TietoEnator revises full-year profitability guidance, renews strategy and changes CEO

TietoEnator Corporation Stock Exchange Release16 October 2007, 8.45
pm EET 1 (2)

According to preliminary information, TietoEnator's third quarter net
sales grew by 10% and amounted to EUR 404 (369) million.
Third-quarter organic growth was 12%. Operating profit excluding
capital gains and restructuring costs for the third quarter stood at
EUR 25 (28) million.

Third-quarter profitability of the underlying business developed in
line with the company's expectations. However, TietoEnator foresees
that the development mainly in product-based businesses in Banking &
Insurance and Healthcare & Welfare business areas is resulting into a
lower profitability. Therefore TietoEnator's full-year operating
profit will not reach the 2006 level of EUR 124 million. On 20 July
2007 TietoEnator stated that it will be difficult to reach an
underlying operating profit guidance of over EUR 124 million in 2007.
The underlying operating profit does not include potential capital
gains, capital losses and restructuring expenses.


A More focused strategy

TietoEnator's Board of Directors has approved the company's revised
strategy, which aims at restoring the company's profitability and
securing a sustainable basis for future growth. Based on the Board's
decision, TietoEnator will implement several changes related to the
sources of future growth, operational efficiency and organisation.
The basic elements of the new strategy are the following:
- focused growth path
- repositioning of repeatable solutions, and
- accelerating quality and productivity improvement.

Regarding growth, TietoEnator will have a separate global and
regional strategy. Global growth initiatives will be refocused. The
company is planning to invest in expanding its leading position as a
Telecom R&D partner, as well as strengthening its strong market
position in Forest and Oil & Gas businesses.

TietoEnator's regional strategy is based on the company's strong
position in the Nordic countries. The aim is to even further
strengthen the company's leading position as a full-scale IT service
provider to Nordic-based core customers in their main markets,
including Russia.

Repositioning of repeatable solutions

Outside the global businesses, TietoEnator will seek growth primarily
in services by packaging the offerings from vertical Business Areas,
Processing & Networks and Digital Innovations. TietoEnator aims to
grow especially in services that provide high value to customers,
such as application service management and focused business process
outsourcing.

TietoEnator will increase co-operation with key global application
platform providers. In addition to service development, focus will be
on reusable software creation that complements these platforms.

As a result of the shift in strategy, current product and service
portfolios are being refocused, mainly in the Banking & Insurance and
Healthcare & Welfare business areas.


Push on quality and productivity improvement

To respond to rapidly increasing cost and price pressures,
TietoEnator will speed up and expand the current performance
improvement programmes by expanding the Profit 2007 programme to a
substantially higher level. The improvement potential and
restructuring costs will be quantified during the final quarter of
2007.

Cost-efficiency will be sought by improving the utilization of staff
i.e. by turning around low-performing units, emphasising staff
efficiency and by reducing overhead activities. TietoEnator will also
accelerate its off-shoring with the target of reaching a 40% share in
the coming 3-5 years. Corporate-level administrative costs will also
be streamlined.

At the same time TietoEnator puts specific emphasis in maintaining
and improving customer intimacy and the quality of services and
operations. To be able to efficiently implement the revised strategy
and to achieve quality improvement TietoEnator is also reviewing its
organisational structure.

Change of Chief Executive Officer
TietoEnator's Board of Directors and Pentti Heikkinen, President and
CEO of TietoEnator, have today agreed on the change of leadership of
the company, effective immediately. The decision is based on mutual
understanding and is due to TietoEnator's financial performance. The
Board of Directors is in the process of selecting a new President and
CEO from outside of TietoEnator in the near future."I would like to thank Pentti Heikkinen for his personal commitment
and contributions over the years as President and CEO as well as for
his long career in several important management positions in
TietoEnator. During Pentti's leadership, TietoEnator has achieved
significant improvements in a number of areas including successful
development of the Telecom & Media business, establishment of
substantial global sourcing operations in new market areas and
consistent drive towards one TietoEnator", says Matti Lehti, Chairman
of the Board.
Åke Plyhm, Deputy CEO, will act as interim CEO until the new
President and CEO has been appointed. For the time being, Pentti
Heikkinen will continue in special assignments defined by the Board
of Directors.
TietoEnator will publish its third quarter result and additional
information about the revised strategy on 26 October 2007 at 8.00 am
EET/ 7.00 am CET.

For further information, please contact the following persons on 17
October between 8.30 - 9.30 am EET (7.30 - 8.30 am CET)

Matti Lehti, Chairman of the Board of Directors
Tel. +358 400 816 405

Åke Plyhm, Interim CEO
Tel. +46 10 481 3321, +46 7056 58631

Timo Salmela, Chief Financial Officer
Tel. +358 400 434 974



TIETOENATOR CORPORATION

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TietoEnator is among the leading architects in building a more
efficient information society and one of the largest IT services
providers in Europe. TietoEnator specializes in consulting,
developing and hosting its customers' business operations in the
digital economy. The Group's services are based on a combination of
deep industry-specific expertise and the latest information
technology. TietoEnator has about 16 000 experts in close to 30
countries.
www.tietoenator.com