Tekla Corporation's Financial Statements Bulletin January 1

Tekla Corporation Stock Exchange Release 7.2.2008 at
9:00 a.m.

Tekla Corporation's Financial Statements Bulletin January 1 -
December 31, 2007:
Tekla achieved record profitability in 2007

Net sales of Tekla Group for January-December 2007 totaled 59.25
(49.78 during the same period in 2006) million euros. Growth in net
sales was 19%. The operating result for 2007 was 20.68 (13.62)
million euros. The operating result amounted to 34.9% (27.4%) of net
sales. The Defence business, sold at the end of April 2007, and the
resulting sales profit are included in these figures.

Net sales of the continuing businesses for January-December 2007
amounted to 58.25 (47.64) million euros, increasing by approximately
22%. The operating result of the continuing businesses was clearly
better than the previous year, reaching 17.90 (13.38) million euros,
and the operating result percentage was 30.7 (28.1).

Net sales for the fourth quarter of the continuing businesses totaled
16.44 (14.56) million euros, increasing by approximately 13%. The
operating result for the quarter was 4.99 (4.46) million euros, and
the operating result percentage was 30.4 (30.6).

Ari Kohonen, Tekla's CEO, comments the financial statements of 2007:

- It seems that our decision to focus on the software product
business was right. We have managed to get our net sales on a solid
growth track, and the profitability of operations is excellent. The
fourth quarter was the 12th consecutive quarter with operating result
exceeding that of the corresponding quarter the previous year.

- During the fourth quarter, our main business area, Building &
Construction, experienced more modest growth than during the previous
quarters of 2007 due to the timing of individual major deals.

- Most markets, such as North America, India and the Middle East,
were extremely strong. Other key markets for Tekla in 2007 were
Western Europe and the Nordic countries. The highest relative growth
in net sales for the fourth quarter was seen in North America and the
Far East.

- Building & Construction, which achieved record net sales, pursues
growth with the expanded product portfolio in addition to its
well-established steel design software. From the point of view of
Tekla, it is a very favorable trend that the building industry's move
from traditional two-dimensional work methods to model-based 3D
processes seems to be gaining momentum. This development increases
customers' productivity and improves their competitiveness in every
market condition.

- From the point of view of Tekla, no substantial change has taken
place in B&C's market situation. The number of personnel will be
increased further in order to expand the product offering and
marketing capabilities.

- As we had previously predicted, also the Infra & Energy business
area achieved good annual results. It experienced strong growth
during the fourth quarter, and I&E made more than a half of its
result for 2007 during this quarter. The outlook for the business
area seems favorable. Demand is not very sensitive to economic
fluctuations.

The Board of Directors estimates that growth in net sales for 2008
will be approximately 15% on the previous year and that the operating
result will exceed that of the previous year. Growth in the Building& Construction business area is expected to outpace Infra & Energy,
while both business areas are expected to improve their results on
the previous year.

- - -
Tekla is an international software product company whose model-based
software make customers' core processes more effective in building
and construction, energy distribution, infrastructure management and
water supply. Tekla has customers in more than 80 countries. Tekla
Group's net sales for 2007 were nearly 60 million euros and operating
result approximately 20 million euros. International operations
account for more than 80% of net sales. Tekla Group employs 400
people, of whom approximately 150 work outside Finland. Tekla was
established in 1966, making it one of the oldest software companies
in Finland. www.tekla.com

- - -

TEKLA CORPORATION'S FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31,
2007

NET SALES AND PROFITABILITY

* Net sales of Tekla Group for January-December 2007 were 59.25
million euros (49.78 million euros in January-December 2006).
* Growth in net sales was 19.0%.
* Operating result was 20.68 (13.62) million euros.
* Earnings per share were 0.69 (0.45) euros.
* Return on investment was 74.5 (63.1) percent.
* Return on equity was 55.4 (48.5) percent.
* Defence business, which was sold at the end of April 2007, and the
sales profits from it are included in these figures.

Continuing businesses:
* Net sales were 58.25 (47.64) million euros.
* Operating result was 17.90 (13.38) million euros.
* Operating result percentage was 30.7 (28.1).
* Earnings per share were 0.60 (0.44) euros
* Changes in the US dollar-euro exchange rate had a negative impact
of approximately 2% on net sales and approximately 3% on operating
result.

FINANCIAL POSITION

* Cash flows from operating activities totaled 13.55 (13.01) million
euros.
* Liquid assets amounted to 30.15 (24.24) million euros on December
31, 2007.
* Equity ratio was 67.5 (63.4) percent.
* Interest-bearing debts were 0.34 (0.69) million euros.

OTHER KEY FIGURES

* International operations accounted for 82.2% (78.6%) of net sales
(continuing businesses).
* Personnel averaged 374 (324) during January-December.
The Defence personnel (approximately 20) are included in the number
of personnel until the end of April 2007.
* At year's end, the number of personnel including part-time staff
was 400 (365).
* Gross investments in property, plant and equipment were 1.66 (1.33)
million euros.
* Equity per share was 1.40 (1.10) euros.
* On the last trading day of the year, trading closed at 12.70 (7.88)
euros.

BUSINESS AREAS

NET SALES BY BUSINESS AREA (PRIMARY SEGMENT)

Q1-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2007 2006 2007 2006
Building & Construction 45.48 35.88 9.60 12.04 10.91
Infra & Energy *) 12.76 11.76 1.00 4.40 3.65
Defence **) 1.00 2.14 -1.14 0.00 0.93
Others 0.01 0.00 0.01 0.00 0.00
Total 59.25 49.78 9.47 16.44 15.49

OPERATING RESULT BY BUSINESS AREA (PRIMARY SEGMENT)

Q1-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2007 2006 2007 2006
Building & Construction 15.96 12.77 3.19 3.85 3.99
Infra & Energy *) 1.96 1.04 0.92 1.20 0.53
Defence **) 2.78 0.24 2.54 0.25 0.33
Others -0.02 -0.43 0.41 -0.06 -0.06
Total 20.68 13.62 7.06 5.24 4.79

*) 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 sales profits amounting to approximately 2.3 million euros
and estimated additional sale price amounting to 0.25 million euros
for Q4/2007.

BREAKDOWN OF NET SALES BY TYPE*) (CONTINUING BUSINESSES)

Build. Infra
Proportion of net && Tekla
sales, % Constr Energy total
2007 2006 2007 2006 2007 2006
Licenses 62 65 23 25 54 55
Recurring 34 32 47 45 37 35
Services 3 3 15 15 6 6
Others 1 0 15 15 3 4
Total 100 100 100 100 100 100
Net sales total, million euros 45.48 35.88 12.76 11.76 58.25 47.64

*) Net sales types:
- License: license to use the sold product version
- Recurring: maintenance income (includes annual product versions and
customer support) and subscriptions
- Services: implementation support, training and consultation
- Others: e.g. customer- or customer group-specific product projects

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
Tekla's key market areas. Tekla's products are primarily used in
commercial, office and industrial buildings. B&C's largest market is
the United States, and the weakened industry outlook there mainly
concerns small-scale residential construction.

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;
customers are rather suffering from a shortage of manpower. The
impacts of volume changes on the demand for Tekla's products are not
straightforward. Fluctuation in the demand for licenses in particular
does not necessarily follow building industry trends very closely.
Increase in the average size of transactions and larger customer
accounts are favorable trends in Tekla's view.

The net sales of B&C amounted to 45.48 (35.88) million euros for
January-December 2007. Net sales increased by approximately 27%
compared to the same period the previous year. The operating result
was 15.96 (12.77) million euros. B&C's operating result percentage
for 2007 was 35.1% (35.6%). Changes in the U.S. dollar-euro exchange
rate had a minor negative impact on an annual level.

B&C's net sales for the fourth quarter totaled 12.04 (10.91) million
euros, increasing by 10.4%. B&C's operating result was 3.85 (3.99)
million euros and operating result margin 32.0% (36.6%).

B&C experienced more moderate growth in October-December than during
the first three quarters due to the timing of individual major deals.

International operations accounted for 94% (94%) of B&C's net sales
for January-December 2007. Most markets, such as North America, India
and the Middle East, were extremely strong. Other key markets in 2007
were Western Europe and the Nordic countries. Highest relative growth
in net sales for the fourth quarter was seen in North America and the
Far East.

By far the most of B&C's net sales was still generated by the product
offering for structural steel engineering. Sales of B&C's other
products developed also favorably during the year. Nordic customers
in particular are using the features of Tekla Structures increasingly
more extensively.

Building & Construction pursues growth with the expanded product
portfolio in addition to its well-established steel design software.
From the point of view of Tekla, it is a very favorable trend that
the building industry's move from traditional two-dimensional work
methods to model-based 3D processes seems to be gaining momentum.
This development increases customers' productivity and improves their
competitiveness in every market condition. The number of personnel
will be increased further in order to expand the product offering and
marketing capabilities.

Tekla's representative office in India was transformed into a
fully-owned subsidiary at the end of 2007. This facilitates increased
flexibility in this rapidly growing market.

In November, Tekla introduced the Tekla Structures for Construction
Management concept in the United States and the United Arab Emirates.
The concept expands the Tekla Structures software to use by builders,
developers and contractors.

In October, Tekla signed an international partnership agreement with
the world's largest manufacturer of steel, ArcelorMittal. The aim is
to aid architects, designers, design agencies and building
professionals in using steel as efficiently as possible.

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-term 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 one of the leading
Nordic engineering companies, Ramboll Group. 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.

The Al Attar Group, a U.A.E.-based real estate development and
construction group, chose to adopt Tekla Structures in its key
business processes in July.

Tekla joined the Business Software Alliance in the spring. The 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). I&E's product-based offering also
comprises customer projects where product features are developed in
cooperation with individual customers or customer groups. Product
entities developed in the projects are offered to other customers as
well.

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 solid 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 still strong in
large and medium-sized Finnish municipalities.

The net sales of I&E amounted to 12.76 (11.76) million euros for
January-December 2007. Net sales increased by some 9%. I&E's
operating result for the reporting period was 1.96 (1.04) million
euros. I&E's operating result percentage was 15.4% (8.8%).
International operations accounted for 42% (33%) of net sales.

I&E's net sales for the fourth quarter amounted to 4.40 (3.65)
million euros and operating result was 1.20 (0.53) million euros. The
operating result percentage was 27.3% (14.6%). Also the Infra &
Energy business area achieved good annual results, as previously
predicted. It experienced strong growth during the fourth quarter,
and I&E made more than a half of its 2007 result during this quarter.

The majority of I&E's net sales consists of sales to existing
customers. New customers are still mainly expected from among Swedish
and German energy companies as well as Finnish and Swedish water
utilities. In Eastern Europe, business opportunities are explored
with local partners. The customer base in the infrastructure
management sector is expected to broaden with the adoption of
regional services in Finland. The outlook for the business area seems
favorable. Demand is not very sensitive to economic fluctuations.

Latvia's national energy company Latvenergo ordered a significant
expansion of Tekla Xpower towards the end of the year. Swedish
Mälarenergi became a new customer. A contractor interface, realized
as a customer cooperation project, was also completed at the end of
the year. Additionally, expansion of network information system use
was agreed with several customers in the Nordic countries.
Utilization of the software expanded in Malaysia as well.

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 summer, the application
will comprise a key part of the Tekla Xcity-based electronic service
entity for infrastructure management. The Internet map service reform
project was completed.

A bridgehead in the Swedish water supply field was taken with the
Tekla Xpipe system order by the city of Linköping.

Defence

As a part of the decision to focus further on product-based
international business operations, Tekla sold its project-based
Defence business to Patria on May 1, 2007. In line with the terms and
conditions of the contract, Tekla has a possibility until the end of
2008 to receive an additional sale price depending on the sales
development of the sold business. In connection with the transaction,
slightly more than 20 Defence employees transferred to Patria.

The Defence business area's net sales for 2007 amounted to 1.00
(2.14) million euros. Its operating result was 2.78 (0.24) million
euros. The operating result for Q2/2007 includes sales profits
amounting to approximately 2.3 million euros and estimated additional
sale price amounting to 0.25 million euros for Q4/2007.

Defence is processed as discontinued operations in the financial
reporting for 2007 and the comparison period.

PRODUCT DEVELOPMENT

The annual main version of Tekla Structures was launched in
mid-April. During the latter half of the year, Tekla Structures
development focused on the 2008 main version to be released in the
spring. In the main version, the focuses 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 model between organizations.

A product module for construction management is being developed for
the software, making it possible to model the entire project from
detailing to site schedules and supervision.

Main versions of the Tekla Xpower and Tekla Xpipe software products
were completed in June. They feature a variety of new functions,
especially in network calculations. During the second half of the
year the product development focused among others on Tekla Xpower's
next main version, which was completed in December. The possibility
of controlling access to the system data by various user groups (such
as subcontractors) was developed as a key feature.

Development of the Tekla Xcity and Tekla Xstreet software products
continued in close cooperation with customers. This year, versions of
both products were released in June and in November - December. The
WebMap Internet map service reform project was completed towards the
end of the year.

Product development was reorganized as of the beginning of 2008, and
software product development was transferred to the corresponding
business areas. This was made to ensure that product development will
take place even closer to the customers. The Technology &
Architecture unit is responsible for technology and architecture
shared by all of the products.

PERSONNEL

The Group personnel averaged 374 (324) in January-December 2007; on
average 144 (107) 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 end of the year, Tekla personnel totaled 400 (365) including
part-time staff, of them 158 (123) outside Finland. The number of
personnel in the continuing businesses increased by 55 during the
course of the year. Largest increases to personnel took place in
product development and sales.

The average age of Tekla's employees was 37.5 (37.5) years. Of the
personnel, 64% (66%) had a higher academic degree or university-level
studies. 29% (27%) of Tekla employees were female, 71% (73%) male.
The turnover of personnel was 7.7% (8.2%).

The company has a compensation and incentive system applied to all
employees, and The Tekla Board of Directors decides on its principles
on an annual basis. They are connected with the achievement of the
previous year's operative and financial goals as well as share price
development. Tekla has no valid option programs.

Senior management

No changes have taken place in the composition of the Tekla
Management Team during 2007. The members of the Tekla Management Team
are Ari Kohonen, President and CEO; Risto Räty, Executive Vice
President and CEO's deputy (appointment as of January 1, 2008)
(Building & Construction); Heikki Multamäki, Executive Vice President
(Business Development); Kai Lehtinen, Senior Vice President (Infra &
Energy); Petri Raitio, Senior Vice President (Technology &
Architecture); Leif Granholm, Senior Vice President (Tekla Nordic
Area); Harald Lundberg, Vice President (Tekla Information
Management); Anneli Bergström, Vice President (Human Resources) and
Timo Keinänen, CFO.

SHARE AND OWNERSHIP STRUCTURE

Shares and Share Capital

The total number of Tekla Corporation shares at the end of December
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 883,920 euros on December 31,
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 2007 was 14.94 (7.90) euros,
the lowest 7.60 (3.38) euros. The average quotation was 10.88 (5.24)
euros. On the last trading day of the year, trading closed at 12.70
(7.88) euros. The share price increased by approximately 61% during
the financial period.

A total of 13,797,159 (13,741,585) Tekla shares changed hands during
2007, amounting to 61% (61%) of the entire share capital. Tekla
terminated the market-making agreement for its share in July. The
agreement terminated on August 31, 2007.

Nominee registered and foreign owners held 21.90% (17.45%) of all
shares at the end of 2007.

Changes in ownership structure (flagging notifications)

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 Ltd 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%.

Fidelity International Ltd's and its subsidiaries' holdings in Tekla
Corporation crossed below the 5% threshold by means of sales of
shares on December 12, 2007. According to the notification, the new
holdings amounted to 4.99%.

In January 2008 (after the reporting period), Threadneedle Asset
Management Holdings Limited announced that their holdings in Tekla
Corporation crossed above the 5% threshold on January 14, 2008.
According to the notification, Threadneedle's holdings amounted to
5.098%.

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 Board
members until the conclusion of the Annual General Meeting in 2008.
Timo Keinänen was re-elected 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 did not use its
authorizations in 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. Trends in the building
industry may weaken, at least in certain markets, which might have a
negative impact on the demand for Tekla products.

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 would
be challenging to proportion fixed personnel expenses, which account
for the majority of Tekla's costs.

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

ENVIRONMENT

The direct environmental consequences of Tekla's business are
minimal. The direct environmental effects arising from the use of the
company's products are not considered to be significant.

OUTLOOK FOR 2008

BOARD'S PROPOSAL FOR THE DISTRIBUTION OF PROFIT

The parent company's distributable funds amount to 22,985,645 euros,
of which the profit for the financial period is 14,529,801 euros.

Tekla Corporation's Board will propose to the Annual General Meeting,
to be held on March 19, 2008, that a dividend of 0.50 euros per share
be paid for the financial period 2007 for a total dividend payout of
11,258,300 euros. No dividend will be paid on the 69,600 shares held
by the company.

NEXT FINANCIAL REPORT

Tekla Corporation's Interim report for January-March 2008 will be
published on April 24, 2008.

Espoo, February 6, 2008

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 Exchange, main media

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

CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

CONSOLIDATED INCOME STATEMENT

Q1-Q4/ Q1-Q4/ Ch., Q4/ Q4/ Ch.,
Million euros 2007 2006 % 2007 2006 %
Continuing businesses:
Net sales 58.25 47.64 22.3 16.44 14.56 12.9

Other operating income 1.02 1.02 0.39 0.33
Change in inventories of
finished goods and in
work in progress 0.03 0.02 -0.05 -0.04

Raw materials and
consumables used -2.05 -2.01 -0.67 -0.87
Employee compensation and
benefit expense -25.49 -21.70 -6.90 -6.14
Depreciation -1.14 -1.19 -0.28 -0.30
Other operating expenses -12.72 -10.40 -3.94 -3.08

Operating result 17.90 13.38 33.8 4.99 4.46 11.9
% of net sales 30.73 28.09 30.35 30.63

Financial income 1.86 1.06 0.47 0.35
Financial expenses -1.33 -0.91 -0.42 -0.43

Profit (loss) before taxes 18.43 13.53 36.2 5.04 4.38 15.1
% of net sales 31.64 28.40 30.66 30.08

Income taxes -4.92 -3.55 -1.24 -1.14

Result for the period from
continuing businesses 13.51 9.98 35.4 3.80 3.24 17.3

Discontinued operations:
Result for the period from
discontinued operations 2.06 0.18 0.19 0.27

Result for the period 15.57 10.16 53.2 3.99 3.51 13.7

Attributable to the equity holders of the Company
Earnings per share for profit
attributable to the equity
holders of the Company:
Earning per share (EUR) 0.69 0.45 0.18 0.16
Earnings are not diluted.

Earnings per share from continuing
businesses attributable to the
equity holders of the Company:
Earning per share (EUR) 0.60 0.44 0.17 0.15
Earnings are not diluted.

Earnings per share from discontin.
operations attributable to
the equity holders of the Company:
Earning per share (EUR) 0.09 0.01 0.01 0.01
Earnings are not diluted.

CONDENSED BALANCE SHEET
Change,
Million euros 12/2007 12/2006 %
Assets
Non-current assets
Property, plant and
equipment 1.79 1.74
Goodwill 0.10 0.10
Intangible assets 0.74 0.49
Other financial assets 0.30 0.30
Receivables 0.49 0.56
Deferred
tax assets 0.11 0.36
Non-current assets, total 3.53 3.55 -0.6

Current assets
Inventories 0.07 0.04
Trade and other
receivables 12.96 10.90
Other financial assets 25.22 18.60
Cash and cash equivalents 4.97 5.69
Current assets, total 43.22 35.23 22.7

Assets related to
discontinued operations 0.25 0.97

Assets total 47.00 39.75 18.2

Equity and liabilities
Equity
Share capital 0.68 0.68
Share premium account 8.89 8.89
Other own capital 1.17 1.22
Retained earnings 20.71 13.93
Equity total 31.45 24.72 27.2

Non-current liabilities
Deferred tax liabilities 0.13 0.00
Provisions 0.00 0.83
Interest-bearing liabilities 0.07 0.27
Non-current liabilities total 0.20 1.10 -81.8

Current liabilities
Trade and other payables 13.35 12.17
Tax liabilities 1.01 0.80
Current interest-bearing
liabilities 0.27 0.43
Current liabilities total 14.63 13.40 9.2

Liabilities total 14.83 14.50 2.3

Liabilities related to
discontinued operations 0.72 0.53

Equity and liabilities total 47.00 39.75 18.2

CALCULATION OF RECONCILIATION OF EQUITY

Equity attributable to the holders of the
Company

Share Share Fair Acc. Ret.
cap. prem. Res. value transl. earn.
acct fund res. diff. Total
Equity January 1, 2006 0.68 8.89 1.33 0.04 -0.05 6.32 17.21
Transl. differences -0.16 0.15 -0.01
Changes in
available-for-sale
investments 0.06 0.06
Items recognized
directly in equity 0.00 0.00 0.00 0.06 -0.16 0.15 0.05
Net profit for the
period 10.16 10.16
Total income and
expenses recognized in
the period 0.00 0.00 0.00 0.06 -0.16 10.31 10.21
Payment of dividend -2.70 -2.70
Equity Dec. 31, 2006 0.68 8.89 1.33 0.10 -0.21 13.93 24.72

Equity attributable to the holders of the
Company

Share Share Fair Acc. Ret.
cap. prem. Res. value transl. earn.
acct fund res. diff. Total
Equity January 1, 2007 0.68 8.89 1.33 0.10 -0.21 13.93 24.72
Transl. differences -0.25 0.22 -0.03
Changes in
available-for-sale
investments 0.20 0.20
Items recognized
directly in equity 0.00 0.00 0.00 0.20 -0.25 0.22 0.17
Net profit for the
period 15.57 15.57
Total income and
expenses recognized in
the period 0.00 0.00 0.00 0.20 -0.25 15.79 15.74
Payment of dividend -9.01 -9.01
Equity Dec. 31, 2007 0.68 8.89 1.33 0.30 -0.46 20.71 31.45

CONDENSED CASH FLOW STATEMENT
Q1-Q4/ Q1-Q4/ Change,
Million euros 2007 2006 %
Cash flows from oper. activities:
Continuing businesses 12.97 13.15
Discontinued operations 0.58 -0.14
Net cash flows from operating
activities 13.55 13.01

Cash flows from investing
activities:
Investments -1.66 -1.33
Sale of intangible assets
and property, plant and
equipment 0.25 0.13
Cash flow from sale
of discontinued operations 2.35
Purchases of available-for-
sale financial assets -55.16 -48.64
Proceeds from sale of available-
for-sale financial assets 50.11 43.84
Interests received from available-
for-sale financial assets 0.65 0.40
Net cash used in/from investing
activities -3.46 -5.60

Cash flows from financing
activities:
Payment of dividend -9.01 -2.70
Repayments of long-term debt -0.39 -0.59
Payments of finance lease
liabilities -0.04 -0.06
Net cash used in financing
activities -9.44 -3.35

Net decrease/increase in cash and
cash equivalents 0.65 4.06

Cash and cash equivalents at
beginning of the period 7.78 3.72 109.1
Cash and cash equivalents at end
of the period 8.43 7.78 8.4

The cash and cash equivalents in
the cash flow statement include:
Cash and cash equivalents 4.97 5.69
Available-for-sale financial
assets,cash equivalents 3.46 2.09

NOTES TO THE FINANCIAL STATEMENTS

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

In preparing the financial statements, the IAS and IFRS standards and
SIC and
IFRIC interpretations effective on December 31, 2007 were observed.
International Financial Reporting Standards refer to the standards
defined in
the Finnish Accounting Act and related regulations approved for
application in
the EU and their interpretations in accordance with the EU regulation
(EC)
1606/2992.

The figures presented in the financial statements are unaudited.

Use of estimates

When preparing the financial statements, the Group's management is
required
to make estimates and assumptions influencing the content of the
financial
statements, 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 financial statements. 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-Q4/ Q1-Q4/ Change, Q4/ Q4/
Million euros 2007 2006 % 2007 2006
Building & Construction 45.48 35.88 26.8 12.04 10.91
Infra & Energy *) 12.76 11.76 8.5 4.40 3.65
Defence **) 1.00 2.14 -53.3 0.00 0.93
Others 0.01 0.00 0.00 0.00
Total 59.25 49.78 19.0 16.44 15.49

Operating result by business area (primary segment)

Q1-Q4/ Q1-Q4/ Change, Q4/ Q4/
Million euros 2007 2006 % 2007 2006
Building & Construction 15.96 12.77 25.0 3.85 3.99
Infra & Energy *) 1.96 1.04 88.5 1.20 0.53
Defence **) 2.78 0.24 1,058.3 0.25 0.33
Others -0.02 -0.43 95.3 -0.06 -0.06
Total 20.68 13.62 51.8 5.24 4.79

*) 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 sales
profits amounting to approximately 2.3 million euros and an
estimated additional sale price of 0.25 million euros for Q4/2007.

Financial indicators 12/2007 12/2006

Earnings per share (EPS), EUR 0.69 0.45
Earnings per share (EPS) from
continuing businesses, EUR 0.60 0.44
Earnings per share (EPS) from
discontinued operations, EUR 0.09 0.01
Equity/share, EUR 1.40 1.10
Interest-bearing liabilities 0.34 0.69
Equity ratio, % 67.5 63.4
Net gearing, % -94.8 -95.2
Return on investment, % 74.5 63.1
Return on equity, % 55.4 48.5

Number of shares
at year's end 22,516,600 22,516,600
Number of shares,
on average 22,516,600 22,516,600

Gross investments, MEUR 1.66 1.33
% of net sales 2.85 2.79
Personnel, on average 374 324

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. An
estimated additional sale price amounting to 0.25 million euros
has been recognized in the Defence operating result for Q4/2007.

Result for the Defence business
Q1-Q4/ Q1-Q4/
2007 2006
Net sales 1.00 2.14
Expenses -0.81 -1.90
Profit (loss) before income taxes 0.19 0.24
Taxes -0.05 -0.06
Profit (loss) after taxes 0.14 0.18

Sales profit from
the Defence business sale 2.59
Taxes -0.67
Sales profit after
taxes 1.92 0.00
Profit (loss) for the period
from discontinued operations 2.06 0.18

Cash flow statement, Defence

Cash flows from operating
activities 0.58 -0.14
Cash flows from investing
activities *) 2.35 0.00
Cash flows from financing
activities 0.00 0.00
Total cash flow 2.93 -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
December 31, 2007
Other receivables 0.25
Tax liabilities 0.72

Consideration received and effect on cash flow

Cash received 2.35
Cash and cash equivalents
disposed of 0.00
Total net disposal
consideration 2.35

Consolidated income statement by quarter

Q4/ Q3/ Q2/ Q1/ Q4/
Million euros 2007 2007 2007 2007 2006
Continuing businesses:
Net sales 16.44 14.78 13.92 13.11 14.56

Other operating income 0.39 0.17 0.22 0.24 0.33
Change in inventories of
finished goods and in work
in progress -0.05 -0.02 0.05 0.05 -0.04

Raw materials and
consumables used -0.67 -0.28 -0.52 -0.58 -0.87
Employee compensation and
benefit expense -6.90 -5.72 -6.77 -6.10 -6.14
Depreciation -0.28 -0.28 -0.28 -0.30 -0.30
Other operating expenses -3.94 -2.83 -3.29 -2.66 -3.08

Operating result 4.99 5.82 3.33 3.76 4.46
% of net sales 30.35 39.38 23.92 28.68 30.63

Financial income 0.47 0.62 0.27 0.50 0.35
Financial expenses -0.42 -0.41 -0.24 -0.26 -0.43

Profit (loss) before taxes 5.04 6.03 3.36 4.00 4.38
% of net sales 30.66 40.80 24.14 30.51 30.08

Income taxes -1.24 -1.57 -1.03 -1.08 -1.14

Result for the period from
continuing businesses 3.80 4.46 2.33 2.92 3.24

Discontinued operations:
Result for the period from
discontinued operations 0.19 0.00 1.86 0.01 0.27

Result for the period from 3.99 4.46 4.19 2.93 3.51

Income taxes Q1-Q4/ Q1-Q4/
2007 2006

Taxes for the financial
period and prior periods -4.54 -3.23
Deferred taxes -0.38 -0.32
Total -4.92 -3.55

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

Property,
plant and equipment 12/2007 12/2006
Cost at the beginning of
the period 6.82 6.47
Translation differences -0.08 -0.03
Additions 1.16 0.98
Disposals -0.70 -0.60
Cost at the end of the
period 7.20 6.82

Accumulated depreciation at
the beginning of the period 5.08 4.61
Translation differences -0.07 -0.03
Accumulated depreciation on
disposals -0.44 -0.44
Depreciation for the
financial period 0.84 0.94
Accumulated depreciation
at the end of the period 5.41 5.08

Net book amount at the end
of the period 1.79 1.74

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

Provisions
Loss-
making Provisions
contracts for
pensions Total
January 1, 2007 0.75 0.08 0.83
Deductions of provisions -0.75 -0.08 -0.83
December 31, 2007 0.00 0.00 0.00

The Group's lease agreement for a building that was no longer used
in business was terminated on December 31, 2007.

Collaterals, contingent liabilities
and other commitments 12/2007 12/2006

Collaterals for own commitments
Business mortgages
(as collateral for bank
guarantee limit) 0.50 0.50

Pledged funds 0.07 0.08

Other contingent liabilities
Guarantees 0.00 0.07

Leasing and rental
agreement commitments
Premises 4.75 3.38
Others 0.81 0.87
Total 5.56 4.25

Derivative contracts
Currency forward contracts:
Fair value 0.31 0.06
Nominal value of
underlying instruments 5.06 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 12/2007 12/2006
Gerako Oy
Purchases of services 0.06 0.07
Reimbursed expenses 0.01 0.02

Management remuneration
Salaries and post-employment
benefits 1.33 1.21

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

Tekla Corporation's Financial Statements Bulletin January 1 - December 31, 2007

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