2008-02-12 07:30:00 CET

2008-02-12 07:30:08 CET


REGULATED INFORMATION

English Finnish
Talentum Oyj - Financial Statement Release

TALENTUM'S PUBLISHING BUSINESS GREW AND PROFITABILITY IMPROVED, DIVIDEND € 0.20


TALENTUM OYJ STOCK EXCHANGE RELEASE FEBRUARY 12, 2008 AT 8.30 A.M.              

TALENTUM'S PUBLISHING BUSINESS GREW AND PROFITABILITY IMPROVED, DIVIDEND € 0.20 

October-December 2007 in brief                                                  

Consolidated net sales in October-December were EUR 36.3 million (EUR 36.6      
million). Publishing's net sales went up by 15.1% to EUR 27.0 million (EUR 23.5 
million). The net sales of business areas unrelated to the core business fell.  

The operating profit (EBIT) in October-December improved to EUR 6.5 million (EUR
1.6 million). The operating profit before non-recurring items was EUR 5.9       
million (EUR 5.0 million). Publishing's operating profit was EUR 6.3 million    
(EUR 2.9 million).                                                              

The earnings per share in July-September were EUR 0.11 (EUR 0.01).              

2007 in brief                                                                   

Consolidated net sales in 2007 increased by 2.4% over the previous year to EUR  
124.0 million (EUR 121.1 million). Publishing's net sales went up by EUR 9.1    
million to EUR 83.8 million (EUR 74.7 million). The net sales of business areas 
unrelated to the core operations fell.                                          

The operating profit (EBIT) for 2007 improved by EUR 9.6 million over the       
previous year to EUR 13.9 million (EUR 4.3 million). The operating profit before
non-recurring items was EUR 15.0 million (EUR 8.7 million). Publishing's        
operating profit was EUR 14.8 million (EUR 7.1 million).                        

The earnings per share were EUR 0.22 (EUR 0.05).                                

The Board of Directors proposes a dividend of EUR 0.20 per share (EUR 0.18 per  
share).                                                                         

CEO JUHA BLOMSTER:                                                              

“Talentum's net sales increased last year by 2% and the operating profit by 72%.
Some of the growth in the net sales and the operating profit came through the   
corporate acquisitions made in Sweden, but the improvement in the quality and   
efficiency of the operations, the structure of the net sales and the            
discontinuing of the operations unrelated to the core business had the greatest 
significance in the improvement of the operating profit.                        

During 2007 we divested a part of the premedia business and in early 2008 we    
made an agreement to sell most of the TV content production business.           

We have focused on expanding the publishing business, especially in Sweden,     
where we acquired the Dagens Media and Arbetarskydd magazines and at the end of 
the year a company that specializes in information about personnel              
administration and taxation and now operates under the name Talentum Fakta. Its 
operations are based predominantly on producing and distributing information in 
digital form. At the beginning of the year we also established the Dagens Teknik
magazine for technology students and at the end of the year Byggvärlden, to meet
the needs of those operating in the construction sector.                        

The sale of premedia business operations reduces Talentum's consolidated net    
sales at the annual level by some EUR 5 million, but correspondingly during last
year we acquired new companies that will raise the net sales at the annual level
by about EUR 11 million. In the future the net sales will be increased both     
organically and through corporate acquisitions. These arrangements are          
systematic steps in Talentum's strategy to focus on the core business.          

Talentum's magazines performed well in terms of both circulation and readership.
The circulation of almost all our magazines went up. Arvopaperi magazine's      
circulation rose by 37%.                                                        

Talentum's professional literature, legal training and Suomen Laki (Finnish Law)
performed well as market leaders.                      

Talentum will now be investing in product development in the publishing business
and the print - but especially the online - business. Talentum's importance as a
producer of information services has increased during the past year - it is an  
area in which we shall be investing in the future too. During the past year we  
brought the structures into clearer definition and improved our technical base  
for developing both existing and new products and services.                     

Overall, the final quarter of the year went well. Publishing's net sales        
increased by 15% and the financial performance showed a marked improvement. The 
way the operations developed at the end of the year created a good foundation   
for developments in 2008. Uncertainty on financial markets may also have a      
negative impact on Talentum's operating environment in the future. So far,      
however, Talentum's business in Finland or Sweden has suffered no ill effects”  
says CEO Juha Blomster.                                                         


KEY INDICATORS                                                                  

--------------------------------------------------------------------------------
| EUR Million   |  10-12/ |   10-12/ | Change |     1-12/ |    1-12/ |  Change |
|               |    2007 |     2006 |      % |      2007 |     2006 |       % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales     |    36.3 |     36.6 |   -0.8 |     124.0 |    121.1 |     2.4 |
--------------------------------------------------------------------------------
| Operating     |     6.5 |      1.6 |  303.7 |      13.9 |      4.3 |   224.1 |
| profit        |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| % of net      |    17.9 |      4.4 |        |      11.2 |      3.5 |         |
| sales         |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Operating     |     5.9 |      5.0 |   17.1 |      15.0 |      8.7 |    72.4 |
| profit        |         |          |        |           |          |         |
| without       |         |          |        |           |          |         |
| non-recurring |         |          |        |           |          |         |
| items*        |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| % of net      |    16.2 |     13.7 |        |      12.1 |      7.2 |         |
| sales         |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Return on     |       - |        - |        |      27.3 |      9.4 |         |
| investment %  |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Return on     |         |          |        |      28.7 |      7.2 |         |
| equity %      |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Total assets  |       - |        - |        |      89.0 |     89.7 |    -0.7 |
--------------------------------------------------------------------------------
| Investments   |     6.4 |      0.7 |  824.8 |      11.9 |      5.1 |   133.9 |
--------------------------------------------------------------------------------
| % of net      |    17.6 |      1.9 |        |       9.6 |      4.2 |         |
| sales         |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Equity ratio  |       - |        - |        |      36.7 |     36.1 |         |
| %             |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Gearing %     |       - |        - |        |      16.6 |     15.7 |         |
--------------------------------------------------------------------------------
| Loans and     |       - |        - |        |      19.2 |     25.5 |   -24.9 |
| borrowings    |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Net           |       - |        - |        |       5.3 |      5.1 |     4.8 |
| liabilities   |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Personnel,    |         |          |        |       991 |    1 064 |    -6.9 |
| average       |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Earnings/shar |    0.11 |     0.01 |  773.1 |      0.22 |     0.05 |   338.2 |
| e EUR         |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Cash flow     |    0.20 |     0.18 |    8.8 |      0.33 |     0.21 |    62.1 |
| from business |         |          |        |           |          |         |
| operations/   |         |          |        |           |          |         |
| share EUR     |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Equity/share  |         |          |        |      0.69 |     0.69 |    -0.5 |
| EUR           |         |          |        |           |          |         |
--------------------------------------------------------------------------------
| Market        |         |          |        |     121.1 |    144.9 |   -16.4 |
| capitalizatio |         |          |        |           |          |         |
| n on closing  |         |          |        |           |          |         |
| rate at       |         |          |        |           |          |         |
| period end    |         |          |        |           |          |         |
--------------------------------------------------------------------------------
* Non-recurring items shown in the tables section.                              

FINANCIAL STATEMENTS 2007                                                       

Consolidated net sales and financial performance October-December               

Consolidated net sales for October-December were EUR 36.3 million (EUR 36.6     
million). Publishing's net sales went up by 15.1% to EUR 27.0 million (EUR 23.5 
million). The publishing operations in Sweden accounted for EUR 3.3 million of  
the growth in the net sales, EUR 1.9 million of which came from the net sales of
businesses acquired in 2007. Premedia's net sales fell by EUR 2.1 million as a  
result of restructuring. TV Content Production's net sales dropped by EUR 2.1   
million.                                                                        

The consolidated operating profit in October-December was EUR 6.5 million (EUR  
1.6 million) and 17.9% of net sales (4.4%). The consolidated operating profit   
without non-recurring items was EUR 5.9 million (EUR 5.0 million). Publishing,  
Direct Marketing and Premedia improved their financial performance compared with
last year. Publishing's operating profit was EUR 6.3 million (EUR 2.9 million). 
Publishing's financial performance included non-recurring income of EUR 0.6     
million resulting from a reduction in advertising tax in Sweden.                

Net financial expenses were EUR 0.1 million (EUR 0.2 million).                  

The profit before taxation was EUR 6.4 million (EUR 1.6 million).               

Consolidated net sales and financial performance 2007                           

Talentum's consolidated net sales for 2007 increased by 2.4% to EUR 124.0       
million (EUR 121.1 million). Publishing's net sales rose by 12.2% to EUR 83.8   
million (EUR 74.7 million). The publishing operations acquired in Sweden in 2007
accounted for EUR 3.3 million of the increase. Premedia's net sales went down by
EUR 5.5 million as a result of a restructuring in the summer. TV Content        
Production's net sales fell by EUR 1.8 million.                                 

Talentum's consolidated operating profit for 2007 was EUR 13.9 million (EUR 4.3 
million). The consolidated operating profit without non-recurring items was EUR 
15.0 million (EUR 8.7 million). Publishing's operating profit was EUR 14.8      
million (EUR 7.1 million). Publishing's financial performance included          
non-recurring income of EUR 0.6 million resulting from a reduction in           
advertising tax in Sweden. The sales structure and the measures carried out in  
2006 to improve profitability contributed to the positive trend in the financial
performance in both Finland and Sweden. The performance of the previous year was
weakened by non-recurring items.                                                

Net financial expenses amounted to EUR 1.2 million (EUR 0.5 million). The figure
includes a loss of EUR 0.5 million on the sale of shares in an associated       
company.                                                                        

The profit before taxation for the period under review was EUR 12.9 million (EUR
4.2 million). Taxation amounted to EUR 3.7 million (EUR 1.5 million), the       
equivalent of a tax percentage of 29% (36%). The profit for the period under    
review was EUR 9.2 million (EUR 2.7 million).                                   

The earnings per share were EUR 0.22 (EUR 0.05). The equity per share was EUR   
0.69 (EUR 0.69).                                                                


Operating environment and seasonal variation                                    

The general economic situation still remained relatively good in the final      
quarter of 2007. In both Finland and Sweden the media market continued to grow. 

According to TNS Gallup, in Finland media advertising grew by 6% in             
January-December and in Sweden the growth in the media market was, according to 
an advance estimate, some 5% (Institutet för Reklam och Mediestatistik). Job    
advertising in particular progressed well in both Finland and Sweden.           
The media and media service markets are subject to seasonal fluctuation and     
business is at its briskest during the final quarter of the year. During the    
summer holidays magazines and books do not generally come out and for this      
reason the third quarter is the lowest in terms of sales.                       

Sector's and Talentum's prospects for 2008                                      

The general economic situation has been uncertain since the autumn. However,    
this uncertainty, which began on the financial markets, has not affected the    
sector. In an economic downturn content sales are not as susceptible to market  
fluctuation as media sales in the short term.                                   

Talentum expects the net sales of the core operations to increase over the      
previous year and the operating profit to improve in 2008, regardless of        
expenses from integration of the acquired business operations and the           
development of online operations.                                               

Cash flow, financial position and balance sheet                                 

The cash flow from operating activities was EUR 14.7 million (EUR 9.1 million)  
in January-December. The change in working capital was EUR -2.1 million (EUR 1.0
million) in 2007.                                                               

The balance sheet total stood at EUR 89.0 million (EUR 89.7 million) on December
31, 2007. Interest-bearing net liabilities were EUR 5.3 million (EUR 5.1        
million). The Group's liquid assets, EUR 13.8 million (EUR 20.4 million), have  been invested mostly in financial instruments. The consolidated loans and       
borrowings amounted to EUR 19.2 million (EUR 25.5 million) and they are mostly  
denominated in euros.                                                           

The equity ratio was 36.7% (36.1%) at the end of the year. The Group's equity   
per share was EUR 0.69 (EUR 0.69).                                              

Investment                                                                      

Gross investment in fixed assets in January-December totalled EUR 11.9 million  
(EUR 5.1 million), i.e. 9.6% (4.2%) of net sales. The effect of corporate       
acquisitions on investment was EUR 10.0 million (EUR 1.5 million).              

Other investment comprised mainly normal replacement and maintenance, such as   
procuring equipment, software and fixtures.                                     

Depreciation and impairment                                                     

Depreciation on property, plant and equipment and intangible assets amounted to 
EUR 3.1 million (EUR 3.4 million) i.e. 2.5% (3.0%) of net sales.                

The figures for the comparative period contain recognition of an impairment in  
the Premedia business area amounting to EUR 1.8 million.                        

Group restructuring                                                             

Talentum's Swedish subsidiary Talentum Sweden AB acquired the share capital of  
Fakta Regulatory AB in a transaction concluded in Sweden on November 13, 2007.  
Its net sales at the annual level are about EUR 8 million and at the time of    
acquisition it employed about 60 people.                                        

The Swedish company Mentor Online AB became an associated company in June 2007, 
since when its financial performance has been consolidated into the Group       
accounts under the equity method. Mentor Online Group's net sales at the annual 
level are about EUR 16 million.                                                 

In order to bring the Group structure into clearer definition Suomen            
Arvopaperimediat Oy and Suomen Arvopaperilehti Oy were merged into Talentum     
Media Oy in Finland. In Sweden the Group structure was given clearer definition 
with the merger of several minor companies.                                     

Talentum sold the shares in the associated company Acacom Academic              
Communications Oy, which publishes customer magazines, in a transaction         
concluded on September 21 2007, thus recognizing a loss of EUR 0.5 million      
euros, which is included under financial expenses.                              

Talentum's Swedish subsidiary Talentum Sweden AB acquired the share capital of  
Dagens Media Sverige AB in a transaction concluded on June 12, 2007, since when 
the company has been consolidated into the Group accounts. Its net sales at the 
annual level are about EUR 2 million and it is running at a profit. At the time 
of acquisition it was employing 13 people.                                      

The premedia business of Reprostudio & Heku Oy in the Premedia business area was
sold in a transaction on June 13, 2007 that included the transfer of 45         
employees. The net sales of the sold business are about EUR 5 million at the    
annual level.                                                                   

Personnel                                                                       

The main objective of the Talentum personnel strategy is to develop the         
expertise and competitiveness.                                                  

The Group employed an average of 991 (1,064) people during the year.            
Geographically, the personnel was split as follows: Finland 652 people (760),   
Sweden 144 (114), Latvia 83 (77), Lithuania 23 (19), Estonia 80 (79) and Russia 
9 (15).                                                                         


Risks to business operations in near future                                     
The biggest risk to the Group's business operations is associated with product  
and job advertising, which is sensitive to economic trends. About 40% of the    
consolidated net sales are tied to advertising. We endeavour to control this    
market risk by increasing revenue from circulation sales and content sales.     


Environment                                                                     

Talentum's operations cause no major harmful effects to the environment since   
the work is done principally in offices at terminals. The main environmental    
effects are associated with the consumption of paper, transportation, recycling,
energy consumption and waste management.                                        


BUSINESS AREAS                                                                  

Publishing                                                                      

--------------------------------------------------------------------------------
| EUR Million  |    10-12/2007 |    10-12/2006 |     1-12/2007 |     1-12/2006 |
--------------------------------------------------------------------------------
| Net sales    |               |               |               |               |
--------------------------------------------------------------------------------
| Finland      |          16.4 |          16.2 |          53.9 |          52.6 |
--------------------------------------------------------------------------------
| Other        |          10.6 |           7.3 |          29.9 |          22.0 |
--------------------------------------------------------------------------------
| Total        |          27.0 |          23.5 |          83.8 |          74.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating    |               |               |               |               |
| profit       |               |               |               |               |
--------------------------------------------------------------------------------
| Finland      |           4.6 |           1.6 |          10.6 |           5.5 |
--------------------------------------------------------------------------------
| Other        |           1.8 |           1.2 |           4.2 |           1.6 |
--------------------------------------------------------------------------------
| Total        |           6.3 |           2.9 |          14.8 |           7.1 |
--------------------------------------------------------------------------------


October-December                                                                

The final quarter in Talentum's publishing operations is the year's strongest.  
Publishing's net sales in October-December totalled EUR 27.0 million (EUR 23.5  
million), the growth over the previous year being 15.1%. Publishing's operating 
profit (EBIT) was EUR 6.3 million (EUR 2.9 million). Publishing's financial     
performance included non-recurring income of EUR 0.6 million, the result of a   
reduction in advertising tax in Sweden. The business operations acquired in     
Sweden in 2007 brought net sales of EUR 1.9 million and an operating profit of  
EUR 0.2 million in October-December.                                            

Circulation revenue from Talentum's magazines rose in Finland by 4% and in      
Sweden by 27%. Advertising revenue fell in Finland by 3% and went up in Sweden  
by 38%. Of the growth in advertising sales in Sweden 11 percentage points were  
the result of the acquisition of the magazines Arbetarskydd and Dagens Media.   
Recruitment advertising was still strong in Talentum's media in both Finland and
Sweden.                                                                         

The net sales of the book business were at the level of the previous year and   
training's net sales were on the increase.                                      

2007                                                                            

Publishing's net sales rose by 12.2% to EUR 83.8 million (EUR 74.7 million). The
operating profit (EBIT) for the whole of 2007 was EUR 14.8 million (EUR 7.1     
million).                                                                       

The net sales of magazine publishing amounted to EUR 69.7 million (EUR 61.3     
million), of which online services accounted for some EUR 5.6 million (EUR 5.7  
million). Book publishing's net sales totalled EUR 9.7 million (EUR 9.2 million)
and training and seminar net sales EUR 4.4 million (EUR 4.1 million).           

The circulation revenue of Talentum's magazines went up by 10.6%. Advertising   
revenue was at last year's level in Finland and it increased by 36.4% in Sweden.
Of the growth in advertising sales in Sweden 7 percentage points were the result
of the acquisition of the magazines Arbertarskydd and Dagens Media.             


Direct Marketing                                                                

October-December                                                                

Direct Marketing's net sales in October-December were EUR 2.5 million (EUR 2.0  
million) and the operating profit (EBIT) was EUR 0.4 million (EUR 0.3 million). 
Both growth and profitability were as expected.                                 

2007                                                                            
Direct Marketing's net sales went up by 16.8% to EUR 9.6 million (EUR 8.2       
million). The operating profit (EBIT) was EUR 1.3 million (EUR 1.1 million). Net
sales outside the Group accounted for 56.0 (56.2%) of the total net sales and   
54.6% of the growth (49.5%).                                                    


TV Content Production                                                           

October-December                                                                

TV Content Production's net sales in October-December were EUR 5.7 million (EUR 
7.8 million) and the operating profit (EBIT) was EUR 0.4 million (EUR 0.8       
million).                                                          

Net sales of advertising films were EUR 1.5 million (EUR 2.0 million) and the   
net sales of TV programme production were EUR 3.1 million (EUR 4.7 million).    

2007                                                                            

The net sales of TV Content Production went down by 7.1% to EUR 22.9 million    
(EUR 24.6 million). The operating profit was EUR 1.2 million (EUR 1.8 million). 

Net sales of advertising films were EUR 7.0 million (EUR 8.0 million). Net sales
of TV programme production fell to EUR 12.6 million (EUR 13.1 million).         


Premedia                                                                        

October-December                                                                

The net sales of the Premedia business area in October-December were EUR 2.4    
million (EUR 4.5 million), and the operating profit (EBIT) was EUR 0.1 million  
(EUR -1.8 million). Since the sale of the business area's loss-making part of   
the premedia operations in June, the financial performance has improved.        

The business area's other sub-areas, i.e. page production, packaging printing   
material and digital data management, have developed as planned.                

2007                                                                            

Net sales in the Premedia business area fell by 30.6% to EUR 12.5 million (EUR  
18.0 million). The operating profit improved and was EUR -0.9 million (EUR -2.5 
million).                                                                       

The sale of the premedia operations reduced the net sales from June onwards; the
financial performance for June includes a non-recurring expense of EUR 1.7      
million related to the restructuring.                                           

AGM, Board and auditor                                                          

Talentum's Annual General Meeting was held on March 27, 2007. The meeting       
confirmed the financial statements for 1 January - 31 December 2006 and granted 
the company's Board of Directors and CEO exemption from liability.              

The AGM re-elected Manne Airaksinen, Harri Kainulainen, Kai Mäkelä, Eero Lehti  
and Tuomo Saarinen members of the Board of Directors. Atte Palomäki was elected 
a new member of the Board. Tuomo Saarinen was re-elected Chairman of the Board  
of Directors and Manne Airaksinen re-elected Deputy Chairman.                   

Authorized Public Accountants PricewaterhouseCoopers Oy with APA Juha Wahlroos  
as the accountable auditor were re-elected auditors.                            

The Board met altogether 15 times during the period under review. The average   
participation by Board members was 93%.                                         


Shares and share capital                                                        

At the end of the financial period, Talentum Oyj's share capital totalled EUR   
18,593,518.79, comprising 44,220,817 fully paid-up shares. The shares are listed
on the OMX Nordic Exchange Helsinki list.                                       

At the end of the financial period, the company and its subsidiaries held       
181,000 company shares, 0.41% of Talentum's total stock and votes.              

A total of 14,141,995 shares were traded during the financial period, 32.1% of  
the total average stock during the financial period.                            


Shareholdings of the Board of Directors and Managing Director                   

On December 31, 2007, the number of Talentum Oyj shares and options owned by    
members of the Board of Directors and the CEO personally and through companies  
in which they have a controlling interest was 4,470,162, representing 10.1% of  
the company's total shares and votes.                                           

Board of Directors' authorizations                                              
Authorization of the Board of Directors to decide on a share issue including the
conveyance of own shares and issue of special rights                            
The Annual General Meeting on March 27, 2007 authorized the Board of Directors  
to decide on a share issue which may be either liable to charge or free of      
charge, including issuing of new shares and the conveyance of own shares        
possibly in the company's possession. The Annual General Meeting authorized the 
Board of Directors to decide on an issue of option rights and other special     
rights which grant entitlement, against payment, to receive new shares or shares
possibly in possession of the company. By virtue of the aforesaid authorizations
a maximum of 3,500,000 new shares, which corresponds to approximately eight per 
cent of the issued shares of the company, may be issued together or in one or   
several lots and/or own shares possessed by the company may be conveyed in a    
share issue and/or on the basis of the special rights given. The authorizations 
will remain in force until June 30, 2008. The authorizations do not exclude the 
right of the Board of Directors to also decide on a directed share issue and    
issue of special rights. Shareholders' pre-emptive subscription rights can be   
deviated from providing that there is a significant financial reason for the    
company to do so. The authorization was unused as at December 31, 2007.         
Authorization of the Board of Directors to decide on acquisition of own shares  
The Annual General Meeting on March 27, 2007 authorized the Board of Directors  
to decide on the acquisition of the company's own shares. The shares can be     
acquired for the value that is decided by the Board of Directors and is based on
the fair value at the time of the acquisition formed for the shares in public   
trading. Own shares may be only acquired with unrestricted equity. By virtue of 
the authorization, either in one or in several lots, a maximum of 3,500,000 own 
shares, which corresponds to approximately eight per cent of the issued shares  
of the company, can be acquired. The authorization will remain in force until   
June 30, 2008. The Board of Directors is otherwise authorized to decide on all  
the conditions regarding the acquisition of own shares including the manner of  
acquisition of the shares. The authorization does not exclude the right of the  
Board of Directors to also decide on a directed acquisition of own shares       
providing that there is a significant financial reason for the company to do so.
The authorization was unused as at December 31, 2007.                           
Management incentive plan                                                       
In 2007 the Board of Directors of Talentum Oyj decided to establish a new       
share-based incentive plan for the Group Management. The plan includes three    
earning periods, which last for at least one financial year and not more than   
three financial years. The first earning period began on 1 January 2007 and will
end on 31 December 2007. The total length of the plan is five years. The rewards
will be paid partly in the Company's shares and partly in cash after the end of 
each earning period. The proportion to be paid in cash will cover taxes and     
tax-related costs arising from the reward. Transferring the shares earned from  
the earning period 2007 within two years from the end of the earning period is  
prohibited. After this, the CEO of the Company must, however, own 50% of the    
shares earned on the basis of the plan as long as the service of the CEO        
continues and one year after the end of the service. The Board of Directors will
later decide on the following earning periods and transfer restrictions         
concerning shares earned on the basis of those earning periods. The potential   
reward from the plan for the earning period 2007 will be based on the Group's   
net sales and operating profit as well as on the total return on Talentum       
shares. The incentive plan is directed to 8 key employees during the earning    
period 2007.  If the targets of the plan are attained in full, the rewards to be
paid on the basis of the plan will correspond to the gross value (including also
the cash payment) of approximately 1,000,000 Talentum Oyj shares.               

Notifications                                                                   

On March 29, 2007, Morgan Stanley & Co International Limited reported that its  
share of Talentum's ownership and votes had exceed one twentieth (1/20) through 
a transaction conducted on March 26, 2007 and was 5.58%.                        

On March 29, 2007, Morgan Stanley & Co International Limited reported that its  
share of Talentum's ownership and votes had fallen below one twentieth (1/20)   
through a transaction conducted on March 28, 2007 and was 4.56%.                

On January 22, 2007, Franklin Resources Inc. reported that its share of         
Talentum's ownership and votes through Franklin Mutual Advisers, LLC, a mutual  
fund that it controls, had fallen below one twentieth (1/20) and was 4.41%.     


Voting at shareholders' meetings                                                

Talentum Oyj's Articles of Association provide that no shareholder may exercise 
more than 1/6 of the total votes carried by the company shares at a             
shareholders' meeting. If subsidiaries or companies within the same group and/or
pensions foundations or pension funds of such companies together own shares     
carrying more than 1/6 of the total votes, only 1/6 of the total votes can be   
exercised at shareholders' meetings on the basis of these shares.               


Shareholder agreements                                                          

The company is not aware of any mutual shareholder agreements between its       
shareholders relating to the operations or ownership of the company.            


Dividend for 2006                                                               

The Annual General Meeting held on March 27, 2007 decided that a dividend of EUR
0.18 per share be paid for the 2006 financial year. The date of payment was     
April 11, 2007 and the record date was March 30, 2007.                          


Liquidity providing agreement                                                   

An agreement with Nordea Securities Oyj on a market guarantee for Talentum Oyj  
shares became effective on June 21, 2004. Under the agreement, Nordea Securities
will submit a purchase and sale offer so that the maximum permitted differential
between them is 3% of the purchase offer. The offers will include a minimum of  
2,500 shares.                                                                   


Corporate governance                                                            

Talentum Group observes the Companies Act, the legislation regulating the       
securities markets and all other legislation relating to the management of      
public limited companies. Talentum also observes the Corporate Governance       
Recommendation issued in December 2003 by the Helsinki Stock Exchange, the      
Central Chamber of Commerce and the Confederation of Finnish Industries, which  
became effective on July 1, 2004.                                               

Insider instructions                                                            

The Talentum Group applies the Guidelines for Insiders issued by the Helsinki   
Stock Exchange. In the Talentum Group the closed window (the time during which  
permanent insiders may not trade in company shares before the publication of    
financial disclosures) is 21 days.                                              


Pension Foundation                                                              

Talentum's pension foundation began operations on April 1, 2004. It handles the 
pension liabilities of Talentum Oyj, Talentum Media Oy and Suoramarkkinointi    
Mega Oy. During the year 6 people were transferred to the pension foundation    
from Arvopaperimediat Oy, which merged with Talentum Media Oy. On December 31,  
2007 the pension of 515 employees was covered by the foundation.                


Major events after the period under review                   

On January 22, 2008 Talentum Oyj and CapMan Plc agreed that a company set up by 
CapMan Buyout VIII, which is managed by CapMan Plc, would purchase Varesvuo     
Partners Oy, which focuses on TV content production. The transaction does not   
include Varesvuo Partners' 59% holding in the parent company of the sub-group Oy
Filmiteollisuus Fine Ab, which will be transferred to Talentum Oyj in the form  
of a subsidiary. The transaction will require the approval of the competition   
authority and the fulfilment of certain other conditions.                       

At the beginning of 2008 Talentum revised the working of its Executive          
Management in order to strengthen the exploitation of its expertise in          
publishing and synergistic benefits in Finland and Sweden. The Group's Executive
Management deals with the strategy, financial performance, financing, corporate 
structuring and other important matters. The chairman of the Group's Executive  
Management is CEO Juha Blomster.                                                


Board of Directors' dividend proposal                                           

The parent company's unrestricted equity on December 31, 2007 is EUR 9.5        
million, of which the profit for the financial period is EUR 3.5 million.       

The Board of Directors proposes that a dividend of EUR 0.20 for each of the     
44,039,817 shares in circulation be distributed from the retained earnings      
available to the company. The total amount of the dividend distribution will be 
EUR 8,807,963.40. The remaining retained earnings of EUR 706,261.14 will be left
in the unrestricted equity.                                                     

Annual General Meeting 2008                                                     

The Annual General Meeting will be held March 27, 2008.                         

TALENTUM OYJ                                                                    

FURTHER INFORMATION                                                       
Juha Blomster, CEO, tel +358 (0)20 442 4444                                     
Kaisa Kokkonen, CFO, tel +358 (0)40 342 4212                                    

COPIES TO                                                                       
OMX Nordic Exchange Helsinki                                                    
Key media                                                                       


BRIEFING                                                                        

A briefing will be held for analysts and the media today, February 12, 2008 at  
10.00 a.m. at the Talentum head office, Annankatu 34-36 B, Kamppi, Helsinki. The
financial performance will be presented by CEO Juha Blomster and CFO Kaisa      
Kokkonen. CEO Juha Blomster will also present Talentum's short-term strategy in 
greater detail.                                                                 

The figures in this release are unaudited.                                      

The forecasts and estimates presented here are based on the view of developments
in the economy at this present moment, and the actual results may differ        
substantially from what the company now expects.                                

In 2008 Talentum will be publishing the interim report for January-March on     
April 29, for January-June on July 23 and for January-September on October 28.  

TABLES                                                                          

INCOME STATEMENT                                                                
--------------------------------------------------------------------------------
| EUR million             |     10-12/ |     10-12/ |     1-12/  | 1-12/  2006 |
|                         |       2007 |       2006 |       2007 |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales               |       36.3 |       36.6 |      124.0 |       121.1 |
--------------------------------------------------------------------------------
|  Other operating income |        0.7 |        0.3 |        1.8 |         1.7 |
--------------------------------------------------------------------------------
|  Materials and services |       -7.1 |       -7.4 |      -24.3 |       -25.3 |
--------------------------------------------------------------------------------
| Employee benefits       |      -14.6 |      -16.2 |      -54.5 |       -56.7 |
| expense                 |            |            |            |             |
--------------------------------------------------------------------------------
| Depreciation and        |       -0.8 |       -2.7 |       -3.1 |        -5.2 |
| amortization expense    |            |            |            |             |
--------------------------------------------------------------------------------
| Other operating         |       -8.0 |       -8.9 |      -30.1 |       -31.3 |
| expenses                |            |            |            |             |
--------------------------------------------------------------------------------
| Operating profit        |        6.5 |        1.6 |       13.9 |         4.3 |
--------------------------------------------------------------------------------
|    Financial income     |        0.2 |        0.3 |        0.7 |         0.7 |
--------------------------------------------------------------------------------
|    Financial expenses   |       -0.3 |       -0.5 |       -1.9 |        -1.2 |
--------------------------------------------------------------------------------
| Share of profit of      |        0.0 |        0.2 |        0.2 |         0.5 |
| associates              |            |            |            |             |
--------------------------------------------------------------------------------
| Profit before tax       |        6.4 |        1.6 |       12.9 |         4.2 |
--------------------------------------------------------------------------------
|    Income tax expense   |       -1.8 |       -1.1 |       -3.7 |        -1.5 |
--------------------------------------------------------------------------------
| Profit for the period   |        4.6 |        0.5 |        9.2 |         2.7 |
--------------------------------------------------------------------------------
| Attributable to:        |            |            |            |             |
--------------------------------------------------------------------------------
| Equity holders of the   |        4.4 |        0.5 |        8.8 |         2.2 |
| parent                  |            |            |            |             |
--------------------------------------------------------------------------------
|    Minority interest    |        0.2 |        0.0 |        0.4 |         0.5 |
--------------------------------------------------------------------------------
| Earnings per share      |       0.11 |       0.01 |       0.22 |        0.05 |
| attributable to equity  |            |            |            |             |
| holders of the parent   |            |            |            |             |
| company (EUR)           |            |            |            |             |
--------------------------------------------------------------------------------


BALANCE SHEET                                                                   

--------------------------------------------------------------------------------
| EUR million                                     |  31.12.2007 |   31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                                          |             |              |
--------------------------------------------------------------------------------
| Non-current assets                              |             |              |
--------------------------------------------------------------------------------
|    Property, plant and equipment                |         6.6 |          7.9 |
--------------------------------------------------------------------------------
|    Goodwill                                     |        32.5 |         23.7 |
--------------------------------------------------------------------------------
|    Other intangible assets                      |        11.8 |         12.2 |
--------------------------------------------------------------------------------
|    Investments in associates                    |         2.1 |          2.7 |
--------------------------------------------------------------------------------
|    Available-for-sale financial assets          |         0.1 |          0.9 |
--------------------------------------------------------------------------------
|    Deferred tax assets                          |         1.0 |          3.5 |
--------------------------------------------------------------------------------
|    Other long term receivables and investments  |         0.7 |          0.5 |
--------------------------------------------------------------------------------
| Total non-current assets                        |        54.9 |         51.5 |
--------------------------------------------------------------------------------
| Current assets                                  |             |              |
--------------------------------------------------------------------------------
|    Inventories                                  |         4.4 |          3.3 |
--------------------------------------------------------------------------------
|    Trade and other receivables                  |        15.8 |         14.4 |
--------------------------------------------------------------------------------
|    Cash and cash equivalents                    |        13.8 |         20.4 |
--------------------------------------------------------------------------------
| Total current assets                            |        34.1 |         38.2 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                                    |        89.0 |         89.7 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES            |             |              |
--------------------------------------------------------------------------------
| Shareholders' equity                            |             |              |
--------------------------------------------------------------------------------
|    Share capital                                |        18.6 |         18.6 |
--------------------------------------------------------------------------------
|    Share premium reserve                        |         5.9 |          5.9 |
--------------------------------------------------------------------------------
|    Own shares                                   |        -1.3 |         -1.3 |
--------------------------------------------------------------------------------
|    Reserves                                     |        -0.2 |          0.5 |
--------------------------------------------------------------------------------
|    Retained earnings                            |         7.4 |          6.7 |
--------------------------------------------------------------------------------
| Total                                           |        30.3 |         30.5 |
--------------------------------------------------------------------------------
|    Minority interest                            |         1.6 |          1.7 |
--------------------------------------------------------------------------------
| Total equity                                    |        31.9 |         32.2 |
--------------------------------------------------------------------------------
| Non-current liabilities                         |             |              |
--------------------------------------------------------------------------------
|    Deferred tax liabilities                     |         3.1 |          3.3 |
--------------------------------------------------------------------------------
|    Loans and borrowings                         |         3.8 |          3.7 |
--------------------------------------------------------------------------------
|    Employee benefits                            |         0.1 |          0.0 |
--------------------------------------------------------------------------------
|    Provisions                                   |         1.4 |          1.3 |
--------------------------------------------------------------------------------
| Total non-current liabilities                   |         8.3 |          8.2 |
--------------------------------------------------------------------------------
| Current liabilities                             |             |              |
--------------------------------------------------------------------------------
|    Loans and borrowings                         |        15.4 |         21.8 |
--------------------------------------------------------------------------------
|    Trade and other payables                     |        33.1 |         26.6 |
--------------------------------------------------------------------------------
|    Provisions                                   |         0.3 |          0.9 |
--------------------------------------------------------------------------------
| Total current liabilities                       |        48.8 |         49.3 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES            |        89.0 |         89.7 |
--------------------------------------------------------------------------------

CASH FLOW STATEMENT                                                             

--------------------------------------------------------------------------------
|                                                 |    1-12/2007 |   1-12/2006 |
--------------------------------------------------------------------------------
| EUR Million                                     |              |             |
--------------------------------------------------------------------------------
| Operating profit                                |         13.9 |         4.3 |
--------------------------------------------------------------------------------
| Adjustments                                     |         4.4  |         5.3 |
--------------------------------------------------------------------------------
| Change in working capital                       |         -2.1 |         1.0 |
--------------------------------------------------------------------------------
| Net financial items and taxes                   |         -1.4 |        -1.5 |
--------------------------------------------------------------------------------
| Net cash from operating activities              |         14.7 |         9.1 |
--------------------------------------------------------------------------------
| Acquisitions of subsidiaries and associates,    |         -6.5 |        -3.9 |
| net of cash                                     |              |             |
--------------------------------------------------------------------------------
| Sales of subsidiaries and associates            |          1.0 |         0.0 |
--------------------------------------------------------------------------------
| Investments in property, plant, equipment and   |         -1.6 |        -3.6 |
| intangible assets                               |              |             |
--------------------------------------------------------------------------------
| Other investing activity related items          |          0.3 |         0.5 |
--------------------------------------------------------------------------------
| Net cash used in investing activities           |         -6.8 |        -7.0 |
--------------------------------------------------------------------------------
| Change in current loans                         |         -6.5 |        12.0 |
--------------------------------------------------------------------------------
| Proceeds from loans and borrowings              |          1.4 |         0.0 |
--------------------------------------------------------------------------------
| Repayment of loans and borrowings               |         -1.3 |        -1.9 |
--------------------------------------------------------------------------------
| Dividends paid and equivalents                  |         -8.2 |       -13.7 |
--------------------------------------------------------------------------------
| Other financing activities                      |          0.1 |        -0.6 |
--------------------------------------------------------------------------------
| Net cash used in financing activities           |        -14.5 |        -4.3 |
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents         |         -6.6 |        -2.2 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning of       |         20.4 |        22.6 |
| period                                          |              |             |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period      |         13.8 |        20.4 |
--------------------------------------------------------------------------------

STATEMENT OF CHANGES IN EQUITY                                                  

--------------------------------------------------------------------------------
| EUR      | Equi | Share | Other  |  Ex   |   Re   | Attrib | Minor  | Total  |
| million  |  ty  | pre   | reserv | chan  | tained | utable |  ity   | equity |
|          |      | mium  | es     |  ge   |  earn  | to the | inter  |        |
|          |      | re    |        |  dif  |  ings  | equity |  est   |        |
|          |      | serve |        |  fer  |        | holder |        |        |
|          |      |       |        | ence  |        |  s of  |        |        |
|          |      |       |        |   s   |        |  the   |        |        |
|          |      |       |        |       |        | parent |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Equity   | 18.6 |   5.9 |    0.0 |   0.0 |   16.8 |   41.3 |    2.0 |   43.3 |
| 1.1.2006 |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Ex       |      |       |        |   0.6 |        |    0.6 |        |    0.6 |
| change   |      |       |        |       |        |        |        |        |
| differen |      |       |        |       |        |        |        |        |
| ces      |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Net      |      |       |        |       |   -0.3 |   -0.3 |  -0.1  |   -0.5 |
| income   |      |       |        |       |        |        |        |        |
| recogniz |      |       |        |       |        |        |        |        |
| ed       |      |       |        |       |        |        |        |        |
| directly |      |       |        |       |        |        |        |        |
| in       |      |       |        |       |        |        |        |        |
| equity   |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Profit   |      |       |        |       |    2.2 |    2.2 |    0.5 |    2.7 |
| for the  |      |       |        |       |        |        |        |        |
| period   |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Dividend |      |       |        |       |  -13.2 |  -13.2 |   -0.5 |  -13.7 |
| s        |      |       |        |       |        |        |        |        |
| paid     |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other    |      |       |        |       |        |        |   -0.2 |   -0.2 |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Equity   | 18.6 |   5.9 |    0.0 |   0.5 |    5.4 |   30.5 |    1.7 |   32.2 |
| 31.12.20 |      |       |        |       |        |        |        |        |
| 06       |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Equity   | 18.6 |   5.9 |    0.0 |   0.5 |    5.4 |   30.5 |    1.7 |   32.2 |
| 1.1.2007 |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Ex       |      |   0.0 |        |  -0.8 |   -0.7 |   -1.5 |        |   -1.5 |
| change   |      |       |        |       |        |        |        |        |
| differen |      |       |        |       |        |        |        |        |
| ces      |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Share    |      |       |        |       |    0.2 |    0.2 |        |    0.2 |
| based    |      |       |        |       |        |        |        |        |
| incentiv |      |       |        |       |        |        |        |        |
| e        |      |       |        |       |        |        |        |        |
| plan     |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Net      |      |       |        |       |    0.3 |    0.3 |        |    0.3 |
| income   |      |       |        |       |        |        |        |        |
| recogniz |      |       |        |       |        |        |        |        |
| ed       |      |       |        |       |        |        |        |        |
| directly |      |       |        |       |        |        |        |        |
| in       |      |       |        |       |        |        |        |        |
| equity   |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Profit   |      |       |        |       |    8.8 |    8.8 |    0.4 |    9.2 |
| for the  |      |       |        |       |        |        |        |        |
| period   |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
|          |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
| Dividend |      |       |        |       |   -7.9 |   -7.9 |   -0.3 |   -8.2 |
| s paid   |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other    |      |       |        |       |   -0.1 |   -0.1 |   -0.2 |   -0.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity   | 18.6 |   5.9 |    0.0 |  -0.2 |    6.1 |   30.3 |    1.6 |   31.9 |
| 31.12.20 |      |       |        |       |        |        |        |        |
| 07       |      |       |        |       |        |        |        |        |
--------------------------------------------------------------------------------

NOTES TO FINANCIAL STATEMENTS                                                   

This interim report has been drawn up according to the IFRS recognition and     
valuation principles. The interim report for January-June is reported in        
accordance with IAS 34 Interim Financial Reporting. In drawing up this interim  
report for October-December, Talentum has applied the same accounting principles
as in the financial statements for 2006, but in such a way that it has          
introduced from January 1, 2007 the following new/revised standards: IFRS 7  
Financial Instruments: Disclosures, IAS 1 Presentation of Financial Statements  
and IFRIC 10, Interim Financial Reporting and Impairment. The introduction of   
these has had no material effect on Talentum's interim report.                  

All the figures in this report have been rounded up or down, so the sum of the  
figures may be different from the totals shown.                                 


NON-RECURRING ITEMS                                                             

The Talentum Group has carried out measures aimed at improving profitability in 
the Publishing and Premedia business areas and in Group Administration. The     
restructuring in the publishing operations and Group Administration was         
scheduled for the final quarter of 2006. Expenses of EUR 1.6 million concerning 
this were mostly included in personnel expenses. In the first and second        
quarters of 2006 non-recurring expenses of EUR 1 million for projects that were 
not carried out were recognized.                                                

An impairment of EUR 1.8 million for goodwill was recognized for the Premedia   
business area in the final quarter of 2006. The premedia business operations    
were sold in the second quarter of 2007 and a total of EUR 1.7 million in other 
expenses related to the restructuring of the premedia business operations was   
recognized as a result of the sales. In the final quarter of 2007 non-recurring 
income of EUR 0.6 million resulting from a reduction in advertising tax in      
Sweden was recognized.                                                          

The restructuring expenses are included in the income statement under the       
following headings:                                                             

--------------------------------------------------------------------------------
| EUR million                   |    10-12/ |   10-12/ |     1-12/ |     1-12/ |
|                               |      2007 |     2006 |      2007 |      2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Employee benefits expense     |       0.0 |      1.6 |       0.0 |       1.6 |
--------------------------------------------------------------------------------
| Depreciation and amortization |       0.0 |      1.8 |       0.0 |       1.8 |
| expense                       |           |          |           |           |
--------------------------------------------------------------------------------
| Other operating income        |       0.0 |      0.0 |       1.7 |       1.0 |
--------------------------------------------------------------------------------
| Total                         |       0.0 |      3.4 |       1.7 |       4.4 |
--------------------------------------------------------------------------------

TALENTUM GROUP / SUB-SEGMENTS                                                   


--------------------------------------------------------------------------------
| EUR million                |    10-12/ |    10-12/ | 1-12/ 2007 | 1-12/ 2006 |
|                            |      2007 |      2006 |            |            |
--------------------------------------------------------------------------------
| Net sales                  |           |           |            |            |
--------------------------------------------------------------------------------
| Publishing                 |      27.0 |      23.5 |       83.8 |       74.7 |
--------------------------------------------------------------------------------
| Direct marketing           |       2.5 |       2.0 |        9.5 |        8.2 |
--------------------------------------------------------------------------------
| TV content production      |       5.7 |       7.8 |       22.9 |       24.6 |
--------------------------------------------------------------------------------
| Premedia                   |       2.4 |       4.4 |       12.5 |       18.0 |
--------------------------------------------------------------------------------
| Sales within group         |      -1.2 |      -1.1 |       -4.7 |       -4.5 |
--------------------------------------------------------------------------------
| Total                      |      36.3 |      36.6 |      124.0 |      121.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit           |           |           |            |            |
--------------------------------------------------------------------------------
| Publishing                 |       6.3 |       2.9 |       14.8 |        7.1 |
--------------------------------------------------------------------------------
| Direct marketing           |       0.4 |       0.3 |        1.3 |        1.1 |
--------------------------------------------------------------------------------
| TV content production      |       0.4 |       0.8 |        1.2 |        1.8 |
--------------------------------------------------------------------------------
| Premedia                   |       0.1 |      -1.8 |       -0.9 |       -2.5 |
--------------------------------------------------------------------------------
| Parent company and group   |      -0.8 |      -0.5 |       -2.5 |       -3.2 |
| items                      |           |           |            |            |
--------------------------------------------------------------------------------
| Total                      |       6.5 |       1.6 |       13.9 |        4.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit without   |       5.9 |       5.0 |       15.0 |        8.7 |
| non-recurring items        |           |           |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Publishing                 |           |           |            |            |
--------------------------------------------------------------------------------
|  restructuring costs       |       0.0 |      -1.4 |        0.0 |       -1.6 |
--------------------------------------------------------------------------------
| Reduction of Swedish       |       0.6 |       0.0 |        0.6 |        0.0 |
| advertisement tax          |           |           |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Premedia                   |           |           |            |            |
--------------------------------------------------------------------------------
|  restructuring costs       |       0.0 |      -1.8 |       -1.7 |       -1.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group Items                |           |           |            |            |
--------------------------------------------------------------------------------
|  restructuring costs       |       0.0 |      -0.2 |        0.0 |       -1.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

AVERAGE NUMBER OF EMPLOYEES                                                     
--------------------------------------------------------------------------------
|                                                    | 1-12/ 2007 | 1-12/ 2006 |
--------------------------------------------------------------------------------
| Talentum Group                                     |        675 |        767 |
--------------------------------------------------------------------------------
| Part-time telemarketing staff                      |        316 |        297 |
--------------------------------------------------------------------------------
| Total                                              |        991 |      1 064 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Publishing                                         |        384 |        405 |
--------------------------------------------------------------------------------
| Direct marketing                                   |        365 |        346 |
--------------------------------------------------------------------------------
| TV content production                              |         95 |         98 |
--------------------------------------------------------------------------------
| Premedia                                           |        133 |        199 |
--------------------------------------------------------------------------------
| Group Administration                               |         14 |         16 |
--------------------------------------------------------------------------------
| Total                                              |        991 |      1 064 |
--------------------------------------------------------------------------------

CONTINGENT LIABILITIES                                                          
--------------------------------------------------------------------------------
| EUR million                             |      31.12.2007 |       31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Given as security                       |             9.0 |              5.9 |
--------------------------------------------------------------------------------
|    loans with securities as collateral  |             2.9 |              3.1 |
--------------------------------------------------------------------------------
| Rental and other commitments            |            13.7 |             17.1 |
--------------------------------------------------------------------------------
| Leasing commitments                     |             2.5 |              3.3 |
--------------------------------------------------------------------------------