Elisa - Company Announcement

PRELIMINARY INFORMATION ABOUT ELISA'S INTERIM REPORT JANUARY-MARCH 2008

*            Revenue was EUR 367 million (378)
*            Revenue was negatively affected by 2007 revenue
  adjustment of mobile segment, approximately EUR 7 million. This was
  due to correction of 2007 revenue estimate of delayed customer
  billing
*            New mobile interconnection fees as of 1st of January
  lowered revenue by approximately EUR 14 million compared to the
  previous quarter
*            EBITDA exclusive of non-recurring items of EUR 3 million
  was EUR 111 million (115) and EBIT EUR 57 million (68)
*            Revenue adjustment and implementation costs of the new
  billing and CRM system affected negatively on EBITDA and EBIT by
  approximately EUR 12 million, which is not booked as a
  non-recurring item
*            Profit before tax amounted to EUR 52 million (64)
*            Earnings per share was EUR 0.25 (0.30)
*            Cash flow after investments more than tripled to EUR 66
  million
 
Key indicators:

+-----------------------------------------------------------+
| Income statement        | 1-3/2008 | 1-3/2007 | 1-12/2007 |
| EUR million             |          |          |           |
|-------------------------+----------+----------+-----------|
| Revenue                 |      367 |      378 |     1 568 |
|-------------------------+----------+----------+-----------|
| EBITDA                  |   108 1) |      115 |    499 2) |
|-------------------------+----------+----------+-----------|
| EBIT                    |       57 |       68 |       302 |
|-------------------------+----------+----------+-----------|
| Profit before tax       |       52 |       64 |       285 |
|-------------------------+----------+----------+-----------|
| Earnings per share, EUR |     0.25 |     0.30 |      1.38 |
|-------------------------+----------+----------+-----------|
| Capital expenditures    |       38 |       45 |       206 |
+-----------------------------------------------------------+

EBITDA excluding non-recurring items: 1) EUR 111 million, 2) EUR 491
million.
 
Financial position and cash flow:

+----------------------------------------------------------------+
| Financial position   | 31 Mar 2008 | 31 Mar 2007 | 31 Dec 2007 |
|----------------------+-------------+-------------+-------------|
| Net debt             |         955 |         578 |         738 |
|----------------------+-------------+-------------+-------------|
| Net debt / EBITDA 1) |         2.2 |         1.3 |         1.5 |
|----------------------+-------------+-------------+-------------|
| Gearing ratio, %     |       120.6 |        51.6 |        71.3 |
|----------------------+-------------+-------------+-------------|
| Equity ratio, %      |        37.7 |        51.0 |        47.9 |
|----------------------+-------------+-------------+-------------|
| Cash flow statement  |    1-3/2008 |    1-3/2007 |   1-12/2007 |
| Cash flow after      |             |             |             |
| investments          |          66 |          18 |         114 |
+----------------------------------------------------------------+

 
1) (interest-bearing debt - liquid assets) / (EBITDA excluding
non-recurring items x 4)
 
Outlook for 2008
 
Competition in the Finnish telecommunications market remains
challenging, while the focus is increasingly on services. The use of
mobile communications and broadband products is continuing to rise.
Elisa's aim is to further reinforce its position as the service
leader.
 
Elisa's revenue, EBITDA and EBIT excluding non-recurring items are
expected to be at the same level as in 2007. The additional
implementation costs of the billing and CRM system will continue
until the end of the year. This factor combined with the more
challenging overall market situation is expected to effect the 2008
EBITDA and EBIT. However, the contributory factors for long-term
growth and profitability improvement include the 3G market growth and
efficiency measures,
which are continuing as expected.
 
Full-year capital expenditures are expected to be 10 to 12 per cent
of revenue, and cash flow will substantially improve on the previous
year due to factors such as change in net working capital.
 
Comprehensive January-March 2008 report
 
Elisa will publish the January-March 2008 Interim Report on Friday 25
April 2008.
 
 
ELISA CORPORATION
 
Vesa Sahivirta
Director, IR and Financial Communications
 
Additional information:

Mr Veli-Matti Mattila, CEO, tel. +358 10 262 2635
Mr Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr Vesa Sahivirta, Director, IR and Financial Communications, tel.
+358 50 520 5555
 
Distribution:

Helsinki Stock Exchange
Principal media
www.elisa.com