TietoEnator Oyj - Company Announcement

Tieto expects net sales and operating profit to decline from the previous year's level; Group-wide operations adjustment started

TietoEnator Corporation Stock Exchange Release 23 March 2009, 2.45 pm
EET

Based on the development during the first quarter, Tieto now expects
its full-year net sales to be lower than in 2008. In January -
February, Tieto's net sales amounted to EUR 275 million representing
a 12% decline from the corresponding period in 2008. Approximately
half of this decline is due to the weakened currencies. The decline
in net sales will have a negative impact on Tieto's profitability. To
address the situation, Tieto has started new streamlining actions to
reach additional annualized cost-savings in the amount of EUR 100
million.

Decline in demand, especially in the telecom and banking sectors, has
continued during the first months of 2009. Additionally, the weakened
currencies, especially the Swedish krona, have continued to have a
negative impact on Tieto's net sales in euros.

The impacts of the economic downturn have hit the IT sector harder
and faster than earlier expected, and uncertainty prevails over the
future development of the IT market. In the full year, Tieto expects
the IT services market to decline and tough market conditions to
continue. On the other hand, more than half of Tieto's business is
related to application and ICT infrastructure management as well as
maintenance, which are more resilient to the impacts of an economic
downturn.

In connection with the 2008 annual results announcement, Tieto
anticipated the overall growth of the IT services market to remain
flat in 2009 due to the economic slowdown. The company also expected
its service volumes to grow, but the lower price level and weak
Swedish krona to have a negative impact on the company's net sales.
Price pressure was expected to affect most in sectors where overall
demand is declining.

Actions to streamline operations

In addition to the ongoing Performance Improvement Programme, Tieto
has started new Group-wide actions to adjust its operations to the
current market situation. These measures include decreased use of
subcontractors, consolidation of offices and cutting business
expenses in the whole Group. Personnel adjustments in addition to the
ongoing ones are also needed to address the situation, and they will
be initiated in different countries following the local legislation
and labour practises.

Tieto continues to invest in the development of the global delivery
model with the aim of having an offshore ratio of approximately 30%
by the end of 2009. Resources will be increased especially in Tieto's
global delivery centres in China, India and Czech."Tieto's transformation is proceeding well, but the impacts of the
economic slowdown have been much stronger and faster than we
anticipated earlier. Due to this change in the market environment, we
are now taking additional measures to adjust our cost-base and
operations to the current demand," says Tieto's President and CEO
Hannu Syrjälä. "Despite the tough market conditions, we see growth in
outsourcing opportunities and good demand for Tieto's services that
support our customers to increase their productivity and efficiency,"
he continues.

Tieto's first quarter interim report will be published on 24 April at
8.00 am EET. The company will provide more information on the planned
streamlining actions and their expected costs in connection with the
first-quarter results announcement.




For further information, please contact:

Hannu Syrjälä, President and CEO, tel. +358 2072 68729
Seppo Haapalainen, CFO, tel. +358 2072 63500
Reeta Kaukiainen, EVP, Communications and Investor Relations, tel.
+358 2072 68711,
+358 50 522 0924, reeta.kaukiainen@tieto.com



TIETOENATOR CORPORATION


DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media


Tieto is an IT service company providing IT, R&D and consulting
services. With approximately 16 000 experts, we are among the leading
IT service companies in Northern Europe and the global leader in
selected segments. We specialize in areas where we have the deepest
understanding of our customers' businesses and needs. Our superior
customer centricity and Nordic expertise set us apart from our
competitors.

Tieto is our new brand name as of 1 December 2008. The official
registered name of the company is TietoEnator Corporation.
www.tieto.com