform its
steering and management model and remove structural overlaps.

Rationalising the organisation and removing overlaps mean enhanced
utilisation of benefits brought about by the consolidation of
domestic units.

With regard to this, Elisa will initiate personnel negotiations
concerning its operations in Finland. The negotiations will apply
to the major part of the activities of the Group’s 100% owned
subsidiaries and part of the parent company’s functions.

The negotiations will not apply to the personnel working in direct
customer interface at the Contact Centers or those Corporate Staff
functions which were included in the previous round of personnel
negotiations.

The negotiations will commence on 3 November 2003 and end on or
about 15 December 2003. Personnel reductions are based on
productivity and restructuring reasons.

The activities subject to negotiations employ approximately 3 800
people. In addition to terminating fixed-term employments, the
estimated personnel reduction need is 900 people by the end of
2003. The total number of Elisa Group’s personnel is approximately
7 300 people.

The measures are envisaged to bring annual savings of
approximately EUR 40 million by the end of 2004 and approximately
EUR 80 million by the end of 2005. The reform programme will cause
around EUR 20 million non-recurring expenses, of which EUR 17
million will be generated in 2003.

On the same grounds, the Elisa Group subsidiaries Oy Heltel Ab and
Lounet Oy have today announced of initiating personnel
negotiations concerning their entire staff.

ELISA CORPORATION

Velipekka Nummikoski
Vice President, Corporate Communications


Additional information:

Mr Veli-Matti Mattila, President & CEO,
Tel. +358 10 262 2635

Mr Velipekka Nummikoski, Vice President, Corporate Communications
Tel. +358 50 506 5588


Distribution:

Helsinki Exchanges
Major media

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