Technopolis - Financial Statement Release

TECHNOPOLIS GROUP FINANCIAL STATEMENTS FOR 2007

Highlights of 2007 compared with the previous year:
- Net sales rose to EUR 56.9 million (EUR 44.8 million), an increase of 26.9 %
- EBITDA (earnings before interest, taxes, depreciation and amortization) rose
to EUR 28.6 million (EUR 22.7 million), an increase of 26.1 % 
- Operating profit was EUR 42.6 million (EUR 38.2 million), which includes EUR
14.6 million (EUR 16.1 million) from change in fair value of investment
properties 
- Earnings/share was EUR 0.58 (EUR 0.63).
- The Board proposes a dividend distribution of EUR 0.15/share (EUR 0.14/share)

Overview

In terms of the number of customer companies, Technopolis Plc is one of
Europe's largest technology centers. The Technopolis Group is Finland's largest
specialized provider of operating environments for high tech companies, and it
offers a comprehensive service package combining modern premises and business
and development services. Technopolis operates or is building operating
environments in Espoo, Helsinki, Jyväskylä, Lappeenranta, Oulu, Tampere and
Vantaa in Finland, and in St. Petersburg in Russia. Some 13,000 people employed
by about 1,000 companies and entities are currently working in the Technopolis
technology centers. 

In 2007, Technopolis continued to implement its growth strategy by acquiring
new properties and investing in its existing technology centers. The
acquisition of Kiinteistö Oy Innopoli II in August for EUR 54.2 million was an
important investment. The deal nearly doubled Technopolis's rentable floor area
in Otaniemi, Espoo. The fair value of the Group's investment property at the
end of 2007 was EUR 468.8 million (EUR 392.2 million). The fair value was
increased not only by investments and acquisitions, but also by lower net
return requirements and changes in leasing operations. 

During the year, the Group initiated several technology center projects in its
operating areas. An important step in expansion was taken in November when a
preliminary agreement was signed on the acquisition of Kuopion Teknologiakeskus
Teknia Oy. The deal is expected to be closed by February 2008 and its total
value is approximately EUR 67.3 million. 

The demand for high-tech operating environments in Technopolis's operating
areas developed favorably and the Group's financial occupancy ratio increased
in 2007. At the end of the year under review the financial occupancy ratio was
96.8 % (94.4 %). In the Group's operating areas in the capital city region,
Jyväskylä and Oulu, the demand for high quality operating premises continued at
a good level and the financial occupancy ratios increased. In Tampere, the
demand for modern operating premises and the financial occupancy ratio were
both at a good level. In Lappeenranta, the demand for the Group's premises
remained at a satisfactory level, with the exception of the new premises in the
city center, which enjoyed good demand. 

Business

The Group's net sales for the review period were EUR 56.9 million (EUR 44.8
million in 2006), representing growth of 26.9 %. EBITDA (earnings before
interest, taxes, depreciation and amortization) for the year under review was
EUR 28.6 million (EUR 22.7 million), an increase of 26.1 %. Operating profit
for the year was EUR 42.6 million (EUR 38.2 million). Profit before taxes was
EUR 32.9 million (EUR 33.0 million). The Group's net financial expenses totaled
EUR 9.7 million (EUR 5.2 million). Earnings per share were EUR 0.58 (EUR 0.63).
Technopolis's Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.15 per share be paid for the 2007 financial year. Under the
proposal, dividends would total EUR 6.6 million (EUR 5.7 million), representing
an increase of 16.6 %. 

The balance sheet total was EUR 534.2 million (EUR 431.4 million), an increase
of 23.8 %. The Group's equity to assets ratio at the end of the period was 39 %
(38.5 %). 

The fair value of the Group's investment property at the end of 2007 was EUR
468.8 million (EUR 392.2 million). The change in the fair value of investment
property was due to the effect of the fair value of properties bought and
completed, a reduction in the return requirements of the market, changes in
future returns and modernization costs, the revaluation of properties owned
throughout the year under review, and increases in the acquisition cost
recognized in separate companies during the year. The effect on profit of the
change in the fair value of investment property was EUR 14.6 million (EUR 16.1
million). 

The Group's total rentable area was 366,045 floor square meters at the end of
2007 (348,415 floor square meters). The Group's average financial occupancy
ratio at the end of the year was 96.8 % (94.4 %). The financial occupancy ratio
describes the rental revenue from the properties as a percentage of the
combined total of the rent for the rented space and the estimated market rent
for the vacant space. The Group's leases at the end of the year totaled EUR
111.0 million (EUR 121.1 million). 

Group structure

The Technopolis Group includes the parent company, Technopolis Plc, which has
operations in Espoo, Jyväskylä, Lappeenranta, Oulu, Tampere and Vantaa, and its
subsidiaries Innopoli Oy (100 % owned) and Kiinteistö Oy Innopoli II (100 %),
both in Espoo, and other subsidiaries. 

The Group has carried out the merger of the following Group subsidiaries with
their respective parent companies: Technopolis JSP Ltd, Technopolis JSPF Oy,
Technopolis Kareltek Ltd, Technopolis TSP Oy, Kiinteistö Oy Hermia Kymppi,
Kiinteistö- ja Sijoitusyhtiö Joreco Oy, Kiinteistöosakeyhtiö Teknologiantie 11,
Kiinteistö Oy Oulun Teknologiatalot, Kiinteistö Oy Oulun Moderava, Kiinteistö
Oy Oulun Mediaani and Medipolis Oy. The purpose of the merger is to increase
the cost efficiency of the Group's operations and streamline Group
administration. 

The parent company has a minority holding in the affiliated companies
Kiinteistö Oy Hermia (49.3 %), Technocenter Kempele Oy (48.5 %), Iin Micropolis
Oy (25.7 %), Jyväskylä Innovation Ltd (24 %) and Lappeenranta Innovation Ltd
(20 %). Technopolis Plc has a 13 % holding in Oulu Innovation Ltd. 

The Group also includes Technopolis Ventures Oy in Espoo (fully owned by
Innopoli Oy). Technopolis Ventures Oy has the subsidiaries Technopolis Ventures
Kareltek Ltd in Lappeenranta (100 % owned), Technopolis Ventures JSP Ltd in
Jyväskylä (100 %), Technopolis Ventures Oulutech Oy in Oulu (70 %) and
Technopolis Ventures Professia Oy in Tampere (50.1 %). Technopolis Ventures Oy
also has a 25 % holding in Otaniemi Development Ltd. 

Technopolis has established two Russian companies in St. Petersburg,
Technopolis Neudorf LLC and Technopolis St. Petersburg LLC, both fully owned by
Technopolis. 
Principal investments and development projects

In February, Technopolis decided to commence the construction of the Hermia 12
property in Tampere. The project's cost estimate is EUR 9 million and the gross
area is 8,600 square meters, which includes a parking facility for 115
vehicles. 97 % of the facilities have so far been rented. The building's size
is 5,000 floor square meters and it is expected to reach completion before the
end of February 2008. 

In February, Technopolis reached a result in negotiations with the City of Oulu
and the Northern Ostrobothnia Hospital District concerning the purchase of a
total of 19,250 shares in Medipolis Oy. Following transactions with the said
parties and minority shareholders, Technopolis is the sole owner of Medipolis
Oy. The total acquisition price of the shares was EUR 3.7 million. 

In May, Technopolis launched the construction of the first stage of its
technology center in Ruoholahti, Helsinki. The size of the stage is 6,600 floor
square meters and the cost estimate is somewhat over EUR 20 million, which
includes the costs of parking spaces and site costs. 47 % of the facilities
have so far been rented. The first stage is estimated to be completed in August
2008. 

In May, Technopolis launched the construction of the first stage of its
Lappeenranta City project. The stage measures 3,150 floor square meters and is
estimated to cost approximately EUR 6.5 million. 89 % of the facilities have so
far been rented. Planned completion is by the end of April 2008. 

In spring, Technopolis Plc commenced planning a new technology center in the
heart of Tampere, adjacent to the University of Tampere. In its meeting on June
4, 2007, the City Board of Tampere approved Technopolis's request to reserve a
plot of land containing the building rights to around 30,000 floor square
meters for Technopolis Plc, for the purpose of building a new technology
center. 

In June, Technopolis commenced the third and fourth expansion stages of the
Kontinkangas technology center in Oulu. The size of the third stage is 3,500
gross square meters and the investment totals approximately EUR 5 million. 84 %
of the third stage has so far been rented. Its estimated time of completion is
August 2008. The size of the fourth stage is 4,290 gross square meters and the
investment totals approximately EUR 7.5 million. Its estimated time of
completion is September 2008. Approximately 98 % of the fourth expansion stage
has been rented. 

On August 15, 2007, Technopolis Plc signed a preliminary agreement with the
City of Espoo, the Etera Mutual Pension Insurance Company, and Sitra (the
Finnish Innovation Fund) on the acquisition of the entire stock of Kiinteistö
Oy Innopoli II. The transaction price was EUR 54.2 million. Of the price, 19.4
% was paid in new shares of Technopolis Plc and the rest in cash. Kiinteistö Oy
Innopoli II comprises a building of 20,625 floor square meters and 1.9 hectares
of land owned by the company and located in the Otaniemi district of the City
of Espoo. The property was completed in 2002. 

Building of the fifth stage of the Helsinki-Vantaa technology center commenced
in September. The size of the building is 6,700 gross square meters and the
investment totals approximately EUR 15 million. The fifth stage is expected to
reach completion in late fall 2008. 

On November 5, 2007, Technopolis Plc signed a preliminary agreement with the
City of Kuopio on the acquisition of 99.8 % of Kuopion Teknologiakeskus Teknia
Oy's stock. The transaction price is EUR 18.1 million, based on the company's
net debt position on September 30, 2007. The net debt of Kuopion
Teknologiakeskus Teknia Oy totaled EUR 49.2 million on September 30, 2007. If
the net debt position changes prior to the execution of the transaction, the
transaction price will be adjusted accordingly. The transaction price will be
paid in cash. 

Closure of the transaction will require, for example, that the Kuopio City
Council approves the share transaction intended in the preliminary agreement,
that the City Board approves the final deed of sale, and that no significant
new information that would prevent the transaction from taking place is
revealed by the due diligence examinations ordered by Technopolis or otherwise.
The Kuopio City Council approved the share transaction intended in the
preliminary agreement at its meeting on November 19, 2007. 

Kuopion Teknologiakeskus Teknia Oy comprises three modern property companies,
the total rentable area of which adds up to 47,860 square meters. Teknia's
premises currently house 148 companies or other entities with a combined total
of approximately 2,500 employees. The net rental income of Teknia's premises as
at September 30, 2007 was 7.9 %. According to the information received, the
Teknia Group's net sales for 2007 are estimated at EUR 7.2 million and EBITDA
at EUR 3.4 million. According to the information received, the Group's net
sales for 2008 are estimated at EUR 7.4 million and EBITDA at EUR 4.4 million. 

The planning of the technology center in Jyväskylä's Korkeakoskenlahti district
took a major step forward in December when the architectural competition for
the center was resolved. The intention is to build a technology center of some
40,000 square meters, with work starting in 2009. 

In June, Technopolis signed an agreement with Stockmann plc to lease some 4,300
square meters of office space in the Nevsky Centre shopping center currently
under construction in St. Petersburg for the purpose of subletting it to its
customer companies. The Nevsky Centre is in St. Petersburg's main street,
Nevsky Prospekt. According to the information released by Stockmann in October,
the target is to open a department store and shopping center by the end of
2009. 

The area plan for the Pulkovo technology center in St. Petersburg is expected
to be completed within the first quarter of 2008. It is estimated that the
conditions for commencing work on the approximately 22,000-square-meter first
stage will be in place in the first half of 2008. 

Technopolis and the St. Petersburg company, Petersburg Technopark OJSC, signed
a co-operation agreement in December on a technology center to be built in the
city. The planned center would cooperate closely with St. Petersburg's
Bonch-Bruevich University, which specializes in telecommunications. 

Technopolis has commenced preliminary inquiries on launching technology center
operations in the Moscow area. A memorandum of understanding concerning the
collaboration was signed with the City of Moscow in October. 

Events after the financial year

To ensure the continuation of its solid development, Technopolis intends to
strengthen the Board and revise the operating organization and initiate a
related process of selecting a new President and CEO. 

The Chairman and Vice Chairman of Technopolis Plc's Board have, in accordance
with the Board's decisions and the company's corporate governance system, held
discussions with the company's largest shareholders on the new composition of
the company's Board and the related selection of a new President and CEO. The
intention is to propose the following changes to be decided on by the Annual
General Meeting of Technopolis, to take place on March 27, 2008. 

The five largest groups of the company's shareholders, two of which are foreign
and three domestic representing a total of 28.1 % of the company's stock, have
announced their support for the proposed changes. Once approved and carried
out, the changes will substantially bolster the company's expertise in its
Russian affairs and financing, while the company's considerable expertise with
respect to technology centers will increasingly boost its growth. 

The intention is to propose to the Annual General Meeting that Pertti
Huuskonen, current President and CEO of Technopolis, vacate his position to
become a full-time Chairman of the company's Board. This move would take place
early in the fall of 2008, when the new President and CEO would commence in the
company. To recruit a new President and CEO, a nomination committee will be
established, comprising Timo Parmasuo, current Chairman of the Board, Matti
Pennanen, Vice Chairman, and Pertti Huuskonen, President and CEO. 

At the Annual General Meeting, the intention is to propose as new Board members
Jussi Kuutsa, Development Director of the Stockmann Group's international
operations, and Timo Ritakallio, Deputy Chief Executive Officer, OKO Bank plc.
Additionally, the intention is to propose to the Annual General Meeting that
Timo Parmasuo (Board Chairman until the change), Matti Pennanen, Erkki
Veikkolainen and Juha Yli-Rajala be re-elected as Board members. 

The Board of Directors has decided to realign the company's operating
organization to comprise three profit centers: Capital Area, Other Finland and
Russia. Keith Silverang, Vice President, is the head of the Capital Area, while
Reijo Tauriainen, Vice President, heads Other Finland, and Peter Coachman,
General Director, is in charge of the Russian unit. In addition, the Group's
organization features matrix functions to manage corporate property
development, sales and marketing and the service concept. The Group's
Consulting unit and the business development company, Technopolis Ventures Oy,
will report to Keith Silverang. Jarkko Ojala will continue as the company's
CFO. The composition of the Group's Executive Board will remain unchanged. 

Technopolis acquired a plot of land some 3,950 square meters in size from the
City of Tampere, located at the corner of the Kalevantie and Kanslerinrinne
streets adjacent to the University of Tampere. The deed of sale on the plot was
signed on January 3, 2008 and the Tampere City Council approved it in its
meeting on January 23, 2008. The transaction price was EUR 480 per square meter
of building rights area, which amounts to approx. EUR 5.6 million. Technopolis
aims at commencing the technology center project in downtown Tampere during
2008. 

Events related to the Technopolis share

During the year, Technopolis implemented two share offerings for institutional
investors, with the purpose of financing planned investments, ensuring growth
and protecting the company's equity to assets ratio. In addition, a share
offering was carried out as a part of the transaction price for Kiinteistö Oy
Innopoli II. 

At its meeting on January 4, 2007, the Board of Directors resolved, in
accordance with the authorization granted by the Annual General Meeting of
March 24, 2006, to increase the company's share capital by a maximum of EUR
1,162,652.40, a total of 687,960 shares, through accepting the subscriptions of
institutional investors. The demand was about 3.5 times greater than the number
of shares offered. The subscription price was set at EUR 7.70 per share. The
increase in share capital was entered in the Trade Register on January 8, 2007,
and trading in the shares began on January 9, 2007. 

At its meeting on November 8, 2007, the Board of Directors resolved to increase
the company's share capital by a maximum of EUR 3,177,200.00, a total of
1,880,000 shares, through accepting the subscriptions of institutional
investors. This share offering was based on the authorization provided at the
company's Annual General Meeting on March 29, 2007. The demand was about 1.3
times greater than the number of shares offered. The subscription price was set
at EUR 6.00 per share. The increase in share capital was entered in the Trade
Register on November 13, 2007, and trading in the shares began on November 14,
2007. 

The Board of Directors of Technopolis decided on August 14, 2007, based on an
authorization by the Annual General Meeting of March 29, 2007, on a share
offering to the City of Espoo, the Etera Mutual Pension Insurance Company and
Sitra (Finnish Innovation Fund) of a total of 1,581,429 shares for payment of
the share consideration of Kiinteistö Oy Innopoli II. An increase in share
capital of EUR 2,672,615.01 was entered in the Trade Register on August 20,
2007, and trading in the new shares began on August 21, 2007. 

In December 2006, a total of 26,131 Technopolis shares were subscribed with
year 2001 options. An increase in share capital of EUR 44,161.39 was entered in
the Trade Register on February 13, 2007. Including earlier subscriptions, a
total of 98,399 Technopolis shares were subscribed by April 30, 2007 with year
2001 options. An increase in share capital of EUR 166,294.31 was entered in the
Trade Register on June 12, 2007. The subscription period for all year 2001
options expired on April 30, 2007. 

Following these increases, the Technopolis share capital is EUR 74,541,676.70
and there are 44,107,501 shares. 

Financing

The Group's net financial expenses totaled EUR 9.7 million (EUR 5.2 million).
The Group's balance sheet total was EUR 534.2 million (EUR 431.4 million), of
which liabilities accounted for EUR 327.0 million (EUR 266.1 million). The
Group's equity to assets ratio was 39 % (38.5 %). The Group's equity per share
was EUR 4.69 (EUR 4.03). 

The Group's interest-bearing liabilities at the end of the review period were
EUR 277.9 million (EUR 229.5 million). The average interest rate of
interest-bearing loans was 4.82 % on December 31, 2007 (3.99 %). 

Technopolis supplements its financing with a EUR 90 million domestic commercial
paper program which allows the company to issue commercial papers with a
maturity of less than a year. The commercial paper program was expanded from
EUR 60 million to EUR 90 million in the last quarter of 2007. Total commercial
paper issues were EUR 35.2 million on December 31, 2007. 

Organization and personnel

The Group Executive Board includes the President and CEO Pertti Huuskonen, the
directors Jukka Akselin, Satu Eskelinen, Martti Launonen, Seppo Selmgren, Keith
Silverang, Reijo Tauriainen and Markku Hokkanen, and the CFO Jarkko Ojala. 

The Group employed an average of 142 (113) people during the period. In
premises activities there were 49 (34) people, in business services 33 (28)
people and in development services 60 (51) people. 

Annual General Meeting

The Annual General Meeting of March 29, 2007, confirmed the consolidated and
parent company income statements and balance sheets for the year 2006, released
those responsible for accounts from further liability and decided on the
distribution of a dividend of EUR 0.14 per share for the year that ended on
December 31, 2006. 

The Board of Directors appointed by the Annual General Meeting comprises Timo
Parmasuo, chairman, and Matti Pennanen, vice chairman, and the members Pekka
Korhonen, Erkki Veikkolainen and Juha Yli-Rajala. Pertti Huuskonen is the
President and CEO of Technopolis. The Group's auditor is KPMG Oy Ab, Authorized
Public Accountants, and the principally responsible auditor is Tapio Raappana,
APA. 

The Annual General Meeting decided to amend the Group's articles of
association. The amendments are largely the result of the Companies Act that
came into force on September 1, 2006, and are mostly technical in nature. In
addition, the Annual General meeting decided to authorize the Board of
Directors to decide on acquiring Group shares, a share issue and granting
options and other special rights entitling to Group shares, granting options
for the year 2007 to Group key personnel and annulment of the 2005C options. 

Extraordinary General Meeting

An Extraordinary General Meeting of Technopolis Plc shareholders was held on
November 29, 2007, in Oulu. The Extraordinary General Meeting resolved to
authorize the Board of Directors to decide on a share issue and granting
options and other special rights giving entitlement to shares as referred to in
Chapter 10, section 1, of the Limited Liability Companies Act as follows. The
maximum number of shares to be issued pursuant to this authorization is
13,000,000 shares, corresponding to approximately 30.79 percent of the
company's total stock. 

The Board of Directors was authorized to decide on all terms of the share issue
and the granting of special rights giving entitlement to shares. The
authorization concerns both the issuance of new shares and conveyance of the
company's own shares. The share issue and the granting of special rights giving
entitlement to shares may be offered to certain parties. The authorization
shall not cancel the authorization given to the Board by the Annual General
Meeting on March 29, 2007 to decide on a share issue and on granting special
rights giving entitlement to shares. The authorization will expire on December
31, 2010, at the latest. 

Evaluation of operational risks and uncertainty factors

The most significant risks to Technopolis's business operations are mainly
financial risks and customer risks. 

Technopolis's main financial risk is the interest rate risk on the loan
portfolio. The objective of interest rate risk management is to lower or remove
the negative impact of market rate fluctuation on the Group's performance,
balance sheet and cash flow. The company's financing policy aims to diversify
the interest rate risk of loan contracts over various loan periods on the basis
of the market situation prevailing at any particular time and the interest rate
prognosis created in the company. If necessary, the company will employ forward
rate agreements, interest rate swaps and interest rate options. In order to
manage financial risk, Technopolis uses a wide range of financing companies and
maintains a high capital adequacy level. 

Technopolis only uses derivatives to reduce or remove financial risks in the
balance sheet. 

Because of the structure of the Technopolis loan portfolio at the end of the
review period, a one percentage point increase in money market rates would
increase interest rate costs by EUR 1.2 million per annum. 

Due to the related interest rate risk, Technopolis has followed a policy of
diversification. On December 31, 2007, 65.2 % of the company's loans were bound
to the 3-12 month Euribor rate. Of the loans, 34.8 % were fixed-interest loans
of 13 to 60 months. The average capital-weighted outstanding loan period was
11.1 years. Technopolis supplements its total financing with a EUR 90.0 million
domestic commercial paper program which allows the company to issue commercial
papers with a maturity of less than a year. Total commercial papers issues were
EUR 35.2 million on December 31, 2007. 

Changes in the exchange rates between the Russian ruble and euro may have an
effect on the company's financial situation and operations. Business
transactions denominated in rubles are recorded at the exchange rate of the
transaction date. Any translation differences are entered in the income
statement under other operating expenses or financial income and expenses
depending on the nature of the transaction. The purchase of land in St.
Petersburg was financed in local currency. Currency risks have been minimized
by applying a currency swap. 

Customer risk management aims to minimize the negative impact of any changes in
customers' financial situation on the business and the company's profit. In
customer risk management, emphasis is on familiarity with the customer's
business and active monitoring of customer information. As part of customer
risk management, Technopolis's leases include rent collateral arrangements.
Properties are insured with full value insurance. 

The Group's property portfolio is divided geographically between the Helsinki
capital area, Jyväskylä, Lappeenranta, Tampere and the Oulu region. No single
customer accounts for more than 11.1 % of the Group's net sales. The Group has
a total of about 1,000 customers, which operate in several different sectors. 

The company's lease agreements comprise two groups: fixed-term leases and
leases in force until further notice. The company's aim is to use both lease
types depending on the market situation, property, and the lessee customer's
industry. 

The value of the Group's lease portfolio was EUR 111.0 million on December 31,
2007. Of the leases, 15 % will expire in 2008, 25 % will expire in 2009-2011,
24 % in 2012-2014, 17 % in 2015-2017, and 19 % in 2018 or later. The portfolio
distribution describes the rent income based on the leases, which has been
allocated to the final dates of the leases and divided with the total value of
the lease portfolio. 

In new building projects, Technopolis focuses on quality determination and the
manageability of the property's entire lifecycle. In the design phase, all the
building's maintenance and repair requirements are taken into account, in the
aim of implementing environmentally friendly solutions in terms of energy
consumption, the adaptability of office facilities, and recycling
possibilities. In connection with property purchases, Technopolis carries out
the usual property and environmental assessments before committing to the
transaction. 

Changes in market return requirements may have substantial effect on profit
development. When return requirements increase, the fair value of properties
decreases and when they decrease, the fair value of properties increases. The
changes have either an increasing or decreasing effect on the Group operating
profit. 

Outlook for the future

Technopolis management estimates that demand for the company's high tech
operating environments will be satisfactory in 2008 and that the occupancy
ratio of its facilities and demand for its services will remain good.
Technopolis estimates that its net sales and EBITDA for 2008 will grow by 16-20
% on the previous year, assuming that the acquisition of Kuopion
Teknologiakeskus Teknia Oy will go through as planned by the end of February
2008. 

As part of its strategy for growth, Technopolis aims to operate in top high
technology cities in Finland, as well as in Russia and 1-2 other countries by
2011. The Group aims to increase its net sales by an average of 15 % annually.
It seeks to grow organically as well as through acquisitions. 

The Group's financial performance is dependent on trends in the general
operating environment, in customer business, in the financial markets and in
the return requirements for properties. Factors in these areas may affect the
Group's result through changes in occupancy ratios, the use of services,
financing costs, the fair values of properties and office rent levels. 

Oulu, January 31, 2008

TECHNOPOLIS PLC
Board of Directors


Pertti Huuskonen
President and CEO

Further information:
Pertti Huuskonen, tel. +358 400 680 816 or +358 8 551 3213

A PDF version of this financial statement release can be found at
www.technopolis.fi. Requests for a printed version can be made to Teija
Koskela, tel. +358 8 551 3242. 

Technopolis Plc has an information bulletin service, which can be subscribed to
on the Internet. Subscribers will receive the company's information bulletins
by email. 

The company's printed annual report in the Finnish language will be published
in week 11. 

Investment property is valued in accordance with the fair value model. The
internal and external construction period costs from investment properties are
included immediately in the acquisition cost in accordance with the IAS 16
standard. In accordance with the IAS 23 standard, borrowing costs for
construction periods have been entered under the acquisition cost of properties
under construction. 

The figures are audited.

INCOME STATEMENT
EUR MILLION                    10-12/   10-12/    1-12/    1-12/
                                 2007     2006     2007     2006

Net sales                       15.75    14.26    56.90    44.84
Other operating income 1)        1.33     1.69     5.24     3.86
Other operating expenses        -9.99    -9.46   -33.50   -26.00
Change in fair value of
investment properties            5.21     4.16    14.55    16.07
Depreciation according to plan  -0.14    -0.20    -0.62    -0.56
Operating profit                12.16    10.44    42.56    38.21
Financial income and expenses   -2.90    -1.48    -9.67    -5.17
Profit before taxes              9.26     8.97    32.89    33.05
Income taxes                    -2.48    -2.25    -8.81    -8.46
Net profit for the period        6.78     6.71    24.08    24.59

Distribution of profit for the period:
To parent company shareholders   6.77     6.36    24.04    23.74
To minority shareholders         0.01     0.35     0.04     0.85

BALANCE SHEET, ASSETS
EUR MILLION                         31.12.2007        31.12.2006

Non-current assets
Intangible assets                         2.49              2.63
Tangible assets                          26.90              2.44
Investment property                     468.76            392.16
Investments                              22.22             21.82
Deferred tax assets                       2.41              1.77
Total non-current assets                522.78            420.83
Current assets                            9.50             10.57
Non-current assets available for sale     1.87
Total assets                            534.16            431.39

BALANCE SHEET, SHAREHOLDERS' EQUITY AND LIABILITIES
EUR MILLION

Equity
Share capital                            74.54             67.32
Premium fund                             18.55             18.55
Other funds                              27.38              7.37
Other shareholders' equity                0.55              0.32
Retained earnings                        61.70             43.40
Net profit for the period                24.04             23.74
Parent company's shareholders' interests  206.77          160.70
Minority interests                        0.40              4.58
Total shareholders' equity              207.17            165.28

Liabilities
Long-term liabilities
Interest-bearing liabilities            227.95            183.16
Non-interest-bearing liabilities          1.42              1.51
Deferred tax liabilities                 35.08             22.68
Short-term liabilities
Interest-bearing liabilities             49.90             46.33
Non-interest-bearing liabilities         12.64             12.44
Total liabilities                       326.99            266.12
Total shareholders' equity and liabilities 534.16         431.39

CONSOLIDATED STATEMENT OF CASH FLOWS
EUR MILLION                              1-12/             1-12/
                                          2007              2006
Net cash provided by operating activities
Operating profit                         42.56             38.21
Revaluation of investment properties    -14.55            -16.07
Depreciation                              0.62              0.56
Other adjustments to operating profit,
non-cash transactions                     0.52              0.32
Increase / decrease in working capital    0.33              0.46
Interests received                        0.82              0.29
Interest paid and fees                  -11.15             -5.50
Income from other investments
of non-current assets                     0.02              0.01
Taxes paid                               -2.91             -1.92
Cash flows from operating activities     16.25             16.35

Net cash used in investing activities
Investments in other instruments         -1.65             -0.02
Investments in investment properties    -27.56            -40.66
Investments in tangible and
Intangible assets                        -0.38             -0.44
Repayments of loan receivables            0.02              0.04
Income from other investments of 
non-current assets                        0.34              0.15
Acquisition of subsidiaries             -48.93            -18.17
Net cash used in investing activities   -78.15            -59.10

Cash flows from financing activities
Increase in long-term loans              67.89             31.49
Decrease in long-term loans             -20.09            -12.39
Dividends paid                           -5.68             -4.66
Paid share issue                         16.79              1.12
Repayments of finance leasing receivables 0.81
Change in short-term loans                0.46             27.60
Net cash provided by financing activities 60.18            43.16

Net increase/decrease in cash assets     -1.73              0.40
Cash assets at beginning of period        2.80              2.40
Cash assets at end of period              1.08              2.80

ACCOUNT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR MILLION
                   Share   Premium Other Retained Minority Share-
                   capital fund   funds  earnings interest holders'        equity

Shareholders' equity
31.12.2005            60.59   12.73   0.02   48.07   3.39  124.81
Share capital increase 6.73                                  6.73
Directed share issue           5.85   7.32                  13.17
Dividend distribution                        -4.66          -4.66
Net profit for the period                    23.74   0.85   24.59
Other changes                 -0.03   0.03    0.31   0.33    0.64
Shareholders' equity
31.12.2006            67.32   18.55   7.37   67.46   4.58  165.28
Share capital increase 0.21                                  0.21
Directed share issue   7.01          20.08                  27.09
Dividend distribution                        -5.68          -5.68
Net profit for the period                    24.04   0.04   24.08
Other changes                        -0.07    0.47  -4.22   -3.82
Shareholders' equity
31.12.2007            74.54   18.55  27.38   86.29   0.40  207.17

KEY INDICATORS
                                         1-12/             1-12/
                                          2007              2006

Change in net sales, %                    26.9              41.3
Operating profit/net sales, %             74.8              85.2
Equity on assets ratio, %                 39.0              38.5
Employees in Group companies               142               113
Gross investments in non-current
assets in balance sheet, EUR 1,000      88,962           137,974
Net rental income of 
property portfolio, %  2)                  7.5               7.7
Financial occupancy ratio, %              96.8              94.4

SHARE-RELATED INDICATORS

Earnings/share
undiluted, EUR                            0.58              0.63
diluted, EUR                              0.58              0.63
Equity/share, EUR                         4.69              4.03
Dividend/share, EUR 3)                    0.15              0.14
Average (issue-adjusted) no.
of shares
undiluted                           41,407,380        37,472,329
diluted                             41,469,091        37,619,867
Issue-adjusted no. of shares 
at year-end                         44,107,501        39,833,582
P/E ratio                                 10.0              12.2
Dividend payout ratio, %                  25.8              22.1
Effective dividend yield, %                2.6               1.8

OTHER KEY INDICATORS AND FINANCIAL RATIOS

Market value of shares, EUR mill, 31.12.  256.26          306.72
Share turnover, shares              21,519,642        23,293,922
Share turnover/
ave. no. of shares, %                     52.0              62.2
Share prices, EUR
Highest price                             8.31              7.99
Lowest price                              4.55              4.41
Average price                             6.85              6.01
Price 31.12.                              5.81              7.70

CONTINGENT LIABILITIES
EUR MILLION                         31.12.2007        31.12.2006

Pledges and guarantees on own debt
Mortgages                               201.72            195.50
Land lease liabilities                    1.06              0.53
Other mortgage liabilities                0.93              0.93
Pledged investment properties            97.77             35.21
Interest rate and currency swaps,
nominal values                           17.28             11.26
fair values                               0.28             -0.07
VAT return liability                     11.49             13.27
Project liabilities                       6.14              0.01
Collateral given on behalf of
affiliated companies
Guarantees                                0.50              0.50
Other guarantee liabilities               0.10              0.10

Leasing liabilities, machinery and
equipment                                 0.48              0.38

1) Other operating income comprises operating subsidies received for
development services, for which the same amount of development service expenses
have been recorded as operating expenses. 

2) Does not include properties taken into use and acquired during the year.

3) Proposal for distribution of 2007 dividends

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