Solteq Oyj

Quarterly Report • Apr 22, 2010

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 1/14

SOLTEQ PLC'S INTERIM REPORT 1.1.–31.3.2010

• Total revenue decreased by 14,4 % and totalled 6,2 million euros (7,2 million euros)

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• Operating result totalled -1.019 thousand euros (-190 thousand euros)

• In 2010 the total revenue is believed to be at the same level as in 2009 and the operating result is anticipated to be positive.

• Earnings per share was -0,07 euros (-0,02 euros)

KEY FIGURES

Turnover by operation:

%	1-3/10	1-3/09	1-12/09
Softwareservices	65	63	65
Licences	28	25	26
Hardware	7	12	9

BUSINESS ENVIRONMENT AND BUSINESS DEVELOPMENT

Solteq is a strategic partner for trade and industry, whose core competency is IT solutions that are critical to business. Solteq combines its own product portfolio with the products from the leading software companies in the world to deliver individual business development and ERP solutions for its customers. The information that is processed by means of these solutions is helping customers to manage their business even better than before and to improve their profitability.

Starting from 1.1.2010 Solteq's operations was divided into four business areas and the result of the company is monitored through these areas. Business areas are: ERP (enterprise resource planning), EAM (enterprise asset management), Data (data management and integration) and Store (retail solutions and technology).

During the first quarter of 2010 Solteq's revenue totalled 6.168 thousand euros in which contains decrease of 14,4 per cent compared to corresponding period in 2009.

Solteq's operating result for the first quarter decreased to -1.019 thousand euros from -190 thousand euros that was the operating result in the corresponding period 2009. Company's operating profit percentage was -16,5 during the first quarter (-2,6 in 2009).

Both the turnover and operating profit for the first quarter were clearly worse than estimated and expected. The main reasons for the unsatisfactory development were slower than excepted progression and start of some significant customer projects and the higher than expected volume of purchased subcontracting services.

Solteq estimates that annual revenue will remain about the same level as in 2009 and the operating result will be positive but not as good as 6-8 percent as estimated earlier.

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ERP

Solteq's business area ERP offers to its clientele enterprise resource planning systems and supporting optimization and reporting solutions as well as a set of other different added value solutions. These solutions help customers to lead their operations and to intensify their operations e.g. purchases, sales and warehouse management as well as reporting. Wide group of customers among others in business branches trade, industry, auto trade and public sector are using these solutions every day.

The revenue of business area ERP totalled 4,0 million euros. Business area's result was -0,5 million euros

EAM

Solteq's EAM-services include systems for maintenance management, asset management optimization, fieldwork management and maintenance. By means of these solutions Solteq's customers are able to anticipate the need for service of productions lines and machines as well as they are able to monitor the malfunction history and control the machinery maintenance related material flows from purchasing to warehousing. The clientele consists of among others energy- and production plants, companies in processing and engineering industries as well as maintenance related service sector.

During the review period the revenue of business area EAM totalled 0,9 million euros and result was -0,2 million euros.

The development of Solteq's new Solax-system is proceeding according to plans and three new proof-of-concept- projects were launched during the review period.

Data

Solteq's business area Data is responsible for services and products relating to the data (i.e. masterdata) that is crucial to the customers' businesses as well as e-commerce and integration technologies. Solteq offers to its customers masterdata related quality improvement projects, data maintenance services in which the services are outsourced to masterdata service centers, software technologies that can be utilized in masterdata management and consultancy services. The aim of these services is to ensure that the data that is stored in the programs, which support customers' enterprise resource planning and decision-making, is high-quality, compatible and up to date.

During the review period the revenue of business area Data totalled 0,4 million euros and result was -0,2 million euros

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During the review period Solteq began to invest in the adoption of MDM Masterdata Management) – technology platforms as well as generation of masterdata service center model. Solteq foresees that the new operations models and supply of technologies will increase the revenue of Data- business area starting from the second quarter of 2010.

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Store

The solutions of Solteq's business area Store intensify the purchases, sales and customer relationship management of specialty stores and chained commerce. Every day hundreds of retailers, entrepreneurs and salespersons are leading their businesses and serving their customers in thousands of store locations by means of these solutions.

The business operations of Solteq's business area Store developed as expected during the review period. The revenue of business area Store totalled 0,9 million euros and result was -0,1 million euros during the review period.

Especially the sales of new store management system were more brisk than during any other quarter in the past two years. Also the demand for different e-commerce solutions remained strong.

REVENUE AND RESULT

Revenue decreased by 14,4 % compared to the previous year and totalled 6.168 thousand euros (previous financial year 7.209 thousand euros).

Revenue consists of several individual customerships. At the most, one client corresponds to a less than ten percentages of the revenue

The operating result for the review period was -1.019 thousand euros (- 190 thousand euros), result before taxes was -1.066 thousand euros (-240 thousand euros) and the loss for the review period -802 thousand euros (-189 thousand euros).

BALANCE SHEET AND FINANCING

The total assets amounted to 20.657 thousand euros (20.269 thousand euros). Liquid assets totalled 202 thousand euros (420 thousand euros).

Solteq Group's interest-bearing liabilities were 6.767 thousand euros (5.130 thousand euros).

Solteq Group's equity ratio was 40,6 percent (43,7%).

INVESTMENTS, RESEARCH AND DEVELOPMENT

Gross investments during the review period were 28 thousand euros (139 thousand euros).

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Research and development

Solteq's research and development costs consist mainly of personnel costs. When developing basic products, it is Solteq's strategy to cooperate with global actors such as SAP, Wincor-Nixdorf and Microsoft and utilize their resources and distribution channels. Own development efforts are focused on added value products and developing tailored service concepts.

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During the review period the company has not capitalized development costs under IFRS. The amortization according to plan has been started relating to the development project that was finalized in the end of previous financial period. During the first quarter of 2009 the development costs capitalized under IFRS were 85 thousand euros.

PERSONNEL

The number of permanent employees at the end of the review period was 242 (245). Average number of personnel during the review period was 239 (252). In the end of the review period the number of personnel could be divided in accordance with the profit centers that were established on 1.1.2010 as follows: ERP 123, EAM 44, Data 26 and Store 27 and Shared Functions 22.

RELATED PARTY TRANSACTIONS

Solteq's related parties include Solteq's board of directors, managing director and the Group's management team. There have been no significant changes in the company's related party transactions since the financial statements 2009.

SHARES, SHAREHOLDERS AND TREASURY SHARES

Solteq Plc's equity on 31.3.2010 was 1.009.154,17 euros which was represented by 12.148.429 shares. The shares have no nominal value.

In the end of the review period the amount of treasury shares in Solteq Plc's possession was 282.836 shares. The amount of treasury shares represented 2,33 % from the total amount of shares and votes in the end of the review period. The equivalent value of acquired shares was 23.495 euros.

Exchange and rate

During the review period, the exchange of Solteq's shares in the Helsinki Stock Exchange was 0,2 million shares (0,1 million shares) and 0,3 million euros (0,1 million euros). Highest rate during the review period was 1,56 euros and lowest rate 1,33 euros. Weighted average rate of the share was 1,44 euros and end rate 1,53 euros. The market value of the company's shares in the end of the review period totalled 18,6 million euros (13,4 million euros).

Ownership

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In the end of the review period, Solteq had a total of 1.981 shareholders (1.988 shareholders). Solteq's 10 largest shareholders owned 8.284 thousand shares i.e. they owned 68,2 per cent of the company's shares and votes. Solteq Plc's members of the board owned a total of 5.179 thousand shares which equals 42,6 per cent of the company's shares and votes.

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ANNUAL GENERAL MEETING

Solteq Plc's annual general meeting on 26.3.2010 adopted the financial statements for 2009 and the members of the board and the managing director were discharged from liability for the financial year 2009.

The annual general meeting decided in accordance with the board's proposal to distribute a dividend in the amount of 0,06 euros per share. The reconciliation date for the dividend was 31.3.2010 and payment date 9.4.2010.

The annual general meeting decided to authorize the board of directors to decide on acquiring the company's own shares so that the amount in the possession of the company does not exceed 10 percent of the company's total shares at that moment. The shares can be acquired in order to develop the company's capital structure, finance and execute acquisitions or similar arrangements or used as part of the incentive scheme of the personnel or convey otherwise or be invalidated. The shares can be acquired in other proportion than the shareholders' holdings. The shares are to be acquired through public trading. The authorization is valid until the next annual general meeting.

The annual general meeting decided in accordance with the board's proposal to amend the section 11 of the articles of association so that notice to the general meeting shall be issued no later than three weeks before the date of the general meeting, however at least nine days before the record date of the general meeting. Furthermore, the articles of association was amended so that the notice to the general meeting can alternatively be delivered, in addition to the current manners, by publishing the notice on the company's website.

BOARD OF DIRECTORS AND AUDITORS

Six members were elected to the board of directors. Seppo Aalto, Veli-Pekka Jokiniva, Ali Saadetdin, Jukka Sonninen and Markku Pietilä will continue as members of the board. Sirpa Sara-aho was elected as new member of the board of directors. The board elected Ali Saadetdin to act as the chairman of the board.

KPMG Oy Ab, Authorized Public Accountants, were re-elected as Solteq's auditors. Frans Kärki, APA, acts as the lead partner.

EVENTS AFTER THE REVIEW PERIOD

Solteq's managing director Hannu Ahola has resigned on April 8, 2010. The Board of Directors has started the search process for new managing director immediately after notice. CFO Antti Kärkkäinen is acting

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 6/14

temporarily as managing director in charge.

RISKS AND UNCERTAINITIES

The key uncertainties and risks in short term are related to the timing and pricing of the business deals that are the basis for the revenue, changes in the level of costs and the company's ability to manage extensive contract agreements and deliveries.

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The key business risks and uncertainties of the company are monitored constantly as a part of the board of directors' and management team's work. The company has not organized a separate internal audit organization or committee.

PROSPECTS

Solteq estimates that annual revenue will remain about the same level as in 2009 and the operating result will be positive but not as good as 6-8 percent as estimated earlier.

Financial Reporting

The interim report has been prepared in accordance with the International Financial Reporting Standards ("IFRS"). The same accounting policies and methods of computation are followed in the interim report as were followed in the financial statements of Solteq Plc for 2009.

The financial result is reported through four business areas. The business area ERP includes systems for finance and enterprise resource planning. Business area EAM consist of asset management optimization, material management and maintenance management systems. Data business area includes tools for data collection, assurance of data's quality and accuracy as well as tools for data integration between different systems. Business area Store includes point-of-sale and store management systems. The most essential product and service types of Solteq group of companies are software services, licenses and hardware sales.

All forecasts and estimates presented in the interim report are based on the current views of the management on the economic environment and outlook. Results can differ from those implied as a result of, among other factors, changes in economy, markets and competitive conditions, changes in the regulatory environment and other government actions.

The interim report is unaudited.

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 7/14

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FINANCIAL INFORMATION

GROUP PROFIT AND LOSS ACCOUNT (TEUR)

	1.1.- 31.3.2010	1.1.- 31.3.2009	1.1.- 31.12.2009
NET TURNOVER	6 168	7 209	28 550
Other operating income	11	1	94
Raw materials and services	-1 778	-1 918	-7 524
Staff expenses	-4 124	-4 230	-14 868
Depreciation	-211	-173	-710
Other operating expenses	-1 085	-1 079	-4 078
OPERATING RESULT	-1 019	-190	1 464
Financial income and expenses	-47	-50	-135
RESULT BEFORE TAXES	-1 066	-240	1 329
Income taxes	264	51	-394
RESULT FOR THE PERIOD	-802	-189	935
OTHER ITEMS OF TOTAL COMPREHENSIVE INCOME Cash flow hedging	-42	0	-9
Other items of total comprehensive income after taxes	-31	0	-7
TOTAL COMPREHENSIVE INCOME	-833	-189	928

Total profit for the period attributable to

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 8/14

Owners of the parent		-802		-189		935
Total comprehensive income attributable to Owners of the parent		-833		-189		928
Earnings / share, e(undiluted)		-0,07		-0,02		0,08
Earnings / share, e(diluted)		-0,07		-0,02		0,08
Taxes corresponding to the result have been presented as taxes for the period.
GROUP BALANCE SHEET (TEUR)	31.3.2010		31.3.2009		31.12.2009
ASSETS
NON-CURRENT ASSETS
Intangible assets Intangible rights Goodwill		2 651 8 286		2 489 8 286		2 755 8 286
Tangible assets		2 650		2 684		2 645
Investments Other shares and similar rights of ownership		93		93		93
Deferred tax assets		139		316		0
Total non-current assets		13 819		13 868		13 779
CURRENT ASSETS
Short-term debtors		6 636		5 981		7 093
Cash in hand and at banks		202		420		258
Total current assets		6 838		6 401		7 351

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 9/14

TOTAL ASSETS	20 657	20 269	21 130
EQUITY AND LIABILITIES
CAPITAL AND RESERVES ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY
Share capital	1 009	1 009	1 009
Company's own shares	-371	-337	-337
Share premium account	75	75	75
Account for cash flow
hedging	-38	0	-7
Unrestricted equity
fund	7 214	7 213	7 214
Retained earnings	1 307	1 084	1 084
Result for the
financial period	-802	-189	935
Total equity	8 394	8 855	9 973
LIABILITIES
Non-current liabilities
Deferred tax liabilities	0	0	125
Other non-current
liabilities	4 367	3 663	4 337
Current liabilities	7 896	7 751	6 695
Total liabilities	12 263	11 414	11 157
TOTAL EQUITY AND
LIABILITIES	20 657	20 269	21 130
FINANCIAL PERFORMANCE
INDICATORS (IFRS)	1-3/2010	1-3/2009	1-12/2009
Net turnover MEUR	6,2	7,2	28,6
Change in net turnover	-14,4 %	4,6 %	-6,0 %
Operating result MEUR	-1,0	-0,2	1,5
% of turnover	-16,5 %	-2,6 %	5,1 %
Result before taxes MEUR	-1,1	-0,2	1,3
% of turnover	-17,3 %	-3,3 %	4,7 %

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 10/14

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Equity ratio, %	40,6	43,7	47,2
Gearing, %	78,2 %	53,2 %	66,7 %
Gross investments in
non-current assets MEUR	0,0	0,1	0,7
Return on equity, %	-37,7 %	-8,5 %	9,6 %
Return on investment, %	-28,3 %	-5,1 %	9,1 %
Personnel at end of
period	242	245	235
Personnel average
for period	239	252	240
KEY INDICATORS PER SHARE
Earnings / share, e	-0,07	-0,02	0,08
Earnings / share,
e(diluted)	-0,07	-0,02	0,08
Equity / share, e	0,71	0,74	0,84
SEGMENT INFORMATION
Turnover by segment:
Me	1-3/10	1-3/09	Change
ERP	4,0	5,0	-1,0
EAM	0,9	1,3	-0,4
DATA	0,4	0,2	+0,2
STORE	0,9	0,7	+0,2
Total	6,2	7,2	-1,0
Operating result by segment:
Me	1-3/10	1-3/09	Change
ERP	-0,5	0,0	-0,5
EAM	-0,2	0,3	-0,5
DATA	-0,2	-0,5	+0,3
STORE	-0,1	0,0	-0,1
Total	-1,0	-0,2	-0,8

Because of the change in organisation, the respective segment information of 2009 has been allocated from the bookkeeping retroactively.

QUARTERLY KEY INDICATORS (MEUR)

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	2Q/08	3Q/08	4Q/08	1Q/09
Net turnover	8,55	6,29	8,65	7,21
Operating result	0,37	0,38	0,66	-0,19
Result before taxes	0,28	0,30	0,58	-0,24
	2Q/09	3Q/09	4Q/09	1Q/10
Net turnover	7,49	5,62	8,23	6,17
Operating result	0,41	0,46	0,78	-1,02
Result before taxes	0,40	0,42	0,75	-1,07
CASH FLOW STATEMENT (MEUR)
	1-3/2010	1-3/2009	1-12/2009
Cash flow from business
operations	0,14	1,13	0,18
Cash flow from capital
expenditure	-0,03	-0,14	-0,65
Cash flow from financing activities
Dividend distribution	0,00	0,00	-0,48
Own shares	-0,03	-0,08	-0,08
Loan agreement	-0,14	-1,19	0,59
Cash flow from financing
activities	-0,17	-1,27	0,03
Change in cash and cash
equivalents	-0,06	-0,28	-0,44
TOTAL INVESTMENTS (TEUR)
	1-3/2010	1-3/2009	1-12/2009
Continuing operations,
group total	28	139	651
LIABILITIES (MEUR)	31.3.2010	31.3.2009	31.12.2009
Company quorantee for
credit limits	2,61	1,18	2,61
Perfomance bonds	0,05	0,02	0,05
Lease contracts, machinery &
equipment	0,61	0,59	0,70
Lease liability,
premises	2,11	2,40	2,21
Pledged shares	1,59	0,00	1,59

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 12/14

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MAJOR SHAREHOLDERS MARCH 31, 2010

						Shares and votes
					Number		%
	1. Saadetdin Ali			3 481 383			28,7
	2. Aalto Seppo			1 662 206			13,7
	3. Profiz Business Solution Oyj			1 381 096			11,4
	4. TP-Yhtiöt Oy				513 380		4,2
	5. Roininen Matti				354 000		2,9
	6. Solteq Oyj				282 836		2,3
	7. Hakamäki Jorma				228 430		1,9
	8. Saadetdin Katiye				156 600		1,3
	9. Kiiveri Jouko				118 280		1,0
	10. Halmet Jarmo				106 000		0,9
	10 largest shareholders total			8 284 211			68,2 %
	Total of nominee-registered				84 646		0,7 %
	Others			3 779 572			31,1 %
Total				12 148 429		100,0 %
	A=Share capital B=Company's own shares C=Share premium account D=Account for cash flow hedging E=Unrestricted equity fund F=Retained earnings G=Total
		A	B		C	D	E	F	G
	EQUITY 1.1.2009	1 009	-255		75	0	7 213	1 560	9 602
	Total comprehensive income							-189	-189
	Acquiring of own shares dividend distribution		-82					-476	-82 -476
	EQUITY 31.3.2009	1 009	-337		75	0	7 213	895	8 855
	EQUITY 1.1.2010	1 009	-337		75	-7	7 213	2 020	9 973

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Total comprehensive income				-31		-802	-833
Acquiring of own shares dividend distribution		-34				-712	-34 -712
EQUITY 31.3.2010	1 009	-371	75	-38	7 213	506	8 394
CALCULATION OF FINANCIAL RATIOS
Solvency ratio, in percentage	equity						x 100
	---------------------------------- balance sheet total - advances received
Gearing	interest bearing liabilities - cash, bank balances and securities ------------------------------------------- equity						X 100
Return on Equity (ROE) in percentage	profit or loss before taxation - taxes ---------------------------------------- equity						x 100
Profit from invested equity in percentage	profit or loss before taxation + interest expenses and other financing expenses ---------------------------------------- balance sheet total - non-interest bearing liabilities						x 100
Earnings per share	pre-tax result - taxes +/- minority interest ------------------------------------ diluted average share issue corrected number of shares
Diluted earnings per share	diluted profit before taxation - taxes +/- minority interest

Solteq Plc Stock Exchange Bulletin 22.4.2010 at 9.00am 14/14

---------------------------------------------- diluted average share issue corrected number of shares

Equity per share

equity ---------------------- number of shares

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Financial Reporting

Solteq Plc's financial information bulletins in 2010 have been scheduled as follows: - Interim report 1-6/2010 Wednesday 11.8.2010 - Interim report 1-9/2010 Thursday 21.10.2010

More investor information on Solteq's website at www.solteq.com

Additional information:

Chairman of the Board of Directors Ali U. Saadetdin Telephone +358 20 1444 201 or +358 40 8444 201 E-mail ali.saadetdin@solteq.com

(Acting) Managing Director, CFO Antti Kärkkäinen Telephone +358 20 1444 393 or +358 40 8444 393 E-mail antti.karkkainen@solteq.com

Distribution: NASDAQ OMX Helsinki Key Media