BASWARE CORP. STOCK EXCHANGE RELEASE FEBRUARY 1, 2007 As announced on January 15, BasWare Corp. adjusts its accounting principles regarding the revenue recognition of license sales, as recommended by the new auditor. The Company will prepare the 2006 Financial Statements according to the adjusted principles and restates the interim reports for the first three quarters of 2006 and the 2005 comparative figures for all four quarters. BasWare has previously in some cases at the end of the quarters entered license sales as revenue based on agreements where the actual license delivery has been delayed by some days. As a result, license sales have been recognized as revenue a month beforehand. For the 2006 Financial Statements, valuation principles have also been tightened with regards to accounts receivables. Additionally, the accounting principles regarding the revenue recognition of license sales have been adjusted for 2006. The now applied principles will also be applied in the future Financial Statements and Interim Reports of the Company. The attached tables present the restated as well as the previously reported key figures published in respective Q1 2005Q3 2006 interim reports. For further information, please contact: CEO Ilkka Sihvo, BasWare, tel. +358 40 501 8251 PREVIOUSLY REPORTED QUARTERLY GROUP KEY FIGURES EUR thousand 1-3/ 1-6/ 1-9/ 1-12/ 1-3/ 1-6/ 1-9/ 2005 2005 2005 2005 2006 2006 2006 Net sales 8 527 20 490 29 780 42 810 14 243 30 056 42 715 Growth of net sales, % 16.2% 25.9% 27.6% 26.3% 67.0% 46.7% 43.4% Operating profit 534 1 884 2 451 4 756 1 339 3 749 5 540 Growth of operating profit -57.3% -37.8% -43.0% -24.0% 150.7% 99.0% 126.0% % of net sales 6.3% 9.2% 8.2% 11.1% 9.4% 12.5% 13.0% Profit before tax 539 1 901 2 482 4 792 1 417 3 866 5 725 % of net sales 6.3% 9.3% 8.3% 11.2% 9.9% 12.9% 13.4% Profit for the period 117 1 270 1 806 3 097 1 112 2 570 3 951 % of net sales 1.4% 6.2% 6.1% 7.2% 7.8% 8.6% 9.3% Return on equity, % 3.1% 16.0% 14.6% 17.4% 13.7% 16.7% 15.3% Return on investment, % 13.3% 22.2% 18.7% 25.5% 17.6% 22.7% 21.7% Interest bearing liabilities 1 514 1 635 1 673 1 230 1 113 990 870 Cash and liquid assets *) 10 847 10 058 10 514 9 987 11 153 11 312 9 909 Gearing, % -51.3% -43.0% -42.4% -37.4% -24.3% -23.6% -19.9% Equity ratio, % 67.5% 62.8% 64.4% 69.1% 69.2% 71.7% 76.9% Total assets 26 927 31 192 32 374 33 912 59 674 61 136 59 182 Gross investments **) 492 4 330 6 164 6 925 21 695 23 074 24 492 % of net sales 5.8% 21.1% 20.7% 16.2% 152.3% 76.8% 57.3% Capital expenditure 303 515 600 749 158 450 510 % of net sales 3.6% 2.5% 2.0% 1.7% 1.1% 1.5% 1.2% Research and development costs 1 319 3 099 4 370 6 204 2 639 5 445 7 640 % of net sales 15.5% 15.1% 14.7% 14.5% 18.5% 18.1% 17.9% Unrestated Share Indicators Earnings per share, EUR 0.01 0.14 0.19 0.33 0.11 0.24 0.36 Earnings per share, EUR (diluted) 0.01 0.14 0.19 0.32 0.11 0.23 0.35 Equity per share, EUR 1.91 2.04 2.16 2.37 3.64 3.84 3.97 *) Includes cash, cash equivalents and financial assets at fair value through profit or loss **) Includes acquisitions, share investments and capitalized R&D costs. RESTATED QUARTERLY GROUP KEY FIGURES EUR thousand 1-3/ 1-6/ 1-9/ 1-12/ 1-3/ 1-6/ 1-9/ 2005 2005 2005 2005 2006 2006 2006 Net sales 8 136 20 016 30 843 41 666 15 432 30 083 43 446 Growth of net sales, % 10.9% 23.0% 32.2% 29.4% 89.7% 50.3% 40.9% Operating profit 143 1 409 3 514 3 611 2 529 3 776 6 271 Growth of operating profit, -88.6% -53.5% -18.2% -20.8% 1 665.6% 168.1% 78.5% % of net sales 1.8% 7.0% 11.4% 8.7% 16.4% 12.6% 14.4% Profit before tax 148 1 426 3 546 3 647 2 606 3 894 6 457 % of net sales 1.8% 7.1% 11.5% 8.8% 16.9% 12.9% 14.9% Profit for the period -188 912 2 590 2 229 1 994 2 795 4 460 Return on equity, % -2.3% 4.6% 8.4% 5.4% 12.9% 9.3% 10.3% Return on equity, % -5.5% 12.6% 35.0% 13.9% 26.0% 17.8% 18.2% Return on investment, % 4.3% 18.3% 41.2% 21.4% 33.5% 24.3% 25.8% Interest bearing liabilities 1 514 1 635 1 673 1 230 1 113 990 870 Cash and liquid assets *) 10 847 10 058 10 514 9 987 11 153 11 312 9 909 Gearing, % -56.2% -46.9% -43.4% -41.1% -25.1% -24.8% -20.6% Equity ratio, % 66.2% 61.6% 64.1% 68.2% 68.8% 71.1% 76.6% Total assets 25 105 29 163 31 777 31 228 58 237 58 655 57 293 Gross investments **) 492 4 330 1 834 6 925 21 695 23 501 24 492 % of net sal 6.0% 21.6% 16.9% 16.6% 140.6% 78.1% 56.4% Capital expenditure 303 515 85 749 158 368 510 % of net sal 3.7% 2.6% 0.8% 1.8% 1.0% 1.2% 1.2% Research and development costs 1 319 3 099 1 271 6 204 2 639 5 445 7 640 % of net sales 16.2% 15.5% 11.7% 14.9% 17.1% 18.1% 17.6% Restated Share Indicators Earnings per share, EUR -0.02 0.10 0.28 0.24 0.19 0.26 0.40 Earnings per share, EUR (diluted) -0.02 0.10 0.27 0.23 0.19 0.25 0.40 Equity per share, EUR 1.75 1.87 2.11 2.16 3.53 3.67 3.83 *) Includes cash, cash equivalents and financial assets at fair value through profit or loss **) Includes acquisitions, share investments and capitalized R&D costs. RESTATED GROUP QUARTERLY INCOME STATEMENT 1-3/ 1-6/ 1-9/ 1-12/ 1-3/ 1-3/ 1-6/ 1-12/ EUR thousand 2005 2005 2005 2005 2005 2006 2006 2006 NET SALES 8 136 11 879 10 827 10 823 41 666 15 432 14 651 13 363 Other operating income 21 13 13 13 60 41 61 25 Materials and services -694 -1031 -778 -669 -3 172 -778 -689 -468 Employee benefits expenses -4 743 -6 375 -4 847 -6 604 -22 56 -8 259 -8 710 -6 942 Depreciation and amortization -217 -267 -316 -277 -1 077 -453 -488 -520 Other operatin expenses -2 360 -2 953 -2 794 -3 190 -11 29 -3 454 -3 578 -2 963 Operating profit 143 1 266 2 105 97 3 611 2 529 1 247 2 495 % 1.8% 10.7% 19.4% 0.9% 8.7% 16.4% 8.5% 18.7% Finance income 23 40 39 44 146 138 48 56 Finance expenses -18 -28 -25 -40 -111 -60 -8 12 Profit before tax 148 1 278 2 119 101 3 647 2 606 1 287 2 563 % 1.8% 10.8% 19.6% 0.9% 8.8% 16.9% 8.8% 19.2% Tax on income from operations -336 -179 -441 -462 -1 417 -613 -486 -898 PROFIT FOR THE PERIOD -188 1 099 1 679 -361 2 229 1 994 801 1 665 % -2.3% 9.3% 15.5% -3.3% 5.4% 12.9% 5.5% 12.5% RESTATED GROUP QUARTERLY INCOME STATEMENT 1-3/ 1-6/ 1-9/ 1-12/ 1-3/ 1-3/ 1-6/ 1-12/ EUR thousand 2005 2005 2005 2005 2005 2006 2006 2006 NET SALES 8 136 11 879 10 827 10 823 41 666 15 432 14 651 13 363 Other operating income 21 13 13 13 60 41 61 25 Materials and services -694 -1031 -778 -669 -3 172 -778 -689 -468 Employee benefits expenses -4 743 -6 375 -4 847 -6 604 -22 56 -8 259 -8 710 -6 942 Depreciation and amortization -217 -267 -316 -277 -1 077 -453 -488 -520 Other operating expenses -2 360 -2 953 -2 794 -3 190 -11 29 -3 454 -3 578 -2 963 Operating profit 143 1 266 2 105 97 3 611 2 529 1 247 2 495 % 1.8% 10.7% 19.4% 0.9% 8.7% 16.4% 8.5% 18.7% Finance income 23 40 39 44 146 138 48 56 Finance expenses -18 -28 -25 -40 -111 -60 -8 12 Profit before tax 148 1 278 2 119 101 3 647 2 606 1 287 2 563 % 1.8% 10.8% 19.6% 0.9% 8.8% 16.9% 8.8% 19.2% Tax on income from operations -336 -179 -441 -462 -1 417 -613 -486 -898 PROFIT FOR THE PERIOD -188 1 099 1 679 -361 2 229 1 994 801 1 665 % -2.3% 9.3% 15.5% -3.3% 5.4% 12.9% 5.5% 12.5% RESTATED GROUP BALANCE SHEET EUR thousand 31.3. 30.6. 30.9. 31.12. 31.1. 30.6. 30.9. 2005 2005 2005 2005 2006 2006 2006 ASSETS NON-CURRENT ASSETS Intangible assets 1 986 3 075 3 853 4 040 9 103 9 428 9 384 Goodwill 982 3 372 4 168 4 481 17 763 18 350 18 228 Tangible assets 740 804 747 729 1 013 962 841 Investments in associates 3 3 10 3 3 3 3 Available-for-sale investments 2 606 2 612 2 612 Trade and other receivables 16 34 33 24 12 12 12 Deferred tax assets 2 084 2 762 2 698 3 296 4 056 3 588 3 446 Non-current assets 5 811 10 050 11 509 12 573 34 557 34 955 34 527 CURRENT ASSETS Inventories 30 26 24 9 21 14 8 Trade and other receivables 8 417 9 029 9 731 8 616 12 434 12 262 12 724 Income tax receivables 43 72 112 125 Financial assets at fair value through profit and loss 5 835 5 873 5 915 Cash and cash equivalents 10 847 10 058 10 514 9 987 5 318 5 439 3 993 Current assets 19 294 19 113 20 268 18 655 23 680 23 700 22 766 TOTAL ASSETS 25 105 29 163 31 777 31 228 58 237 58 655 57 293 EQUITY AND LIABILITIES SHAREHOLDERS EQUITY Share capital 2 851 2 875 2 900 2 963 3 402 3 404 3 440 Share premium account 12 659 13 030 13 639 15 010 32 213 32 444 33 127 Other reserves 540 514 Translation differences -22 -140 -40 -203 163 381 211 Retained earnings 1 121 2 192 3 881 3 527 4 282 4 915 6 584 Shareholders' equity 16 610 17 956 20 380 21 296 40 061 41 685 43 877 NON-CURRENT LIABILITIES Deferred tax liability 179 326 283 1 541 1 457 1 415 Interest-bearing liabilities 1 037 1 054 868 757 653 545 437 Non-current liabilities 1 037 1 233 1 194 1 040 2 195 2 001 1 851 CURRENT LIABILITIES Interest-bearing liabilities 478 581 806 474 459 445 433 Trade payables and other liabilities 5 899 9 014 9 130 8 066 14 575 13 738 10 085 Tax liability from income tax 1 081 379 268 352 947 786 1 046 Current liabilities 7 458 9 974 10 203 8 892 15 982 14 969 11 565 TOTAL EQUITY AND LIABILITIES 25 105 29 163 31 777 31 228 58 237 58 655 57 293 PREVIOUSLY REPORTED GROUP BALANCE SHEET EUR thousand 31.3. 30.6. 30.9. 31.12. 31.1. 30.6. 30.9. 2005 2005 2005 2005 2006 2006 2006 ASSETS NON-CURRENT ASSETS Intangible assets 1 986 3 075 3 853 4 040 9 103 9 428 9 384 Goodwill 982 3 372 4 168 4 481 17 763 18 350 18 228 Tangible assets 740 804 747 729 1 013 962 841 Investments in associates 3 3 10 3 3 3 3 Available-for-sale investments 2 606 2 612 2 612 Trade and other receivables 16 34 33 24 12 12 12 Deferred tax assets 1 559 2 208 2 541 2 582 3 651 2 924 2 958 Non-current assets 5 287 9 496 11 352 11 859 34 152 34 291 34 039 CURRENT ASSETS Inventories 30 26 24 9 21 14 8 Trade and other receivables 10 763 11 612 10 485 12 014 14 332 15 407 15 102 Income tax receivables 43 72 112 125 Financial assets at fair value through profit and loss 5 835 5 873 5 915 Cash and cash equivalents 10 847 10 058 10 514 9 987 5 318 5 439 3 993 Current assets 21 640 21 696 21 023 22 053 25 578 26 844 25 143 TOTAL ASSETS 26 927 31 192 32 374 33 912 59 730 61 136 59 182 EQUITY AND LIABILITIES SHAREHOLDERS EQUITY Share capital 2 851 2 875 2 900 2 963 3 402 3 404 3 440 Share premium account 12 659 13 030 13 639 15 010 32 213 32 444 33 127 Other reserves 540 514 Translation differences -22 -140 -40 -211 163 381 211 Retained earnings 2 691 3 814 4 356 5 662 5 526 6 808 8 191 Shareholders' equity 18 179 19 578 20 855 23 424 41 304 43 578 45 484 NON-CURRENT LIABILITIES Deferred tax liability 179 326 283 1 541 1 457 1 415 Interest-bearing liabilities 1 037 1 054 868 757 653 545 437 Non-current liabilities 1 037 1 233 1 194 1 040 2 195 2 001 1 851 CURRENT LIABILITIES Interest-bearing liabilities 478 581 806 474 459 445 433 Trade payables and other liabilities 6 152 9 421 9 252 8 623 14 824 14 080 10 368 Tax liability from income tax 1 081 379 268 352 947 1 032 1 046 Current liabilities 7 711 10 381 10 326 9 448 16 231 15 557 11 847 TOTAL EQUITY AND LIABILITIES 26 927 31 192 32 374 33 912 59 730 61 136 59 182 BASWARE CORP. Ilkka Sihvo Distribution: Helsinki Stock Exchange Principal media www.basware.com