TECHNOPOLIS PLC STOCK EXCHANGE RELEASE 2.2.2007 at 8.15 a.m. TECHNOPOLIS'S CONSOLIDATED FINANCIAL STATEMENTS RELEASE FOR 2006 Highlights of 2006 compared with the previous year: - Consolidated net sales increased to EUR 44.8 million (EUR 31.7 million in 2005), up by 41.3 % - EBITDA (Earnings before interest, taxes, depreciation and amortization) rose to EUR 22.7 million (EUR 17.5 million), up by 29.8 % - Profit after taxes was EUR 23.7 million (EUR 12.7 million), up by 87.2 % - Earnings per share totaled EUR 0.63 (EUR 0.38). - The Board of Directors of Technopolis proposes to the Annual General meeting that a dividend of EUR 0.14 per share be distributed for the 2006 financial year (EUR 0.13 per share in 2005). Overview The growth-oriented Technopolis Group, Finland's largest provider of high tech operating environments, has a service concept that combines premises, business services and development programs. The Group has 348,415 floor square meters of premises for leasing, which are occupied by 930 companies and other entities. The Groups business advanced in line with strategy, and new operating locations were added at Jyväskylä and Tampere in Finland, and at St. Petersburg in Russia. In June, the company acquired a majority holding in Technopolis JSP Ltd, located in Jyväskylä. Its holding in Technopolis JSP at the end of 2006 was 98.5 %. Late in the fall, the company acquired the entire stock of Technopolis TSP Ltd, located in Tampere. In St. Petersburg, the company purchased a plot of 4.6 hectares in the vicinity of the Pulkovo airport for technology park operations. The general business environment for Technopolis's operations continued to be challenging in 2006. However, the situation of over- supply of office premises in the Helsinki metropolitan area eased, and there was continuing demand for high-quality offices. A good level of demand continued in Oulu, although the lack of parking facilities in the city center hampered the marketing of office premises in general. In Tampere, the demand for high-quality premises enabled the commencement of new projects. In Jyväskylä, there is demand for new, functionally-designed office premises, and many outdated premises are undergoing conversion for residential use. In Lappeenranta, many previously vacant office premises have been occupied recently, and there are few premises available. Business The consolidated net sales were EUR 44.8 million (EUR 31.7 million in 2005), up by 41.3 % on the previous year. EBITDA (Earnings before interest, taxes, depreciation and amortization) for the review period was EUR 22.7 million (EUR 17.5 million), up by 29.8 %. Operating profit was EUR 38.2 million (EUR 18.5 million). Profit before taxes totaled EUR 33.0 million (EUR 15.1 million), an increase of 118.7 % from the previous year. Depreciation according to plan totaled EUR 0.6 million (EUR 0.4 million). Earnings per share were EUR 0.63 (EUR 0.38). The Board of Directors of Technopolis proposes to the Annual General Meeting that a dividend of EUR 0.14 per share be distributed for the 2006 financial year. The proposed dividends would total EUR 5.7 million (EUR 4.7 million), an increase of 21.7 %. The balance sheet total was EUR 431.4 million (EUR 270.2 million), representing growth of 59.7 %. The Group's equity to assets ratio at the end of the year was 38.5 % (46.4 %). The fair value of the Group's investment property at the end of 2006 was EUR 392.2 million (EUR 249.3 million). The change in the fair value of investment property was affected by the fair values of properties bought and completed, a reduction in the market's return requirements, changes in future returns and modernization costs, the revaluation of property owned throughout the year, and increases in the costs recognized in separate companies during the year. The effect on profit of the change in the fair value of investment property was EUR 16.1 million (EUR 1.2 million in 2005). The Group's floor area for leasing totaled 348,415 floor square meters at the end of year (241,000 floor square meters in 2005). The Group's average financial occupancy ratio at the end of 2006 was 94.4 % (95.7 %). The financial occupancy ratio describes the rental revenue from the properties as a percentage of the combined total of the rent for the leased space and the estimated market rent for the vacant space. The Group's leases at the end of the review period amounted to EUR 121.1 million (EUR 68.1 million). Investments and development projects In a transaction completed in May, Innopoli Ltd, a company wholly owned by Technopolis, purchased from Kapiteeli Plc a 2.2 hectare plot it had rented in the City of Espoo. The transaction price was EUR 5.4 million. Innopoli Ltd had built a technology center of 26,200 floor square meters on the purchased plot in 1991. Technopolis Plc agreed in June on the acquisition of a majority holding in Technopolis JSP Ltd (Jyväskylä Science Park) from the City of Jyväskylä and from those of the company's minority shareholders that had accepted the offer made by Technopolis. The transaction price paid for the Technopolis JSP shares was EUR 18.0 million. Half of the price was paid in cash, and half in Technopolis Plc shares. Technopolis owns 98.5 % of Technopolis JSP Ltd shares. In August, two new stages were completed at the Oulu city center Technopolis, with a total area of 12,509 floor square meters. The costs were approx. EUR 23.4 million, which includes the investment costs of the building's approx. 120 parking spaces for public parking to be owned by Technopolis. In September, the fourth stage of Technopolis Helsinki-Vantaa totaling 2,789 floor square meters and representing an investment of EUR 5.3 million reached completion. The total area of Technopolis Helsinki-Vantaa's premises is currently 16,149 floor square meters. In October, Technopolis signed a contract with the City of Tampere on the purchase of a majority holding in Technopolis TSP Ltd (Tampere Science Parks Ltd). The transaction concerned 95.8 % of Technopolis TSP Ltd's shares. The price paid for the shares was EUR 20.9 million. About half of the price was paid in Technopolis Plc's new shares and half in cash. Later in the fall, the company acquired the remaining Technopolis TSP Ltd shares and now has a 100 % holding. By a decision made in October by the City of Helsinki, an area containing the building rights to a total of 27,200 floor square meters was reserved for Technopolis in the Ruoholahti area. If Technopolis concludes a long-term land lease agreement for a plot containing the building rights to 6,600 floor square meters by March 31, 2007, the remaining reservation will continue until May 31, 2008. If Technopolis concludes a long-term land lease agreement for a plot containing the building rights to 9,000 floor square meters by May 31, 2008, the remaining reservation for the building rights to 11,600 floor square meters will continue until July 31, 2009. On October 6, 2006, Technopolis St. Petersburg LLC, a fully owned subsidiary of Technopolis Plc, signed an agreement on the purchase of 4.6 hectares of land in St. Petersburg in the vicinity of the Pulkovo Airport for technology park operations. The land area is located next to Pulkovskoe shosse about two kilometers and five or ten minutes' drive from the airport. The plot size allows the construction of a technology park with a total area of up to 50,000 square meters. The acquisition price for the land is EUR 7.4 million. The plot was registered to Technopolis St. Petersburg LLD on December 29, 2006, and the price was paid to the selling party on January 10, 2007. Events after the financial year At its meeting on January 4, 2007, the Board of Directors resolved, in accordance with the authorization granted by the Annual General Meeting of March 24, 2006, to increase the company's share capital by a maximum of EUR 1,162,652.40, a total of 687,960 shares, through a share offering for institutional investors. The purpose of the share offering was to finance the investments included in the company's investment plan, to secure the company's growth and to maintain the company's equity-to-asset ratio. The shares were offered in deviation from the pre-emptive subscription rights of shareholders, for subscription by Finnish and international institutional investors. The share offering was implemented through a "book building" process, in which institutional investors would subscribe for the shares to be issued, in accordance with their subscription commitments made during the reception period for such commitments, January 3-4, 2007. The demand was about 3.5 times larger than the number of shares offered. The subscription price per share was set at EUR 7.70. The company's Board of Directors decided on January 4, 2007 to approve the share subscriptions made by institutional investors. In the share issue, all 687,960 shares offered were subscribed for. As a result of the share issue, the company's share capital increased by the maximum amount permitted by the share capital increase decision, i.e. by EUR 1,162,652.40. The increase in share capital was entered in the Trade Register on January 8, 2007, and trading in the shares began on January 9, 2007. Technopolis decided to commence the construction of the Hermia 12 property in Tampere. The project's cost estimate is EUR 9 million and the gross area is 8,600 square meters, which includes a parking facility for 115 vehicles. Almost half of the building's 5,000 floor square meters have been leased. Construction is scheduled for completion by the end of February 2008. Technopolis has reached a result in negotiations with the City of Oulu and the Northern Ostrobothnia Hospital District concerning the purchase of a total of 19,250 shares in Medipolis Ltd. The intention is to complete the transaction in February 2007, after which Technopolis will have a 97.7 % holding in the company. Technopolis seeks to acquire full ownership of Medipolis Ltd. Group structure The Technopolis Group includes the parent company, Technopolis Plc, which has operations in Oulu and Vantaa, and its subsidiaries Innopoli Ltd in Espoo (100 % owned), Technopolis JSP Ltd in Jyväskylä (98.5 %) with its subsidiary Technopolis JSP Facilities Oy (100 % owned), Technopolis Kareltek Ltd in Lappeenranta (100 % owned), Technopolis TSP Ltd in Tampere (100 % owned), Medipolis Ltd in Oulu (55.7 % owned) and other subsidiaries. The parent company also has a minority holding in the associates, Technocenter Kempele Oy (48.5 %), Iin Micropolis Oy (25.7 %), Jyväskylä Innovation Ltd (24 %), Lappeenranta Innovation Ltd (20 %) and Oulu Innovation Ltd (13 %). The Group also includes Innopoli Ltd's wholly-owned subsidiary, Technopolis Ventures Oy, in Espoo. Technopolis Ventures Oy has a wholly-owned subsidiary, Technopolis Ventures Kareltek Ltd. Following a transaction executed in March, Oulutech Oy became Technopolis Ventures Oy's 70 % owned subsidiary. In June, Technopolis Ventures Oy established a subsidiary, Technopolis Ventures JSP Ltd. Technopolis Ventures Oy also has a 25 % holding in Otaniemi Development Ltd. Technopolis has established in St. Petersburg two Russian companies, Technopolis Neudorf LLC and Technopolis St. Petersburg LLC, both fully owned by Technopolis. Events related to the company's shares During the review period, Technopolis' share capital was increased on six occasions. In November and December 2005, a total of 26,133 Technopolis shares were subscribed with year 2001 options, and the resulting increase in share capital of EUR 44,164.77 was entered in the Trade Register at February 15, 2006. In March, a total of 660,008 Technopolis shares were subscribed with year 2001 options, and the resulting increase in share capital of EUR 1,115,413.52 was entered in the Trade Register at March 9, 2006. The Technopolis Board of Directors decided on June 21, 2006, pursuant to an authorization by the Annual General Meeting on March 24, 2006, to increase the company's share capital by a maximum of EUR 3,380,000 by issuing a maximum of 2,000,000 new shares of the company to Technopolis JSP Ltd shareholders. A total of 1,500,177 shares were subscribed in the directed share issue, raising the share capital by EUR 2,535,299.13. The share capital increase was entered in the Trade Register on July 6, 2006. The share capital was increased on August 21, 2006, in accordance with the decision concerning the said directed share issue by EUR 122,356.00, corresponding to 72,400 new shares. The shares were entered in the Trade Register on August 21, 2006 and were accepted for trading on August 22, 2006. The Technopolis Board of Directors decided on September 27, 2006, pursuant to an authorization by the Annual General Meeting on March 24, 2006, to issue a maximum of 1,727,135 shares to Technopolis TSP Ltd shareholders. Based on the share issue decision, a total of 1,655,116 new shares and a share capital increase of EUR 2,797,146.04 were registered on October 26, 2006. The share capital was increased on December 13, 2006, in accordance with the decision concerning the directed share issue by EUR 114,416.38, corresponding to 67,702 new shares. After the above-mentioned six increases in share capital, Technopolis's share capital on December 31, 2006 totaled EUR 67,318,753.58, divided into 39,833,582 shares with a counter-book value of EUR 1.69. No convertible bonds are in issue. The company has not acquired its own shares. Finance The Group's net financial expenses were EUR 5.2 million (EUR 3.4 million). The Group's balance sheet total was EUR 431.4 million (EUR 270.2 million), of which liabilities accounted for EUR 266.1 million (EUR 145.4 million). The Group's equity to assets ratio was 38.5 % (46.4 %). The Group's equity per share was EUR 4.03 (EUR 3.39). The Group's long-term liabilities at the end of the review period amounted to EUR 207.3 million (EUR 119.6 million). The average interest rate for loans at December 31, 2006 was 3.99 % (3.30 %). Technopolis supplemented its funding with a EUR 60 million domestic commercial paper program which allows the company to issue commercial papers with a maturity of less than a year. At December 31, 2006, the issued commercial papers totaled EUR 34.8 million. Organization and personnel The company's Executive Board comprises the following: Pertti Huuskonen, President and CEO, Jukka Akselin, Satu Eskelinen, Marjut Hannelin, Seppo Selmgren and Keith Silverang, all of whom are Directors, and Reijo Tauriainen, CFO. Technopolis appointed Satu Eskelinen, M.Sc. (Eng.) as Director of the Tampere area and as a member of the company's Executive Board as of January 15, 2007. She will also serve as CEO of Technopolis TSP Ltd. Kari Mikkonen, Director of the Russian business operations of Technopolis, has given his notice, and his employment with the company will end on February 28, 2007. Peter Coachman will continue as General Director of Technopolis St. Petersburg. The Group employed an average of 113 (74) people during the financial year. 34 (25) persons were employed in jobs related to premises activities, 28 (17) persons in business services and 51 (32) persons in development services. The number of personnel increased by 8 through the acquisition of Technopolis Ventures Oulutech Oy, by 14 through the acquisition of Technopolis JSP Ltd, and by 6 through the acquisition of Technopolis TSP Ltd. Decisions of the Annual General Meeting The Annual General Meeting held on March 24, 2006 confirmed the consolidated and parent company income statements and balance sheets for the 2005 financial year, released those responsible for the accounts from further liability and decided on the distribution of a dividend of EUR 0.13 per share for the financial year that ended on December 31, 2005. The Annual General Meeting also authorized the Board of Directors to decide on a rights offering and an issue of convertible bonds. The Board of Directors elected by the Annual General Meeting comprises Pertti Voutilainen, Chairman, Matti Pennanen, Vice Chairman, and Juhani Paajanen, Timo Parmasuo and Erkki Veikkolainen. Pertti Huuskonen is the President and CEO of Technopolis. KPMG Oy Ab, Authorized Public Accountants, is the company's auditor with Tapio Raappana, APA, as the principally responsible auditor. Evaluation of operational risks and uncertainty factors The most significant risks related to Technopolis's business operations are mainly financial risks and customer risks. Technopolis's main financial risk is the interest rate risk related to the loan portfolio. The objective of interest rate risk management is to reduce or remove the negative impact of market interest rate fluctuations on the company's result, balance sheet and cash flow. The company's financing policy aims to diversify the interest rate risk of loan contracts over various maturities on the basis of the market situation prevailing at any particular time and the interest rate prognosis created in the company. If necessary, the company employs forward rate agreements, interest rate swaps and interest rate options. In order to manage financial risk, Technopolis uses a wide range of finance providers and maintains a high equity to assets level. Technopolis uses derivative instruments only to reduce or eliminate financial risks in the balance sheet. The structure of Technopolis's loan portfolio at the end of the financial year is shown by the fact that a one percentage unit rise in money market rates would increase annual interest rate costs by EUR 0.9 million. Due to the interest rate risk related to credits, a policy of interest rate diversification has been followed. At December 31, 2006, 70.7 % of the loan portfolio was bound to either the 3-12 month Euribor rate or to the Bank of Finland's rate. 29.3 % of the loans were fixed-interest loans of 13-60 months. The loan period, weighted by the remaining capital of the loans, was 12.2 years. Technopolis supplements its funding with a EUR 60.0 million domestic commercial paper program which allows the company to issue commercial papers with a maturity of less than a year. At December 31, 2006, the issued commercial papers totaled EUR 34.8 million. Changes in the exchange rates between the Russian rouble and euro may have an effect on the company's financial situation and operations. Business transactions denominated in roubles are recorded at the exchange rate of the transaction date. Any translation differences are entered in the income statement under financial income and expenses. The purchase of land in St. Petersburg has been financed in local currency. The currency risk has been minimized by applying a currency swap. Customer risk management aims to minimize the negative impact of any changes in customers' financial position on the business and the company's profit. In customer risk management, the emphasis is on familiarity with the customer's business and active monitoring of customer information. As part of customer risk management, Technopolis's leases include rent collateral arrangements. Properties are insured with full value insurance. The Group's property portfolio is divided geographically between the Helsinki metropolitan area, Jyväskylä, Lappeenranta, Tampere and the Oulu region. No single customer accounts for more than 20 % of the Group's net sales. The Group has arranged the leases of its biggest customers to end at different times. The Group has about 930 customers that operate in many different sectors. The Group is protected against fluctuations in the business cycle by fixed-term leases which totaled EUR 121.1 million at December 31, 2006. Of the lease agreements, 9 % are valid until further notice or will expire in 2007, 18 % will expire in 2008-2010, 29 % will expire in 2011-2013, 5 % will expire in 2014-2016, and 39 % will expire in 2017 or later. In new building projects, Technopolis focuses on quality definition and the manageability of the property's entire lifecycle. In the design phase, all the building's maintenance and service requirements are taken into account, with the aim of implementing environmentally friendly solutions in terms of energy consumption, the adaptability of office facilities, and recycling possibilities. In connection with property purchases, Technopolis carries out the normal property and environmental assessments before committing to the transaction. Changes in the market's return requirements may have a significant effect on profit performance. As return requirements increase, the fair values of properties decline, and correspondingly, as return requirements decrease, the fair values of properties rise. These changes affect the company's operating profit either negatively or positively. Future outlook The management of the Technopolis Group estimates that in 2007 the demand for high tech operating environments will be at a satisfactory level, and that the occupancy ratio of the Group's leasing facilities and the demand for the Group's services will both remain good. The Group estimates that net sales and EBITDA will increase in 2007 by 18- 22 % on the previous year. The reduction on the estimate made at December 1, 2006 is due to better than anticipated growth at the end of 2006 and a delay in a planned domestic transaction. As part of its strategy for growth, Technopolis aims to operate in the leading high tech cities in Finland, Russia and 1-2 other countries by 2010. The Group aims to increase its net sales by an average of 15 % annually. Technopolis seeks to grow organically as well as through acquisitions. The Group's financial performance is dependent on trends in the general operating environment, in customer business, in the financial markets and in the return requirements for properties. Factors in these areas may affect the Group's result through changes in occupancy ratios, the use of services, financing costs, the fair values of properties and office rent levels. The figures are unaudited. The company's printed annual report in the Finnish language will be published in week 11. Oulu, February 2, 2007 TECHNOPOLIS PLC Board of Directors Pertti Huuskonen President and CEO For further information, please contact: Pertti Huuskonen, tel., +358 400 680 816 or +358 8 551 3213 A PDF version of this interim report can be found at www.technopolis.fi. Requests for a printed version can be made to Teija Koskela, tel. +358 8 551 3242 or e-mail teija.koskela@technopolis.fi Technopolis Plc has an information bulletin service, which can be ordered on the Internet. Those ordering the service will receive the company's information bulletins by email. This interim report complies with the recognition and measurement policies of the IFRS. INCOME STATEMENT 2006 2005 EUR million Revenue 44.84 31.73 Other operating income 1) 3.86 2.42 Operating expenses -26.00 -16.66 Revaluation of investment properties 16.07 1.22 Depreciation according to plan -0.56 -0.45 Recognition of consolidation difference 0.28 Operating profit 38.21 18.53 Financial income and expenses -5.17 -3.42 Profit before taxes 33.05 15.11 Income taxes -8.46 -2.28 Net profit for the year 24.59 12.83 Profit for the year attributable to parent shareholders 23.74 12.68 to minority shareholders 0.85 0.15 BALANCE SHEET, ASSETS EUR million Non-current assets Intangible assets 2.63 0.22 Tangible assets 2.44 8.61 Investment property 392.16 249.32 Investments 21.82 1.43 Deferred tax assets 1.77 3.66 Total non-current assets 420.83 263.25 Current assets 10.57 6.91 Assets, total 431.39 270.16 BALANCE SHEET, SHAREHOLDERS' EQUITY AND LIABILITIES EUR million Shareholders' equity Share capital 67.32 60.59 Premium fund 18.55 12.73 Other funds 7.37 0.02 Other shareholders' equity 0.32 Retained earnings 43.40 35.40 Distributable profit for review period 23.74 12.68 Parent's shareholders' interests 160.70 121.42 Minority interest 4.58 3.39 Total shareholders' equity 165.28 124.81 Liabilities Non-current liabilities Interest-bearing liabilities 183.16 107.02 Non-interest-bearing liabilities 1.51 0.94 Deferred tax liabilities 22.68 11.62 Current liabilities Interest-bearing liabilities 46.33 18.15 Non-interest-bearing liabilities 12.44 7.62 Total liabilities 266.12 145.35 Total shareholders' equity and liabilities 431.39 270.16 CONSOLIDATED CASH FLOW STATEMENT EUR million Net cash provided by operating activities Operating profit 38.21 18.53 Revaluation of investment properties -16.07 -1.22 Depreciation 0.56 0.45 Recognition of consolidation difference -0.28 Other adjustments for non-cash transactions 0.32 0.03 Increase/decrease in working capital 0.46 -0.17 Interests received 0.29 0.07 Interests paid and fees -5.50 -3.62 Income from other investments of non-current assets 0.01 0.01 Taxes paid -1.92 -1.64 Net cash provided by operating activities 16.35 12.18 Net cash used in investing activities Investments in other instruments -0.02 -0.05 Investments in investment properties -40.66 -24.07 Investments in tangible and intangible assets -0.44 -0.47 Repayments of loan receivables 0.04 Sales income from other investments 0.15 Disposal of subsidiaries -0.05 Acquisition of subsidiaries -18.17 -8.38 Net cash used in investing activities -59.10 -33.03 Net cash provided by financing activities Increase in long-term loans 31.49 20.57 Decrease in long-term loans -12.39 -9.77 Dividends paid -4.66 -3.54 Paid share issue 1.12 20.21 Change in short-term loans 27.60 -5.88 Net cash provided by financing activities 43.16 21.59 Net increase/decrease in cash assets 0.40 0.74 Cash assets on January 1 2.40 1.66 Cash assets on December 31 2.80 2.40 STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY EUR million Share Share Fund Accum- Minor- Share- capital premium ulated ity holders' account ret. int. equity earn. Shareholders' equity December 31, 2004 49.80 0.90 0.02 38.81 3.58 93.11 Share issue 10.79 10.79 Issue premium 11.83 11.83 Distribution of dividends -3.54 -3.54 Net profit for the year 12.68 0.15 12.83 Other changes 0.13 -0.34 -0.21 Shareholders' equity December 31, 2005 60.59 12.73 0.02 48.07 3.39 124.81 Share capital increase 6.73 6.73 Directed share issue 5.85 7.2 13.17 Distribution of dividends -4.66 -4.66 Net profit for the year 23.74 0.85 24.59 Other changes -0.03 0.03 0.31 0.33 0.64 Shareholders' equity December 31, 2006 67.32 18.55 7.37 67.46 4.58 165.28 KEY INDICATORS 2006 2005 Change in net sales, % 41.3 10.0 Operating profit/net sales, % 85.2 58.4 Equity to assets ratio, % 38.5 46.4 Employees in Group companies 113 74 Gross investments in non-current assets in balance sheet, EUR 1,000 59,286 35,262 Net rental income of property portfolio, % 2) 7.7 8.6 Financial occupancy ratio, % 94.4 95.7 SHARE-RELATED INDICATORS Earnings/share, EUR, 3) undiluted, EUR 0.63 0.38 diluted, EUR 0.63 0.38 Equity/share, EUR, 3) 4.03 3.39 Dividend/share, EUR, 4) 0.14 0.13 Average issue-adjusted no. of shares undiluted 37,472,329 33,358,468 diluted 37,619,867 33,526,874 No. of shares, Dec 31 39,833,582 35,852,046 Price/earnings (P/E) ratio 12.2 13.2 Dividend payout ratio, % 22.1 34.2 Effective dividend yield, % 1.8 2.6 OTHER KEY INDICATORS AND FINANCIAL RATIOS Market capitalization of shares, EUR million, Dec 31 306.72 179.26 Share turnover 23,293,922 21,690,055 Share turnover/ave. no. of shares 62.2 65.0 Share prices, EUR Highest price 7.99 5.23 Lowest price 4.41 3.17 Average price 6.01 4.10 Price on Dec 31 7.70 5.00 CONTINGENT LIABILITIES EUR million Pledges and guarantees on own debt Mortgages 195.50 147.39 Land lease liabilities 0.53 0.49 Pledged investment properties 35.21 8.53 Nominal values of interest rate swaps 4.00 9.17 Fair values of interest rate swaps -0.04 -0.23 VAT refund liabilities. 13.28 13.37 Project liabilities 0.01 2.04 Collateral given on behalf of affiliated companies Guarantee 0.50 0.50 Leasing liabilities 69.05 0.05 1) Other operating income comprises operating subsidies received for development services, for which the same amount of development service expenses have been recorded as operating expenses. 2) The comparison figure at the 2005 balance sheet date does not take into account the effect of the Technopolis Kareltek and Technopolis Laanila properties, and the 2006 figure does not take into account the effect of properties acquired and brought into use during the year. 3) The comparison figure at the 2005 balance sheet date includes the effect of the recognition of consolidation difference arising in connection with the acquisition of the total stock of Kareltek. 4) 2006 dividend distribution proposal Distribution: Helsinki Stock Exchange Main news media www.technopolis.fi