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Interim Report for January-June 2008: Increased Costs, Reduced Profitability


Jukka Alho, President & CEO of Itella:

"The economic downtrend did not affect the demand for Itella services in Finland, but road freight volumes in Denmark and the Baltic region turned down. Demand for logistics services remained strong in Russia. Against the European trend, letter mail delivery volumes increased by 3 per cent in Finland, while newspaper deliveries decreased by 3 per cent.

The increases in volume and prices could not compensate for the sharp increases in fuel and salary costs, leading to a reduced profit. However, the profit performance met expectations. The tight situation caused by increased costs is expected to continue during the second half."

For further information, please contact:
Tuija Soanjärvi, CFO, tel. +358 (0)20 45 20907. (e-mail format: firstname.lastname@posti.fi)www.itella.com/group/english

Board of Directors’ Report
Consolidated Income Statement and Balance Sheet