Tectia Oyj - Company Announcement

TECTIA CORPORATION EXPECTS ITS NET RESULT FOR THE FULL YEAR 2011 TO BE NEGATIVE

Helsinki, Finland, 2011-07-19 08:00 CEST (GLOBE NEWSWIRE) -- TECTIA CORPORATION
    COMPANY ANNOUNCEMENT    JULY 19, 2011 AT 9:00 AM 

TECTIA CORPORATION EXPECTS ITS NET RESULT FOR THE FULL YEAR 2011 TO BE NEGATIVE

For the fiscal year 2011, Tectia estimates its net sales to grow from 2010.
Full year 2011 net result is expected to be negative. 

Earlier for the fiscal year 2011, Tectia estimated its net sales to grow from
2010 and expected the net result to be positive. 

Consolidated net sales for January-June 2011 was EUR 4.2 million (EUR 4.5
million), decrease -7.9 percent year on year. Decrease in net sales is due to
company sales progressing transition into channel sales model. Americas market
area had EUR -0.6 million less revenue January-June 2011 compared to first half
2010. 

Consolidated operating loss January-June 2011 amounted to EUR -1.1 million (EUR
-0.1 million). Operating loss January-June 2011 included extra-ordinary items
EUR -0.4 million. Executed organizational restructuring is estimated to lower
significantly operational expenses during July-December 2011 compared to same
period previous year. 

Managed Security business sales channel building has advanced well in quality
but gross margin is lower in channel sales model. Managed Security business
sales volumes are still estimated to grow during second half 2011 compared to
January-June 2011. Mobile Authentication business technology alliances ramp up
has advanced as planned, and in order to grow sales volumes, the company has
decided during second half 2011 to invest more into Mobile Authentication
business channel sales. 

The company continues to evaluate its patent portfolio and strategic
alternatives to create shareholder value from it. The company hasn't received
any royalty or other revenue from these patents or patent applications so far,
and they have not been booked as assets in the balance sheet. The company has
decided to invest in patent portfolio management during second half 2011. 

Tectia Corporation will release its interim report for January 1-June 30, 2011
in July 20th. 

Helsinki, July 19, 2011

TECTIA CORPORATION

Board of Directors

Jari Mielonen
CEO

For more information:
Jari Mielonen, CEO. tel. +358 40 703 8383
Mikko Karvinen, CFO. tel. +358 50 326 4101

Distribution:
NASDAQ OMX Helsinki Ltd.
Major Media
www.tectia.com