1. Raising the second part of eighth financing tranche Benefon today announced that the Board of Directors has decided to raise the second part of at maximum 1,350,000 euros of the 8th financing tranche according to terms announced on May 8th 2007. The Board of Directors has according to the above terms decided to call the second part of the eighth tranche as follows. The Board decided to issue shares and convertible bond loan for a total maximum amount of EUR 1,350,000 to Tradewind Investment Services Ltd. and Biggles Ltd. (“directed offering”). The maximum number of new investment series shares offered for subscription is 8,100,000 and subscription price is EUR 0.15 per share. Of the shares at maximum 6,000,000 are offered for subscription to Tradewind Investment Services Ltd. and at maximum 2,100,000 to Biggles Ltd. The maximum principal amount of convertible bond loan, which includes a specific right to use the loan to set off subscription price of shares as according to Chapter 10, Clause 1 of the Finnish Companies Act, is EUR 135,000 and each EUR 0.025 of the loan principal entitles its holder to subscribe for one new investment series share. Of the loan at maximum EUR 100,000 is offered for subscription to Tradewind Investment Services Ltd. and at maximum EUR 35,000 to Biggles Ltd. The maximum number of shares that can be subscribed for by virtue of the loan is 5,400,000. As a part of the directed offering Tradewind Investment Services Ltd. is also offered for subscription at maximum 2,500,000 and Biggles Ltd. at maximum 875,000 option rights entitling to subscribe for corresponding amount of new investment series shares at share subscription price of EUR 0.15 per share during the share subscription period ending on June 30th, 2011. Of the share subscription price EUR 0.01 is booked to share capital and the remainder in invested unrestricted equity fund. As a result of share issue company's share capital may increase by a maximum of EUR 81,000.00 as a result of convertible bond loan by a maximum of EUR 54,000.00 and as a result of option rights by a maximum of EUR 33,750.00. Subscription period for the directed offering, forming the second part of the 8th tranche investments, ends on June 6th, 2007. The shares offered for subscription in the directed offering represent at maximum 2.58 %, the convertible bond loan at maximum 1.72 % and option rights 1.07 % of the company's registered shares. The new shares subscribed for are equivalent of their right with company's existing investment series shares and will be applied for listing as soon as the respective share subscriptions have been made and shares registered in trade register. Listing of the shares subscribed for in the directed offering of shares shall take place as soon as practically possible. 2. Offering option rights to the Chairman The Board has decided to offer to the Chairman of the Board 5,000,000 option rights each entitling to subscribe for one (1) new investment series share at the subscription price of EUR 0.14 between June 11th 2007 and December 31st 2012. Chairman shall be entitled to exercise the options in full only if his appointment continues at least for a period of two years. In addition the Chairman is offered 2,500,000 option rights each entitling to subscribe for one (1) new investment series share upon a condition that certain agreed performance targets bound to development of the market price of company's shares are met. The performance options are divided into three series. The offering of option rights has also been approved by the Annual General Meeting of April 16th 2007. The offered option rights represent at maximum of 2.39 % of the company's registered shares. 3. Offering option rights to certain key resources The Board of Directors has also decided to issue at maximum 1,500,000 option rights to certain key resources of Benefon Oyj. Each option rights entitle its holder to subscribe for one (1) new investment series share at subscription price of EUR 0.14. The option rights are divided into two series. The share subscription period begins either on July 11th 2007 or June 1st 2009 depending on option series and end with all options on December 31st 2012. Subscription period for the option rights ends on December 31st 2007. The offered option rights represent at maximum of 0.48 % of the company's registered shares. June 4th, 2007 BENEFON OYJ Tomi Raita CEO For more information, please contact: Tomi Raita, CEO, tel. +358-2-77400 www.benefon.com Distribution: Helsinki Exchanges Principal news media