REVENIO GROUP CORPORATION FINANCIAL STATEMENTS BULLETIN, January 1 to December 31, 2012

Revenio Group Corporation STOCK EXCHANGE RELEASE February 16, 2012 at 9.00 a.m.

REVENIO GROUP CORPORATION FINANCIAL STATEMENTS BULLETIN, January 1 to December 31, 2012

-Strong growth and profitability in 2011

- Consolidated net sales from continuing operations came to EUR 33.3 million (EUR 25.8 million), up 29.2%. 

- Consolidated operating profit (EBIT) of continuing operations was EUR 3.4 million (EUR -0.9 million), representing 10.3 (-3.3)% of net sales.

- Pre-tax profit, continuing and discontinued operations, EUR 4.8 million (EUR -0.7 million).

- Dilution-adjusted earnings per share, continuing and discontinued operations, EUR 0.050 million (EUR -0.008 million).

- Cash flow from operating activities amounted to EUR 4.2 million (EUR 1.3 million)

- Net sales and operating profit in the Health Care segment showed sustained
strong growth

- Safety segment improved it's profit margin significantly

- Midas Touch on Service segment turned positive over the year

-  Done Information was sold during the period and a non-recurring capital gain
of EUR 1.6 million was recorded in the third quarter result

- The proposed dividend is EUR 0.02 per share (EUR 0.02 per share)

- Group net sales for 2012 are forecast to see a decrease year-on-year due to the completion of the large deliveries in the Systems segment. Operating profit, excluding nonrecurring items, is forecast to see a similar drop to net sales, while clearly remaining in the positive territory. In 2011, net sales amounted to EUR 33.3 million, while operating profit totaled EUR 3.4 million.

10-12/2011

-Consolidated net sales from continuing operations came to EUR 8.8 million (EUR 8.8 million), down -0.1%.

-Consolidated operating profit (EBIT) from continuing operations was EUR 0.0 million (EUR -1.0 million), representing 0.3 (-10.5) % of net sales.

-The cost reserves allocated to the Norwegian projects of the Systems segment played a role in the fall in consolidated operating profit in Q4, compared to the previous quarters.

Statement by President and CEO Olli-Pekka Salovaara:

Overall, 2011 was a good year for Revenio Group, offering many reasons for satisfaction with regard to profit performance. We once again saw the highly profitable growth that we have come to expect from the Health Care segment. However, the greatest profitability improvement was seen in the services segment, in which Midas Touch was able to turn heavy losses into a profit due to its successful adjustment and business re-orientation measures. 

Another of 2011’s success stories was the Safety segment, which saw a marked improvement in its result. This is all the more impressive considering that, in the current market situation, orders are rather small and production series short. We are satisfied with the success of Done Software Solutions, a subsidiary of the Systems segment.

The business operations of FLS Finland remained profitable.  New success factors are continually being sought for the business, in order to achieve higher sales volumes. This will require success in markets outside the Nordic countries.

Our greatest disappointment of 2011 lay in the profitability of the Norwegian project undertaken by Done Logistics, part of the Systems segment.  The planned costs were exceeded during the installation phase, eating into the Group’s consolidated operating profit in Q4 2011. The most intensive installation work in Norway will continue until the spring of 2012. At the same time, the near future of Done Logistics looks challenging, since no new major orders have been secured.

Excluding the Done Logistics situation, we are heading into 2012 with optimism, since our other companies have the ability to achieve good results despite the uncertain economic situation. As for Done Logistics, we are working intensively on improving the situation.”

MARKET SITUATION

During the financial year, the Services segment saw positive development in its market situation and business operations – particularly with regard to inbound operations, an area towards which the segment’s focus is being shifted, due to its lower risks and more stable future prospects compared to telemarketing. The prospects and development of telemarketing can also be characterized as reasonably healthy, now that operations have been concentrated into the most profitable telemarketing services yielding the highest added value.

In the Systems segment, demand for logistics systems varies according to customer target group and geographical area. After the minor upsurge enjoyed during the previous financial year, matters again took a turn for the worse due to general uncertainty related to the economic situation.

During the financial year, the Health Care segment saw demand for Icare tonometers continue to grow, while the market situation remained good.  Owing to the products’ competitive position, the global market, and the degree of market penetration, demand for these products is not forecast to be as susceptible to market trends as it is for products in many other sectors.

The Safety segment has been able to increase its international visibility by engaging in marketing outside its conventional markets. The product is competitive due to its high quality and excellent product features, but the related sales processes are long-winded, while the outlook for the national economies of many customer countries remains uncertain. In spite of this, public investments in defense and safety are expected to continue, since some customer organizations need to modernize their equipment and have other, concrete investment needs based on a requirement for additional equipment.

Demand in the Technology segment’s traditional market areas was somewhat weak, since no extensive modernization programs are currently underway for price displays used in the fuel distribution network. Modernization projects were less extensive than previously, although the number of small-scale investments rose towards the end of the financial year.

NET SALES, PROFITABILITY AND PROFIT

Consolidated net sales from Revenio Group’s continuing operations for the period from January 1 to December 31, 2012 were EUR 33.3 million (EUR 25.8 million), showing an increase of 29.2%. Earnings before interest, taxes, depreciation and amortization (EBITDA) of continuing operations amounted to EUR 4.2 million (EUR 0.2 million), or 12.5 (0.8)% of net sales.

Consolidated operating profit (EBIT) of continuing operations was EUR 3.4 million (EUR -0.9 million), representing 10.3 (-3.3)% of net sales. Consolidated operating profit, excluding non-recurring items, of continuing operations amounted to EUR 3.4 million (EUR 0.6 million), or 10.3 (2.4) percent of net sales. The pre-tax result totaled EUR 4.8 million (EUR -0.7 million), or 14.4 (-2.2) percent of net sales. Consolidated net profit of continuing operations for the financial year amounted to EUR 2.2 million (EUR -0.7 million), representing 6.6 (-2.8)% of net sales. Consolidated net profit of discontinued operations during the financial year totaled EUR 1.7 million (EUR 0.2 million).  Profit for the financial year totaled EUR 3.9 million (EUR -0.6 million).

Diluted and undiluted earnings per share of continuing operations came to EUR 0.028 (EUR -0.011). Undiluted earnings per share of discontinued operations totaled EUR 0.023 (EUR 0.003), while dilution-adjusted earnings per share came to EUR 0.022 (EUR 0.003). Dilution-adjusted earnings per share of continuing and discontinued operations during the financial year totaled EUR 0.050 (EUR -0.008).

Equity per share was EUR 0.21 (EUR 0.18).

Consolidated net sales of continued operations in Q4 came to EUR 8.8 million (EUR 8.8 million). Net sales decreased by 0.1%. Consolidated operating profit for Q4 amounted to EUR 0.0 million (EUR -1.0 million), or 0.3 (-10.5) percent of net sales. The final quarter’s operating profit includes a EUR 1.9-million write-down on Midas Touch's goodwill and intangible assets on reference year's figures. Consolidated operating profit of continuing operations without recurring items for the last quarter amounted to EUR 0.0 million (EUR 1.0 million), or 0.3 (11.2) percent of net sales. Diluted and undiluted earnings per share of continuing operations during Q4 came to EUR -0.003 (EUR -0.011).

In 2011, net sales for the Group’s continuing operations grew 29.2 percent year-on-year. Significant increases in net sales were seen in the Health Care and Systems segments; the Safety and Technology segments also achieved growth in net sales. Net sales in the Services segment fell due to the decision made in late 2010 with regard to service production, to centralize operations and decrease capacity.

Consolidated operating profit for all segments saw a marked improvement year-on-year. Most of this improvement was generated by the Services and Health Care segments.

In July 2011, the Group sold the entire capital stock of Done Information Oy to Semantix Lingua Nordica Oy, part of the Swedish Semantix group. Revenio Group received a capital gain of EUR 1.6 million from the divestment, which was recorded in full in the third quarter’s result.

BALANCE SHEET, FINANCIAL POSITION AND INVESTMENTS

The consolidated balance sheet total on December 31, 2011 was EUR 24.8 million(EUR 24.5 million). Shareholders’ equity came to EUR 16.4 million (EUR 14.1 million). At the end of the financial year, interest-bearing net liabilities totaled EUR -2.8 million (EUR 0.7 million) and gearing stood at -17.3 (4.9) percent. The consolidated equity ratio was 66.6 (60.8)%. The Group’s liquid assets at the end of the fiscal year totaled EUR 4.4 million (EUR 2.1 million) in value.

Due to the positive financial development, the Group's financial standing remained stable throughout the fiscal year. In addition to its liquid assets, the Group has a EUR 2.0 million credit facility, from which no funds had been withdrawn at the end of the financial year.

Cash flow from business operations came to EUR 4.2 million (EUR 1.3 million). Factors increasing cash flow included the improved profitability of the Group's business operations, while factors decreasing cash flow included working capital tied to the projects in Norway and the related installation costs.

The Group’s purchases of PPE and intangible assets totaled EUR 0.7 million (EUR 0.7 million). These investments were concentrated on production equipment, information technology and software.

GROUP STRUCTURE

At the end of the fiscal year, Revenio Group comprised parent company Revenio Group Corporation and its wholly owned subsidiaries, all active companies: Midas Touch Oy, Done Logistics Oy, Done Software Solutions Oy, Icare Finland Oy, Boomeranger Boats Oy and FLS Finland Oy, along with, additionally, the following subsidiaries of Midas Touch Oy: Midas Touch Media Oy, Midas Touch Gateway Oy, Midas Touch Interactive Oy, Midas Touch Tech Oy, and Midas Touch Care Oy. The decision was taken to merge subsidiaries of Midas Touch Oy with its parent company during the first half of 2012.

OPERATIONS BY BUSINESS SEGMENT

Revenio Group Corporation’s business operations are organized into five segments: Services (Midas Touch), Systems (Done Logistics and Done Software Solutions), Health Care (Icare Finland), Safety (Boomeranger Boats), and Technology (FLS Finland). This structure is in line with the Group’s organization and internal reporting.

Services

The Services segment comprises Midas Touch, one of the leading contact center companies in Finland. Midas Touch provides outsourced telephone services, including customer service, help desk services, exchange management, telemarketing and market surveys for the private and public sectors alike.

The Services segment's net sales in 2011 totaled EUR 4.9 million (EUR 6.7 million), down 26.4 percent. The segment’s profit margin was 0.1 (-3.3), including 1.9 million euro in write-downs on goodwill and intangible assets as non-recurring items on reference year's figures. Q4 net sales amounted to EUR 1.3 million (EUR 1.4 million), and the margin was EUR -0.0 million (EUR -2.3 million).

Midas Touch’s profitability markedly improved during the financial year. This was the result of restructuring measures carried out at the company in late 2010, in which production capacity was markedly adjusted to the prevailing market situation. As a result, production efficiency improved, while the cost level dropped substantially. The company’s telephone service system was also modernized; the new system better enables the company to operate in line with its current focal points.

Systems

The Systems segment comprises Done Logistics, which provides companies with materials handling systems related to their internal logistics, and Done Software Solutions, which provides the related information systems. In 2011, the Systems segment’s net sales came to EUR 13.1 million(EUR 6.8 million), up 92.9 percent. The segment’s profit margin was EUR 0.3 million (EUR 0.0 million). Q4 net sales amounted to EUR 3.6 million (EUR 3.1 million), and the margin was EUR -0.8 million (EUR 0.3 million).

In the financial year 2011, the majority of net sales of Done Logistics, part of the Systems segment, were generated by the delivery of a system to the Norwegian Tine SA, for the handling and collection of dairy products, as a subcontractor for the Swiss logistics group Swisslog. Business operations  turned negative in Q4 due to the high costs incurred during the installation and implementation phase. Most of the project’s remaining installation and implementation phase will occur in the first half of 2012.

Done Software Solutions’ first full year in operation was successful, seeing an improvement in profitability,  despite the challenging market situation in the sector’s software market.

Health Care

The Health Care segment comprises Icare Finland, which specializes in the development, manufacture and sale of tonometers measuring intraocular pressure.

In 2011, the Health Care segment’s net sales came to EUR 8.9 million (EUR 7.0 million), up 26.9 percent. The segment’s profit margin was EUR 3.9 million (EUR 2.9 million). Q4 net sales amounted to EUR 2.6 million (EUR 2.2 million), while the segment’s margin was EUR 1.2 million (EUR 1.1 million).

The market position of the Health Care segment improved during the financial year, and its business operations saw favorable development. The company invested in sensor production, with sensor sales representing an increasingly important part of its business operations.  The development of distribution channels and the systematic international marketing of products continued. The decision to establish a subsidiary in the USA was made during the financial year.

At the end of the financial year, Icare had a sales license for its first-generation tonometer and the Icare Link software, representing a new generation of products. With regard to new-generation products, the application related to the Icare One tonometer was pending, while the application process for the icare Pro tonometer was being prepared. Icare One is designed for the self-measurement of intraocular pressure ‒ a fact that may affect the length of the licensing process.

Safety

The Safety segment consists of Boomeranger Boats, which designs, manufactures, and sells Rigid Inflatable Boats (RIBs) of the highest quality, primarily for navy rescue units, authorities and security forces in various countries.

In 2011, the Safety segment’s net sales amounted to EUR 3.8 million (EUR 3.4 million), up 12.9 percent. The segment’s profit margin was EUR 0.6 million (EUR 0.2 million). Q4 net sales amounted to EUR 0.6 million (EUR 1.2 million), while the segment’s margin was EUR 0.1 million (EUR 0.2 million).

The segment’s sales during the financial year comprised rather small-scale orders, which were delivered at high production efficiency and profitability.  However, this business sector’s order backlog is uneven, leading to large fluctuations in volume within each year.

Technology

Representing the Technology segment, FLS Finland (previously Finnish Led-Signs) is the largest supplier of LED price displays in the Nordic region and is Finland’s leading manufacturer of LED information displays and parking guidance systems.

In 2011, net sales of the Technology segment totaled EUR 2.5 million (EUR 1.9 million), up 29.2 percent. The segment’s profit margin was EUR 0.1 million (EUR 0.0 million). Although net sales grew, investment activity among the segment’s customers, with respect to display equipment for service station networks, was subdued in 2011. A positive result was enabled by the company's ability also to fill small orders at a profit. The most significant customer delivery over the period was the expansion on Helsinki-Vantaa airport's parking display equipment.

Over the period a 2-year framework partnership agreement with British Petroleum was signed over the LED-displays and 3-year extension on partnership agreement with Neste Oil as well.

Q4 net sales amounted to EUR 0.7 million (EUR 0.8 million), while the segment’s margin was EUR 0.0 million (EUR 0.1 million).

Net sales, margin, and profit, by segment and quarter, excluding nonrecurring items, were as follows:

HUMAN RESOURCES

The number of personnel employed by the Group in 2011 averaged 248 (423). Layoffs at Midas Touch, completed at the end of 2010, and the divestment of Done Information were the most important factors affecting the number of employees. At the end of the period, the number of employees was 265 (333). The average age of staff was 41 years (41 years).

Owing to the deterioration in prospective demand, the company held employer-employee negotiations at Done Logistics. On the basis of these negotiations, the company is entitled to implement fixed-term layoffs during 2012, should the market situation so require. Boomeranger Boats also prepared for reducing demand by means of employer-employee negotiations.

During the financial year, development projects related to the work of supervisors and management, determined on the basis of the 2010 personnel survey, were carried out at Group companies.

The number of personnel employed by the Group during the fiscal year, by segment, averaged:

Wages, salaries, and other remuneration paid during the financial year totaled EUR 8.7 million (EUR 9.5 million).

MANAGEMENT GROUP

Olli-Pekka Salovaara is the president and CEO of Revenio Group Corporation. The Management Group consists of Salovaara, Development Director Juha Kujala, and CFO Pekka Raatikainen.

The managing directors of the Group’s subsidiaries are Ari Tiukkanen (Icare Finland), Riku Lamppu (Midas Touch), Helena Korte (FLS Finland), Jussi Mannerberg (Boomeranger Boats), Pekka Soini (Done Logistics) and Ari Suominen (Done Software Solutions).

SHARES, SHARE CAPITAL AND MANAGEMENT HOLDINGS

On December 31, 2011, Revenio Group Corporation's fully paid share capital registered in the Trade Register was EUR 5,314,918.72 and the number of shares outstanding totaled 76,889,730. The company has one series of shares, and all shares confer the same voting rights and an equal right to dividends and the company’s funds.

On December 31, 2011, the Board of Directors and the President and CEO held 1.6% of the company's shares, totaling 1,202,600 shares, and 18.6% of the option rights, for a total of 684,365 options.

CHANGES IN SHAREHOLDING

There were no significant changes in ownership to report during the fiscal year. 

PURCHASE OF OWN SHARES

During the financial year, the company purchased a total of 500,000 of the company’s own shares. The buyback program, launched on 16 August 2011, was completed on 7 September 2011. 177,391 of the acquired shares were used for paying Board members’ emoluments in accordance with the AGM’s decision of March 31. The Board members - Rolf Fryckman, Matti Hyytiäinen, Julia Ormio and Pekka Tammela – each received 31,304 in Board emoluments. Timo Mänty, the chairman of the Board, received 52,174 shares in Board emoluments.

At the end of the financial year, the company held a total of 322,609 of its own shares.

OPTION RIGHTS

On the basis of the share issue authorization approved by the Annual General Meeting on April 3, 2007, the Board of Revenio Group Corporation decided, on November 23, 2007, on a new corporate option plan, comprising a maximum of 3,684,365 option rights. Each option right entitles the holder to subscribe to one Revenio Group Corporation share. Against the total number of the company’s shares on December 31, 2011, the proportion of shares to be subscribed for on the basis of the option rights issued represents a maximum of 4.7 percent of the company’s shares and votes, once all new shares subscribed for with these option rights have been registered. Share subscriptions via the option program entitle the holder to a dividend from the subscription year onwards.

The option rights have been divided into three series: Series A (1,684,365 shares), Series B (1,000,000) and Series C (1,000,000). The subscription periods for the options are as follows: for Series A, May 1, 2009 – May 1, 2013; for Series B, November 1, 2010 – November 1, 2014; and for Series C, May 1, 2012 – May 1, 2016. The share subscription price will be the trade-weighted average price over the periods November 1–30, 2007 (EUR 0.64, Series A); April 1–30, 2009 (EUR 0.29, Series B); and November 1–30, 2010 (EUR 0.28, Series C).

During the financial year, a total of 148,122 Series B option rights and 1,000,000 Series C option rights were issued. The number of shares subscribed based on Series B stock options, issued at an earlier time, totaled 50,000. At the end of the year, the company’s key personnel held, in total, 1,081,243 Series-2007A options, 858,122 Series-2007B options, and 1,000,000 Series-2007C options.

TRADING ON THE NASDAQ OMX HELSINKI

During Q1-Q4/2011, Revenio Group Corporation’s turnover on the NASDAQ OMX Helsinki exchange totaled EUR 17.3 million (EUR 7.9 million), representing 39.4 (24.7) million shares or 51.2 (32.2)% of shares outstanding. The trading high was EUR 0.62 (0.38) and the low EUR 0.30 (0.28). With an average share price of EUR 0.44 (EUR 0.30), the company’s share closed at EUR 0.48 (0.30) on December 31, 2011. Revenio Group Corporation’s market value on December 31, 2011, was EUR 36.9 million (EUR 23.0 million).

ANNUAL GENERAL MEETING AND BOARD AUTHORIZATIONS IN EFFECT

The Annual General Meeting, held on March 31, 2011, approved the company’s financial statements and discharged the members of the Board of Directors and the president and CEO from liability for the January 1 – December 31, 2010, financial year.

The AGM re-elected Rolf Fryckman, Timo Mänty and Pekka Tammela as Board members while also appointing Matti Hyytiäinen and Julia Ormio as Board members.

The AGM decided that the Chairman of the Board should be entitled to an annual emolument of EUR 60,000 and the other Board members to an annual emolument of EUR 36,000, with the exception that any member who holds a stake of at least five percent in Revenio Group Corporation, either directly or through a company in which he or she has a minimum holding of 50%, should not be entitled to a separate emolument. In total, 40% of Board members’ emoluments will be settled in the form of shares in the company, while 60% will consist of monetary payment.

The AGM decided to re-elect PricewaterhouseCoopers Oy, Authorized Public Accountants, as the company’s auditor, with Juha Tuomala, Authorized Public Accountant, acting as the chief auditor.

The AGM decided to accept the Board’s proposal on profit distribution, according to which the profit for the financial period, EUR 243,391.03, will be added to retained earnings, and a dividend of EUR 0.02 per share will be paid, totaling EUR 1,536,794.60.

The AGM authorized the Board of Directors to decide on buyback of a maximum of 7,683,973 own shares in one or more installments, using the company’s unrestricted equity. Any such buyback will reduce the company’s distributable earnings.

The AGM cancelled the Board of Directors’ unexercised valid share-issue authorization, and authorized the Board to decide to issue a maximum of 30,000,000 shares or to grant special rights (including stock options) entitling to shares, as referred to in Section 1 of Chapter 10 of the Limited Liability Companies Act, in one or several tranches. This authorization was granted to be used to finance and implement any prospective corporate acquisitions or other transactions, to implement the company’s share-based incentive plans, or for other purposes determined by the Board. The Board has the right to decide on all terms and conditions governing said share issue and the granting of special rights, including the subscribers or grantees of the special rights, and the consideration payable. The Board’s authorization includes the right to waive shareholders’ preemptive subscription rights and covers the issue of new shares and the transfer of any shares that may be held by the company. This authorization will be valid until April 30, 2012.

BOARD OF DIRECTORS AND AUDITORS

Since March 31, 2011, Revenio Group Corporation’s Board of Directors has included Timo Mänty, M.Econ, Managing Director of Onninen Oy (Chairman of the Board), Pekka Tammela, M.Econ, Authorized Public Accountant, partner in Pajamaa Partners Oy and Rolf Fryckman, optician, Chairman of Eyemaker’s Finland Oy; and as new members, Julia Ormio, Senior Legal Counsel at Foster Wheeler Energy Oy, and Matti Hyytiäinen, M.Econ, Managing Director of OKC Group Oyj. Until March 31, 2011, the members of the Board were Jyri Merivirta, Rolf Fryckman, Pekka Tammela, and Timo Mänty.

PricewaterhouseCoopers Oy, Authorized Public Accountants, serves as the company’s auditor, with Juha Tuomala, Authorized Public Accountant, as the principal auditor.

In 2011, the Board of Directors met 16 times. On average, Board members’ meeting attendance rate was 98.7 percent.

In accordance with the AGM’s decision, 40 percent of Board members’ emoluments, in total, were settled in the form of shares in the company, while 60 percent consisted of monetary payment. In the course of the financial year, the company made, in total, EUR 126,967.45 in monetary payments as Board emoluments. In addition, 177,391 Revenio Group Corporation shares in all were granted as Board emoluments.

In the 2011 financial year, the president and CEO was paid EUR 208,668.00 in salary.

MAJOR BUSINESS RISKS AND UNCERTAINTIES

The Group’s risks are defined as strategic, operational, trade cycle, hazard, and financial risks.

The Group’s strategic risks include strong competition in all sectors, the threat posed by new competing products, and any other actions of the company’s rivals that may affect the competitive situation. Another factor posing a strategic risk is related to success in R&D operations and, therefore, preservation of the product range’s competitiveness. In the Group’s sectors, requiring particular expertise in accordance with the strategy, essential risks also include those related to the retention and development of key personnel as well as dependence on the operational ability of the subcontractor and supplier network.

Corporate acquisitions are part of the Group’s strategy. The success of these acquisitions has a significant impact on the reaching of growth and profitability targets. Acquisitions may also change the Group’s risk profile.

Strategic risks and the need for action are regularly assessed and are monitored in connection with day-to-day management, monthly Group reporting, and annual strategy updates.

Operational risks are associated with the retention and development of major customers and success in extending the customer base. In the Health Care segment especially, operational risks include factors related to expansion into new markets, such as various countries' regulation of medical instruments imposed at national level and the related official decisions concerning the health care market.

The operational risks related to the manufacture, product development, and production control of medical instruments are estimated to be higher than average in the Health Care segment, because of that sector’s requirements concerning quality.

Project-based operations, mainly carried out in the Systems and Technology segments, entail exposure to subcontractor and supplier risks in the management of demanding integrated solutions.

The share of deferred tax assets in the assets item of the consolidated balance sheet is significant. Changes in business profitability and tax legislation could involve changes in the availability and amount of deferred tax assets.

Hazard risks are subject to extensive insurance coverage, and the adequacy of that coverage is always assessed when any changes in circumstances so require – however, no less than once per year. Property insurance and insurance against interruptions to business provide protection against risks in these areas, while various types of liability insurance provide protection against other business risks.

Financial risks consist of credit, interest, liquidity, and foreign exchange risks. The Group has taken out credit insurance covering all companies in the Group, to manage credit loss risks. Every month, and more frequently if necessary, the Board, in its meetings, assesses matters related to financial issues. If required, the Board provides decisions and guidelines for the management of financial risks concerning interest-rate and currency hedging, for instance. Liquidity risks are monitored by means of cash forecasts, which are drawn up for periods of 12 months at a time.

EVENTS AFTER THE FINANCIAL YEAR

On January 5, 2012, the company announced the replacement of the Managing Director of its subsidiary, Icare Finland. The current Managing Director, Ari Tiukkanen, had announced he would be leaving to take up a position with another company in May, 2012.

OUTLOOK FOR 2012

Group net sales for 2012 are forecast to see a decrease year-on-year due to the completion of the large deliveries in the Systems segment. Operating profit, excluding nonrecurring items, is forecast to see a similar drop to net sales, while clearly remaining in the positive territory. In 2011, net sales amounted to EUR 33.3 million, while operating profit totaled EUR 3.4 million.

THE BOARD'S PROPOSAL TO THE ANNUAL GENERAL MEETING

The consolidated net profit for the year totaled EUR 3,911 thousand and that of the parent company EUR 2,056,692.01.

The parent company’s distributable earnings on December 31, 2011 totaled EUR 14,363,150.07.

The Board of Directors will propose to the Annual General Meeting on March 28, 2012, that the parent company’s distributable earnings be allocated as follows:

- A per-share dividend of EUR 0.02, for a total of EUR 1,537,794.60, against the total number of shares on the balance sheet date, will be distributed.

- The rest of the distributable retained earnings will be entered under equity.

In the Board’s opinion, the proposed dividend distribution does not endanger the parent company’s liquidity.

ACCOUNTING PRINCIPLES

The recognition and valuation principles underlying the financial information presented in the Interim Report comply with the principles of the International Financial Reporting Standards (IFRS). The report does not comply with all the requirements of IAS 34, Interim Financial Reporting. These financial statements are based on audited figures.

CORRECTION OF AN ERRROR RELATED TO A PREVIOUS FINANCIAL YEAR IN COMPLIANCE WITH IAS 8

During the financial year 2011, Midas Touch received an unfavorable decision from the tax authorities concerning its practice regarding the right to deduct VAT from the cost debits between companies belonging to the Midas sub-group. According to this decision, the excess amount of VAT deducted by Midas Touch Oy during the tax years 2008-2010 totaled EUR 396,000, including the consequences for default. EUR 82,000 of this sum was accumulated during the financial year 2010.

The impact of these corrections on the consolidated income statement and balance sheet has been implemented as follows:

CONSOLIDATED STATEMENT OF CHANGE IN EQUITY (MEUR)

Revenio Group Corporation

BOARD OF DIRECTORS

For further information, please contact:

Olli-Pekka Salovaara, President and CEO, mobile +358 (0)40 5675520

olli-pekka.salovaara@revenio.fi

http://www.reveniogroup.fi

DISTRIBUTION:

NASDAQ OMX Helsinki

Financial Supervisory Authority (FIN-FSA)

Key media

www.revenio.fi

Revenio Group Corporation, the parent company of the Finnish business group Revenio Group, is listed on the NASDAQ OMX Helsinki exchange. Revenio Group Corporation’ subsidiaries share a focus on Finnish specialist expertise and export-based operations.

Revenio Group consists of six independent subsidiaries in five business segments. These subsidiaries are Done Logistics Oy, Done Software Solutions Oy, Icare Finland Oy, Boomeranger Boats Oy, FLS Finland Oy and Midas Touch Oy.