TECNOPOLIS ONLINE: HIGH TECH INVESTMENT CLIMATE REMAINS STABLE IN FINLAND DESPITE A DRASTIC DECREASE IN CROSS BORDER INVESTMENTS

TECHNOPOLIS PLC       PRESS RELEASE          August 3, 2010                     


TECNOPOLIS ONLINE: HIGH TECH INVESTMENT CLIMATE REMAINS STABLE IN FINLAND       
DESPITE A DRASTIC DECREASE IN CROSS BORDER INVESTMENTS                          

In H1 2010, 28 Finnish Companies Received Investments Worth €49.5 million       

Technopolis Online has today released its report on the venture capital market  
in Finland for the first half of 2010. 28 Finnish high-tech growth companies    
announced that they have raised €49.5 million of risk capital during H1 of 2010.
The amount is slightly less than H1 2009, when Finnish high tech companies were 
able to attract €54.3 million.                                                  

Other key highlights:                                                           
-The early stage investments are “ok”, late stage and exits are the problem     
    -The first round investments constituted 71% of all value invested          
    -The share of the second stage investments dropped from 53% to 18%          
    -There were no later stage investments in H1 2010                           
    -There were no mega deals                                                  
-Helsinki Metropolitan Area grabs majority of investments: It received 64% of   
all investments and 69% of capital                                              
-Software was the most active industry, receiving nine investments totaling 7.2 
million Euro. However, both life sciences and mobile companies attracted between
€ 10 to 15 million of capital despite fewer transactions.                       
-Lack of international investors in Finland is alarming:                        
    -The value of domestic investors' investments increased 15% in H1 2010 from
H1 2009 
    -International VCs made 35% less investments in terms of Euros compared to
the level of H1 2009 
-Drastically less angel investments (60%), still, the drop in invested          
Euros wasn't this significant (28%)                                             

Positives:                                                                      
-Domestic VC activity and increased deal sizes                                  
-HMA remained attractive for both for domestic and international investors      
-Seemingly enough early stage (especially first round) capital available        
spearheaded by Veraventure.                                                     
-Good dealflow - great new startups have been started and the more mature ones  
have gained good traction (Rovio, Aava Mobile etc.)                             

Concerns:                                                                       
-Lack of later stage deals and exits is alarming - If this situation remains, it
will affect to the early stages as well                                         
-Fundraising environment remains uncertain. More competition is needed,         
especially from outside. It is very likely that without increasing competition  
from the deal-flow, the entrepreneurs will be a clear underdogs in with the     
investors                                                                       

Technopolis Development Services Director Jukka Rauhala: "Both the number of    
investments and the Euro value decreased YoY from 2009. This was mainly due the 
nearly 35% decrease of investments from international investors. However, the   
first round investments of € 7 million in Footbalance Systems Ltd and € 4       
million in Oncos Therapeutics Ltd indicate, that it is possible for a Finnish   
company to raise funding for international growth already in the first round.   
Finland needs good references and new success stories, like potentially these   
two companies, to attract more international and national visibility and        
investors to invest in Finnish start-ups. We simply need to do better job in    
attracting foreign venture capital into Finland. There are no excuses.”         

The quarterly report is based on information from the Technopolis Online        
service, and can be found entirely at www.technopolisonline.com.                

Inquiries                                                                       

Artur Surov, Project Manager, Technopolis Development Services +358 41 501 0732,
artur.surov@technopolis.fi                                                      

About Technopolis Plc                                                           
Technopolis Plc provides business environments and services for                 
knowledge-intensive companies and organizations. The service portfolio ranges   
from comprehensive business and development services to modern premises.        
Currently, close to 1,200 companies with 16,000 employees operate in the        
Technopolis centers located in Espoo, Jyväskylä, Kuopio, Lappeenranta, Oulu,    
Tampere and Vantaa in Finland, and in St. Petersburg in Russia. Technopolis Plc 
is listed on Nasdaq OMX Helsinki.                                               

About Technopolis Online                                                        
Technopolis Online is a comprehensive investment database and virtual           
matchmaking portal that offers complete and unbiased ecosystem coverage of      
Finnish high tech. It covers all major high tech industries, companies,         
investors, universities and key people. With dedicated national analyst team,   
Technopolis Online is able to produce precise, relevant and valuable information
that is validated and exclusively in English.

technopolis online report – finnish venture capital market in h1 2010 eng.pdf