Itella Corporation’s Results for January-March 2009: Decline in Demand Eroded Profitability

• Itella Group's consolidated net sales rose to EUR 477.6 million in the first quarter of 2009. Net sales grew by 5.5%. Excluding the impact of acquisitions, net sales fell by 6.1%.
• Consolidated EBIT decreased by 40.2% in the first quarter to EUR 19.9 million, representing 4.2% of net sales. EBIT shrank in all business groups.
• The volumes of mail delivered by Itella fell significantly. The volume decline was strongest in first class letters (-10%), addressed direct marketing (-14%) and parcels (-10%).
• In Finland, personnel expenses grew by 3.1% from the same period a year earlier.

Jukka Alho, President and CEO:
- The decreasing demand for Itella's services and the profitability decline reflect the general economic development. In the eventuality of a sustained recession, Itella has one major advantage: our business also includes services less vulnerable to economic fluctuations. We have successfully developed our new growth businesses in areas such as warehousing services, financial management and customer relations marketing.

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):

www.itella.fi/group/media

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 a 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.