Itella Corporation's results for 2008:<br />Growth continued, slight decline in operational profitability, financial expenses increased

• Itella Group's consolidated net sales totaled EUR 1,952.9 million, up 14.2%. Net sales rose by 7.1% in Finland and by 34.1% in other countries. International operations accounted for 31% of net sales.
• Consolidated EBIT excluding the impairment loss recorded for ItellaNLC decreased by 6.6% to EUR 95.1 million, representing 4.9% of net sales. This decline was mainly due to a rise in labor costs and fuel prices.
• The sharp exchange rate fluctuations at the end of the year resulted in substantial financial expenses, reducing the profit before taxes considerably.
• Although net liabilities increased, the company's solidity remained stable. Equity ratio stood at 51.1%.
• Itella Mail Communication launched major investments in mail sorting and delivery in Finland. The profitability of Finnish postal operations declined slightly.
• Itella Information improved its profitability while continuing to grow and expand.
• Itella Logistics experienced strong growth particularly in Russia. The weakening of the economic conditions had a negative effect on profitability, and operating profit (EBIT) decreased clearly. Russian operative business developed as expected, but due to the global financial crisis, a goodwill impairment loss of EUR 26.1 million was recorded for the ItellaNLC subsidiary.
• The Board of Directors' dividend proposal is EUR 10.0 million.
• The number of employees within the Group rose by more than 25%, standing at nearly 31,700 at the end of the year. The employees are rewarded with a bonus of EUR 2.9 million.

Jukka Alho, President and CEO:

- The economic conditions are increasingly being reflected in Itella's business as well. The international financial crisis began to affect our operations after the summer season. The biggest factors affecting profitability were, however, the rise in labor costs, which was known in advance, and the higher fuel prices. Full-year results fell short of the previous year, although our operational result was close to expectations.

2008 was a significant year in terms of Itella's strategic trajectory. We clarified our strategy by basing our operations on three processes that are vitally important both for our business customers and for the public sector: customer relationship and sales processes, supply chain and logistics processes, and invoicing and financial management processes. Itella's future growth prospects will focus on these areas.

In Finland, our number one goal is securing and improving the conditions for postal services. The related major investment program gained momentum in 2008.

Geographically speaking, our growth was strongest in Russia particularly in service logistics. In Central Europe, our expansion was more moderate, with Itella Information grew organically into new countries.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Jukka Alho, President and CEO, tel. +358 20 451 5600,
Tuija Soanjärvi, CFO, tel. +358 20 45 20907,
email: firstname.lastname@itella.com  
www.itella.fi/group/english/financials/

APPENDICES
Board of Directors' Report (pdf)
Income Statement and Balance Sheet (pdf)

IMAGES
Photographs and logos related to Itella are available in the Media section of the Itella website (Image service and logos).

Itella Group provides solutions for managing information and product flows. Itella operates in mail communication, information logistics and logistics in Northern and Central Europe and Russia. The Group employs some 31,700 staff and reported net sales of EUR 1 953 million in 2008. Corporate services are delivered under the Itella brand, while the Posti brand is used for services targeted at consumers in Finland. More information on the Group is available at www.itella.fi/group/english.