Tieto Oyj - Other information disclosed according to the rules of the Exchange

Tieto announces a recommended public offer for Avega, a Swedish consulting company

Tieto Corporation        Stock Exchange Release     23 October 2017        9.45
EET

This press release may not be published or otherwise distributed, in whole or in
part, in or into, directly or indirectly, Australia, Hong Kong, Japan, Canada,
New Zeeland, South Africa or the USA, or any other jurisdiction where making the
public offer or the distribution of this press release would be in conflict with
any applicable law or regulation or would require any additional offer documents
or registrations or other measures in addition to those required by Swedish law.

Tieto announces a recommended public offer for Avega, a Swedish consulting
company – aims to strengthen its position as the preferred business renewal
partner

Tieto Group, through its Swedish subsidiary, announces a recommended cash offer
for all shares in Avega Group AB (publ.). The acquisition will accelerate
Tieto’s growth businesses and strengthen its footprint in the Swedish consulting
-led market. Avega is planned to take a lead role in driving Tieto’s business
renewal agenda for customers in Sweden. Avega’s customer base consists of a
balanced and attractive customer portfolio. The company has approximately 350
employees and its net sales was EUR 45.2 million (SEK 428 million) in 2016.

Avega’s strong consulting capabilities and competences in digital transformation
are an asset in the Swedish consulting-led market. Additionally, the transaction
will accelerate Tieto’s growth businesses, such as Customer Experience
Management, one of the fastest growing areas in IT services. Thereby, the
acquisition will provide Tieto with the opportunity to accelerate its broad
service and software portfolio and support the company’s objective of becoming
the preferred advisory and modernization partner in Sweden.

“We look forward to warmly inviting Avega colleagues to Tieto and jointly
further develop our consulting-led business in Sweden – and across the Nordics.
The acquisition will enable us to provide customers with extensive services
covering consulting, industry software and managed services. This is a logical
step in our strategy of aiming to accelerate our role as the preferred partner
for business renewal for our customers,” says Kimmo Alkio, Tieto’s President and
CEO.

The Swedish consulting and implementation market is expected to grow annually by
5–8% in the coming years and Tieto and Avega together are anticipated to drive
growth in line with this service segment, outperforming the Swedish IT services
market on average.

Avega’s B shares are listed on Nasdaq Stockholm. The retail sector represents
30% and the manufacturing sector 21% of Avega’s sales, with the remainder
accounted for by customers in the financial services, telecom, public and
logistics sectors. The company’s growth and profitability contribute to Tieto’s
ambitions. In January–June 2017, Avega’s net sales growth was strong at 9% and
operating margin (EBIT) was 10.7% (9.4%). In 2016, operating margin (EBIT) was
8.9%. Based on the offer, the transaction is expected to be value accretive to
Tieto.

It is anticipated that the transaction will be concluded by the end of 2017. It
is Tieto’s intention that Avega will form the core for Tieto’s Business
Consulting and Implementation in Sweden and it will externally be reported
within Tieto’s Business Consulting and Implementation service line.

Completion of the public offer is conditional on, among other things, clearance
from the Swedish Competition Authority. For detailed information on the public
offer, see www.tieto.com/Avega

Further information

Investors:

Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950

Media:

Kia Haring

Head of Global Communications and Corporate Responsibility, +358 40 765 3700

Tieto aims to capture the significant opportunities of the data-driven world and
turn them into lifelong value for people, business and society. We aim to be
customers’ first choice for business renewal by combining our software and
services capabilities with a strong drive for co-innovation and ecosystems.

Headquartered in Finland, Tieto has over 13 000 experts in close to 20
countries. Tieto’s turnover is approximately EUR 1.5 billion and shares listed
on NASDAQ in Helsinki and Stockholm.  www.tieto.com

DISCLAIMER

This press release is for general information only and does not constitute or
form part of any offer to purchase, or any solicitation of an offer to sell or
any invitation to participate. Tieto Oyj has not made and will not make any such
offer, solicitation or invitation. Investors may accept the public offer for the
shares only on the basis of the information provided in a public offer
documentation when available.