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TECHNOPOLIS’S CONSOLIDATED FINANCIAL STATEMENTS RELEASE FOR 2006

Published: 2007-02-02 07:15:00 CET
Technopolis Oyj – Quarterly report

TECHNOPOLIS’S CONSOLIDATED FINANCIAL STATEMENTS RELEASE FOR 2006

TECHNOPOLIS PLC   STOCK EXCHANGE RELEASE 2.2.2007 at 8.15 a.m.


TECHNOPOLIS'S CONSOLIDATED FINANCIAL STATEMENTS RELEASE FOR 2006

Highlights of 2006 compared with the previous year:
- Consolidated net sales increased to EUR 44.8 million (EUR 31.7
million in 2005), up by 41.3 %
- EBITDA (Earnings before interest, taxes, depreciation and
amortization) rose to EUR 22.7 million (EUR 17.5 million), up by 29.8
%
- Profit after taxes was EUR 23.7 million (EUR 12.7 million), up by
87.2 %
- Earnings per share totaled EUR 0.63 (EUR 0.38).
- The Board of Directors of Technopolis proposes to the Annual
General meeting that a dividend of EUR 0.14 per share be distributed
for the 2006 financial year (EUR 0.13 per share in 2005).

Overview

The growth-oriented Technopolis Group, Finland's largest provider of
high tech operating environments, has a service concept that combines
premises, business services and development programs. The Group has
348,415 floor square meters of premises for leasing, which are
occupied by 930 companies and other entities. The Group’s business
advanced in line with strategy, and new operating locations were
added at Jyväskylä and Tampere in Finland, and at St. Petersburg in
Russia.

In June, the company acquired a majority holding in Technopolis JSP
Ltd, located in Jyväskylä. Its holding in Technopolis JSP at the end
of 2006 was 98.5 %. Late in the fall, the company acquired the entire
stock of Technopolis TSP Ltd, located in Tampere. In St. Petersburg,
the company purchased a plot of 4.6 hectares in the vicinity of the
Pulkovo airport for technology park operations.

The general business environment for Technopolis's operations
continued to be challenging in 2006. However, the situation of over-
supply of office premises in the Helsinki metropolitan area eased,
and there was continuing demand for high-quality offices. A good
level of demand continued in Oulu, although the lack of parking
facilities in the city center hampered the marketing of office
premises in general. In Tampere, the demand for high-quality premises
enabled the commencement of new projects. In Jyväskylä, there is
demand for new, functionally-designed office premises, and many
outdated premises are undergoing conversion for residential use. In
Lappeenranta, many previously vacant office premises have been
occupied recently, and there are few premises available.

Business

The consolidated net sales were EUR 44.8 million (EUR 31.7 million in
2005), up by 41.3 % on the previous year. EBITDA (Earnings before
interest, taxes, depreciation and amortization) for the review period
was EUR 22.7 million (EUR 17.5 million), up by 29.8 %. Operating
profit was EUR 38.2 million (EUR 18.5 million). Profit before taxes
totaled EUR 33.0 million (EUR 15.1 million), an increase of 118.7 %
from the previous year. Depreciation according to plan totaled EUR
0.6 million (EUR 0.4 million). Earnings per share were EUR 0.63 (EUR
0.38). The Board of Directors of Technopolis proposes to the Annual
General Meeting that a dividend of EUR 0.14 per share be distributed
for the 2006 financial year. The proposed dividends would total EUR
5.7 million (EUR 4.7 million), an increase of 21.7 %.

The balance sheet total was EUR 431.4 million (EUR 270.2 million),
representing growth of 59.7 %. The Group's equity to assets ratio at
the end of the year was 38.5 % (46.4 %).

The fair value of the Group's investment property at the end of 2006
was EUR 392.2 million (EUR 249.3 million). The change in the fair
value of investment property was affected by the fair values of
properties bought and completed, a reduction in the market's return
requirements, changes in future returns and modernization costs, the
revaluation of property owned throughout the year, and increases in
the costs recognized in separate companies during the year. The
effect on profit of the change in the fair value of investment
property was EUR 16.1 million (EUR 1.2 million in 2005).

The Group's floor area for leasing totaled 348,415 floor square
meters at the end of year (241,000 floor square meters in 2005). The
Group's average financial occupancy ratio at the end of 2006 was
94.4 % (95.7 %). The financial occupancy ratio describes the rental
revenue from the properties as a percentage of the combined total of
the rent for the leased space and the estimated market rent for the
vacant space. The Group's leases at the end of the review period
amounted to EUR 121.1 million (EUR 68.1 million).

Investments and development projects

In a transaction completed in May, Innopoli Ltd, a company wholly
owned by Technopolis, purchased from Kapiteeli Plc a 2.2 hectare plot
it had rented in the City of Espoo. The transaction price was EUR 5.4
million. Innopoli Ltd had built a technology center of 26,200 floor
square meters on the purchased plot in 1991.

Technopolis Plc agreed in June on the acquisition of a majority
holding in Technopolis JSP Ltd (Jyväskylä Science Park) from the City
of Jyväskylä and from those of the company's minority shareholders
that had accepted the offer made by Technopolis. The transaction
price paid for the Technopolis JSP shares was EUR 18.0 million. Half
of the price was paid in cash, and half in Technopolis Plc shares.
Technopolis owns 98.5 % of Technopolis JSP Ltd shares.

In August, two new stages were completed at the Oulu city center
Technopolis, with a total area of 12,509 floor square meters. The
costs were approx. EUR 23.4 million, which includes the investment
costs of the building's approx. 120 parking spaces for public parking
to be owned by Technopolis.

In September, the fourth stage of Technopolis Helsinki-Vantaa –
totaling 2,789 floor square meters and representing an investment of
EUR 5.3 million – reached completion. The total area of Technopolis
Helsinki-Vantaa's premises is currently 16,149 floor square meters.

In October, Technopolis signed a contract with the City of Tampere on
the purchase of a majority holding in Technopolis TSP Ltd (Tampere
Science Parks Ltd). The transaction concerned 95.8 % of Technopolis
TSP Ltd's shares. The price paid for the shares was EUR 20.9 million.
About half of the price was paid in Technopolis Plc's new shares and
half in cash. Later in the fall, the company acquired the remaining
Technopolis TSP Ltd shares and now has a 100 % holding.

By a decision made in October by the City of Helsinki, an area
containing the building rights to a total of 27,200 floor square
meters was reserved for Technopolis in the Ruoholahti area. If
Technopolis concludes a long-term land lease agreement for a plot
containing the building rights to 6,600 floor square meters by March
31, 2007, the remaining reservation will continue until May 31, 2008.
If Technopolis concludes a long-term land lease agreement for a plot
containing the building rights to 9,000 floor square meters by May
31, 2008, the remaining reservation for the building rights to 11,600
floor square meters will continue until July 31, 2009.

On October 6, 2006, Technopolis St. Petersburg LLC, a fully owned
subsidiary of Technopolis Plc, signed an agreement on the purchase of
4.6 hectares of land in St. Petersburg in the vicinity of the Pulkovo
Airport for technology park operations. The land area is located next
to Pulkovskoe shosse about two kilometers and five or ten minutes'
drive from the airport. The plot size allows the construction of a
technology park with a total area of up to 50,000 square meters. The
acquisition price for the land is EUR 7.4 million. The plot was
registered to Technopolis St. Petersburg LLD on December 29, 2006,
and the price was paid to the selling party on January 10, 2007.

Events after the financial year

At its meeting on January 4, 2007, the Board of Directors resolved,
in accordance with the authorization granted by the Annual General
Meeting of March 24, 2006, to increase the company's share capital by
a maximum of EUR 1,162,652.40, a total of 687,960 shares, through a
share offering for institutional investors. The purpose of the share
offering was to finance the investments included in the company's
investment plan, to secure the company's growth and to maintain the
company's equity-to-asset ratio.

The shares were offered in deviation from the pre-emptive
subscription rights of shareholders, for subscription by Finnish and
international institutional investors. The share offering was
implemented through a "book building" process, in which institutional
investors would subscribe for the shares to be issued, in accordance
with their subscription commitments made during the reception period
for such commitments, January 3-4, 2007. The demand was about 3.5
times larger than the number of shares offered. The subscription
price per share was set at EUR 7.70.

The company's Board of Directors decided on January 4, 2007 to
approve the share subscriptions made by institutional investors. In
the share issue, all 687,960 shares offered were subscribed for. As a
result of the share issue, the company's share capital increased by
the maximum amount permitted by the share capital increase decision,
i.e. by EUR 1,162,652.40. The increase in share capital was entered
in the Trade Register on January 8, 2007, and trading in the shares
began on January 9, 2007.

Technopolis decided to commence the construction of the Hermia 12
property in Tampere. The project's cost estimate is EUR 9 million and
the gross area is 8,600 square meters, which includes a parking
facility for 115 vehicles. Almost half of the building's 5,000 floor
square meters have been leased. Construction is scheduled for
completion by the end of February 2008.

Technopolis has reached a result in negotiations with the City of
Oulu and the Northern Ostrobothnia Hospital District concerning the
purchase of a total of 19,250 shares in Medipolis Ltd. The intention
is to complete the transaction in February 2007, after which
Technopolis will have a 97.7 % holding in the company. Technopolis
seeks to acquire full ownership of Medipolis Ltd.

Group structure

The Technopolis Group includes the parent company, Technopolis Plc,
which has operations in Oulu and Vantaa, and its subsidiaries
Innopoli Ltd in Espoo (100 % owned), Technopolis JSP Ltd in Jyväskylä
(98.5 %) with its subsidiary Technopolis JSP Facilities Oy (100 %
owned), Technopolis Kareltek Ltd in Lappeenranta (100 % owned),
Technopolis TSP Ltd in Tampere (100 % owned), Medipolis Ltd in Oulu
(55.7 % owned) and other subsidiaries. The parent company also has a
minority holding in the associates, Technocenter Kempele Oy (48.5 %),
Iin Micropolis Oy (25.7 %), Jyväskylä Innovation Ltd (24 %),
Lappeenranta Innovation Ltd (20 %) and Oulu Innovation Ltd (13 %).

The Group also includes Innopoli Ltd's wholly-owned subsidiary,
Technopolis Ventures Oy, in Espoo. Technopolis Ventures Oy has a
wholly-owned subsidiary, Technopolis Ventures Kareltek Ltd. Following
a transaction executed in March, Oulutech Oy became Technopolis
Ventures Oy's 70 % owned subsidiary. In June, Technopolis Ventures Oy
established a subsidiary, Technopolis Ventures JSP Ltd. Technopolis
Ventures Oy also has a 25 % holding in Otaniemi Development Ltd.

Technopolis has established in St. Petersburg two Russian companies,
Technopolis Neudorf LLC and Technopolis St. Petersburg LLC, both
fully owned by Technopolis.

Events related to the company's shares

During the review period, Technopolis' share capital was increased on
six occasions. In November and December 2005, a total of 26,133
Technopolis shares were subscribed with year 2001 options, and the
resulting increase in share capital of EUR 44,164.77 was entered in
the Trade Register at February 15, 2006. In March, a total of 660,008
Technopolis shares were subscribed with year 2001 options, and the
resulting increase in share capital of EUR 1,115,413.52 was entered
in the Trade Register at March 9, 2006.

The Technopolis Board of Directors decided on June 21, 2006, pursuant
to an authorization by the Annual General Meeting on March 24, 2006,
to increase the company's share capital by a maximum of EUR 3,380,000
by issuing a maximum of 2,000,000 new shares of the company to
Technopolis JSP Ltd shareholders. A total of 1,500,177 shares were
subscribed in the directed share issue, raising the share capital by
EUR 2,535,299.13. The share capital increase was entered in the Trade
Register on July 6, 2006. The share capital was increased on August
21, 2006, in accordance with the decision concerning the said
directed share issue by EUR 122,356.00, corresponding to 72,400 new
shares. The shares were entered in the Trade Register on August 21,
2006 and were accepted for trading on August 22, 2006.

The Technopolis Board of Directors decided on September 27, 2006,
pursuant to an authorization by the Annual General Meeting on March
24, 2006, to issue a maximum of 1,727,135 shares to Technopolis TSP
Ltd shareholders. Based on the share issue decision, a total of
1,655,116 new shares and a share capital increase of EUR 2,797,146.04
were registered on October 26, 2006. The share capital was increased
on December 13, 2006, in accordance with the decision concerning the
directed share issue by EUR 114,416.38, corresponding to 67,702 new
shares.

After the above-mentioned six increases in share capital,
Technopolis's share capital on December 31, 2006 totaled EUR
67,318,753.58, divided into 39,833,582 shares with a counter-book
value of EUR 1.69.

No convertible bonds are in issue. The company has not acquired its
own shares.

Finance

The Group's net financial expenses were EUR 5.2 million (EUR 3.4
million). The Group's balance sheet total was EUR 431.4 million (EUR
270.2 million), of which liabilities accounted for EUR 266.1 million
(EUR 145.4 million). The Group's equity to assets ratio was 38.5 %
(46.4 %). The Group's equity per share was EUR 4.03 (EUR 3.39).

The Group's long-term liabilities at the end of the review period
amounted to EUR 207.3 million (EUR 119.6 million). The average
interest rate for loans at December 31, 2006 was 3.99 % (3.30 %).

Technopolis supplemented its funding with a EUR 60 million domestic
commercial paper program which allows the company to issue commercial
papers with a maturity of less than a year. At December 31, 2006, the
issued commercial papers totaled EUR 34.8 million.

Organization and personnel

The company's Executive Board comprises the following: Pertti
Huuskonen, President and CEO, Jukka Akselin, Satu Eskelinen, Marjut
Hannelin, Seppo Selmgren and Keith Silverang, all of whom are
Directors, and Reijo Tauriainen, CFO.

Technopolis appointed Satu Eskelinen, M.Sc. (Eng.) as Director of the
Tampere area and as a member of the company's Executive Board as of
January 15, 2007. She will also serve as CEO of Technopolis TSP Ltd.

Kari Mikkonen, Director of the Russian business operations of
Technopolis, has given his notice, and his employment with the
company will end on February 28, 2007. Peter Coachman will continue
as General Director of Technopolis St. Petersburg.

The Group employed an average of 113 (74) people during the financial
year. 34 (25) persons were employed in jobs related to premises
activities, 28 (17) persons in business services and 51 (32) persons
in development services. The number of personnel increased by 8
through the acquisition of Technopolis Ventures Oulutech Oy, by 14
through the acquisition of Technopolis JSP Ltd, and by 6 through the
acquisition of Technopolis TSP Ltd.

Decisions of the Annual General Meeting

The Annual General Meeting held on March 24, 2006 confirmed the
consolidated and parent company income statements and balance sheets
for the 2005 financial year, released those responsible for the
accounts from further liability and decided on the distribution of a
dividend of EUR 0.13 per share for the financial year that ended on
December 31, 2005. The Annual General Meeting also authorized the
Board of Directors to decide on a rights offering and an issue of
convertible bonds.

The Board of Directors elected by the Annual General Meeting
comprises Pertti Voutilainen, Chairman, Matti Pennanen, Vice
Chairman, and Juhani Paajanen, Timo Parmasuo and Erkki Veikkolainen.
Pertti Huuskonen is the President and CEO of Technopolis. KPMG Oy Ab,
Authorized Public Accountants, is the company's auditor with Tapio
Raappana, APA, as the principally responsible auditor.

Evaluation of operational risks and uncertainty factors

The most significant risks related to Technopolis's business
operations are mainly financial risks and customer risks.

Technopolis's main financial risk is the interest rate risk related
to the loan portfolio. The objective of interest rate risk management
is to reduce or remove the negative impact of market interest rate
fluctuations on the company's result, balance sheet and cash flow.
The company's financing policy aims to diversify the interest rate
risk of loan contracts over various maturities on the basis of the
market situation prevailing at any particular time and the interest
rate prognosis created in the company. If necessary, the company
employs forward rate agreements, interest rate swaps and interest
rate options. In order to manage financial risk, Technopolis uses a
wide range of finance providers and maintains a high equity to assets
level.

Technopolis uses derivative instruments only to reduce or eliminate
financial risks in the balance sheet.

The structure of Technopolis's loan portfolio at the end of the
financial year is shown by the fact that a one percentage unit rise
in money market rates would increase annual interest rate costs by
EUR 0.9 million.

Due to the interest rate risk related to credits, a policy of
interest rate diversification has been followed. At December 31,
2006, 70.7 % of the loan portfolio was bound to either the 3-12 month
Euribor rate or to the Bank of Finland's rate. 29.3 % of the loans
were fixed-interest loans of 13-60 months. The loan period, weighted
by the remaining capital of the loans, was 12.2 years. Technopolis
supplements its funding with a EUR 60.0 million domestic commercial
paper program which allows the company to issue commercial papers
with a maturity of less than a year. At December 31, 2006, the issued
commercial papers totaled EUR 34.8 million.

Changes in the exchange rates between the Russian rouble and euro may
have an effect on the company's financial situation and operations.
Business transactions denominated in roubles are recorded at the
exchange rate of the transaction date. Any translation differences
are entered in the income statement under financial income and
expenses. The purchase of land in St. Petersburg has been financed in
local currency. The currency risk has been minimized by applying a
currency swap.

Customer risk management aims to minimize the negative impact of any
changes in customers' financial position on the business and the
company's profit. In customer risk management, the emphasis is on
familiarity with the customer's business and active monitoring of
customer information. As part of customer risk management,
Technopolis's leases include rent collateral arrangements. Properties
are insured with full value insurance.

The Group's property portfolio is divided geographically between the
Helsinki metropolitan area, Jyväskylä, Lappeenranta, Tampere and the
Oulu region. No single customer accounts for more than 20 % of the
Group's net sales. The Group has arranged the leases of its biggest
customers to end at different times. The Group has about 930
customers that operate in many different sectors.

The Group is protected against fluctuations in the business cycle by
fixed-term leases which totaled EUR 121.1 million at December 31,
2006. Of the lease agreements, 9 % are valid until further notice or
will expire in 2007, 18 % will expire in 2008-2010, 29 % will expire
in 2011-2013, 5 % will expire in 2014-2016, and 39 % will expire in
2017 or later.

In new building projects, Technopolis focuses on quality definition
and the manageability of the property's entire lifecycle. In the
design phase, all the building's maintenance and service requirements
are taken into account, with the aim of implementing environmentally
friendly solutions in terms of energy consumption, the adaptability
of office facilities, and recycling possibilities. In connection with
property purchases, Technopolis carries out the normal property and
environmental assessments before committing to the transaction.

Changes in the market's return requirements may have a significant
effect on profit performance. As return requirements increase, the
fair values of properties decline, and correspondingly, as return
requirements decrease, the fair values of properties rise. These
changes affect the company's operating profit either negatively or
positively.

Future outlook

The management of the Technopolis Group estimates that in 2007 the
demand for high tech operating environments will be at a satisfactory
level, and that the occupancy ratio of the Group's leasing facilities
and the demand for the Group's services will both remain good. The
Group estimates that net sales and EBITDA will increase in 2007 by 18-
22 % on the previous year. The reduction on the estimate made at
December 1, 2006 is due to better than anticipated growth at the end
of 2006 and a delay in a planned domestic transaction.

As part of its strategy for growth, Technopolis aims to operate in
the leading high tech cities in Finland, Russia and 1-2 other
countries by 2010. The Group aims to increase its net sales by an
average of 15 % annually. Technopolis seeks to grow organically as
well as through acquisitions.

The Group's financial performance is dependent on trends in the
general operating environment, in customer business, in the financial
markets and in the return requirements for properties. Factors in
these areas may affect the Group's result through changes in
occupancy ratios, the use of services, financing costs, the fair
values of properties and office rent levels.

The figures are unaudited.

The company's printed annual report in the Finnish language will be
published in week 11.

Oulu, February 2, 2007

TECHNOPOLIS PLC
Board of Directors


Pertti Huuskonen
President and CEO

For further information, please contact:
Pertti Huuskonen, tel., +358 400 680 816 or +358 8 551 3213

A PDF version of this interim report can be found at
www.technopolis.fi. Requests for a printed version can be made to
Teija Koskela, tel. +358 8 551 3242 or e-mail
teija.koskela@technopolis.fi

Technopolis Plc has an information bulletin service, which can be
ordered on the Internet. Those ordering the service will receive the
company's information bulletins by email.

This interim report complies with the recognition and measurement
policies of the IFRS.

INCOME STATEMENT                             2006            2005
EUR million

Revenue                                     44.84           31.73
Other operating income 1)                    3.86            2.42
Operating expenses                         -26.00          -16.66
Revaluation of investment properties        16.07            1.22
Depreciation according to plan              -0.56           -0.45
Recognition of consolidation difference                      0.28
Operating profit                            38.21           18.53
Financial income and expenses               -5.17           -3.42
Profit before taxes                         33.05           15.11
Income taxes                                -8.46           -2.28
Net profit for the year                     24.59           12.83
Profit for the year attributable
to parent shareholders                      23.74           12.68
to minority shareholders                     0.85            0.15

BALANCE SHEET, ASSETS
EUR million

Non-current assets
Intangible assets                            2.63            0.22
Tangible assets                              2.44            8.61
Investment property                        392.16          249.32
Investments                                 21.82            1.43
Deferred tax assets                          1.77            3.66
Total non-current assets                   420.83          263.25
Current assets                              10.57            6.91
Assets, total                              431.39          270.16

BALANCE SHEET, SHAREHOLDERS' EQUITY AND LIABILITIES
EUR million

Shareholders' equity
Share capital                               67.32           60.59
Premium fund                                18.55           12.73
Other funds                                  7.37            0.02
Other shareholders' equity                   0.32
Retained earnings                           43.40           35.40
Distributable profit for review period      23.74           12.68
Parent's shareholders' interests           160.70          121.42
Minority interest                            4.58            3.39
Total shareholders' equity                 165.28          124.81

Liabilities
Non-current liabilities
Interest-bearing liabilities               183.16          107.02
Non-interest-bearing liabilities             1.51            0.94
Deferred tax liabilities                    22.68           11.62
Current liabilities
Interest-bearing liabilities                46.33           18.15
Non-interest-bearing liabilities            12.44            7.62
Total liabilities                          266.12          145.35
Total shareholders' equity and liabilities 431.39          270.16

CONSOLIDATED CASH FLOW STATEMENT
EUR million

Net cash provided by operating activities
Operating profit                            38.21           18.53
Revaluation of investment properties       -16.07           -1.22
Depreciation                                 0.56            0.45
Recognition of consolidation difference                     -0.28
Other adjustments for non-cash transactions  0.32            0.03
Increase/decrease in working capital         0.46           -0.17
Interests received                           0.29            0.07
Interests paid and fees                     -5.50           -3.62
Income from other investments
of non-current assets                        0.01            0.01
Taxes paid                                  -1.92           -1.64
Net cash provided by operating activities   16.35           12.18

Net cash used in investing activities
Investments in other instruments            -0.02           -0.05
Investments in investment properties       -40.66          -24.07
Investments in tangible
and intangible assets                       -0.44           -0.47
Repayments of loan receivables               0.04
Sales income from other investments          0.15
Disposal of subsidiaries                                    -0.05
Acquisition of subsidiaries                -18.17           -8.38
Net cash used in investing activities      -59.10          -33.03

Net cash provided by financing activities
Increase in long-term loans                 31.49           20.57
Decrease in long-term loans                -12.39           -9.77
Dividends paid                              -4.66           -3.54
Paid share issue                             1.12           20.21
Change in short-term loans                  27.60           -5.88
Net cash provided by financing activities   43.16           21.59

Net increase/decrease in cash assets         0.40            0.74
Cash assets on January 1                     2.40            1.66
Cash assets on December 31                   2.80            2.40

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
EUR million
                       Share   Share    Fund  Accum-  Minor- Share-
                       capital premium        ulated  ity    holders'
                               account        ret.    int.   equity
                                              earn.
Shareholders' equity
December 31, 2004        49.80    0.90   0.02  38.81   3.58   93.11
Share issue              10.79                                10.79
Issue premium                    11.83                        11.83
Distribution of dividends                      -3.54          -3.54
Net profit for the year                        12.68   0.15   12.83
Other changes                                   0.13  -0.34   -0.21
Shareholders' equity
December 31, 2005        60.59   12.73   0.02  48.07   3.39  124.81
Share capital increase    6.73                                 6.73
Directed share issue              5.85    7.2                 13.17
Distribution of dividends                      -4.66          -4.66
Net profit for the year                        23.74   0.85   24.59
Other changes                    -0.03   0.03   0.31   0.33    0.64
Shareholders' equity
December 31, 2006        67.32   18.55   7.37  67.46   4.58  165.28

KEY INDICATORS                               2006            2005

Change in net sales, %                       41.3            10.0
Operating profit/net sales, %                85.2            58.4
Equity to assets ratio, %                    38.5            46.4
Employees in Group companies                  113              74
Gross investments in non-current assets
in balance sheet, EUR 1,000                59,286          35,262
Net rental income of property portfolio, % 2) 7.7             8.6
Financial occupancy ratio, %                 94.4            95.7

SHARE-RELATED INDICATORS

Earnings/share, EUR, 3)
undiluted, EUR                               0.63            0.38
diluted, EUR                                 0.63            0.38
Equity/share, EUR, 3)                        4.03            3.39
Dividend/share, EUR, 4)                      0.14            0.13
Average issue-adjusted no. of shares
undiluted                              37,472,329      33,358,468
diluted                                37,619,867      33,526,874
No. of shares, Dec 31                  39,833,582      35,852,046
Price/earnings (P/E) ratio                   12.2            13.2
Dividend payout ratio, %                     22.1            34.2
Effective dividend yield, %                   1.8             2.6

OTHER KEY INDICATORS AND FINANCIAL RATIOS

Market capitalization of shares,
EUR million, Dec 31                        306.72          179.26
Share turnover                         23,293,922      21,690,055
Share turnover/ave. no. of shares            62.2            65.0
Share prices, EUR
Highest price                                7.99            5.23
Lowest price                                 4.41            3.17
Average price                                6.01            4.10
Price on Dec 31                              7.70            5.00

CONTINGENT LIABILITIES
EUR million

Pledges and guarantees on own debt
Mortgages                                  195.50          147.39
Land lease liabilities                       0.53            0.49
Pledged investment properties               35.21            8.53
Nominal values of interest rate swaps        4.00            9.17
Fair values of interest rate swaps          -0.04           -0.23

VAT refund liabilities.                     13.28           13.37
Project liabilities                          0.01            2.04
Collateral given on behalf of affiliated companies
Guarantee                                    0.50            0.50
Leasing liabilities                         69.05            0.05

1) Other operating income comprises operating subsidies received for
development services, for which the same amount of development
service expenses have been recorded as operating expenses.

2) The comparison figure at the 2005 balance sheet date does not take
into account the effect of the Technopolis Kareltek and Technopolis
Laanila properties, and the 2006 figure does not take into account
the effect of properties acquired and brought into use during the
year.

3) The comparison figure at the 2005 balance sheet date includes the
effect of the recognition of consolidation difference arising in
connection with the acquisition of the total stock of Kareltek.

4) 2006 dividend distribution proposal

Distribution:
Helsinki Stock Exchange
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