TietoEnator Oyj - Company Announcement

TietoEnator's performance improvement programme to deliver over 100 million euros of cost savings by the end of 2009

In October 2007, TietoEnator's Board of Directors approved the
company's revised strategy, which aims at restoring the company's
profitability and securing a sustainable basis for future growth. The
elements of the new strategy include separate regional and global
strategies, repositioning the repeatable solutions business and a
performance improvement programme.

The company has decided on an accelerated performance improvement
plan that covers all of TietoEnator's business areas, horizontal
units and group operations, all of which have committed to specific
targets, activities and a rapid implementation timeline.

TietoEnator estimates that the plan will generate annual cost savings
of more than 100 million euros by the end of 2009. The benefits are
expected to materialize with an over 50% run-rate effect by the end
of 2008 and a 100% run-rate by the end of 2009.

The profit improvement plan consists of three components

  * Restructure, discontinue or divest underperforming or
    unsustainable operations and projects
  * Accelerate profit improvement across the company: Improve the
    utilization of staff and facilities, reduce administrative costs,
    and accelerate offshoring
  * Increase focus on the quality of services.


The impact of the programme on TietoEnator's personnel will be
announced as specific decisions are taken.

Restructuring costs

The actions are expected to improve TietoEnator's profitability
significantly. The company's results have been volatile over the past
18 months, due to project overruns mainly in TietoEnator's
international operations of the Banking & Insurance and Healthcare &
Welfare business areas.

The cash flow effect of the performance improvement programme is
approximately 100 million euros of which around 40 million euros will
be booked during the fourth quarter in 2007 and the rest during 2008
and 2009. Approximately 20 million euros of these costs are
provisions for project risks. In addition to these, the company will
book impairments and provisions of approximately 60 million euros
during the fourth quarter in 2007, of which 40 million euros are
goodwill-related.

Growth strategy

In addition to preparing performance improvement plans, TietoEnator
has continued to evaluate strategic growth paths to be able to fulfil
customer demand and to promote customer intimacy. TietoEnator's
global growth initiatives will focus on few selected businesses. The
company is planning to invest in expanding its leading position as a
Telecom R&D partner, as well as strengthening its strong market
position in Forest and Oil & Gas businesses.

The regional strategy is based on TietoEnator's strong position in
the Nordic countries. The aim is to even further strengthen the
company's leading position as a full-scale IT service provider to
Nordic-based core customers.

Given the large size of TietoEnator's business in Sweden and the
market potential of the Swedish ICT sector, the company has launched
a specific initiative to enhance the competitiveness of its Swedish
operations. This initiative aims at repositioning TietoEnator as a
profitable market leader in IT services on the Swedish market.

The quality of services and delivery capability are key elements in
maintaining customer satisfaction and winning new customers. As part
of the performance improvement plan TietoEnator is implementing
strong actions in risk management to secure high-quality services and
building a more performance-oriented organisation to better meet the
increasing customer needs. To secure the right kinds of competencies
and delivery capability, TietoEnator will continue recruiting new
talent during 2008 according to business needs in both onshore and
offshore locations."The accelerated performance improvement programme is the most
significant change in TietoEnator for many years. We are putting
extraordinary effort into this programme and I am certain that the
programme will deliver the expected benefits. Planning has proceeded
ahead of the timeline communicated earlier and management commitment
is very high," states Åke Plyhm, Interim CEO."Over the past few weeks, I have had the opportunity to review
TietoEnator's improvement plans. I am convinced that this is the
right direction for the company to significantly increase customer
satisfaction and add shareholder value. Going forward, these actions
will be combined with significant investments in growth, people and
quality," says Hannu Syrjälä, President and CEO from 15 February
2008.

TietoEnator will publish its fourth quarter result and financial
statements for 2007 on 6 February 2008 at 8.00 am EET/ 7.00 am CET.

For further information, please contact:

Åke Plyhm, Interim CEO
Tel. +46 7056 58631

Timo Salmela, CFO
Tel. +358 9 8626 2213 or +358 400 434 974

Reeta Kaukiainen, EVP, Communications and Investor Relations
Tel. +358 9 8626 3276 or +358 50 522 0924



TIETOENATOR CORPORATION

DISTRIBUTION
Helsinki Stock Exchange
Stockholmsbörsen
Principal Media



TietoEnator is among the leading architects in building a more
efficient information society and one of the largest IT services
providers in Europe. TietoEnator specializes in consulting,
developing and hosting its customers' business operations in the
digital economy. The Group's services are based on a combination of
deep industry-specific expertise and the latest information
technology. TietoEnator has about 16 000 experts in close to 30
countries.
www.tietoenator.com