Published:

2009-02-13 07:58:00 CET

Registered:

2009-02-13 07:59:24 CET

REGULATED INFORMATION

English

Alma Media - Financial Statement Release

Alma Media Group's Financial Statement Bulletin 2008: Net sales increased, operating profit weakened

Alma Media Corporation Stock Exchange Release February 13, 2009
at 09:00am

ALMA MEDIA GROUP'S FINANCIAL STATEMENTS BULLETIN 2008:
- Net sales increased, operating profit weakened

Financial year 2008 in brief (2007 figures in brackets):
- Net sales MEUR 341.2 (328.9), up 3.7%
- Operating profit MEUR 48.3 (64.4), 14.2% (19.6%) of net sales,
operating profit excluding one-time items MEUR 47.7 (52.9)
- Profit before tax MEUR 52.4 (68.0), profit before tax excluding
one-time items MEUR 49.9 (56.5)
- Earnings per share EUR 0.51 (0.68)

Dividend proposal for the Annual General Meeting:
- Alma Media Corporation's Board of Directors will propose to the
Annual General Meeting on March 11, 2009 that a dividend of EUR 0.30
(0.90) per share be paid for the 2008 financial year.
- The Board of Directors will also propose that the Annual General
Meeting, according to Chapter 13, Section 6, Paragraph 2 of the
Finnish Companies Act, authorise the Board to decide upon an
additional dividend of no more than EUR 0.20 per share.

Outlook for 2009:
- Alma Media expects its comparable net sales and operating profit to
decline from the 2008 figures due to a decrease in media advertising.

Mr Kai Telanne, President and CEO:"Alma Media's year 2008 began better than we could ever have expected
but ended weaker than estimated due to the rapid slowdown of general
economic growth. Our net sales increased, but the operating profit
fell short of the targeted 2007 level.

For our newspapers, the entire year was good, as shown by the 17.5-%
operating profit level for the segment in 2008. The end of the year,
however, was poor, because after a good October the media sales of
most newspapers dropped significantly in November and December. Net
sales of the Kauppalehti Group grew well, and the operating profit
improved. The otherwise good year of Marketplaces was spoiled by the
steep decline of media sales in the last quarter. Recruitment and
home sale advertising turned down at the same time as our investments
in development projects remained high.

Alma Media's online business grew by a good 24.6% in 2008. Through
our services, we increased our market share for example in home and
recruitment advertising and other online advertising. At the end of
the year, online business accounted for 13.1% (10.9%) of our net
sales, and its operating profit was clearly positive.

On average, the circulation figures of Alma Media's regional and
local newspapers remained unchanged. Kauppalehti's circulation grew
to a new record level. The single-copy sales of Iltalehti decreased
along with the decline in the afternoon paper market. Subscription
price increases, made to counter the general increase in costs,
boosted our circulation net sales.

The steep drop in the advertising market that began at the end of
2008 has continued during January-February. Consequently, we are
taking measures to achieve significant cost savings in Alma Media."

For further information, please contact:
Mr Kai Telanne, President and CEO, tel. +358 10 665 3500
Mr Tuomas Itkonen, CFO, tel. +358 10 665 2244

Conference, webcast and conference call:
The company will hold a conference in Finnish concerning its
financial statements bulletin in the Carl cabinet of the Scandic
Marski hotel at Mannerheimintie 10, Helsinki, Finland at 11:00am on
February 13, 2009. The financial results will be presented by Mr Kai
Telanne, President and CEO, and Mr Tuomas Itkonen, CFO. Other members
of Alma Media management will also be present.

A webcast in English will start at www.almamedia.fi at 1:30pm (EET).
A conference call for investors and analysts will start at 2:00pm
(EET). To participate, please call +44 (0)20 7162 0125.

Rauno Heinonen
VP, Corporate Communications and IR
Alma Media Corporation

DISTRIBUTION:

NASDAQ OMX Helsinki
Principal media

ALMA MEDIA GROUP: FINANCIAL STATEMENTS BULLETIN JANUARY 1-DECEMBER
31, 2008

The descriptive part of this review focuses on the annual financial
statements. The comparisons according to the International Financial
Reporting Standards (IFRS) refer to the figures from the
corresponding period in 2007 unless otherwise stated. The figures in
the tables are independently rounded.

CHANGES IN GROUP STRUCTURE IN 2008

Alma Media purchased the entire stock of Jadecon Oy on February 20,
2008. The purchased company's business includes the online TV listing
service Telkku.com. In addition, the corporation acquired the entire
stock of Vuodatus.net Oy on October 1, 2008. Both of these companies
are reported under the Newspapers segment as part of Iltalehti.

Suomen Paikallissanomat Oy acquired the business of Rannikkoseudun
Sanomat, publisher of the Rannikkoseutu newspaper, on September 1,
2008, as well as the business of Janakkalan Sanomat, a local
newspaper, on December 31, 2008. The local newspaper Kurun Sanomat
was sold on December 31, 2008.

Internal structural changes were implemented through the following
mergers: Alma Media Palvelut Oy, subsidiary of Alma Media
Corporation, was merged with Alma Media Corporation on November 30,
2008. The subsidiaries Kainuun Sanomat Oy and Pohjolan Sanomat Oy
merged with Lapin Kansa Oy on October 31, 2008, and the company name
was changed into Pohjois-Suomen Media Oy.

CONSOLIDATED NET SALES AND RESULT OCTOBER-DECEMBER 2008

Consolidated net sales in October-December 2008 totalled MEUR 86.6
(85.5). Operating profit amounted to MEUR 9.5 (20.6). The comparable
operating profit of the fourth quarter was 9.5 (11.7) MEUR, falling
19%. The operating margin was 10.9% (24.1%). The operating profit of
the comparison period includes a one-time capital gain of MEUR 8.9.

Net sales for the Newspapers segment amounted to MEUR 61.1 (59.3).
Net sales for the segment's media sales grew by 5.5%. Satakunnan
Kansa, Lapin Kansa and Suomen Paikallissanomat, the local papers
company, increased their media sales supported by advertising income
from municipal elections. The media sales of other regional papers
and Iltalehti declined in November-December, which weakened the
growth for the entire last quarter. Online sales developed well,
especially for Iltalehti. The circulation net sales of Newspapers
increased due to price increases. The circulation net sales for
Iltalehti decreased in the last quarter due to a general decline in
the afternoon paper market. Operating profit for Newspapers was MEUR
10.5 (9.4).

The Kauppalehti Group's net sales were MEUR 19.0 (19.1). Media sales
for the segment, taking into account the 2007 net sales of Presso,
remained at the same level as in the comparison period. Sales of
Kauppalehti's online business grew as planned. Circulation sales were
up 5%. The operating profit of the Kauppalehti Group was MEUR 2.0
(2.2). The operating profit of Kauppalehti Oy remained at the level
of the comparison period.

Net sales for the Marketplaces segment were MEUR 7.5 (8.0).
Marketplaces recorded an operating loss of MEUR 1.0 (operating profit
MEUR 1.2). The declining net sales and the operating loss were
attributable to a sharp drop in the Baltic home sale market as well
as the rapid shrinking of home and recruitment advertising in Finland
in November-December. The financial result of Marketplaces was
burdened by the continuing investments in new business operations. In
Finland, the net sales of the Etuovi.com online service continued to
rise by more than 20%. Autotalli.com also fared well.

CONSOLIDATED NET SALES AND RESULT 2008

Alma Media Group's net sales in 2008 totalled MEUR 341.2 (328.9).
Favorably developed media sales in newspapers and online services,
with the exception of the last few months of the year, were the main
factor in increasing net sales. Online net sales grew by 24.6% during
the year, being MEUR 44.7 (35.9). Online sales accounted for 13.1%
(10.9%) of consolidated net sales.

The consolidated operating profit declined from the previous year to
MEUR 48.3 (64.4). The operating margin was 14.2% (19.6%). The
operating profit for 2008 includes a one-time capital gain of MEUR
0.6 from the sale of property. The operating profit for the
comparison period included capital gains totalling MEUR 11.5.

Operating profit for the financial period, excluding one-time items,
was MEUR 47.7 (52.9). Operating margin excluding one-time items was
14.0% (16.1%).

Profit before taxes for the financial period was MEUR 52.4 (68.0),
including one-time items totalling MEUR 2.5 (11.5). The one-time
items consist of capital gains from sales of property and the shares
of AP-Paino Oy.

The increase in consolidated net sales was in line with the
management's forecasts earlier in the year. Comparable operating
profit fell short of the original estimate. In November, the company
issued a profit warning due to the unexpectedly rapid change in the
media sales market. The slowdown in the growth of media sales, which
eventually turned into negative sales, as well as the investments in
the development of the online business brought the operating profit
below the previous year's level.

Reviews of the 2008 key figures for the segments are given starting
on page 6.

OUTLOOK FOR 2009

Uncertainty in the Finnish media market is exceptionally high at the
start of the year 2009.

Alma Media forecasts a drop in the single-copy sales of afternoon
papers in line with the developments in 2008. The circulation of
Kauppalehti is expected to stay at the 2008 level. No major changes
are estimated in the circulations of regional and local papers. Alma
Media expects the newspaper advertising market to decline in 2009 as
well as slower growth for online advertising. The steep drop in the
advertising market that began at the end of 2008 has continued during
January-February.

Alma Media expects a decrease in its comparable net sales and
operating profit from the figures in 2008 due to the decline in media
advertising.

MARKET CONDITIONS

The growth of the Finnish national economy stopped at the end of
2008. According to economic forecasts, the Finnish national economy
will shrink during the spring of 2009. The gross national product is
forecasted to decline by 0.8-3.7% during 2009.

According to data collected by TNS Media Intelligence, the total
media advertising spending in Finland in 2008 was MEUR 1,203, down
0.1%. Of the total spending, newspapers accounted for 45.8% (spending
decreased by 2.8% from the previous year) and television for 17.8%
(spending increased by 2.3%). The share of online advertising grew to
10.1%, but the growth in its market share was largely attributable to
the changes in the research methods. Comparable growth for online
advertising was 22.2% in 2008.

During the last quarter, total advertising declined by 5.8%,
according to TNS Media Intelligence. In December 2008, media
advertising decreased 13.0% compared to the previous year. Newspaper
advertising declined 7.5% in the last quarter and 15.4% in December.
Online advertising grew by 15.1% in the last quarter and 3% in
December.

KEY FIGURES

2008 2007 2008 2007 2006
MEUR 10-12 10-12 1-12 1-12 1-12
Net sales 86.6 85.5 341.2 328.9 301.9
Operating profit 9.5 20.6 48.3 64.4 49.1
% of net sales 10.9 24.1 14.2 19.6 16.3
Net financial expenses 0.4 -0.2 0.4 -0.1 0.5
Net financial expenses, % of net
sales 0.5 -0.2 0.1 0.0 0.2
Share of associated companies'
results 2.6 1.4 4.5 3.5 1.2
Balance sheet total 166.9 181.3 199.7
Gross capital expenditure 2.9 3.8 14.5 12.1 19.6
Gross capital expenditure, % of
net sales 3.3 4.4 4.2 3.7 6.5
Equity ratio 57.2 69.8 61.3
Gearing, % 6.6 -15.2 -5.6
Interest-bearing net debt 5.8 -17.9 -6.5
Interest-bearing liabilities 19.1 6.8 21.7
Non-interest-bearing liabilities 59.3 56.2 62.7
Average no. of personnel,
calculated as full-time
employees. excl. delivery staff 1,959 1,909 1,981 1,971 1,901
Average no. of delivery staff 910 909 968 962 857
Earnings/share, EUR
(basic) 0.12 0.22 0.51 0.68 0.50
Earnings/share, EUR
(diluted) 0.12 0.22 0.51 0.68 0.50
Cash flow from operating
activities, EUR 0.11 0.10 0.63 0.70 0.63
Shareholders' equity/share, EUR 1.18 1.58 1.54
0.30 0.90 0.65
6.1 7.7 7.0
9.6 17.2 18.8
Market capitalization 369.3 870.7 690.2
Average no. of shares (1.000
shares)
- basic 74,613 74,613 74,613 74,613 74,613
- diluted 74,670 74,829 74,764 74,773 74,613
No. of shares at end of period
(1.000 shares) 74,613 74,613 74,613 74,613 74,613

2008 2007 2008 2007
NET SALES BY SEGMENT, MEUR 10-12 10-12 1-12 1-12
Newspapers 61.1 59.3 236.7 230.6
Kauppalehti Group 19.0 19.1 73.5 70.1
Marketplaces 7.5 8.0 34.3 30.9
Other operations and eliminations -1.0 -0.9 -3.3 -2.7
Total 86.6 85.5 341.2 328.9

2008 2007 2008 2007
OPERATING PROFIT/LOSS BY SEGMENT, MEUR 10-12 10-12 1-12 1-12
Newspapers 10.5 9.4 41.5 42.8
Kauppalehti Group 2.0 2.2 9.7 7.6
Marketplaces -1.0 1.2 2.0 5.3
Other operations and eliminations -2.0 7.8 -4.9 8.7
Total 9.5 20.6 48.3 64.4

NEWSPAPERS

Key figures, MEUR 2008 2007 2008 2007
10-12 10-12 1-12 1-12
Net sales 61.1 59.3 236.7 230.6
Circulation sales 27.1 26.9 108.6 106.9
Media advertising sales 31.3 29.6 117.7 112.6
Printing sales 1.1 1.2 4.3 5.4
Other sales 1.6 1.5 6.1 5.7
Operating profit 10.5 9.4 41.5 42.8
Operating margin, % 17.2 15.8 17.5 18.5
Gross capital expenditure 1.3 1.2 9.4 6.0
Average no. of personnel,
calculated as full-time
employees. excl. delivery staff 1,169 1,167 1,197 1,218
Average no. of delivery staff 910 909 968 962

The Newspapers segment reports the publishing activities of 35
newspapers. The largest of these are Aamulehti and Iltalehti.

The Newspapers segment's net sales in 2008 increased 2.7% from the
previous year to MEUR 236.7. During the year, the quarterly growth
rates of the newspapers' net sales experienced significant
fluctuation. The media sales of the Alma Media newspapers increased
more than market growth in 2008. As expected, the municipal elections
in October refreshed advertising sales. In November-December, the
media sales of most newspapers started to decline. Especially
Aamulehti and Iltalehti, whose media sales had developed well in the
earlier months of the year, suffered from the decline towards the end
of the year. The development of advertising sales in the online media
was particularly favourable in Satakunnan Kansa and Iltalehti. The
share of Iltalehti.fi in the entire media sales of Iltalehti rose to
about one-third.

Circulation net sales for the newspapers grew, thanks to price
increases. For regional and local newspapers, circulation development
continued neutral or slightly declining. The circulation of Iltalehti
decreased 6%, while the entire afternoon paper market dropped by
8.2%. Iltalehti increased its market share by half a percentage point
to 42.9%.

The regional and local newspapers of Alma Media gradually deployed a
common online service platform before the municipal elections in the
autumn. At the end of the year, Iltalehti's online service
Iltalehti.fi was Finland's largest online medium with its
approximately 1.6 million unique visitors a week.

The full-year operating profit for the Newspapers segment declined to
MEUR 41.5 (42.8).

KAUPPALEHTI GROUP

Key figures, MEUR 2008 2007 2008 2007
10-12 10-12 1-12 1-12
Net sales 19.0 19.1 73.5 70.1
Circulation sales 6.5 6.3 24.8 24.4
Media advertising sales 5.9 6.5 22.2 21.5
Other sales 6.6 6.4 26.4 24.3
Operating profit 2.0 2.2 9.7 7.6
Operating margin, % 10.7 11.7 13.2 10.8
Gross capital expenditure 0.3 0.4 1.4 1.1
Average no. of personnel,
calculated as full-time employees 494 498 499 527

The Kauppalehti Group specialises in producing business and financial
information. Its best known title is Finland's leading business
newspaper Kauppalehti. The Group also includes Lehdentekijät
(contract publishing), Kauppalehti 121 (direct marketing) and the BNS
news agency operating in the Baltic countries.

The net sales of the Kauppalehti Group grew by 4.8% in 2008 to MEUR
73.5. The growth was fuelled in particular by Kauppalehti's
exceptional success: its circulation sales increased 9% during the
year and media sales increased 15%. The general market conditions
also slowed down the growth of Kauppalehti's media sales towards the
end of the year. Net sales of Kauppalehti's online services retained
a good growth rate throughout the year. Kauppalehti's largest
subsidiary, Lehdentekijät Oy, faced tight competition throughout the
year.

Kauppalehti's circulation reached the record level of 86,577 copies
in the circulation audit performed in August 2008. The number of
visitors to Kauppalehti.fi grew by approximately 200,000 during the
year, finishing at more than 500,000.

The full-year operating profit of the Kauppalehti Group improved by
MEUR 2.1 to MEUR 9.7.

MARKETPLACES

Key figures, MEUR 2008 2007 2008 2007
10-12 10-12 1-12 1-12
Net sales 7.5 8.0 34.3 30.9
Operations in Finland 6.0 6.5 28.0 25.2
Operations outside Finland 1.5 1.5 6.3 5.7
Operating profit -1.0 1.2 2.0 5.3
Operating margin, % -13.0 15.0 5.9 17.3
Gross capital expenditure 0.9 1.6 2.1 2.8
Average no. of personnel,
calculated as full-time employees 234 176 216 158

The Marketplaces segment reports Alma Media's classified services,
which are produced on the internet and supported by printed products.
The services in Finland are Etuovi.com, Monster.fi, Autotalli.com,
Mascus.fi and Mikko.fi. The services outside Finland are City24,
Motors24, Mascus and Bovision.

With its decision of October 16, 2008, the District Court of Helsinki
dismissed all claims against Alma Media's use of the Etuovi.com
trademark. Among other things, the district court decision confirmed
Alma Media's right to use the trademark "ETUOVI.COM" for online home
and real estate business and a special newspaper focusing on real
estate sales. The case will continue in the Court of Appeal of
Helsinki.

Net sales for Marketplaces grew 11.2% in 2008. In January-September,
net sales grew by more than 17%. The slowdown in the growth of home
advertising that began in Finland and the Baltic countries in early
autumn, as well as the sharp drop in recruitment advertising in
Finland from November turned the growth trend negative during the
last quarter of the year.

The full-year operating profit for Marketplaces declined from MEUR
5.3 to MEUR 2.0.

ASSOCIATED COMPANIES

Share of associated companies' results, MEUR 2008 2007 2008 2007
10-12 10-12 1-12 1-12
Newspapers 0.0 0.0 0.1 0.1
Kauppalehti Group
Talentum Oyj 0.6 1.3 1.6 2.6
Other associated companies 0.0 0.0 0.0 0.0
Marketplaces
Other operations 1.8 0.0 1.8 0.1
Acta Print Kivenlahti Oy 0.2 0.0 0.9 0.7
Other associated companies 2.6 1.4 4.5 3.5

Alma Media Group holds a 29.9% stake in Talentum Oyj, reported under
the Kauppalehti Group. Talentum's own shares in possession of
Talentum are here included in the total number of shares. In the
consolidated financial statements of Alma Media, the ownership in
Talentum is combined in a way that does not take Talentum's own
shares into account in the total number of shares. The figure used in
Alma Media's consolidated financial statements of December 31, 2008
is 30.3%.

Alma Media Group divested its holding in AP-Paino Oy in December
2008. The sale brought a profit of MEUR 1.8.

BALANCE SHEET AND FINANCIAL POSITION

The consolidated balance sheet at the end of December 2008 stood at
MEUR 166.9 (181.3). The equity ratio at the end of December was 57.2%
(69.8%) and equity per share was EUR 1.18 (1.58).

The consolidated cash flow before financing was MEUR 45.8 (49.1). At
the end of December the net debt totalled MEUR 5.8 (-17.9).

Alma Media Group has a current MEUR 100 commercial paper programme in
Finland. In March, the corporation issued papers to the total amount
of MEUR 35. The unused part of the programme was MEUR 87.0 on
December 31, 2008.

The Group's interest-bearing debt is denominated in euros and
therefore does not require hedging against exchange rate differences.
The most significant purchasing contracts denominated in foreign
currency are hedged.

RESEARCH AND DEVELOPMENT COSTS

Research and development costs in 2008 amounted to MEUR 2.7 (3.7). Of
this total, MEUR 2.3 (2.8) were capitalised and MEUR 0.3 (0.8)
expensed. Most of the R&D development projects pertained to the
development of online business.

CAPITAL EXPENDITURE

Gross capital expenditure in 2008 totalled MEUR 14.5 (12.1),
consisting mainly of acquisitions of business operations and
development projects for online media. The rest of the capital
expenditure was related to normal operational and maintenance
investments.

EVENTS AFTER THE FINANCIAL PERIOD

Lehdentekijät Oy, part of Alma Media Group, has begun statutory
personnel negotiations affecting all employees in January 2009. The
subject of the negotiations is the plan to reorganise the company's
operations and to clarify its cost structure. The planned changes
would lead to the reduction of maximum nine employees.

The publishing company Iltalehti Oy, part of Alma Media Group, has
started statutory personnel negotiations concerning all employees.
The planned objective for the negotiations is the extensive
reorganisation of operations. The purpose of the negotiations is to
examine the future of the various services within Iltalehti and to
identify measures that take the changes in media consumption into
account. The maximum need for resource reductions is planned to be 30
person years. The objective for the negotiations is to find ways to
implement the reduction without lay-offs.

Oy Herttaässä Ab, a shareholder of Alma Media Corporation, has in a
letter dated December 18, 2008 and received by the Board of Directors
on December 21, 2008 presented a request to convene an extraordinary
general meeting of shareholders to consider and decide on the
composition of the Board of Directors, repurchasing the company's own
shares and company restructuring. On January 18, 2009 the Board of
Directors of Alma Media Corporation decided to convene an ordinary
general meeting of shareholders, the notice of which also includes
the proposals by the shareholder Oy Herttaässä Ab. The ordinary
general meeting will be arranged on March 11, 2009.

ADMINISTRATION

Alma Media Corporation's Annual General Meeting on March 12, 2008
elected the following persons to the Board of Directors: Lauri Helve,
Matti Kavetvuo, Kai Seikku, Kari Stadigh, Harri Suutari, Ahti
Vilppula and Erkki Solja.

At its constitutive meeting held after the annual general meeting,
the Board elected Kari Stadigh its chairman and Matti Kavetvuo its
deputy chairman. The Board also elected the members of its
committees. Kai Seikku, Erkki Solja and Harri Suutari were elected
members of the Audit Committee. According to the charter of the Board
of Directors, Kari Stadigh, chairman of the Board, and Matti
Kavetvuo, deputy chairman of the Board, will continue as members of
the Nomination and Compensation Committee. Ahti Vilppula resigned
from the Board of Directors on June 6, 2008.

The Annual General Meeting appointed Ernst&Young Oy as the company's
auditors.

As stated in the notice to the annual general meeting dated January
18, 2009, the Board of Directors proposes that the number of board
members would be eight and that Ms Catharina Stackelberg-Hammarén,
CEO, and Mr Seppo Paatelainen, be elected new members in addition to
the present members of the Board.

Mr Mikko Korttila, General Counsel of Alma Media Corporation, was
appointed member of the Group Executive Team from June 1, 2008.

Mr Tuomas Itkonen started as Chief Financial Officer of Alma Media
Corporation and a member of the Group Executive Team on October 1,
2008.

RISKS AND RISK MANAGEMENT

The purpose of Alma Media's risk management activities is to
continuously evaluate and manage all opportunities, threats and risks
in conjunction with the company's operations to enable the company to
reach its set objectives and to secure business continuity.

The risk management process identifies the risks, develops
appropriate risk management methods and regularly reports on risk
issues to the risk management organisation. Risk management is part
of Alma Media's internal control function and thereby part of good
corporate governance. Written limits and processing methods are set
for quantitative and qualitative risks by the corporate risk
management system.

The most important strategic risks for Alma Media are a significant
drop in the readership of its newspapers and a decline in media
sales. Fluctuating economic cycles are reflected on the development
of media sales, which accounts for approximately half of the Group's
net sales. Developing businesses outside Finland, such as in the
Baltic countries and other East European countries, include
country-specific risks related to the development of the market and
economic growth.

In the long term, the media business will undergo changes along with
the shift in media consumption and technological developments. Alma
Media's strategic objective is to meet this challenge through renewal
and the development of new business operations, particularly in
online media.

The most important operational risks are disturbances in information
technology systems and telecommunication, and an interruption of
printing operations.

PERSONNEL

During 2008, the average number of Alma Media employees, calculated
as full-time employees (excluding distributors), was 1,981 (1,971).
The average number of distribution staff totalled 968 (962). During
the year, the number of personnel grew proportionately most at
Marketplaces.

THE ALMA MEDIA SHARE

During January-December 2008, a total of 65.8 million Alma Media
shares were traded on the NASDAQ OMX Helsinki Stock Exchange,
representing 88.2% of the total number of shares. The closing price
for the share on December 31, 2008 was EUR 4.95. During the year the
lowest price paid for the share was EUR 4.38 and the highest EUR
11.70. The company's market capitalization at the end of December was
MEUR 369.3.

In March 2008 Alma Media paid a dividend of EUR 0.90 a share, in
total MEUR 67.2.

The company does not own any of its own shares and does not have a
current authorisation to purchase its own shares on the market.

Option rights

The Annual General Meeting on March 8, 2006, disapplying the
pre-emptive subscription right of the shareholders, approved a
three-stage option programme (option rights 2006A, 2006B and 2006C)
as an incentive and commitment system for the managements of Alma
Media Corporation and its subsidiaries. Altogether 1,920,000 stock
options may be granted in three lots of 640,000 each, and these may
be exercised to subscribe for a maximum of 1,920,000 Alma Media
shares.

So far 515,000 of the 2006A options have been issued to corporate
management. Altogether 75,000 of the 2006A options have been returned
to the company owing to the termination of employment contracts.
After the returned options, corporate management possesses a total of
440,000 2006A options. In 2007 and 2008, the Alma Media's Board of
Directors decided to annul the 200,000 2006A option rights in the
company's possession. The options in the 2006A programme are traded
in NASDAQ OMX Helsinki Stock Exchange since April 10, 2008.

The Board of Directors of Alma Media Corporation decided in 2007 to
issue 515,000 options under the 2006B programme to corporate
management. A total of 40,000 2006B options have been returned to the
company and are now in possession of the company. The corporate
management possesses 475,000 B options. In 2008, the Board decided to
annul 125,000 2006B options.

The Board of Directors of Alma Media Corporation decided in 2008 to
issue 520,000 options under the 2006C programme to corporate
management. A total of 40,000 2006C options have been returned to the
company and are now in possession of the company. The corporate
management possesses 480,000 2006C options.

If all the subscription rights are exercised, this programme will
dilute the holdings of the earlier shareholders by 2.1%.

The share subscription periods and prices under the scheme are:
2006A: April 1, 2008-April 30, 2010, average trade-weighted price
April 1-May 31, 2006
2006B: April 1, 2009-April 30, 2011, average trade-weighted price
April 1-May 31, 2007
2006C: April 1, 2010-April 30, 2012, average trade-weighted price
April 1-May 31, 2008

The subscription price of shares that may be subscribed under these
stock option rights will be reduced by the amount of dividends and
capital repayments decided after the start of the period determining
the subscription price and before the subscription of shares, on the
settlement date for each dividend payment or capital repayment. The
share subscription price under the 2006A option was EUR 5.58 per
share, the subscription price under the 2006B option was EUR 8.95 and
the subscription price under the 2006C option was EUR 9.06
correspondingly.

The Board of Directors has no other current authorisations to raise
convertible loans and/or to raise the share capital through a new
issue.

Market liquidity guarantee

Alma Media Corporation and eQ Pankki Oy have made a liquidity
providing contract under which eQ Pankki guarantees bid and ask
prices for the shares with a maximum spread of 3% during 85% of the
exchange's trading hours. The contract applies to a minimum of 2,000
shares.

Flagging notices

During 2008 the company received the following notices concerning
changes in shareholdings under chapter 2, section 9 of the Securities
Market Act:

June 23, 2008: The holding of Danske Bank A/S Helsinki Branch in Alma
Media voting rights and share capital has reached 16%. Additionally,
Danske Bank A/S Helsinki Branch announces that it has made forward
contracts maturing in March 2009. Provided that these forward
contracts materialise, the ownership of Danske Bank A/S Helsinki
Branch will fall below 15%.

June 10, 2008: Contrary to its earlier notification, the holding of
Danske Bank A/S Helsinki Branch in Alma Media Corporation has not
decreased below 1/20 but will reach 1/10 on June 20, 2008.
Additionally, Danske Bank A/S Helsinki Branch has made forward
contracts maturing in June 2008 and March 2009. Provided that these
forward contracts materialise, the ownership of Danske Bank A/S
Helsinki Branch in Alma Media Corporation will be at least 1/10.

June 6, 2008: Oy Herttaässä Ab, a company controlled by Kai Mäkelä,
has acquired 50,000 forward contracts related to Alma Media's shares
from Helsingin Mekaanikontalo Oy.

March 26, 2008: Helsingin Mekaanikontalo Oy announced it has received
a one-sided agreement whereby Kai Mäkelä or issued purchases
5,000,000 forward contracts related to Alma Media's shares from
Helsingin Mekaanikontalo Oy. If the agreement materialises, Helsingin
Mekaanikontalo Oy's (potential) shareholding in Alma Media would fall
below 1/20.

March 14, 2008: Helsingin Mekaanikontalo Oy announced it had sold
forward contracts related to Alma Media's shares, and the company
holds 50,000 forward contracts that mature in March 2008. If these
forward contracts materialise, the shareholding of Helsingin
Mekaanikontalo Oy in Alma Media would fall to 6.70%.

March 14, 2008: Nordea Group's ownership in Alma Media Corporation
fell to 2.17% as a result of share transactions.

March 14, 2008: Ilkka Yhtymä Oyj announced that its holding in Alma
Media Corporation has exceeded 1/10.

March 3, 2008: The total holding of Nordea Bank Suomi Oyj and the
Nordea Group in Alma Media has fallen under 1/10 as a result of share
transactions.

February 29, 2008: Helsingin Mekaanikontalo Oy informed that the
forward contracts held by it have been extended, and at the time of
flagging, the company held 95,565 forward contracts. If these forward
contracts materialise, Helsingin Mekaanikontalo Oy would hold 12.81%
of Alma Media shares. If the forward contracts materialise, Procomex
SA, Helsingin Mekaanikontalo Oy and Ahti Vilppula will together hold
12.84% of Alma Media shares.

February 28, 2008: Danske Bank A/S Helsinki Branch announced that its
holding in Alma Media has reached 1/20 (6.41%) due to share
transactions.

February 18, 2008: Nordea Bank AB (publ) announced that its holding
in Alma Media has not changed according to the announcement on
January 21, 2008. According to the announcement, the total holding of
Nordea Group has fallen below 3/20 (13.35%).

January 21, 2008: Oy Herttaässä Ab announced that its holding in Alma
Media has risen above 1/5 (20.68%) following forward contracts.

January 21, 2008: Nordea Bank AB (publ) announced that its ownership
in Alma Media has not changed according to the announcement on
December 28, 2007. According to the announcement, Nordea Group's
ownership exceeds 3/20 17.50%).

January 2, 2008: Nordea Bank AB (publ) announced that its ownership
in Alma Media has not changed according to the announcement on
October 1, 2007. According to the announcement, the holding of Nordea
Group in Alma Media Corporation exceeds 3/20 (16.84%)

ENVIRONMENTAL IMPACTS

The most significant environmental impacts from Alma Media's business
operations consist of paper and energy consumption and traffic
emissions. The company mainly uses newsprint in its newspaper
products; the consumption of this was about 36,000 tonnes in 2008.
The company used 18,838 MWh of electricity in 2008. The carbon
dioxide emissions from printing and distribution arise mainly from
traffic.

DIVIDEND PROPOSAL

Alma Media Corporation's Board of Directors will propose to the
Annual General Meeting on March 11, 2009 that a dividend of EUR 0.30
(0.90) per share be paid for the 2008 financial year. Dividends are
paid to shareholders who are entered in Alma Media Corporation's
shareholder register maintained by the Finnish Central Securities
Depository no later than the record date, March 16, 2009. The payment
date is March 25, 2008. On December 31, 2008, the Group's parent
company had distributable funds of altogether EUR 50,107,510. In
addition, the Board of Directors proposes that, in accordance with
Chapter 13, Section 6, Paragraph 2 of the Finnish Companies Act, the
Annual General Meeting authorise the Board to decide upon the
distribution of additional dividend on the following conditions:
- according to the authorisation, the Board may decide upon
distributing additional dividend in a manner that limits the amount
of additional dividend distributed on the basis of the authorisation
to a maximum of EUR 0.20 per share
- the additional dividend may be distributed in one lot or in several
proportions
- the total dividend for the 2008 financial year based on the
authorisation may be no more than EUR 0.50 per share
- it is proposed that the authorisation include a right to the Board
of Directors to decide upon all other conditions pertaining to the
distribution of the dividend
- it is proposed that the authorisation be valid until the next
ordinary annual general meeting of shareholders.

SUMMARY OF FINANCIAL STATEMENTS AND NOTES

2008 2007 2008 2007
INCOME STATEMENT, MEUR 10-12 10-12 1-12 1-12
NET SALES 86.6 85.5 341.2 328.9
Other operating income 0.9 9.1 1.7 13.0
Materials and services -25.5 -25.7 -102.0 -99.1
Costs arising from employment benefits -32.0 -30.0 -119.0 -111.7
Depreciation and writedowns -2.4 -2.3 -8.8 -9.8
Operating expenses -18.2 -15.9 -64.9 -56.8
OPERATING PROFIT 9.5 20.6 48.3 64.4
Financial income 0.2 0.3 1.2 1.2
Financial expenses -0.6 -0.1 -1.6 -1.1
Share of associated companies' results 2.6 1.4 4.5 3.5
PROFIT BEFORE TAX 11.7 22.1 52.4 68.0
Income tax -2.8 -5.5 -13.4 -16.8
PROFIT FOR THE PERIOD 8.9 16.6 39.0 51.2

Distribution:
To the parent company shareholders 8.9 16.5 38.4 50.5
Minority interest 0.0 0.1 0.6 0.6

Earnings/share, EUR 0.12 0.22 0.51 0.68
Earnings/share (diluted), EUR 0.12 0.22 0.51 0.68

BALANCE SHEET, MEUR 31.12.2008 31.12.2007
ASSETS
NON-CURRENT ASSETS
Goodwill 33.0 29.7
Intangible assets 12.3 10.2
Tangible assets 35.2 38.4
Investments in associated companies 31.6 34.1
Other long-term investments 4.2 4.0
Deferred tax assets 1.3 1.0
CURRENT ASSETS
Inventories 1.5 1.4
Tax receivables 4.0 0.0
Accounts receivable and other receivables 27.5 29.9
Other short-term investments 2.9 3.0
Cash and cash equivalents 13.3 24.8
ASSETS AVAILABLE FOR SALE 0.0 4.7
TOTAL ASSETS 166.9 181.3

BALANCE SHEET, MEUR 31.12.2008 31.12.2007
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital 44.8 44.8
Share premium fund 2.8 2.8
Cumulative translation adjustment -0.8 0.0
Retained earnings 41.1 70.0
Parent company shareholders' equity 87.9 117.7
Minority interest 0.6 0.6
TOTAL SHAREHOLDERS' EQUITY 88.5 118.3
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 3.9 4.6
Deferred tax liabilities 2.5 1.8
Pension obligations 3.7 3.7
Provisions 0.1 0.1
Other long-term liabilities 0.5 0.9
Current liabilities
Interest-bearing liabilities 15.2 2.2
Advances received 12.3 12.0
Tax liabilities 1.3 1.1
Provisions 1.0 0.3
Accounts payable and other liabilities 37.9 36.4
TOTAL LIABILITIES 78.4 63.0
TOTAL EQUITY AND LIABILITIES 166.9 181.3

RECONCILIATION OF SHAREHOLDERS' EQUITY 1 JANUARY - 31 DECEMBER 2008

Share Translation Parent
Share premium difference Retained company. Minority Equity.
MEUR capital fund earnings total interest total
Equity, 1 44.8 2.8 0.0 70.0 117.7 0.6 118.3
January 2008

-0.8
Translation
differences -0.8 -0.8
Share of
items
recognized
directly in
associated
company's
equity -0.9 -0.9 -0.9
Income
recognized -0.8
directly in
equity -0.9 -1.7 0.0 -1.7
Profit for
the period 38.4 38.4 0.6 39.0
Net income
for the -0.8
period 37.4 36.6 0.6 37.2

Share-based
payments 0.8 0.8 0.8
Dividend
paid by
parent
company -67.2 -67.2 -67.2
Dividends
paid by -0.6 -0.6
subsidiaries
Equity, 31 -0.8
December 44.8 2.8 41.1 87.9 0.6 88.5
2008

RECONCILIATION OF SHAREHOLDERS' EQUITY 1 JANUARY - 31 DECEMBER 2007

Share Translation Parent
Share premium difference Retained company. Minority Equity.
MEUR capital fund earnings total interest total
Equity, 1 0.1
January 2007 44.8 2.8 67.2 114.9 0.4 115.3 -0.1
Translation
differences -0.1 -0.1
Share of
items
recognized
directly in
associated
company's
equity 0.2 0.2 0.2
Income
recognized -0.1
directly in
equity 0.2 0.1 0.0 0.1
Profit for
the period 50.5 50.5 0.6 51.2
Net income
for the -0.1
period 50.7 50.6 0.6 51.3

Share-based
payments 0.6 0.6 0.6
Dividend
paid by
parent
company -48.5 -48.5 -48.5
Dividends
paid by -0.3 -0.3
subsidiaries
Equity, 31 0.0
December 44.8 2.8 70.0 117.7 0.6 118.3
2007

2008 2007 2008 2007
CASH FLOW STATEMENT, MEUR 10-12 10-12 1-12 1-12
Cash flow from operating activities
Profit for the period 8.9 16.6 39.0 51.2
Adjustments 3.1 -3.7 17.5 8.8
Change in working capital 1.0 -2.5 4.0 3.4
Dividend income received 0.5 0.0 4.5 3.2
Interest income received 0.2 0.3 0.9 1.1
Interest expenses paid -0.6 -0.1 -1.6 -1.1
Taxes paid -4.4 -3.5 -17.5 -14.1
Net cash provided by operating activities 8.6 7.1 46.9 52.5
Cash flow from investing activities
Investments in tangible and intangible
assets -0.7 -1.8 -4.2 -5.6
Proceeds from disposal of tangible and
intangible assets 0.0 0.0 1.0 1.5
Other investments -0.3 -1.0 -1.2 -1.0
Proceeds from disposal of other investments 0.7 0.2 0.8 3.4
Subsidiary shares purchased -0.1 0.0 -4.0 -0.3
Associated company shares purchased 0.0 0.0 0.0 -1.5
Net cash used in investing activities 6.5 0.0 6.5 0.0
Cash flow before financing activities 6.2 -2.5 -1.0 -3.5
Cash flow from financing activities 14.7 4.6 45.8 49.1
Long-term loan repayments
Short-term loans raised 0.0 0.0 35.0 2.0
Short-term loans repaid -6.6 -0.6 -24.3 -5.2
Change in interest-bearing receivables -0.2 0.1 0.0 -0.5
Dividends paid and capital repayment 0.0 0.0 -67.8 -48.8
-6.8 -0.5 -57.1 -52.5

Change in cash funds (increase + / decrease
-) 7.9 4.0 -11.2 -3.4
Cash and cash equivalents at start of period 5.6 20.8 24.8 28.2
Impact of change in foreign exchange rates -0.2 0.0 -0.2 0.0
Cash and cash equivalents at end of period 13.3 24.8 13.3 24.8

BUSINESS ACQUISITIONS JANUARY-DECEMBER 2008

Book value before Fair values used in
consolidation consolidation
Intangible assets 0.0 2.1
Receivables 0.2 0.2
Cash and cash equivalents 0.1 0.1
Assets total 0.3 2.4

Deferred tax liabilities 0.6
Current liabilities 0.1 0.1
Total liabilities 0.1 0.6

Net assets 0.2 1.8

Goodwill arising in
acquisitions 4.0
Acquisitions cost 5.8

Cash and cash equivalents of
acquired operations 0.1
Impact on cash flow 5.7

The current values recorded under intangible assets in consolidation
related mainly to brands and customer agreements. Goodwill on
acquisitions, totalling MEUR 4.0, was affected by the expectable
synergy benefits pertaining to the acquired businesses. The operating
profit of the business operations acquired since the acquisition
dates has been MEUR 0.6 in total. The consolidated net sales would
have been approximately MEUR 342.6 and operating profit MEUR 48.8 if
the acquisitions had been made in the beginning of 2008.

The determination of the current values of customer agreements is
based on the expected duration of the customer relationships and the
discounted net cash flow produced by existing customers. The current
value of the acquired brands is determined based on estimated
discounted royalty payments.

INFORMATION BY SEGMENT

Alma Media's reporting segments in the financial statements are
Newspapers, Kauppalehti group and Marketplaces. Other Operations
comprises the Corporation's parent company and the operations of the
Corporation's financial management service centre.

The descriptive section of this bulletin presents the net sales and
operating profits of the segments and the allocation of the
associated companies' results to the reporting segments. Financial
items and income taxes are handled as not allocated to the segments.
The following table presents the assets and liabilities of the
segments as well as the non-allocated asset and liability items.

ASSETS BY SEGMENT, MEUR 31.12.2008 31.12.2007
Newspapers 67.5 64.7
Kauppalehti group 52.3 56.5
Marketplaces 15.2 15.4
Other operations and eliminations 10.5 19.0
Non-allocated assets 21.4 25.7
Total 166.9 181.3

LIABILITIES BY SEGMENT, MEUR 31.12.2008 31.12.2007
Newspapers 32.7 31.4
Kauppalehti group 11.8 12.6
Marketplaces 4.2 3.9
Other operations and eliminations 6.8 5.5
Non-allocated liabilities 22.9 9.7
Total 78.4 63.0

2008 2007 2008 2007
GROUP INVESTMENTS, MEUR 10-12 10-12 1-12 1-12
Gross capital expenditure 2.9 3.8 14.5 12.1

PROVISIONS

The Group's provisions at the end of 2008 totalled MEUR 1.1. The
amount of provisions has increased by MEUR 0.7 compared with the
situation on December 31, 2007. The increase mainly comprises
restructuring provisions. Decreases in the provisions during the
financial year are the result of actual costs.

COMMITMENTS AND CONTINGENCIES, MEUR 31.12.2008 31.12.2007
Collateral on own behalf
Chattel mortgages 0.0 0.0
Collateral for others
Guarantees 0.0 0.0
Other commitments
Commitments based on agreements 0.1 0.1

Minimum rents payable based on other lease
agreements:
Within one year 7.9 7.5
Within 1-5 years 19.1 18.1
After 5 years 27.9 26.5
Total 54.9 52.1

The Group also has purchase agreements based on
IFRIC 4 which include a lease component per IAS
17. Minimum payments based on these agreements: 3.1 4.6

GROUP DERIVATIVE CONTRACTS, MEUR 31.12.2008 31.12.2007
Commodity derivative contracts, electricity
derivatives
Fair value * -0.1 0.1
Nominal value 0.7 0.4

* The fair value represents the return that would have arisen if the
derivative positions had been cleared on the balance sheet date.

CONTINGENT LIABILITIES

Previously, the Group had contingent liabilities totalling MEUR 7.8.
The tax authorities issued a claim to correct the company's income
tax for 2003. The tax authorities considered that the loss arising
from Alma Media's disposal of the shares of its associated company
Talentum to Kauppalehti Oy at the market price should not have been
tax-deductible. At the end of 2006 (December 20, 2006) the company
was informed of a ruling by the Adjustments Board of the Corporate
Taxation Centre to the effect that the Adjustments Board rejected the
claim by the tax authorities. The tax authorities appealed the
Adjustments Board's ruling to the Helsinki Administrative Court,
which on December 4, 2008 dismissed the appeal. Tax authorities have
not appealed the Helsinki Administrative Court's ruling to the
Supreme Administrative Court.

RELATED PARTY ACTIVITIES

Alma Media Group's related parties are its associated companies and
the companies they own. The following table summarises the operations
undertaken between Alma Media and its associated companies and the
status regarding their receivables and liabilities:

RELATED PARTY ACTIVITIES WITH 2008 2007 2008 2007
ASSOCIATED COMPANIES, MEUR 10-12 10-12 1-12 1-12

Sales of goods and services 0.0 0.1 0.2 0.2
Purchases of goods and services 1.2 1.4 4.5 5.9
Accounts receivable. loan and other
receivables at the balance sheet
date 0.0 4.7
Accounts payable at the balance
sheet date 0.1 0.1

Related parties also include the company's senior management (Board
of Directors, managing directors and the Group Executive Team). The
section Alma Media Share/Option Rights of this financial statements
bulletin presents information on changes to the current option scheme
intended to motivate and secure the long-term commitment of the
Group's senior management.

MAIN ACCOUNTING PRINCIPLES (IFRS)

This bulletin has been prepared in accordance with IFRS standards.

The bulletin applies the same accounting principles and calculation
methods as in the previous annual accounts dated December 31, 2007.
However, the financial statements bulletin does not contain all the
information or notes to the accounts included in the annual report.
This interim report should therefore be read in conjunction with the
company's annual report.

The key indicators are calculated using the same formulae as applied
in the previous annual financial statements.

In 2008 the Corporation adopted the following new accounting
standards:

IAS 39: Financial Instruments: Recognition and Measurement
(amendment)
IFRS 7: IFRS 7 Financial Instruments: Disclosures (amendment)
IFRIC 11: IFRS 2 Group and Treasury Share Transactions
IFRIC 14: The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction

The aforementioned new standards and interpretations have only a very
minor effect on the Corporation's income statement and balance sheet.
Their application mainly affects the notes to the accounts.

New accounting standards and interpretations to be adopted from the
beginning of 2009 are:

IFRS 8: Operating Segments
IAS 23: Borrowing Costs, amendment
IAS 1: Presentation of Financial Statements, amendment
IFRS 2: Share-based Payment
IAS 1: Presentation of Financial Statements and IAS 32 Financial
Instruments: Presentation
IAS 39: Financial Instruments: Recognition and Measurement
IFRIC 13: Customer Loyalty Programmes

The European Union has not yet approved the adoption of the amended
standards IAS 39 and IAS 1. EU approval is required for the adoption
of the amended standards within the Corporation.

New accounting standards to be adopted from the beginning of 2010
are:

IFRS 3: Business Combinations, amendment
IAS 27: Consolidated and Separate Financial Statements

The amendments to the standards mainly affect items such as the
handling of minority share, goodwill and acquisition costs in
relation with future acquisitions. The amendments have no effect on
acquisitions already made.

The amended standards have not yet been approved for application
within the European Union. An approval is required for the adoption
of the standards within the Corporation.

The Group's long-term receivable from the associated company AP-Paino
Oy of the comparison period is shown in the balance sheet under
assets available for sale. Alma Media has relinquished its entire
holding in the company in December 2008.

The figures in this bulletin are unaudited.

SEASONALITY

The Group recognises its circulation revenues as paid. For this
reason circulation revenues accrue in the income statement fairly
evenly during the four quarters of the year. The bulk of circulation
invoicing takes place at the beginning of the year and therefore cash
flow from operating activities is strongest early in the year. This
also affects the company's balance sheet position in different
quarters.

GENERAL STATEMENT

This bulletin contains certain statements that are estimates based on
the management's best knowledge at the time they were made. For this
reason they contain risks and uncertainty. The estimates may change
in the event of significant changes in the general economic
conditions.

ALMA MEDIA CORPORATION
Board of Directors

Attachments:

Alma Media Financial Statement Bulletin 2008.pdf