SSH COMMUNICATIONS SECURITY CORP STOCK EXCHANGE RELEASE, October 22, 2008, at 9:00 a.m. - Net sales for January-September totaled EUR 6.3 million, down by 47.4 % percent year on year (EUR 11.9 million in Q1-Q3/2007). - Third-quarter net sales came to EUR 2.0 million, down by 75.0 percent on a year earlier (EUR 7.8 million in Q3/2007). The third quarter of the previous year contained the company's largest order so far. - Operating loss for January-September amounted to EUR -1.1 million (an operating profit of 3.2 million in Q1-Q3/2007), loss EUR -0.4 million (3.9 million). Third-quarter operating profit was EUR -0.3 million and net profit was EUR -0.1 million. In spite of the loss the company's financial position remained healthy, with equity ratio 92.5% (93.4%)and liquid assets at the end of the period EUR 16.1 million (EUR 20.9 million). - The company signed four significant license agreements during the period. The largest order, value about EUR 0.6 million, came from a US public sector contractor. KEY FIGURES 7-9/ 7-9/ 1-9/ 1-9/ 1-12/ 2008 2007 2008 2007 2007 Net sales (MEUR) 2.0 7.8 6.3 11.9 14.2 Net sales, change % -75.0 342.6 -47.4 94.8 58.1 Operating profit/loss (MEUR) -0.3 4.4 -1.4 3.2 2.2 % of net sales -16.9 55.9 -22.7 27.2 15.7 Operating profit/loss, change % -107.6 996.5 -143.9 327.6 262.8 Profit/loss before taxes (MEUR) -0.1 4.6 -0.9 3.9 3.1 % of net sales -7.6 59.2 -13.9 32.4 21.9 Number of employees at period end 75 84 75 84 83 Earnings per share (EUR) -0.04 0.14 0.11 Shareholders' equity per share (EUR) 0.53 0.75 0.72 SSH Communications Security is a world-leading provider of enterprise security solutions and end-to-end communications security, and the original developer of the Secure Shell protocol. The company's SSH Tectia solution addresses the most critical needs of large enterprises, financial institutions and government agencies. NET SALES Consolidated net sales for January-September totaled EUR 6.3 million (EUR 11.9 million), down by -47.4 % percent, year on year. Net sales for the third quarter totaled EUR 2.0 million, a decrease of 75.0 % compared to the corresponding quarter for year 2007. The majority of SSH's invoicing is based on the U.S. dollar. During the report period, the U.S. dollar's average exchange rate to euro weakened approximately 13 percent compared to the same period a year ago. At constant currency, net sales would have decreased -43 percent compared to the January-September period and -74 percent compared to the third quarter of year 2007. RESULTS AND EXPENSES Operating loss for January-September amounted to EUR -1.4 million (Q1-Q3/2007: an operating profit of EUR 3.2 million), with net loss totaling EUR -1.1 million (a profit of EUR 3.9 million). Operating loss for the third quarter totaled EUR -0.3 million (a profit of EUR 4.4 million), with net loss amounting to EUR -0.4 million (a profit of EUR 4.6 million). Research and development expenses for the report period totaled EUR 2.9 million (EUR 2.6 million), while sales and marketing expenses amounted EUR 3.6 million (EUR 5.0 million) and administrative expenses EUR 1.2 million (EUR 1.2 million). The result of the reporting period is influenced by a EUR 0.2 million writeoff of a deferred tax asset. During the reporting period, SSH Communications Security KK, fully owned subsidiary of SSH, was liquidated. The procedure incurred no material expenses as the charges were covered by a restructuring cost recorded in the previous financial year. BALANCE SHEET AND FINANCIAL POSITION The financial position of SSH remained at a healthy level during the report period, which also included a distribution of EUR 4.3 million to the shareholders. The consolidated balance sheet total on September 30, 2008 stood at EUR 19.0 million (EUR 25.2 million), of which liquid assets accounted for EUR 16.1 million (EUR 20.9 million), or 84.7 percent of the balance sheet total. The company's interest bearing liabilities, EUR 0.2 million, comprised lease finance commitments. On September 30, 2008, gearing, or the ratio of net liabilities to shareholders' equity, was -106.1 percent (-98.6) and the equity ratio stood at 92.5 percent (93.4). In August, permission was obtained to implement the decrease of the company's share premium fund, decided by the Annual Shareholders Meeting on March 27, 2008. Share premium fund was decreased by transferring all assets from the fund to unrestricted equity fund. The reported gross capital expenditure for the period totaled EUR 0.1 million (EUR 0.1 million), plus lease financed commitments EUR 0.2 million (0.0). The reported financial income consisted mainly of interest on fixed-term deposits. Financial income and expenses totalled EUR 0.6 million (EUR 0.6 million). During January-September, SSH reported a negative cash flow of EUR -2.1 million from business operations, and investments showed a positive cash flow of EUR +6.8 million. Cash flow from financing totaled EUR -4.3 million. Cash flow from operations, investments and financing resulted in the company showing a positive total cash flow of EUR 0.4 million during the period. CHANGE IN ACCOUNTING PRACTISE FOR RECORDING PROFITS FROM SALES (IAS8) The accounting practice for recording of maintenance sales revenue was restated in September 2008, with all maintenance sales revenue being now periodised. Earlier, only significant sales items (exceeding EUR 5 000) were periodised over the lifetime of the maintenance period. The new practice is in accordance with IAS 8. The change did not have material impact on net sales in January-September 2008 or in other periods. The change, however, reduces share capital and increases short-term liabilities. For consistency, comparison data has been restated as well. The impact of the restate is as follows: RESTATE IMPACT (MEUR) 1-3/ 1-6/ 1-9/ 1-9/ 1-12/ 2008 2008 2008 2007 2007 Net sales 0.0 -0.1 0.0 0.0 0.1 Operating profit/loss 0.0 -0.1 0.0 0.0 0.1 Profit/loss before taxes 0.0 -0.1 0.0 0.0 0.1 Earnings per share (EUR) 0.0 0.0 0.0 0.0 0.0 Shareholders' equity -0.4 -0.4 -0.4 -0.4 -0.4 Long-term liabilities 0.0 0.0 0.0 0.0 0.0 Short-term liabilities 0.4 0.4 0.4 0.4 0.4 Total liabilities and shareholders' equity 0.0 0.0 0.0 0.0 0.0 Quarterly values of original and restated financials are presented at the end of this interim report. MARKET DEVELOPMENTS The most significant users of the company's products are large enterprises and public sector organizations. The most important market area is the USA. During the current year macro economic factors have affected the demand, and many customers have been forced to postpone their projects. Large enterprise, financial, and public sector organizations have a growing need for improved data security in several ways. SSH is confident that legislative reforms in developed countries, global data security standards, as well as many industry and company level data security development programs will continue to drive demand favorably for SSH Tectia. We believe as the macro-level outlook starts stabilizing, the demand in the important market segments will normalize. SALES PERFORMANCE SSH'S NET SALES EUR million 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 1-12/ 2008 2008 2008 2007 2007 2007 BY SEGMENT AMER 1.2 1.8 1.3 1.5 7.3 11.7 APAC 0.2 0.2 0.3 0.2 0.2 0.8 EROW 0.5 0.7 0.5 0.6 0.3 1.8 SSH Group total 2.0 2.5 1.8 2.3 7.8 14.2 BY OPERATION License sales 0.8 1.5 0.7 1.1 6.8 10.1 Maintenance 1.1 1.0 1.1 1.1 1.1 4.1 Total 2.0 2.5 1.8 2.3 7.8 14.2 The Americas, the Asia Pacific region, and the 'Europe and Rest of the World' market area accounted for 61.4 percent (85.2 percent), 11.2 percent (5.0 percent) and 27.4 percent (9.8 percent) of reported net sales, respectively. During the report period, SSH concluded five new license agreements that were worth more than EUR 100,000. The ten largest customers accounted for 40 percent of reported net sales, with the largest single customer accounting for approximately 9 percent. PRODUCTS AND MARKETING During the report period, SSH focused its sales and marketing efforts on large enterprises, financial institutions, and government agencies in the USA, Europe, and Asia, in line with its long-term strategy. The company continued also developing its partner network in the same focus markets. The marketing focus was on the company's new Tectia security solutions of IBM mainframe environment and SSH Tectia's enhanced file transfer applications for large internal enterprise networks. The company continued the development of the new third generation architecture-based products. The company also made further development of the productisation to provide higher value, new features and expanded uses, as well as enabling easier purchasing for the customers. New applications, support of all essential enterprise OS platforms including IBM mainframes, versatile integration capabilities, and centralized management have made SSH Tectia the most extensive integrated end-to-end communications security solution in the market. RESEARCH AND DEVELOPMENT Research and development expenses for January-September totaled EUR 2.9 million (EUR 2.6 million), the equivalent of 46.7 percent of net sales (22.0 percent). During the report period SSH didn't capitalize any research and development expenses. HUMAN RESOURCES AND ORGANIZATION At the end of September, the Group had 75 employees on its payroll, down by 9 from the previous year, an decrease of 10.7 percent. At the end of the period, 53.3 percent of the employees worked in R&D, 36.0 percent in sales and marketing, and 10.7 percent in corporate administration. BOARD AND AUDITORS The Annual General Meeting (AGM) on March 27, 2008 re-elected Tomi Laamanen, Timo Ritakallio and Tatu Ylönen to SSH Communications Security Corp.'s Board of Directors. New board members, Pyry Lautsuo and Juha Mikkonen were elected to the board. Tomi Laamanen continues as chairman. The AGM again elected to have PricewaterhouseCoopers Oy, authorized public accountants, as the company's auditor, with Henrik Sormunen, authorized public accountant, acting as the principal auditor. SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE The reported trading volume of SSH Communications Security Corp. shares totaled 2,798,440 (valued at EUR 3,914,988). The highest quotation was EUR 1.69 and the lowest EUR 0.99. The trade-weighted average share price for the period was EUR 1.41, and the share closed at EUR 1.05 (September 28, 2008). During the report period, the ownership structure of the company did not change essentially. Tatu Ylönen holds, directly and through his company, Tatu Ylönen Oy, 52.9 percent of the company's shares, Assetman Oy holds 14.7 % and Tero Kivinen holds 5.2 percent. More information about the shareholding can be obtained from the company's web site. During the report period, the Group decided to have the Japanese subsidiary SSH Communications Security K.K go into voluntary liquidation. This is a fully owned subsidiary of SSH. This arrangement is a part of the re-structuring of company's Asian sales organization, with a goal to sharpen the geographical sales focus, to increase the role of resellers and to decrease costs. SHARE CAPITAL AND BOARD AUTHORIZATIONS The company's registered share capital on September 30, 2008 was EUR 856,508.25, consisting of 28,550,275 shares. During the report period, SSH increased its share capital twice, based on subscription to the new shares under SSH's stock-option plan. In total, 750 new SSH shares were subscribed under the I/1999 stock option plan, 1,913 shares under the I/2003 stock option plan and 11,500 shares under the II/2003 stock option plan respectively. With these subscriptions the company's share capital was increased by EUR 424.89. The Annual General Meeting 27 March 2008 decided, in accordance with the proposal made by the Board of Directors, to authorize the Board of Directors to decide on issuing the maximum of 5,500,000 shares in one or more new share issues or on issuing special rights to share subscription as defined in the Finnish Companies Act Chapter 10, section 1, with or without subscription rights to shareholders. This authorization is effective until the next Annual General Meeting, but will expire 30 June 2009, at the latest. The Board has not exercised this authorization. The Annual General Meeting also authorized the Board of Directors to decide on dividend distribution and/or on distribution of assets from the invested unrestricted equity fund. By virtue of the authorization, the distributed assets can be a maximum of 0.15 euro per share and EUR 4,350,000 in total. The authorization is valid until 31 December 2008. Further, the Board of Directors was authorized to lower the subscription price of shares that can be subscribed on the grounds of the stock option plans released by the Company between years 2000 and 2003, at an amount which equates the distribution of assets. On 2 April 2008, after the end of the report period, the Board of Directors decided to distribute 0.15 euro per share from the invested unrestricted equity fund to the shareholders, and to lower the subscription price of the 2000 - 2003 stock option plans by the same amount. The date of payment was 15 April, 2008. CORPORATE GOVERNANCE The company complies with the corporate governance recommendations for listed companies issued by the NASDAQ OMX Helsinki, the Central Chamber of Commerce of Finland, and the Confederation of Finnish Industry and Employers. More information on corporate governance is available on the company's Web site (www.ssh.com). PROSPECTS The outlook of the world economy has weakened fast. The company estimates its results to remain at loss for the year 2008. The company's actual sales so far and estimations for the rest of the year have been impacted especially by the slow-down of IT investments of banks and other financial sector enterprises, as well as the development of sales to other large customers in the USA. The company continues arrangements to cut operating expenses and return to profitability. INCOME STATEMENT EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/ 2008 2007 2008 2007 2007 Net sales 2.0 7.8 6.3 11.9 14.2 Purchasing and production costs 0.0 0.0 0.0 0.0 0.0 Gross profit 2.0 7.8 6.3 11.9 14.2 Other operating income 0.0 0.0 0.1 0.1 0.1 Expenses Product development -0.9 -0.8 -2.9 -2.6 -3.7 Sales and marketing -1.0 -2.3 -3.6 -5.0 -6.5 Administration -0.4 -0.3 -1.2 -1.2 -1.7 Operating profit/loss -0.3 4.4 -1.4 3.2 2.2 Financial income and expenses 0.2 0.3 0.6 0.6 0.9 Profit/loss before taxes -0.1 4.6 -0.9 3.9 3.1 Taxes -0.2 0.0 -0.2 0.0 0.0 Net profit/loss for the period -0.4 4.6 -1.1 3.9 3.1 EARNINGS PER SHARE 1-9/ 1-9/ 1-12/ 2008 2007 2007 Earnings per share (EUR) -0.04 0.14 0.11 Earnings per share, diluted (EUR) -0.04 0.13 0.11 BALANCE SHEET EUR million 9/30/ 9/30/ 12/31/ 2008 2007 2007 ASSETS Fixed and other non-current assets Tangible assets 0.4 0.1 0.1 Intangible assets 0.0 0.1 0.1 Deferred tax assets 0.0 0.2 0.2 Total fixed and other non-current assets 0.4 0.5 0.5 Inventories and current assets Short-term receivables 2.5 3.7 3.0 Short-term investments 14.0 15.5 20.3 Cash and cash equivalents 2.1 5.4 1.7 Total inventories and current assets 18.6 24.7 25.1 Total assets 19.0 25.2 25.5 LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity 15.1 21.2 20.4 Long-term liabilities Provisions 0.0 0.0 0.2 Long-term financial liabilities 0.1 0.0 0.0 Total long-term liabilities 0.1 0.0 0.2 Short-term liabilities 3.8 4.0 4.9 Total liabilities and shareholders' equity 19.0 25.2 25.5 CASH FLOW STATEMENT EUR million 1-9/ 1-9/ 1-12/ 2008 2007 2007 Cash flow from business operations -2.1 3.9 5.1 Cash flow from investments 6.8 -0.2 -5.0 Cash flow from financing -4.3 0.0 0.0 Increase(+) / decrease (-) in liquid assets 0.4 3.7 0.1 Liquid assets at period start 1.7 1.7 1.7 Adjustment for translation difference 0.0 -0.1 -0.1 Liquid assets at period end 2.1 5.4 1.7 STATEMENT ON CHANGES IN SHAREHOLDERS' EQUITY EUR million Share Share Fair Trans- Unrest- Total Capi Premi value lation ricted tal -um reser diff. equity -ves funds and retained earnings Shareholders' equity Jan. 1, 2007 0.9 11.5 0.1 -0.8 6.3 18.0 Change 0.0 0.0 0.0 -0.2 -2.1 Shareholders' equity Sep. 30, 2007 0.9 11.5 0.1 -1.0 4.2 21.6 Change 0.0 0.0 0.0 -0.1 5.2 Shareholders' equity Dec. 31, 2007 0.9 11.5 0.1 -1.1 9.4 20.8 Change 0.0 -11.5 0.0 0.1 7.3 Net profit -0.9 Shareholders' equity Sep. 30, 2008 0.9 0.0 0.1 -1.4 15.5 15.1 NET SALES BY SEGMENT EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/ 2008 2007 2008 2007 2007 AMER 1.2 7.3 4.2 10.2 11.7 APAC 0.2 0.2 0.7 0.6 0.8 EROW 0.5 0.3 1.4 1.2 1.8 SSH Group total 2.0 7.8 6.3 11.9 14.2 OPERATING PROFIT/LOSS BY SEGMENT EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/ 2008 2007 2008 2007 2007 AMER 0.5 5.6 1.9 7.0 7.6 APAC 0.2 0.0 0.2 0.3 0.3 EROW 0.3 0.0 0.8 -0.1 -0.1 Common Group expenses* -1.3 -1.3 -4.3 -3.9 -5.5 SSH Group total -0.3 4.4 -1.4 3.2 2.2 * Common Group expenses include Group administration expenses (e.g., management and finance) and product management and R&D expenses for corporate headquarters. KEY FIGURES AND RATIOS 1-9/ 1-9/ 1-12/ 2008 2007 2007 Net sales (MEUR) 6.3 11.9 14.2 Operating profit/loss (MEUR) -1.4 3.2 2.2 Operating profit/loss, as % of net sales -22.7 27.2 15.7 Profit/loss before extraordinary items and taxes (MEUR) -0.9 3.9 3.1 Profit/loss before extraordinary items and taxes, as % of net sales -13.9 32.4 21.9 Profit/loss before taxes (MEUR) -0.9 3.9 3.1 Profit/loss before taxes, as % of net sales -13.9 32.4 21.9 Return on investment (%) -3.3 15.3 17.1 Return on equity (%) -4.7 15.0 16.3 Interest-bearing net liabilities (MEUR) -16.0 -20.9 -22.0 Equity ratio (%) 92.5 93.4 91.3 Gearing (%) -106.1 -98.6 -107.8 Gross capital expenditure (MEUR) 0.0 0.1 0.1 % of net sales 0.0 0.7 0.7 R&D expenses (MEUR) 2.9 2.6 3.7 % of net sales 46.7 22.0 25.9 Personnel, period average 78 81 81 Personnel, period end 75 84 83 PER-SHARE DATA 1-9/ 1-9/ 1-12/ 2008 2007 2007 Earnings per share, undiluted (EUR) -0.04 0.14 0.11 Earnings per share, diluted (EUR) -0.04 0.13 0.11 Equity per share (EUR) 0.53 0.74 0.72 No. of shares at period end (thousands) 28 550 28 507 28 536 Share performance (EUR) Average price 1.41 1.51 1.63 Low 0.99 1.12 1.12 High 1.69 2.00 2.39 Share price, period end 1.05 1.92 1.61 Market capitalization, period end (MEUR) 30.0 54.7 45.9 Volume of shares traded (in millions) 2.8 11.8 15.0 Volume of shares traded, as % of total 9.8 41.4 52.6 Value of shares traded, in millions of euros 3.9 18.0 24.5 Price-to-earnings ratio (P/E) 14.8 CONTINGENT LIABILITIES EUR million 9/30 9/30 12/31 2008 2007 2007 Rental liabilities 0.0 0.0 0.1 Leasing commitments outside the balance sheet Maturing within 1 year 0.7 0.6 0.7 Maturing between 1 and 5 years 0.7 0.8 1.1 Currency derivatives (not included in hedge accounting) Fair value 0.0 0.0 0.0 Nominal value 0.0 1.8 0.0 This interim report has been compiled observing IAS 34 (Interim Financial Reporting) accounting standard. The same accounting principles have been used in the financial statements for 2007. These data are based on unaudited figures. IMPACT OF THE CHANGE IN ACCOUNTING PRACTISE FOR RECORDING PROFITS FROM SALES (IAS8)TO GROUP'S FINANCIALS PER QUARTER 1-3/ 2007 ORIGINAL RESTATED DIFFERENCE (MEUR) VALUE VALUE Net sales (MEUR) 2.6 2.6 0.0 Operating profit/loss 0.0 0.0 0.0 Profit/loss before taxes 0.2 0.1 0.0 Earnings per share (EUR) 0.0 0.0 0.0 Shareholders' equity 17.6 18.1 0.4 Long-term liabilities 0.0 0.0 0.0 Short-term liabilities 3.2 2.8 -0.4 Total liabilities and shareholders' equity 20.9 20.9 0.0 1-6/ 2007 ORIGINAL RESTATED DIFFERENCE (MEUR) VALUE VALUE Net sales (MEUR) 4.1 4.1 0.0 Operating profit/loss -1.1 -1.1 0.0 Profit/loss before taxes -0.8 -0.8 0.0 Earnings per share (EUR) 0.0 0.0 0.0 0.0 Shareholders' equity 16.7 17.1 0.5 Long-term liabilities 0.0 0.0 0.0 Short-term liabilities 2.9 2.5 -0.5 Total liabilities and shareholders' equity 19.6 19.6 0.0 1-9/ 2007 (MEUR) ORIGINAL RESTATED DIFFERENCE VALUE VALUE Net sales (MEUR) 11.9 11.9 0.0 Operating profit/loss 3.2 3.2 0.0 Profit/loss before taxes 3.9 3.8 0.0 Earnings per share (EUR) 0.0 0.0 0.0 0.0 Shareholders' equity 21.2 21.6 0.4 Long-term liabilities 0.0 0.0 0.0 Short-term liabilities 4.0 3.6 -0.4 Total liabilities and shareholders' equity 25.2 25.2 0.0 1-12/ 2007 ORIGINAL RESTATED DIFFERENCE (MEUR) VALUE VALUE Net sales (MEUR) 14.2 14.1 -0.1 Operating profit/loss 2.2 2.2 -0.1 Profit/loss before taxes 3.1 3.0 -0.1 Earnings per share (EUR) 0.0 0.0 0.0 0.0 Shareholders' equity 20.4 20.8 0.4 Long-term liabilities 0.2 0.2 0.0 Short-term liabilities 4.9 4.5 -0.4 Total liabilities and shareholders' equity 25.5 25.5 0.0 1-3/ 2008 ORIGINAL RESTATED DIFFERENCE (MEUR) VALUE VALUE Net sales (MEUR) 1.8 1.9 0.0 Operating profit/loss -0.9 -0.8 0.0 Profit/loss before taxes -0.7 -0.6 0.0 Earnings per share (EUR) 0.0 0.0 0.0 0.0 Shareholders' equity 19.8 20.2 0.4 Long-term liabilities 0.2 0.2 0.0 Short-term liabilities 3.7 3.3 -0.4 Total liabilities and shareholders' equity 23.7 23.7 0.0 1-6/ 2008 ORIGINAL RESTATED DIFFERENCE (MEUR) VALUE VALUE Net sales (MEUR) 4.3 4.4 0.1 Operating profit/loss -1.1 -1.0 0.1 Profit/loss before taxes -0.7 -0.6 0.1 Earnings per share (EUR) 0.0 0.0 0.0 0.0 Shareholders' equity 15.4 15.9 0.4 Long-term liabilities 0.4 0.4 0.0 Short-term liabilities 3.5 3.0 -0.4 Total liabilities and shareholders' equity 19.3 19.3 0.0 1-9/ 2008 ORIGINAL RESTATED DIFFERENCE (MEUR) VALUE VALUE Net sales (MEUR) 6.3 6.3 0.0 Operating profit/loss -1.4 -1.4 0.0 Profit/loss before taxes -0.9 -0.9 0.0 Earnings per share (EUR) 0.0 0.0 0.0 0.0 Shareholders' equity 15.1 15.5 0.4 Long-term liabilities 0.1 0.1 0.0 Short-term liabilities 3.8 3.4 -0.4 Total liabilities and shareholders' equity 19.0 19.0 0.0 STATEMENT ON CHANGES IN SHAREHOLDERS' EQUITY EUR million Share Share Fair Trans- Unrest- Total Capital Premium value lation ricted reserves differ-rence equity funds and retained earnings Shareholders' equity 1.1.2007 0.9 11.5 0.1 -0.8 6.3 18.0 Shareholders' equity , restated 1.1.2007 0.9 11.5 0.1 -0.8 5.9 17.5 Shareholders' equity 30.3.2007 0.9 11.5 0.1 -0.9 6.4 18.1 Shareholders' equity , restated 30.3.2007 0.9 11.5 0.1 -0.9 6.0 17.6 Shareholders' equity 30.6.2007 0.9 11.5 0.1 -0.9 5.6 17.1 Shareholders' equity , restated 30.6.2007 0.9 11.5 0.1 -0.9 5.1 16.7 Shareholders' equity 30.9.2007 0.9 11.5 0.1 -1.0 10.1 21.6 Shareholders' equity , restated 30.9.2007 0.9 11.5 0.1 -1.0 9.7 21.2 Shareholders' equity 31.12.2007 0.9 11.5 0.1 -1.1 9.4 20.8 Shareholders' equity , restated 31.12.2007 0.9 11.5 0.1 -1.1 8.9 20.4 Shareholders' equity 30.3.2008 0.9 11.5 0.1 -1.0 8.7 20.2 Shareholders' equity , restated 30.3.2008 0.9 11.5 0.1 -1.0 8.3 19.8 Shareholders' equity 30.6.2008 0.9 11.5 0.1 -1.1 4.5 15.9 Shareholders' equity , restated 30.6.2008 0.9 11.5 0.1 -1.0 3.9 15.4 Shareholders' equity , restated 30.9.2007 0.9 0.0 0.1 -1.4 15.5 15.1 DISCLAIMER The content in this report is provided by SSH Communications Security Corp ("SSH") and its third party content providers for your personal information only, and does not constitute an offer or invitation to purchase any securities. Nor does it provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular investments or products. SSH does not provide investment advice or recommendations to buy or sell its shares or the shares of others. If you are interested in investing in SSH, please contact your financial adviser for further details and information. Past performance of SSH shares is not indicative of future results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW SSH EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE AVAILABILITY, ACCURACY OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSE. FINANCIAL REPORTING The company will hold a briefing on its interim report for equity analysts and the media in Hotel Scandic Marski, Filip 1-cabinet, 2nd floor, address Mannerheimintie 10, 00100 Helsinki on Wednesday, October 22nd 2008, starting at 11:00 a.m. SSH Communications Security Corp will release its next interim report and financial statements for January 1-December 31, 2008 in February 2009. Further information will be available on the company's website in due course. Helsinki, on October 22, 2008 SSH COMMUNICATIONS SECURITY CORP Board of Directors Arto Vainio CEO For further information, please contact: Arto Vainio, CEO tel. +358 (0)20 500 7400 Mika Peuranen, CFO tel. +358 (0)20 500 7419 Distribution: NASDAQ OMX Helsinki Ltd. Major media www.ssh.com