Tekla Corporation s Interim Report January 1-September 30,

Tekla Corporation Stock Exchange Release 26.10.2007 at
9:00 a.m.

Tekla Corporation's Interim Report January 1-September 30, 2007:
Excellent third quarter for Tekla

Net sales of Tekla Group for January-September 2007 totaled 42.81
(34.29 during the same period in 2006) million euros. Growth in net
sales was nearly 25%. The operating result for the reporting period
was considerably better than the corresponding period the previous
year, 15.44 (8.83) million euros. The operating result was 36.1%
(25.8%) of net sales. The Defence business is included in the 2007
figures for the first four months.

Net sales of the continuing businesses in January-September 2007
amounted to 41.81 (33.08) million euros, increasing by approximately
26%. The operating result of the continuing businesses amounted to
12.91 (8.92) million euros, the operating result percentage was 30.9%
(27.0%).
Net sales for the third quarter of the continuing businesses totaled
14.78 (11.42) million euros, increasing by approximately 29%. The
operating result for the quarter was 5.82 (3.94) million euros; the
operating result percentage for the third quarter was 39.4% (34.5%).

- Tekla's excellent figures for the third quarter further strengthen
our confidence that the investments for the future, mainly increases
to personnel, have been correct. The fact that some rather major
deals were made in July-September contributed to the extremely good
operating result. In addition, the development of costs was moderate,
one of the reasons for this being the holiday season. The number of
personnel grew slower than during the first two quarters, says Ari
Kohonen, Tekla's President and CEO.
- Our main business area, Building & Construction, achieved record
quarterly net sales in July-September (12.01 million euros),
increasing by 33% compared to the corresponding period the previous
year. Sales in the key markets were extraordinary. The third quarter
was excellent especially in our largest market, North America. Sales
developed extremely favorably in India, the Nordic countries and the
Middle East as well.

- Our second business area, Infra & Energy, is proceeding according
to plans. We are very satisfied with I&E's sales during the third
quarter and especially its profitability.

The Board increases the company's net sales and profit outlook for
the year as a whole. Net sales of the continuing business operations
are estimated to exceed those of the previous year by 20% to 25%. The
earlier forecast of growth in net sales was approximately 20%. The
operating result of the continuing businesses is expected to be
clearly better than the previous year. The forecast is specified so
that the operating result will exceed the level of the previous year
(28%). The Building & Construction business area generates the
majority of Tekla's net sales and operating profit. Net sales of
Infra & Energy are expected to experience moderate annual growth, and
its result to be better than the previous year.
- -

Tekla is the industry-leading international software company whose
innovative software solutions make customers' core business more
effective in building and construction, energy distribution and in
municipalities. The company's model-based software products and
related services are used in more than 80 countries. Tekla Group's
net sales for 2006 were approximately 50 million euros and operating
result 13.6 million euros. International operations account for more
than 80% of net sales. Tekla Group employs nearly 400 persons, of
whom a third work outside Finland. Tekla was established in 1966,
making it one of the oldest software companies in Finland.

TEKLA CORPORATION'S INTERIM REPORT JANUARY 1-SEPTEMBER 30, 2007

NET SALES AND PROFITABILITY

* Net sales of Tekla Group for January-September 2007 were 42.81
million euros (34.29 million euros in January-September 2006).
* Growth in net sales was 24.8%.
* Operating result was 15.44 (8.83) million euros.
* Operating profit percentage was 36.1 (25.8).
* Earnings per share were 0.51 (0.30) euros.
* Return on investment was 80.4 (60.2) percent.
* Return on equity was 59.3 (46.3) percent.
* The Defence business is included in the 2007 figures for the first
four months.

Continuing businesses:
* Net sales were 41.81 (33.08) million euros.
* Operating result was 12.91 (8.92) million euros.
* Operating profit percentage was 30.9 (27.0).
* Earnings per share were 0.43 (0.30) euros.

FINANCIAL POSITION

* Cash flows from operating activities totaled 11.44 (11.53) million
euros.
* Liquid assets amounted to 28.06 (23.23) million euros on September
30, 2007 and 24.24 million euros on December 31, 2006.
* Equity ratio was 65.3 (61.1) percent.
* Interest-bearing debts were 0.31 (0.78) million euros.

OTHER KEY FIGURES

* International operations accounted for 82.5% (80.0%) of net sales
(continuing businesses).
* Personnel averaged 371 (317) for January-September. The Defence
personnel (approximately 20) are included in the number of personnel
until the end of April 2007.
* At the end of September, the number of personnel including
part-time staff was 384 (347).
* Gross investments in property, plant and equipment were 1.14 (0.74)
million euros.
* Equity per share was 1.21 (0.94) euros.
* On the last trading day of September, trading closed at 10.20
(5.65) euros.

BUSINESS AREAS

NET SALES BY BUSINESS AREA (PRIMARY SEGMENT)

Q1-Q3/ Q1-Q3/ Change 1-12/ Q3/ Q3/
Million euros 2007 2006 2006 2007 2006
Building & Construction 33.44 24.97 8.47 35.88 12.01 9.00
Infra & Energy *) 8.36 8.11 0.25 11.76 2.76 2.42
Defence **) 1.00 1.21 -0.21 2.14 0.00 0.29
Others 0.01 0.00 0.01 0.00 0.01 0.00
Total 42.81 34.29 8.52 49.78 14.78 11.71

OPERATING RESULT BY BUSINESS AREA (PRIMARY SEGMENT)

Q1-Q3/ Q1-Q3/ Change 1-12/ Q3/ Q3/
Million euros 2007 2006 2006 2007 2006
Building & Construction 12.11 8.78 3.33 12.77 5.17 3.73
Infra & Energy *) 0.76 0.51 0.25 1.04 0.62 0.20
Defence **) 2.53 -0.09 2.62 0.24 0.00 -0.06
Others 0.04 -0.37 0.41 -0.43 0.03 0.01
Total 15.44 8.83 6.61 13.62 5.82 3.88

*) At the beginning of 2007, the Energy & Utilities and Public Infra
business areas were merged. Comparison figures for 2006 have been
calculated to correspond with the new division of business areas.
**) Defence has been processed as discontinued business also for the
comparison period. The Defence operating result for Q2/2007 includes
approximately 2.3 million euros profit from the business sale.

Building & Construction

Tekla's Building & Construction business area (B&C) develops and
markets the Tekla Structures software product for model-based design
of steel and concrete structures as well as the management of
fabrication and construction.

The trends in the building industry have remained favorable in all
key market areas. Demand for modeling systems is on the rise, and
product modeling is strengthening its position in structural design
and other stages of the building process. Tekla's market position as
a supplier of 3D modeling software is strong in all markets and the
numbers of users continued to increase.

B&C's customers' business volumes show no sign of letting up. Effects
of volume changes on the demand for Tekla's products are not linear,
and in addition they are difficult to predict. Tekla's products are
primarily used in commercial, office and industrial buildings. B&C's
most significant single market is the United States, where the
weakened outlooks refer to residential construction.

The net sales of B&C amounted to 33.44 (24.97) million euros for
January-September 2007. Net sales increased by approximately 34%
compared to the same period the previous year. Its operating result
was 12.11 (8.78) million euros. B&C's operating profit percentage for
the reporting period was 36.2% (35.2%). Fluctuations in the exchange
rate between the US dollar and the euro had a slightly negative
effect on B&C's net sales and result.

During the third quarter, B&C's net sales amounted to 12.01 (9.00)
million euros. This was the business area's best quarter ever in
terms of net sales. B&C's operating result was excellent: 5.17 (3.73)
million euros. Increase in the number of personnel continued also
during the third quarter in order to ensure favorable development.

By far the most of B&C's net sales were still due to the product
offering for structural steel engineering. Sales of B&C's other
products developed favorably as well during the reporting period.
Nordic customers in particular are using the features of Tekla
Structures increasingly more extensively. A significant part of the
resource additions has, in fact, been and will be allocated to
expanding the product offering.

International operations accounted for 94% (95%) of B&C's net sales
in January-September 2007. The biggest market areas were North
America, India, the Nordic countries and the Middle East, which
increased their net sales also proportionally the most.
The Indian company Techflow Engineers strengthened its competitive
position and increased the number of its Tekla Structures licenses to
one hundred. Techflow is a local pioneer in structural engineering
and a long-time customer for Tekla.

WSP Group, one of the fastest growing building industry consultancies
in the world and the industry's leading expert in structural 3D
modeling, signed a framework agreement with Tekla in September.

In August, Tekla signed a framework agreement with Ramboll Group, a
leading Nordic engineering company. Ramboll is a significant Tekla
Structures user. The company has used the software in hundreds of
general design projects, most of which have involved concrete as the
building material.

Al Attar Group, the U.A.E.-based real estate development and
construction group, chose to adopt Tekla Structures in its key
business processes in July. The contract is one of the largest for
Tekla's Middle East office, and it consolidates Tekla's position as
the leading BIM solution provider in the region.

Tekla joined the Business Software Alliance in the spring. BSA is a
global association that aims to reduce software piracy and promote a
legal network environment.

Infra & Energy

At the beginning of 2007, the Energy & Utilities and Public Infra
business areas merged into a new business area, Infra & Energy. Infra& Energy focuses on development and sales of model-based software
solutions that support customers' core processes. Its key customer
industries (products in brackets) are energy distribution (Tekla
Xpower), infrastructure management (Tekla Xcity, Tekla Xstreet) and
water supply (Tekla Xpipe).

Structural changes in the energy industry and end users' increasing
expectations of the reliability of energy distribution and customer
service increase the need for developing and renewing network
information systems. Tekla has a firm market position in the industry
in the Nordic countries and the Baltic States. In Finland, increasing
regional collaboration will increase the public sector's GIS
development needs. Tekla's market position is strong in large and
medium-sized Finnish municipalities.

The net sales of I&E amounted to 8.36 (8.11) million euros for
January-September 2007. Net sales increased by some 3%. I&E's
operating result for the reporting period was 0.76 (0.51) million
euros. I&E's operating profit percentage was 9.1% (6.3%).
International operations accounted for 38% (35%) of net sales.

I&E's net sales for the third quarter amounted to 2.76 (2.42) million
euros and operating result was 0.62 (0.20) million euros. The
operating result percentage was 22.5% (8.2%).

I&E's prospects for the rest of the year are favorable; the business
area's net sales are experiencing moderate growth and the result of
the year is expected to be above that of the previous year.

The majority of I&E's net sales consists of additional and service
sales to existing customers. In the field of energy distribution,
expanding the use of Tekla Xpower was agreed with customers in the
Nordic countries. The use of the software continued also in Malaysia.
In the field of infrastructure management, several collaboration
projects were underway with customers. A project to develop
electronic building supervision services continued with six major
Finnish cities. When it is completed next spring, the application
will comprise a key part of the Tekla Xcity-based electronic service
entity for infrastructure management.

New customers are mainly expected from among Swedish energy companies
as well as Finnish and Swedish water utilities. In Eastern Europe,
exploration of new business opportunities continues with local
partners. The customer base in the infrastructure management sector
is expected to broaden with the adoption of regional services in
Finland.

Defence

Tekla sold its project-based Defence business to Patria on May 1,
2007. In connection with the transaction, some 20 Defence employees
transferred to Patria.

The Defence business area will be processed as discontinued business
in the financial reporting for 2007. More detailed information can be
found in the tables of this Interim Report.

PRODUCT DEVELOPMENT

Tekla's software development is taken care of by the Product
Development unit, which focuses on developing Tekla's own products
instead of customer-specific information system projects. However,
product projects where product features are developed in cooperation
with individual customers and customer groups continue as a part of
the I&E business area's product-based solution portfolio.

The annual main version of Tekla Structures was launched in
mid-April. During the third quarter, Tekla Structures development
focused on the 2008 main version to be released next spring. In it,
the focus of development include modeling of all types of structures,
speed and user friendliness of the software, improvements connected
with drawings and reports, and more versatile utilization of the
product model between organizations. In addition, a product module
for construction management is being developed. This makes it
possible to model the entire project from detailing to site schedules
and supervision.

The annual main versions of the Tekla Xpower and Tekla Xpipe software
were completed in September, with various new features, especially in
network calculations. During the third quarter, product development
targeted the next main version, e.g. improving the safety aspects of
various user groups.

Development of the Tekla Xcity and Tekla Xstreet software products
continued in close cooperation with customers. Main versions of both
products were released in June and the next versions will be released
in November - December.

PERSONNEL

The Group personnel averaged 371 (317) for January-September 2007; on
average 141 (103) worked outside Finland. In these figures, the
number of part-time staff has been converted to correspond to
full-time work contribution. The Defence personnel (approximately 20)
are included in the number of personnel until the end of April 2007.

At the beginning of the year, Tekla personnel totaled 365 (324)
including part-time staff, and at the end of September 384 (347), of
whom 152 (111) worked outside Finland. Largest increases to personnel
took place in product development and sales.

SHARE AND OWNERSHIP STRUCTURE

Shares and Share Capital

The total number of Tekla Corporation shares at the end of September
2007 was 22,586,200, of which the company owned 69,600. The total
nominal value of those was 2,088 euros, representing 0.3% of the
total share capital and the total number of votes. A total of
220,702.46 euros had been used for acquiring the company's own
shares, and their market value was 709,920 euros on September 30,
2007. The nominal value of the share is 0.03 euros. At the end of the
period, share capital stood at 677,586 euros.

Share Price Trends and Trading

The highest quotation of the share in January-September 2007 was
14.94 (6.49) euros, the lowest 7.60 (3.38) euros. The average
quotation was 10.59 (4.87) euros. On the last trading day of
September, trading closed at 10.20 (5.65) euros.

A total of 10,516,655 (11,288,021) Tekla shares changed hands in
January-September 2007, amounting to 46.6% (50%) of the entire share
capital.

Tekla terminated the market-making agreement for its share in July.
The agreement terminated on August 31, 2007.

Flagging Announcements

According to a notification by Fidelity International Ltd and its
subsidiaries dated March 19, 2007, their holdings in Tekla
Corporation had decreased below the 5% threshold to 4.09%.

At the end of March, Fidelity International and its subsidiaries
announced that their holdings had crossed above the 5% threshold
after the security lending ended on March, 23, 2007. According to the
notification, the new holdings amounted to 8.37%.

ANNUAL GENERAL MEETING

Tekla Corporation's Annual General Meeting on March 15, 2007 adopted
the financial statements, consolidated income statement and balance
sheet for 2006. The Annual General Meeting also discharged the CEO
and the Board members from liability. The Annual General Meeting also
approved the Board's proposal that a dividend of 0.20 euros plus an
extra dividend of 0.20 euros due to the anniversary, or a total of
0.40 euros per share, be distributed for the financial period 2006.

Ari Kohonen, Esa Korvenmaa, Olli-Pekka Laine (Vice Chair), Heikki
Marttinen (Chair) and Erkki Pehu-Lehtonen were re-elected as Board
members until the conclusion of the Annual General Meeting in 2008.
Timo Keinänen was re-elected as deputy member of the Board. Juha
Kajanen is the Tekla personnel representative on the Board and Pirjo
Lundén his personal deputy.

PricewaterhouseCoopers were re-elected as auditors, with Markku
Marjomaa, Authorized Public Accountant, as the auditor in charge.

The AGM renewed the Board's authorizations regarding the increase of
the company's share capital and transferring the company's treasury
shares. In addition, the AGM authorized the Board to acquire a
maximum of 500,000 Tekla shares.

The Board had not used its authorizations by the end of September
2007.

SHORT-TERM RISKS AND UNCERTAINTY FACTORS

Possible risks and uncertainty factors associated with Tekla's
business are mainly connected with the market and competition
situation and the general economic situation.

In the software product business, it is possible to react swiftly to
growing demand, and profits from additional sales are good. The
majority of net sales comprises of sales of licenses entitling to use
software products. Fluctuation in their demand can be rapid and
significant. In the short term and in case of quick changes, it is
challenging to proportion fixed personnel expenses, which account for
the majority of Tekla's costs.

The sales of Tekla software is geographically distributed and
individual customers do not account for a significant share of net
sales, and therefore risks such as those described above are not
significant.

OUTLOOK FOR 2007

NEXT FINANCIAL REPORT

Tekla Corporation's financial statement bulletin for 2007 will be
published on February 7, 2008.

Espoo, October 26, 2007
TEKLA CORPORATION
Board of Directors

For additional information, please contact:
Ari Kohonen, President and CEO, Tel. +358 30 661 1468, +358 50 641
24,
ari.kohonen (at) tekla.com

Timo Keinänen, CFO, Tel. +358 30 661 1773, +358 400 813 027,
timo.keinanen (at) tekla.com

Distribution: Helsinki Exchanges, main media

Enclosures:
- Consolidated income statement, balance sheet (condensed) and cash
flow statement (condensed)
- Consolidated statement of changes in equity
- Notes to the Interim Report

CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

CONSOLIDATED INCOME STATEMENT

Q1-Q3/ Q1-Q3/ 1-12/ Q3/ Q3/
Million euros 2007 2006 2006 2007 2006
Continuing businesses:
Net sales 41.81 33.08 47.64 14.78 11.42

Other operating income 0.63 0.69 1.02 0.17 0.26
Change in inventories
finished goods
and in work in progress 0.08 0.06 0.02 -0.02 0.03

Raw materials and consumables
used -1.38 -1.14 -2.01 -0.28 -0.25
Employee compensation and
benefit expense -18.59 -15.56 -21.70 -5.72 -5.07
Depreciation -0.86 -0.89 -1.19 -0.28 -0.28
Other operating expenses -8.78 -7.32 -10.40 -2.83 -2.17

Operating profit (loss) 12.91 8.92 13.38 5.82 3.94
% of net sales 30.88 26.96 28.09 39.38 34.50

Financial income 1.39 0.71 1.06 0.62 0.29
Financial expenses -0.91 -0.48 -0.91 -0.41 -0.09

Profit (loss) before taxes 13.39 9.15 13.53 6.03 4.14
% of net sales 32.03 27.66 28.40 40.80 36.25

Income taxes -3.68 -2.41 -3.55 -1.57 -1.18

Result for the period from
continuing businesses 9.71 6.74 9.98 4.46 2.96

Discontinued operations:
Result for the period from
discontinued operations 1.87 -0.09 0.18 0.00 -0.06

Result for the period 11.58 6.65 10.16 4.46 2.90

Attributable to the equity holders
of the company
Earnings per share for profit
attributable to the equity
holders of the Company:
Earnings per share (EUR) 0.51 0.30 0.45 0.20 0.13
Earnings are not diluted.

Earnings per share from continuing
businesses attributable to
the equity holders of the Company:
Earnings per share (EUR) 0.43 0.30 0.44 0.20 0.13
Earnings are not diluted.

Earnings per share from
discontinued operations
attributable to the equity
equity holders the Company:
Earning per share (EUR) 0.08 0.00 0.01 0.00 0.00
Earnings are not diluted.

CONDENSED BALANCE SHEET
Million euros 9/2007 9/2006 12/2006
Assets
Non-current assets
Property, plant and
equipment 1.80 1.58 1.74
Goodwill 0.10 0.10 0.10
Intangible assets 0.69 0.39 0.49
Other financial assets 0.30 0.30 0.30
Receivables 0.54 0.65 0.56
Deferred
tax assets 0.02 0.29 0.36
Non-current assets, total 3.45 3.31 3.55

Current assets
Inventories 0.12 0.08 0.04
Trade and other
receivables 10.45 8.03 10.90
Other financial assets 21.70 17.62 18.60
Cash and cash equivalents 6.41 5.67 5.69
Current assets, total 38.68 31.40 35.23

Assets related to
discontinued operations 0.00 0.54 0.97

Assets total 42.13 35.25 39.75

Equity and liabilities
Equity
Share capital 0.68 0.68 0.68 Share premium account 8.89 8.89 8.89
Other own capital 1.09 1.32 1.22
Retained earnings 16.66 10.21 13.93
Equity total 27.32 21.10 24.72

Non-current liabilities
Provisions 0.56 0.83 0.83
Interest-bearing liabilities 0.05 0.27 0.27
Non-current liabilities total 0.61 1.10 1.10

Current liabilities
Trade and other payables 12.22 10.67 12.17
Tax liabilities 1.04 1.59 0.80
Current interest-bearing
liabilities 0.26 0.51 0.43
Current liabilities total 13.52 12.77 13.40

Liabilities total 14.13 13.87 14.50

Liabilities related to
discontinued operations 0.68 0.28 0.53

Equity and liabilities total 42.13 35.25 39.75

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to the equity holders of the Company

Share Fair Acc.
Share prem. Res. value transl. Ret.
cap. acct. fund res. diff. earn. Total
Equity January 1,
2006 0.68 8.89 1.33 0.04 -0.05 6.32 17.21
Translation
differences -0.02 -0.06 -0.08
Changes in
available-
for-sale
investments 0.02 0.02
Items recognized
directly in equity 0.00 0.00 0.00 0.02 -0.02 -0.06 -0.06
Net profit for
the period 6.65 6.65
Total income and
expenses recogn.
in the period 0.00 0.00 0.00 0.02 -0.02 6.59 6.59
Payment of dividend -2.70 -2.70
Equity September
30, 2006 0.68 8.89 1.33 0.06 -0.07 10.21 21.10

Attributable to the equity holders of the Company

Share Fair Acc.
Share prem. Res. value transl. Ret.
cap. acct. fund res. diff. earn. Total
Equity January 1,
2007 0.68 8.89 1.33 0.10 -0.21 13.93 24.72
Translation
differences -0.16 0.16 0.00
Changes in
available-
for-sale
investments 0.03 0.03
Items recognized
directly in equity 0.00 0.00 0.00 0.03 -0.16 0.16 0.03
Net profit
for the period 11.58 11.58
Total income and
expenses recogn.
in the period 0.00 0.00 0.00 0.03 -0.16 11.74 11.61
Payment of dividend -9.01 -9.01
Equity September
30, 2007 0.68 8.89 1.33 0.13 -0.37 16.66 27.32

CONDENSED CASH FLOW STATEMENT
Q1-Q3/ Q1-Q3/ 1-12/
Million euros 2007 2006 2006
Cash flows from operating
activities:
Continuing operations 10.84 11.76 13.15
Discontinued operations 0.60 -0.23 -0.14
Cash flows from operating
activities 11.44 11.53 13.01

Cash flows from investing
activities:
Investments -1.14 -0.66 -1.33
Sale of intangible assets
and property, plant and
equipment 0.03 0.00 0.13
Cash flow from sale
of discontinued business 2.35
Purchases of available-for-
sale financial assets -44.31 -38.27 -48.64
Proceeds from sale of
available-for-sale
financial assets 39.35 33.71 43.84
Interests received from
available-for-sale
financial assets 0.54 0.29 0.40
Net cash used in/from
investing activities -3.18 -4.93 -5.60

Cash flows from financing
activities:
Payment of dividend -9.01 -2.70 -2.70
Repayments of long-term debt -0.39 -0.51 -0.59
Payments of finance lease
liabilities -0.03 -0.05 -0.06
Net cash used in financing
activities -9.43 -3.26 -3.35

Net decrease/increase in
cash and cash equivalents -1.17 3.34 4.06

Cash and cash equivalents at
beginning of the period 7.78 3.72 3.72
Cash and cash equivalents
at end of the period 6.61 7.06 7.78

The cash and cash equivalents
in the cash flow statement
include:
Cash and cash equivalents 6.41 5.67 5.69
Available-for-sale financial
assets, cash equivalents 0.20 1.39 2.09

NOTES TO THE INTERIM REPORT

The notes are presented in millions of euros, unless otherwise
specified.

This interim report has been prepared in accordance with the IAS 34
(Interim
Financial Reporting) standard. The same accounting policies and
methods of
computation have been followed in the interim financial statements as
in
the annual financial statements for 2006. The amendments and
interpretations
to published standards as well as new standards, effective January 1,
2007,
are presented in detail in the financial statements for 2006. The
adopted
standards have not had a significant effect on the result or the
data
presented in the interim report. The notes in the interim report are
unaudited.

Use of estimates

When preparing the interim report, the Group's management is required
to make
estimates and assumptions influencing the content of the interim
report, and
it must exercise its judgment regarding the application of
accounting
policies. Although these estimates are based on the management's
best
knowledge, actual results may ultimately differ from the estimates
used in
the interim report. Tax losses carried forward are recognized as
deferred tax
assets only to the extent that it is probable that future taxable
profits
will be available against which unused tax losses can be utilized.
Actual results could differ from those estimates.

Segment information

Net sales by business area (primary segment)

Q1-Q3/ Q1-Q3/ 1-12/ Q3/ Q3/
Million euros 2007 2006 2006 2007 2006
Building & Construction 33.44 24.97 35.88 12.01 9.00
Infra& Energy *) 8.36 8.11 11.76 2.76 2.42
Defence **) 1.00 1.21 2.14 0.00 0.29
Others 0.01 0.00 0.00 0.01 0.00
Total 42.81 34.29 49.78 14.78 11.71

Operating result by business area (primary segment)

Q1-Q3/ Q1-Q3/ 1-12/ Q3/ Q3/
Million euros 2007 2006 2006 2007 2006
Building & Construction 12.11 8.78 12.77 5.17 3.73
Infra & Energy *) 0.76 0.51 1.04 0.62 0.20
Defence **) 2.53 -0.09 0.24 0.00 -0.06
Others 0.04 -0.37 -0.43 0.03 0.01
Total 15.44 8.83 13.62 5.82 3.88

*) At the beginning of 2007, the Energy & Utilities and Public Infra
business
areas were merged. Comparison figures for 2006 have been
calculated
to correspond with the new division of business areas.
**) Defence has been processed as discontinued operations also for
the
comparison period. The Defence operating result for Q2/2007 includes
approx.
2.3 million euros profit from the business sale.

Financial indicators 9/2007 9/2006 12/2006

Earnings per share (EPS), EUR 0.51 0.30 0.45
Earnings per share (EPS) fr.
continuing businesses, EUR 0.43 0.30 0.44
Earnings per share (EPS) fr.
discontinued operations, EUR 0.08 0.00 0.01
Equity/share, EUR 1.21 0.94 1.10
Interest-bearing liabilities 0.31 0.78 0.69
Equity ratio, % 65.3 61.1 63.4
Net gearing, % -101.6 -106.4 -95.2
Return on investment, % 80.4 60.2 63.1
Return on equity, % 59.3 46.3 48.5

Number of shares,
end of period 22,516,600 22,516,600 22,516,600
Number of shares,
average 22,516,600 22,516,600 22,516,600

Gross investments, MEUR 1.14 0.74 1.33
% of net sales 2.73 2.24 2.79
Personnel, on average 371 317 324

Discontinued operations

Defence business

Tekla's Defence business was transferred to Patria on May 1, 2007.

The calculations below show the effect of the business sale on the
result and
the cash flow during the reporting period. Tekla has also a
possibility to
receive an additional price depending on the sales development of the
sold
business.

Result of the Defence business
Q1-Q3/ Q1-Q3/ 1-12/
2007 2006 2006
Net sales 1.00 1.21 2.14
Expenses -0.81 -1.30 -1.90
Profit (loss) before taxes 0.19 -0.09 0.24
Taxes -0.05 -0.06
Profit (loss) after taxes 0.14 -0.09 0.18

Sales profit from
the Defence business sale 2.34
Taxes -0.61
Sales profit after taxes 1.73 0.00 0.00
Profit (loss) for the period
from discontinued operations 1.87 -0.09 0.18

Cash flow statement, Defence

Cash flows from operating
activities 0.60 -0.23 -0.14
Cash flows from investing
activities *) 2.35 0.00 0.00
Cash flows from financing
activities 0.00 0.00 0.00
Total cash flow 2.95 -0.23 -0.14

*) At Tekla the investments are
made centralized and not allocated
to the businesses.

The effect of the sale of the Defence
business on the financial position
of the Group
September 30, 2007
Trade and other payables 0.02
Tax liabilities 0.66
Liabilities total 0.68

Consideration received and effect on
cash flow

Cash received 2.35
Cash and cash equivalents of the discontinued
operations 0.00
Total net disposal
consideration 2.35

Consolidated income
statement by quarter
Q3/ Q2/ Q1/ Q4/ Q3/
Million euros 2007 2007 2007 2006 2006
Continuing businesses:
Net sales 14.78 13.92 13.11 14.55 11.42

Other operating income 0.17 0.22 0.24 0.33 0.26
Change in inventories of
finished goods
and in work in progress -0.02 0.05 0.05 -0.04 0.03

Raw materials and
consumables used -0.28 -0.52 -0.58 -0.87 -0.25
Employee compensation and
benefit expense -5.72 -6.77 -6.10 -6.14 -5.07
Depreciation -0.28 -0.28 -0.30 -0.30 -0.28
Other operating expenses -2.83 -3.29 -2.66 -3.07 -2.17

Operating profit (loss) 5.82 3.33 3.76 4.46 3.94
% of net sales 39.38 23.92 28.68 30.65 34.50

Financial income 0.62 0.27 0.50 0.35 0.29
Financial expenses -0.41 -0.24 -0.26 -0.43 -0.09

Profit (loss) before taxes 6.03 3.36 4.00 4.38 4.14
% of net sales 40.80 24.14 30.51 30.10 36.25

Income taxes -1.57 -1.03 -1.08 -1.14 -1.18

Result for the period from
continuing businesses 4.46 2.33 2.92 3.24 2.96

Discontinued operations:
Result for the period from
discontinued operations 0.00 1.86 0.01 0.27 -0.06

Result for the period 4.46 4.19 2.93 3.51 2.90

Income taxes Q1-Q3/ Q1-Q3/ 1-12/
2007 2006 2006

Taxes for the financial
period and prior periods -3.35 -2.03 -3.23
Deferred taxes -0.33 -0.38 -0.32
Total -3.68 -2.41 -3.55

Estimated effective tax rate for
the financial year has been
applied to the result of the
reporting period.

Property, plant and
equipment 9/2007 9/2006 12/2006
Cost at the beginning of
the period 6.82 6.47 6.47
Translation differences -0.05 -0.04 -0.03
Additions 0.76 0.59 0.98
Disposals -0.25 -0.57 -0.60
Cost at the end of the
period 7.28 6.45 6.82

Accumulated depreciation at
the beginning of the period 5.08 4.61 4.61
Translation differences -0.04 -0.03 -0.03
Accumulated depreciation on
disposals -0.19 -0.41 -0.44
Depreciation for the
financial period 0.63 0.70 0.94
Accumulated depreciation
at the end of the period 5.48 4.87 5.08

Net book amount at the end of the period 1.80 1.58 1.74

The investments consisted of normal
acquisitions of hardware, software
and equipment.

Provisions
Loss- Provisions
making for
contracts pensions Total
January 1, 2007 0.75 0.08 0.83
Deductions of provisions -0.27 -0.27
September 30, 2007 0.48 0.08 0.56

Collaterals, contingent liabilities
and other commitments
9/2007 9/2006 12/2006
Collaterals for own commitments
Business mortgages (as collateral
for bank guarantee limit) 0.50 0.50 0.50

Pledged funds 0.06 0.05 0.08

Other contingent liabilities
Guarantees 0.00 0.06 0.07

Leasing and rental
agreement commitments
Premises 5.23 3.56 3.38
Others 0.84 0.72 0.87
Total 6.07 4.28 4.25

Derivative contracts
Currency forward contracts:
Fair value 0.25 -0.03 0.06
Nominal value of
underlying instruments 5.18 3.13 3.85

The Group makes derivative contracts to hedge against the exchange
rate risks
of prospective sales agreements. Forward contracts and currency
options are
stated at fair value, and related foreign exchange gains and losses
are
recognized in the income statement. The derivative contracts hedge
sales
in US dollars.

Related party transactions 9/2007 9/2006 12/2006
Gerako Oy
Purchases of services 0.05 0.03 0.07
Reimbursed expenses 0.01 0.01 0.02

Management remuneration
Salaries and post-employment
benefits 1.08 0.96 1.44

Management herein refers to members of the Tekla Corporation
Management Team.

Tekla Corporation s Interim Report January 1-September 30, 2007: Excellent third quarter for Tekla

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