Tieto and the Finnish ICT Agency Haltik terminate agreement on inter-government IT system project Vitja

TIETO CORPORATION   PRESS RELEASE         6 June 2014 at 10.30 EET

Following negotiations, Tieto, the Finnish National Police Board and the Finnish ICT Agency Haltik have together made the decision to terminate agreement on inter-government IT system project Vitja, due to problems with the delivery schedule.

One third of the Vitja project has already been completed. The termination of the agreement will not affect police operations or the security of the citizens because the project was separate from the old system currently in use.

“The agreement was terminated in mutual understanding with the supplier. This was the best possible solution given the circumstances,” comments Superintendent Mika Pasanen of the Finnish National Police Board.

“We're pleased to note that the project could be recast in a positive spirit. The decision now made was the best solution for us as well. Experts from Tieto will continue to work on the Vitja project. We hope that they can carry on with their work in peace to ensure the successful completion of the project,” says Satu Kiiskinen, Executive Vice President, Tieto.

The parties have mutually agreed that Tieto pays a one-time fee of 7.5 MEUR to the Finnish National Police Board. This includes both the amount invoiced for the delivery as well as an additional compensation fee for terminating of the agreement. Additionally, the police will retain the results of the development efforts generated to date, including the related documentation. All solutions rolled out so far, such as the ID system (RETU), will also be retained by the police. Experts from Tieto will continue to work on the Vitja project for the period of time specified in the settlement.

Originally, the new inter-government IT system Vitja was to be rolled out at the beginning of 2014. Its objective is to improve efficiency within the police by integrating the various individual IT systems.

Aside from the police, the new system will be used by the Finnish Border Guard, Customs, Emergency Response Centre Administration and the Defence Forces. The total number of users will amount to around 16,000. With an estimated cost of EUR 25 million, the project is expected to generate annual savings of EUR 10–15 million for the police.

For further information, please contact:

Satu Kiiskinen, Executive Vice President of Consulting and System Integration, +358 50 5063 757 satu.kiiskinen[at]tieto.com

Jessica Diktonius, External Communications Manager, +358 40 709 9176, jessica.diktonius[at]tieto.com

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Tieto is the largest Nordic IT services company providing full life-cycle services for both the private and public sectors and product development services in the field of communications and embedded technologies. The company has global presence through its product development business and global delivery centres. Tieto is committed to developing enterprises and society through IT by realizing new opportunities in customers' business transformation. At Tieto, we believe in professional development and results.

Founded 1968, headquartered in Helsinki, Finland and with approximately 14 000 experts, the company operates in over 20 countries with net sales of approximately EUR 1.6 billion. Tieto's shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.