Innofactor Oyj - Company Announcement

Innofactor's strategy update and dividends policy

Innofactor Plc Stock Exchange Release 26 August, 2011 at 8:30 a.m. Finnish time



On 25 August, 2011, Innofactor Plc's Board of Directors decided to update the
Group's strategy and draw up a dividend distribution policy for Innofactor. 

Innofactor's updated strategy includes the production of mobile services. The
partnership between Microsoft and Nokia opens up new opportunities in the
production of value-added services for mobile equipment. 

The current global economic instability may affect Innofactor's operations from
the 2012 on. Instability can have a positive effect on mergers and acquisitions
and have an impact on Innofactor's performance. 

In addition to introducing these changes in strategy, Innofactor's Board of
Directors decided to adopt a dividend distribution policy. The aim is “to
provide an opportunity for the shareholders to distribute a maximum dividend of
10%, where allowed by the state of the business from time to time, on the
operating profit before depreciation and write-downs (EBITDA)”. Innofactor has
no previous dividend distribution policy. 

The key points of Innofactor's strategy are as follows:

Innofactor provides web-based solutions and value added services. Innofactor is
focusing on operating in Microsoft environment. Innofactor's clients are
enterprises and public administration. Innofactor operates mainly in Finland
offering solutions also for global market. Innofactor continues to seek
potential strategic partnerships in Finland and neighboring countries. The
group will seek growth, which can be organic or based on mergers or
acquisitions. Innofactor is offering innovative and globally-competitive
software solutions and solution components for the Microsoft cloud utilizing
several distribution channels. 

Innofactor's mission is

  -- to help customers to offer their own customers even better services and to
     improve their own operations
     -- by providing globally significant value-added services for the Microsoft
        cloud and mobile environments , and
     -- by creating packaged solutions for customers in Finland and the
        neighboring countries; and
  -- to offer both its staff and its partners an innovative and supportive
     environment in which they can continue to develop their work and
     operations.

Innofactor's vision is

  -- to become Microsoft's most important partner in value-adding cloud and
     mobile services in a global level and Microsoft's most important integrator
     in selected markets.

Innofactor's strategy focuses on differentiating the company by being a leading
Microsoft solution provider, and the most important strategic choices in this
respect are: 

  -- continuing to produce the best innovative solutions in the market;
  -- carrying out highly customer-oriented operations;
  -- offering customers a one-stop service for leading Microsoft solutions;
  -- operating in a cost-effective manner, where software created by Innofactor,
     Microsoft and third parties and other available resources are utilized in
     an optimized way

Implementation of the strategy will focus on ensuring that Innofactor's supply
and operations will remain clear and simple to manage, irrespective of any
mergers or acquisitions that may take place. 

Innofactor's goal is to grow profitably:

  -- to achieve an average annual growth of 30-40% in 2011-2015 through both
     organic growth and acquisitions;
  -- to achieve an annual operating profit of 10-15% before depreciation and
     write-downs (EBITDA) in relation to the net sales in 2011-2015;
  -- to keep the cash flow positive and secure good financial standing in all
     situations;
  -- provide an opportunity for the shareholders to distribute a maximum
     dividend of 10% on the operating profit before depreciation and write-downs
     (EBITDA), where allowed by the state of the business from time to time.



INNOFACTOR PLC

Board of Directors



Further information:

Sami Ensio
CEO
Innofactor Plc
Tel. +358 50 584 2029



Distribution:

NASDAQ QMX Helsinki
Main media
www.innofactor.com