Benefon Oyj - Company Announcement

BENEFON AMENDS TERMS OF TRANCHES 4 AND 5 AND RAISES 7TH TRANCHE OF COMMITTED FINANCING

Benefon announces that company's Board of Directors has decided to change the   
terms of loans granted by Luben Limited on November 22nd 2006 and December 15th 
2006, in connection with the forth and fifth tranches of the committed financing
by attaching to these loans a specific right to use the principal of the Loan to
set off the subscription price of the company shares according to Chapter 10,   
Clause 1 of the Finnish Companies Act. The total capital of the loans is EUR    
2,950,000 and they were granted by Luben Limited. Luben Limited has accepted the
change in the terms of the loans and effectively the conversion of the loans    
into a convertible bond loan. The reason for changing the terms is to enable the
company to continue its ongoing financing plan as required and at the same also 
to keep its capital structure in balance.                                       

The principal amount of convertible bond loan, which includes a specific right  
to use the loan to set off subscription price of shares as according to Chapter 
10, Clause 1 of the Finnish Companies Act, is EUR 2,950,000 and each EUR 0.14   
(approximately) of the loan principal entitles its holder to subscribe for one  
new investment series share by December 31st, 2012. The maximum number of shares
that can be subscribed for by virtue of the loan is 21,071,429. Of the share    
subscription price 0.01 is booked to share capital and the remainder in invested
unrestricted equity fund. As a result of convertible bond loan the company's    
share capital may increase by a maximum of EUR 210,714.29.                      

Subscription period for the convertible bond loan begins on February 27th 2007  
and ends on March 6th 2007. The convertible bond loan offered for subscription  
can be used to subscribe for shares to the amount that represents a maximum     
7.95% of the company's registered shares. The new shares subscribed for are     
equivalent of their right with company's existing investment series shares and  
will be applied for listing as soon as the respective share subscriptions have  
been made and shares registered in trade register.                              

Benefon also announces that it has decided to call the seventh tranche of       
financing according to the extended Financing Agreement. The Board of Directors 
of the company decided to issue shares and convertible bond loan for a total    
maximum amount of EUR 1,400,000 to Villiers Securities Limited (“Directed       
Offering”). The maximum number of new investment series shares offered for      
subscription is 5,104,167 and subscription price is EUR 0.21 (approximately) per
share. The principal amount of convertible bond loan, which includes a specific 
right to use the loan to set off subscription price of shares as according to   
Chapter 10, Clause 1 of the Finnish Companies Act, is EUR 328.125,00 and each   
EUR 0.05 of the loan principal entitles its holder to subscribe for one new     
investment series share. The maximum number of shares that can be subscribed for
by virtue of the loan is 6,562,500.                                             

All of the 5,104,071 shares are offered for subscription by Villiers Securities 
Limited as well as the entire convertible bond loan of EUR 328,125.00. Of the   
share subscription price EUR 0.01 is booked to share capital and the remainder  
in invested unrestricted equity fund. As a result of share issue company's share
capital may increase by a maximum of EUR 51,041.67 and as a result of           
convertible bond loan by a maximum of EUR 65,625.00.                            

Subscription period for the directed offering begins on February 27, 2007 and   
ends on March 13, 2007. The shares offered for subscription in the directed     
offering represent at maximum 1.93 % and the convertible bond loan at maximum   
2.48 % of the company's registered shares. The new shares subscribed for are    
equivalent of their right with company's existing investment series shares and  
will be applied for listing as soon as the respective share subscriptions have  
been made and shares registered in trade register. Listing of the shares        
subscribed for in the directed offering of shares is estimated to take place    
approximately on March 27, 2007.                                                


February 27th 2007                                                              

BENEFON OYJ                                                                     

Tomi Raita                                                                      
CEO                                                                             


For more information, please contact:                                           
Tomi Raita, CEO, tel. +358-2-77400                                              
www.benefon.com                                                                 

Distribution:                                                                   
Helsinki Exchanges                                                              
Principal news media