ACCOUNTING PRINCIPLES OF THE FINANCIAL STATEMENT OF PROHA PLC HAVE BEEN ALTERED

THE ACCOUNTING PRINCIPLES OF THE FINANCIAL STATEMENT OF PROHA PLC HAVE BEEN ALTERED In the accounting principles of Proha Plc, the handling of goodwill depreciation has been altered from that announced in the financial statement bulletin on February 22, 2001 to correspond with the normal practice. The goodwill generated from the Artemis companies'acquisition, EUR 16.1 million, has in the final financial statement been accrued as depreciation according to plan in 10 years, where as the expense was previously depreciated entirely as extraordinary expense. In the profit and loss account, the change will have an impact on the operating profit, subtotals following the operating profit, and the result for the financial year. In the balance sheet, the change will have an effect on the capital and reserves and fixed assets, the total of the balance sheet, the key ratios and the pro forma figures. The changes do not have an impact on the business operations of Proha nor on the future prospects. The Proha Group's net sales for the financial year from January 1, 2000 to December 31, 2000 was EUR 36.15 million, compared to EUR 5.19 million in the ten-month accounting period in 1999. Net sales grew by 597%. Operating profit increased to EUR 1.9 million, compared to EUR 0.6 million in the corresponding period in 1999. The percentual growth of the operating profit amounted to 217%. Profit before extraordinary items totaled EUR 1.5 million, compared to EUR 0.4 million in 1999, growth 261%. Profit before taxes totaled EUR 1.5 million, compared to EUR 0.4 million in 1999, growth 261%. Earnings per share amounted to EUR 0.029, compared to EUR 0.020 in the ten- month accounting period in 1999 (the share amounts used in the calculation are split adjusted). After the change in the accounting principles, operating profit (EUR 1.9 million) is EUR 0.6 million lower than previously announced (EUR 2.5 million), profit before extraordinary items (EUR 1.5 million) is EUR 0.6 million lower than previously announced (EUR 2.1 million), and profit before taxes (EUR 1.5 million) is EUR 15.5 million higher than previously announced (EUR -14.0 million). Group capital and reserves (EUR 20.8 million) is EUR 16.2 million higher than previously announced (EUR 4.6 million). The consolidated balance sheet total at the end of the year was EUR 55.7 million, compared to EUR 8.7 million in 1999. The Proha Group pro forma net sales for January 1, 2000 to December 31, 2000, including all the companies acquired during 2000 and the new subsidiaries in Singapore and South Korea, totaled EUR 82.2 million. The pro forma operating profit amounted to EUR 3.16 million. The key figures after the change. The figures are unaudited. 1-12/2000 3-12/1999 Profit and loss account (EUR 1000) Net sales 36 149 5 186 Operating profit 1 943 590 Profit before extraordinary items 1 537 426 Extraordinary income - - Extraordinary expenses - - Profit before taxes 1 537 426 Balance sheet (EUR 1000) Assets 31.12.2000 31.12.1999 Non-current assets Intangible assets 1 407 144 Group goodwill 16 112 75 Tangible assets 2 885 90 Investments total 2 706 616 Non-current assets total 23 111 925 Current assets Stocks 145 - Debtors 26 362 2 305 Short-term investments 270 167 Cash in hand and at bank 5 787 5 291 Current assets total 32 564 7 763 Assets total 55 675 8 688 Liabilities Capital and reserves Share capital 13 702 4 813 Other reserves 7 126 1 386 Capital and reserves total 20 828 6 199 Minority interest 325 11 Provisions 468 - Creditors Deferred tax liabilities 11 - Non-current creditors 5 162 471 Current creditors 28 880 2 007 Creditors total 34 053 2 478 Liabilities total 55 675 8 688 The key ratios of the Proha Group after the change. 1.1.-31.12.2000 31.12.1999 10 months Net sales (EUR 1000) 36 149 5 186 Operating profit (EUR 1000) 1 943 590 % of net sales 5.4 11.4 Profit before extraordinary items 1 537 426 % of net sales 4.3 8.2 Profit before taxes 1 537 426 % of net sales 4.3 8.2 Profit for the financial year 925 314 % of net sales 2.6 6.05 Earnings per share, EUR 0.029 0.020 Equity per share, EUR 0.392 0.324 Average personnel 249 61 PRO FORMA FIGURES OF THE PROHA GROUP, 1.1.- 31.12.2000 Net sales (EUR 1000) 82 178 Operating profit* 3 156 *Operating profit includes depreciation of goodwill, -3 446 Espoo, March 22, 2001 The Board of Directors of Proha Plc Proha Plc Pekka Pere President & CEO For more information please contact: PROHA PLC CEO Pekka Pere, tel. +358 020 4362 000 pekka.pere@proha.fi http://www.proha.fi DISTRIBUTION: Helsinki Stock Exchange Major Media ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/22/20010322BIT01020/bit0001.doc http://www.bit.se/bitonline/2001/03/22/20010322BIT01020/bit0001.pdf