Press Bulletin January 29, 2009 Technopolis forged ahead in 2008 - growth still expected during the current year Technopolis Plc succeeded quite well in the challenging business environment of 2008. The company continued its vigorous expansion and put in a strong financial performance. Technopolis CEO Keith Silverang says that he is “satisfied considering the conditions”. Last year, the Group's net sales reached nearly EUR 72.6 million (EUR 56.9 million in 2007) and the operating margin was approx. EUR 37 million (EUR 28.6 million). The Group's operating profit was EUR 35.3 million (EUR 42.6 million). The profit before taxes reached EUR 21,4 million (EUR 32,9 million). Net sales increased by 27.5 per cent and the operating margin by 29.2 per cent. In contrast, the profit fell after depreciation and valuation items, due to the fact that real estate values did not rise as they did in 2007. The Board of Directors will propose that a dividend of EUR 0.12 per share be paid out, equivalent to approx. 40 per cent of the Group's net profit. New technology centers Last year, Technopolis expanded its operations by acquiring a 47,900 square-meter technology center in Kuopio; opening a new technology center in Helsinki; expanding the Kontinkangas technology center in Oulu; and by launching the construction of new centers in downtown Tampere, and near the airport in St. Petersburg. Existing technology centers were also expanded in Jyväskylä, Vantaa and Lappeenranta. A challenging business environment According to Keith Silverang, the business environment in 2008 was challenging. The year started off under tough conditions that got tougher throughout the year. The financial crisis quickly developed into a downturn followed by a surprisingly sharp and swift descent into a recession towards the end of the year. Technopolis had, however, prepared for these conditions and taken action to safeguard its financial performance and occupancy rates. Silverang says that the company focused on its core activities while paying special attention to quality of its services, while investing particularly in those services that support customer competitiveness and success. “The ability to understand customer needs and to help them to adapt to these new business conditions is now even more important than normally,” he says. The current year will be no easier in this respect, quite the contrary. Technopolis will double its efforts to boost internal efficiency and improve customer satisfaction while toughening its investment criteria. Silverang reports that the company has launched an internal development project that will simultaneously boost the scalability of the Technopolis concept while boosting efficiency in its core processes and creating tools to support the ongoing competence development of the company's personnel. “This will help us to lay a foundation for future growth,” he says. According to its growth strategy, Technopolis's objective is to have a presence in two or three countries, in addition to Finland and Russia by 2012. Outlook for 2009 Technopolis management expects the demand for its high-tech facilities and services remain at a reasonable level in 2009. The management anticipates that the downturn, if protracted, may pose a challenge to the Group's growth targets. The company will continue to pursue measures aimed at safeguarding its financial performance also under difficult market conditions. The Group management expects the net sales and operating margin to increase by 5 to 8 percent in 2009. For more information contact TECHNOPOLIS PLC Keith Silverang, President and CEO Tel. +358 40-5667785 Ludmilla Johans, Executive Assistant Tel. +358 40-7747353 Measured by the number of clients, Technopolis Plc is one of Europe's largest science and technology park chains. The Technopolis Group is Finland's largest specialized provider of business environment services for high tech companies offering a comprehensive range of services combining modern premises with business and business development services. Technopolis operates or is in the process of building technology centers in Espoo, Helsinki, Jyväskylä, Lappeenranta, Oulu, Tampere and Vantaa in Finland, and in St. Petersburg in Russia. Currently, some 1,200 companies with 16,000 employees are working in the Technopolis technology centers. www.technopolis.fi
Technopolis forged ahead in 2008 - growth still expected during the current year
| Source: Technopolis