Eniro acquires leading Finnish directory operation

Telephone conference will be held at 2 pm Swedish local time. To participate, please dial this number: + 44 20 82 40 82 43. Replay until Friday 7 September on no: +44 20 82 88 44 59. Access code: 666152 * Eniro is acquiring Finnish telco Elisa's directory related operations, Direktia. Net purchase price is SEK 850 million (FIM 550 million) * Direktia is the second largest directional media company in Finland and is the largest publisher of the official Yellow Pages in the Helsinki area as well as leading directory assistance operator. The acquisition will substantially strengthen Eniro's presence in the Finnish directional media market * Revenues for the acquired part of Direktia for year 2001 are estimated to SEK 390 million with an EBITDA of about SEK 90 million. In addition, synergies are estimated to SEK 20-25 million annually, to be realized with full impact starting during 2003 * The acquisition is expected to have a positive impact on earnings per share (excluding goodwill amortization) on a proforma basis for 2001

Direktia - Elisa's directional operations Direktia is the directional operations of Elisa and an important player in the Finnish directional media market. Revenues 2001 for the acquired part of Direktia are estimated to approximately SEK 390 million, with an EBITDA (earnings before interest, taxes, depreciation and amortization of goodwill) of approximately SEK 90 million. Direktia has approximately 370 employees and its services comprise traditional directory business as well as online services. The businesses of Direktia are: * Official publisher of Yellow Pages in the Helsinki metropolitan area * 30 percent holding in Suomen Keltaiset Sivut Oy, SKS, the national Yellow Pages sales agent * The registered owner of the trademark "Keltaiset Sivut" (Yellow Pages) * Residential and business White Pages in the Helsinki area * Local directories (White and Yellow Pages) in neighbouring municipalities to the Helsinki metropolitan area * Directory assistance 118 for Elisa and Radiolinja subscribers * National and operator independent e-directory service, "0100100", containing all fixed line and mobile numbers nationwide, e-mail and www-addresses, opening hours, branch information etc provided by voice, web, SMS, and WAP Synergies with Eniro's existing operation are found within local directories in the greater Helsinki area, product and service development, database maintenance and administration. Synergies are estimated to SEK 20-25 million on an annual basis starting during 2003. The acquisition Eniro AB (publ.) ("Eniro") has agreed to acquire the directional(1) media business of Elisa Communications Oy ("Elisa"). Elisa is the regional telecommunications company in the Helsinki area (fixed line) and also a nationwide mobile phone operator through its wholly owned subsidiary Radiolinja. The acquisition is subject to approval of the Finnish competition authorities. The net purchase price for the business on a debt free basis is SEK 850 million (FIM 550 million )(2), resulting in an EV/EBITDA multiple 2001 of approximately 9.4 times before synergies. Since Eniro assumes a net cash position of approximately SEK 80 million in the acquired business, the corresponding equity price is SEK 930 million. The equity consideration will be paid in newly issued Eniro shares. The value of the shares will be set according to the weighted average of the Eniro share on OM Stockholm Exchange 20 trading days prior to closing. The share issue is accommodated with the authorization from the General Meeting of shareholders held May 7, 2001. Eniro has an option to pay in cash at the time of closing, if so desired. If shares are issued, Elisa has undertaken to only sell Eniro shares in a manner coordinated with Eniro. "It is important for us to be able to present acquisitions that add value on an EBITDA multiple level, even before taking any synergies into account. Additionally, with the requirement on Elisa, in case of a share deal, to closely coordinate any potential sale of shares with Eniro, this transaction illustrates that we are increasingly concerned with managing the supply of new Eniro shares" says Lars Guldstrand, President and CEO. Acquisition rationale The acquisition of Direktia will further strengthen Eniro's position on the Nordic directional media market in general and on the Finnish market in particular, a market with favorable growth prospects. "Eniro is strengthening its position on the market both off- and online in the most important area in Finland - the Helsinki area. This will be a perfect complement to Eniro. Through the acquisition, Eniro will become a major provider of directional media in Finland. The acquisition is following our business strategy to always be the number one or two in all markets we operate in and to focus on the metropolitan markets. Eniro has been active on the Finnish market since 1986 and we continue our growth in this expanding market through the acquisition of Direktia", says Lars Guldstrand, President and CEO of Eniro. Eniro it today present in 23 countries and will, after the acquisition is completed, have approximately 4,000 employees. Eniro will publish more than 800 directory titles with 36 million copies distributed. The number of searches on Eniro's Internet services will exceed 70 million a year. Financial effects of the acquisition The acquisition results in goodwill of approximately SEK 880 million that will be amortized over 20 years. The acquisition is expected to have a positive contribution to Eniro's earnings per share (excluding goodwill amortization) on a proforma basis already 2001. The Finnish market The Finnish telecom market is divided into several regional operators, a structure that is also reflected in the directory market. The share of directional media of the total advertising market is relatively small in Finland compared with other western European markets, implying a significant growth potential. The players in the directional market are Sonera, Direktia, Finnet Group, Telenor and Eniro. The acquisition will make Eniro one of the largest companies in the Finnish directional media market. Overview of market information in Sweden compared to Finland Year 2000 (SEK) Sweden Finland GDP/capita, SEK 235,000*(3) 225,865^ Consumer spending/capita, 118,000* 111,634^ SEK Advertising market/ 1,952** 1,904^^ capita, SEK Traditional advertising market/GDP% 0.83% 0.84% Directory media market/ Traditional advertising 15.8% 9.3% market,% Directory media market/ 308 179 Capita Directory media market/ 0.13% 0.079% GDP,% Yearly growth of adv.market & GDP,% 10%** 7.3%^^ 4.4%* 5.7%^ Internet penetration, (4) 56%~ 44%^^^ % Total Directory media market, SEK 2,740** 930^^ million Goodwill amortizations are assumed to be fully tax deductible. * SCB (Statistics Sweden) ** IRM ^ Statistikcentralen (Statistics Finland) ^^ Suomen Gallup ^^^ Taloustut Kimus Oy ~Jupiter MMXI Direktia has recently launched a nationwide voice service ("0100100"). Competitors include Sonera with its 020202 service and Eniro who recently also has launched a similar service branded 030303. The Finnish Internet directory market is estimated at SEK 120 million in 2000. The market totals 35 million searches. 1. The directional market refers to print, voice and Internet while the directory market refers only to print 2. Assumed exchange rate SEK/FIM = 1.55, Aug 2001 3. 1 FIM=1.5 SEK (Dec 2000) 4. Internet penetration based on the entire population. Facts about Eniro Eniro is Northern Europe's largest supplier of offline- and online directory services. The company was listed on the Stockholm Exchange O-list on October 10, 2000 (today on the Attract 40 list). Eniro's portfolio consists of local directories, regional directories and B2B directories. Eniro delivers directories and services both offline (printed and CD-ROM) and online (fixed and mobile Internet, voice telephony and other interactive media). During 2000 Eniro's revenues increased by 13 percent compared with 1999, and amounted to SEK 3,004 million. Revenues from online business amounted to SEK 442 million, an increase of 111 percent. In the first six months 2001, revenues increased 60 percent to SEK 2,003 million compared with the same period previous year. Revenues from the online business during the first six months amounted to SEK 487 million, a growth of 165 percent. Eniro's business is to create marketplaces, connecting buyers and sellers. More than 1 billion searches were made in Sweden alone on Eniro's marketplaces, which facilitated trade with a value exceeding SEK 300 billion (2000/2001). Eniro has successfully offered its products and services in the Swedish, Danish, Finnish and East European markets. This has been accomplished through acquisitions and through greenfield investments. Eniro also established a presence in Germany and Poland during 2001. Eniro has achieved a strong and competitive position in nearly all of its geographical markets. In Sweden in 2000, Eniro gained 11 percent of the traditional advertisement market and 33 percent of the total Internet advertisement market, resulting in Eniro being Sweden's largest Internet advertising company. Eniro holds a solid position in the Danish and Finnish directory markets. Eniro is a leading supplier of directory information in key geographical regions in the Baltic countries (Estonia, Latvia and Lithuania) and also in a number of other Eastern European countries (Russia, Belarus and the Ukraine) as well as in Poland. Following the acquisitions of the German companies, the German market is the second largest market for Eniro, after the Swedish market.