Tieto Oyj - Company Announcement

Tieto and Finnish ICT Agency Haltik terminate agreement on inter-government IT system project Vitja

Tieto Corporation   STOCK EXCHANGE RELEASE   6 June 2014, 10.20 am EET

Following negotiations, Tieto, the Finnish National Police Board and the
Finnish ICT Agency Haltik have together made the decision to terminate the
agreement on inter-government IT system project Vitja. 

“We're pleased to note that the project could be reorganized in a positive
spirit. The functionality requirements were growing during this fixed-priced
project and as a result, the need for tailoring increased substantially. The
decision now made was the best solution for us as well. Experts from Tieto will
continue to work on the Vitja project. We hope that they can carry on with
their work in peace to ensure the successful completion of the project,” says
Satu Kiiskinen, Executive Vice President. 

The parties have mutually agreed that Tieto pays a one-time fee of EUR 7.5
million to the Finnish National Police Board. In addition to reservations
reported earlier, the company will book a loss of EUR 3 million in the second
quarter. Cash flow effect of EUR 7.5 million will materialize in the third
quarter. The agreement will not affect the company's full-year outlook for
2014. 


For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen
(at) tieto.com 




TIETO CORPORATION


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Tieto is the largest Nordic IT services company providing full life-cycle
services for both the private and public sectors and product development
services in the field of communications and embedded technologies. The company
has global presence through its product development business and global
delivery centres. Tieto is committed to developing enterprises and society
through IT by realizing new opportunities in customers' business
transformation. At Tieto, we believe in professional development and results. 



Founded 1968, headquartered in Helsinki, Finland and with approximately 14 000
experts, the company operates in over 20 countries with net sales of
approximately EUR 1.6 billion. Tieto's shares are listed on NASDAQ OMX in
Helsinki and Stockholm. Please visit www.tieto.com for more information.