Etteplan Oyj — Earnings Release 2010

Aug 12, 2010

Etteplan's Interim Report January-June 2010 Etteplan´s positive development continued - operating profit improved

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ETTEPLAN OYJ INTERIM REPORT AUGUST 12, 2010, at 9:30 A.M.

ETTEPLAN Q2: ETTEPLAN'S POSITIVE DEVELOPMENT CONTINUED – OPERATING PROFIT IMPROVED

Review period April-June 2010

• − The Group's revenue for continuing operations was EUR 26.8 million (4-6/2009: EUR 25.3 million).
• − Operating profit for continuing operations was EUR 1.9 million (EUR -4.4 million).
• − Profit for the period for continuing operations was EUR 1.2 million (EUR -3.3 million).
• − Profit for the period for discontinuing operations was EUR 0.4 million (EUR -1.3 million).
• − Operating cash flow was EUR 1.8 million (EUR 2.2 million).
• − Earnings per share for continuing operations were EUR 0.06 (EUR -0.17).
• − The number of personnel at the end of the period was 1,483 (1,663).
• − Company specifies its outlook estimate for year 2010. Outlook (updated): Adjustments done in year 2009 improve company's profitability and operating profit's positive development is estimated to continue. Previous outlook estimate (May 6, 2010): Adjustments done in year 2009 improve company's profitability and operating profit is estimated to be positive.

Review period January-June 2010

• − The Group's revenue for continuing operations was EUR 51.6 million (1-6/2009: EUR 54.8 million).
• − Operating profit for continuing operations was EUR 3.0 million (EUR -3.2 million).
• − Profit for the period for continuing operations was EUR 1.9 million (EUR -2.6 million).
• − Profit for the period for discontinuing operations was EUR 0.4 million (EUR -2.0 million).
• − Operating cash flow was EUR -0.9 million (EUR -4.5 million).
• − Earnings per share for continuing operations were EUR 0.08 (EUR -0.13).

(EUR 1 000)	4-6/2010	4-6/2009	1-6/2010	1-6/2009	1-12/2009
Revenue	26,782	25,255	51,635	54,766	98,700
Operating profit/loss	1,859	-4,367	2,984	-3,184	-3,587
Operating profit/loss, %	6.9	-17.3	5.8	-5.8	-3.6
Profit/loss for the period	1,211	-3,344	1,903	-2,578	-3,287
Profit/loss for the period, %	4.5	-13.2	3.7	-4.7	-3.3
Equity ratio, %	42.6	28.8	42.6	28.8	38.5
Net gearing, %	30.4	99.8	30.4	99.8	20.8
Total assets	61,775	74,001	61,775	74,001	61,704
*) continuing operations

Key figures*)

Matti Hyytiäinen, President and CEO of Etteplan Oyj, comments on the interim report:

"Orders received by Etteplan's central customers developed favourably in the second quarter of the year. Order books for several of our customers were still on low level compared to previous years, which reflected to Etteplan's revenue. Recovery of demand for design services, which took place in the beginning of the year, started to show as growth in Etteplan's revenue in the second quarter of the year. Our strengthened market position and determined adjustments improved the utilization rate of our design capacity and profitability. Intensifying of operations improved the operating cash flow in the beginning of the year too.

Productization of our services and investments to develop our sales organization have received a positive reception in the beginning of the year. Selling of new service products commenced well. In the review period Etteplan continued its investments to develop its offering. Cooperation agreement signed between Sjöland & Thyselius Holding AB and Etteplan's subsidiary LUTAB offers customers even quicker execution time in demanding product development projects. The first joint assignment for aviation sector commenced in the period under review.

We continued actions according to our strategy to strengthen our global delivery process. Etteplan increased its shareholding in Etteplan Vataple Technology Centre Ltd. in China to 70 per cent in the beginning of July. Our operations are based on high level design services close to customer combined with cost effective use of Etteplan's units in China. The number of companies using operating model that improves customers' cost competitiveness increased in the review period.

Etteplan is well positioned for the growth of the design services' demand and we are able to increase our design capacity without significant increase in fixed costs. According to our strategy, in addition to organic growth we aim to grow our business operations also with company acquisitions."

Accounting principles

The interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and the preparation and accounting policies presented in the 2009 annual financial statements.

REVIEW FOR APRIL-JUNE 2010

Business review for April-June

Demand for design services improved in the second quarter of the year. Demand picked up especially in Finland compared to the first quarter of the year as the market situation of Etteplan's customers improved.

Demand continued to fluctuate between different customer industries. Demand for design services in energy and power transmission industry and among medical technology equipment manufacturers remained on same good level as in the beginning of the year. In special competence requiring testing and analysis services for car industry customers demand remained on good level. Among mining industry equipment manufacturers the increase in demand for design services that commenced in the beginning of the year, continued in the review period. In the second quarter of the year, there was a turn of demand for design services among forest industry equipment manufacturers and demand improved clearly in the period under review. Demand for aerospace and defence equipment industry remained on low level.

In Finland, the number of personnel reductions implemented as temporary lay offs decreased during the review period. The number of temporary laid off employees halved compared to the first quarter and was under 100 in the end of the period. In Sweden, recruitment commenced to respond to the improved market situation.

Etteplan and Sjöland & Thyselius Holding AB signed a cooperation agreement during the period under review. From Etteplan's side the cooperation partner is Etteplan's subsidiary LUTAB AB. LUTAB AB and Sjöland & Thyselius concentrate on high technology product development services for machine and equipment manufacturers developing renewable energy sources, aviation, space and defence

equipment industry as well as car and train manufacturing companies. The cooperation aims to shorten customers' product development project time with the help of integrated expertise services and efficient service processes.

Company started to renew its legal structure in Finland from April 1, 2010 and the concentration of business operations to Etteplan Design Center Oy was completed on July 1, 2010. In Sweden, business operations will be concentrated to four legal companies in phases by the beginning of year 2011. Group administration units continue their operations in the parent company Etteplan Oyj. Change in legal structure does not impact the content of financial reporting in 2010. Legal structure change will have an impact on parent company's balance sheet. Parent company's balance sheet will be presented in company's annual report 2010.

Financial development for April-June

Etteplan's revenue for continuing operations in April-June 2010 amounted to EUR 26.8 million (4-6/2009: EUR 25.3 million).

Operating profit for continuing operations was EUR 1.9 million (4-6/2009: EUR -4.4 million). Improved demand for design services as well as adjustment and cost saving measures affected the improvement of operating profit.

REVIEW FOR JANUARY-JUNE 2010

Business review for January-June

Demand for design services developed unevenly in the beginning of the year and improved in most of Etteplan's customer industries towards the end of the review period. In Sweden, the recovery of market commenced in the first months of year 2010 and became established on the improved level during the second quarter of the year. In Finland, recovery of demand for design services was slower compared to Sweden and an increase in number of design assignments was seen in the end of the second quarter.

Etteplan renewed framework agreements with established customers during the review period and was also successful in attaining new customers and signed new technical design and product information agreements.

Revenue

Etteplan's revenue for continuing operations in the first half of the year amounted to EUR 51.6 million (1-6/2009: EUR 54.8 million).

Result

The operating profit for continuing operations was EUR 3.0 million (1-6/2009: EUR -3.2 million). Improved demand for design services as well as adjustment and cost saving measures affected the improvement of operating profit.

Profit for the period for continuing operations before taxes was EUR 2.7 million (1-6/2009: EUR -3.5 million). Taxes amounted to EUR 0.8 million (EUR -0.9 million). The income tax calculated on profit before taxes in the consolidated income statement was 28.6% (26.6%).

Profit for the period for continuing operations was EUR 1.9 million (1-6/2009: EUR -2.6 million). Earnings per share for continuing operations were EUR 0.08 (EUR -0.13). Equity per share was EUR 1.33 (EUR 1.07). The return on investment improved and was 16.5% (-13.8%).

Profit for the period for discontinuing operations was EUR 0.4 million (1-6/2009: EUR -2.0 million). The profit for discontinuing operations relates to payment of a loan receivable which was written down in 2009.

Result for the review period was EUR 2.3 million (1-6/2009: EUR -4.5 million).

Financial position and cash flow

Total assets on June 30, 2010, were EUR 61.8 million (December 31, 2009: EUR 61.7 million). Goodwill on the balance sheet was EUR 32.7 million (December 31, 2009: EUR 31.2 million). The increase in goodwill was due to changes in currency rates. The Group's cash and cash equivalents stood at EUR 3.4 million (December 31, 2009: EUR 6.7 million). The Group's financial liabilities amounted to EUR 11.4 million (December 31, 2009: EUR 11.6 million) at period end. The equity ratio was 42.6% (December 31, 2009: 38.5%). Operating cash flow was EUR -0.9 million (EUR -4.5 million). The cash flow after investments improved and was EUR -2.2 million (1-6/2009: EUR -4.9 million). Review period's cash flow included additional purchase price of EUR 1.7 million caused by company acquisitions done in 2008.

Capital expenditures

The Group's gross investments came to EUR 0.8 million (1-6/2009: EUR 0.3 million).

Personnel

The number of the Group's personnel averaged 1,502 (1-6/2009: 1,715) during the review period and was 1,483 (June 30, 2009: 1,663) at period end. Outside Finland, the Group employed 526 people (June 30, 2009: 647) at the end of the period.

Incentive plan for key personnel

The Etteplan Oyj Board of Directors decided on a share-based incentive plan for key personnel in March 2008. The plan includes three earnings periods: calendar years 2008, 2009 and 2010. The plan had a target group of 37 people in 2008, 39 people in 2009 and 33 people in 2010. The remuneration paid from the plan corresponds to the value of about 720,000 Etteplan Oyj shares at maximum.

Pursuant to the authorization granted to it by the Annual General Meeting of Shareholders', held on March 26, 2009, the Board of Directors of Etteplan Oyj has in its meeting, on February 10, 2010, made a resolution that there will be no disposal of company-held shares for the 2009 earnings period.

Estimate of operating risks and uncertainty factors

Etteplan's financial results are exposed to number of strategic, operational and financial risks. A detailed risk analysis can be found in Etteplan's annual report 2009.

External risks

During the period under review, economic development on the whole and unpredictable changes in customers' business operations continued to be a risk.

Internal risks

Etteplan does not foresee changes in its internal risk position compared to previously stated.

Annual General Meeting

The Annual General Meeting of Shareholders of Etteplan Oyj was held on March 24, 2010 at premises of the Company in Vantaa. In accordance with the proposal of the Board of Directors´ Nomination and Compensation Committee Tapio Hakakari, Heikki Hornborg, Robert Ingman and Pertti Nupponen were re-elected as members of the Board of Directors as well as Satu Rautavalta and Teuvo Rintamäki were elected as new members of the Board of Directors.

The Annual General Meeting approved the Financial Statements for financial year 2009 and discharged members of the Board of Directors and the CEO from liability.

The auditor elected was PricewaterhouseCoopers Oy, Authorized Public Accounting

Firm with Authorized Public Accountant Mr Mika Kaarisalo as the main responsible auditor. The fees for the auditor are paid according to invoice by the principles approved by the Board of Directors.

The Annual General Meeting authorized the Board of Directors to decide to issue maximum of 4,000,000 shares through issuance of shares, option rights or other special rights entitling to shares under Chapter 10, Section 1 of the Companies Act in one or more issues. The authorization includes a right to issue new shares or assign company's own shares held by the company.

The authorization is effective for a period of five (5) years from the resolution of the Annual General Meeting, i.e. from March 24, 2010 to March 24, 2015. The authorization shall replace the previous authorization.

The Annual General Meeting resolved, in accordance with proposal of the Board of Directors, to grant the Board the authority to acquire the company's own shares in one or more lots using the company's unrestricted equity. A maximum of 2,000,000 of the company's own shares can be acquired. The Board of Directors shall have the right to decide who the shares are acquired from or, the Board of Directors has the right to decide on a directed acquisition of own shares.

The authorization is valid for 18 months from the date of the decision of the Annual General Meeting starting on March 24, 2010 and ending on September 24, 2011. The authorization shall replace the previous authorization.

The Annual General Meeting adopted a resolution to amend the articles of association's paragraph 9 as follows:

"9 § Invitation to the General Meeting of Shareholders

Invitation to the General Meeting of Shareholders shall be published in the company's website no earlier than two (2) calendar months and no later than three (3) weeks prior to the meeting, but no later than nine (9) days before the record date of the General Meeting. The Board of Directors may also decide to publish the invitation to the General Meeting of Shareholders in a one Finnish national newspaper determined by the Board of Directors."

Dividend

The Annual General Meeting passed a resolution, in accordance with the proposal of the Board of Directors, that a dividend of EUR 0.04 per share be paid from the financial year 2009. The remaining funds shall be left to the unrestricted equity. The dividend will be paid to the shareholders registered in the shareholders' register maintained by Euroclear Finland Ltd as the record date. The record date of the payment of dividend was March 29, 2010. The dividend was paid on April 7, 2010.

Shares

The Etteplan Oyj share (ETT1V) is quoted in the Nordic NASDAQ OMX's Small Cap market capitalization group in the Industrials sector.

The company's share capital on June 30, 2010 was EUR 5,000,000.00, and the number of shares outstanding was 20,179,414. The company has one series of shares. All shares confer an equal right to a dividend and the company's funds.

The company held 470,634 of its own shares on June 30, 2010. During the period under review, the company did not acquire nor dispose any company-held shares.

Major events after the review period

Etteplan increased its ownership in Etteplan Vataple Technology Centre Ltd. (EVTC), located in Kunshan in China, from 40% to 70% on July 1, 2010. Etteplan used its option right to buy the majority of the share capital of the company according to the contract that came into force on April 8, 2008.

Outlook

The commencement of Etteplan's customers' investment and product development projects as well as changes in order books reflect quickly to the demand for technical design and product information services and the development of Etteplan's revenue.

The revenue in 2010 is estimated to be approximately on the same level as in year 2009. Adjustments done in year 2009 improve company's profitability and operating profit's positive development is estimated to continue. The revenue and operating profit estimates are based on Etteplan's current market outlook. Potential acquisitions in year 2010 are not included in the estimate.

Financial information in 2010

Etteplan Oyj's third quarter's (9 months) interim report will be published on Wednesday November 10, 2010.

Hollola, August 12, 2010

Etteplan Oyj

Board of Directors

Additional information: Matti Hyytiäinen, President and CEO, tel. +358 400 710 968

The information presented herein has not been audited.

APPENDIX:

Financial Statement Summary and Notes Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Key Figures Notes to the Financial Statement Summary

Releases and other corporate information are available on Etteplan's Web site at www.etteplan.com.

DISTRIBUTION: NASDAQ OMX Helsinki Major media www.etteplan.com

This interim report includes forward-looking estimates and assumptions. Accordingly, outcomes may deviate from these estimates, which are based on the management's current best knowledge.

Etteplan is a specialist in industrial equipment engineering and technical product information solutions and services. Our customers are global leaders in their fields and operate in areas like the automotive, aerospace and defence industries as well as the electricity generation and power transmission sectors, and material flow management.

Etteplan has comprehensive competence in electronics and embedded systems development, automation and electrical design, mechanical design and technical product information solutions and services.

In 2009, Etteplan had turnover of EUR 98.7 million. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(EUR 1 000)	4-6/2010	4-6/2009	1-6/2010	1-6/2009	1-12/2009
Continuing operations
Revenue	26 782	25 255	51 635	54 766	98 700
Other operating income	442	172	519	339	392
Materials and services	-2 670	-2 456	-4 549	-5 090	-8 077
Staff costs	-18 646	-22 954	-36 876	-44 017	-75 851
Other operating expenses	-3 689	-3 979	-7 024	-8 364	-17 155
Depreciation and amortisation	-360	-405	-721	-818	-1 596
Operating profit/loss	1 859	-4 367	2 984	-3 184	-3 587
Financial income	107	-25	318	177	341
Financial expenses	-127	-200	-327	-454	-925
Share of the result of associates	-157	100	-308	-49	-134
Profit/loss before taxes	1 682	-4 491	2 667	-3 511	-4 304
Income taxes	-471	1 147	-764	933	1 017
Profit/loss for the financial year, continuing
operations	1 211	-3 344	1 903	-2 578	-3 287
Discontinuing operations
Profit/loss for the financial year, discontinuing operations	396	-1 291	360	-1 969	-11 067
Profit/loss for the financial year	1 607	-4 634	2 263	-4 547	-14 354
Other comprehensive income
Currency translation differences	378	345	1 455	290	1 245
Other comprehensive income, net of tax	378	345	1 455	290	1 245
Total comprehensive income/expense for
the year	1 985	-4 289	3 718	-4 258	-13 109
Income/expense attributable to
Equity holders of the company	1 594	-4 647	2 241	-4 567	-14 403
Minority interest	13	13	22	19	49
	1 607	-4 634	2 263	-4 547	-14 354
Total comprehensive income/expense at
tributable to
Equity holders of the company	1 981	-4 302	3 698	-4 277	-13 164
Minority interest	4	13	21	19	55
	1 985	-4 289	3 718	-4 258	-13 109
Earnings per share calculated from the result
of parent company shareholders
Continuing operations
Basic earnings per share, EUR	0,06	-0,17	0,08	-0,13	-0,17
Diluted earnings per share, EUR	0,06	-0,17	0,08	-0,13	-0,17
Discontinuing operations
Basic earnings per share, EUR	0,02	-0,07	0,02	-0,10	-0,56
Diluted earnings per share, EUR	0,02	-0,07	0,02	-0,10	-0,56
					8 (18)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(EUR 1 000)	30.6.2010	30.6.2009	31.12.2009
ASSETS
Non-current assets
Tangible assets	1 650	2 111	1 458
Goodwill	32 730	33 695	31 184
Other intangible assets	861	1 297	1 042
Investments available for sales	690	411	691
Other long-term receivables	3	554	3
Deferred tax assets	618	236	950
Non-current assets, total	36 552	38 303	35 329
Current assets
Trade and other receivables	21 812	29 538	18 645
Current tax assets	21	3 816	1 079
Cash and cash equivalents	3 389	2 345	6 650
Current assets, total	25 223	35 698	26 375
TOTAL ASSETS	61 775	74 001	61 704
EQUITY AND LIABILITIES
Capital attributable to equity holders
Share capital	5 000	5 000	5 000
Share premium account	6 701	6 701	6 701
Unrestricted equity fund	2 586	2 593	2 590
Own shares	-1 930	-1 909	-1 949
Cumulative translation adjustment	-1 077	-4 898	-2 534
Other reserves	10 000	0	10 000
Retained earnings	2 591	18 184	18 148
Profit/loss for the financial year	2 263	-4 547	-14 403
Capital attributable to equity holders, total	26 134	21 123	23 554
Minority interest	155	99	135
Equity, total	26 289	21 222	23 689
Non-current liabilities
Deferred tax liabilities	146	1 523	150
Financial liabilities	6 715	10 982	7 626
Non-current liabilities, total	6 861	12 506	7 776
Current liabilities
Financial liabilities	4 674	12 533	3 959
Trade and other payables	22 752	23 037	24 401
Reserves	733	4 369	1 435
Current income tax liabilities	465	335	445
Current liabilities, total	28 624	40 274	30 239
Liabilities, total	35 485	52 779	38 016
TOTAL EQUITY AND LIABILITIES	61 775	74 001	61 704

CONSOLIDATED STATEMENT OF CASH FLOWS

(EUR 1 000)	1-6/2010	1-6/2009	1-12/2009
Operating cash flow
Cash receipts from customers	49 330	68 506	129 302
Operating expenses paid	-49 990	-71 904	-126 232
Operating cash flow before financial items and taxes	-660	-3 398	3 070
Interest and payment paid for financial expenses	-225	-362	-632
Interest received	18	112	197
Income taxes paid	-18	-829	-557
Operating cash flow ( A )	-885	-4 477	2 078
Investing cash flow
Purchase of tangible and intangible assets	-83	-67	-139
Disposals of subsidiaries	0	0	93
Acquisition of subsidiaries	-1 700	-361	-966
Acquisition of associates	-94	0	0
Proceeds from sale of tangible and intangible assets	27	30	30
Loan receivables, increase	0	0	-977
Loan receivables, decrease	523	0	0
Proceeds from sale of investments	1	0	3
Investing cash flow ( B )	-1 326	-398	-1 956
Cash flow after investments ( A + B )	-2 211	-4 875	122
Financing cash flow
Purchase of own shares	0	-44	-44
Short-term loans, increase	1 135	5 912	0
Short-term loans, decrease	-521	0	-3 251
Long-term loans, increase	0	2 514	2 528
Hybrid loan, increase	0	0	10 000
Long-term loans, decrease	-1 147	-1 457	-3 112
Dividend paid and other profit distribution	-784	-1 574	-1 574
Financing cash flow ( C )	-1 317	5 351	4 547
Variation in cash (A + B + C) increase ( + ) / decrease ( - )	-3 528	476	4 669
Assets in the beginning of the period	6 650	1 879	1 879
Exchange gains or losses on cash and bank equivalents	267	-10	102
Assets at the end of the period	3 389	2 345	6 650

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Legends for table columns

• A) Share Capital
• B) Share Premium Account
• C) Unrestricted Equity Fund
• D) Own shares
• E) Cumulative Translation Adjustment
• F) Other reserves
• G) Retained Earnings
• H) Total
• I) Minority Interest
• J) Equity total

(EUR 1 000)	A	B	C	D	E	F	G	H	I	J
Equity 1.1.2009	5 000	6 701	2 474	-2 025	-5 188	0		19 959 26 921	79	27 000
Dividends							-1 574	-1 574		-1 574
Purchase of own shares				-44				-44		-44
Shares to be issued			116	120			-179	57		57
Hybrid loan						10 000	-59	9 941		9 941
Change in transla tion difference								0	6	6
Changes in ownership					1 410			1 410		1 410
Comprehensive income for the financial period					1 245		-14 403 -13 159		49	-13 109
Equity 31.12.2009	5 000	6 701	2 590	-1 949	-2 534	10 000		3 745 23 554	135	23 689
(EUR 1 000)	A	B	C	D	E	F	G	H	I	J
Equity 1.1.2010	5 000	6 701	2 590	-1 949	-2 534	10 000		3 745 23 554	135	23 689
Dividends Purchase of own							-788	-788		-788
shares				-6				-6		-6
Shares to be issued			-4	24			6	26		26
Hybrid loan							-350	-350		-350
Comprehensive income for the
financial period					1 457		2 241	3 698	21	3 718
Equity 30.6.2010	5 000	6 701	2 586	-1 930	-1 077	10 000		4 854 26 134	155	26 289

(EUR 1 000)	A	B	C	D	E	F	G	H	I	J
Equity 1.1.2009	5 000	6 701	2 474	-2 025	-5 188		0	19 959 26 921	79	27 000
Dividends							-1 574	-1 574		-1 574
Purchase of own shares				-44				-44		-44
Shares to be issued			119	160			-183	96		96
Comprehensive income for the
financial period					290		-4 567	-4 277	19	-4 258
Equity 30.6.2009	5 000	6 701	2 593	-1 909	-4 898		0	13 636 21 123	99	21 222

NOTES TO THE FINANCIAL STATEMENT SUMMARY

Company profile

The parent company of Etteplan Group is Etteplan Oyj ("the Company"), a Finnish public limited company established under Finnish law. The Company is domiciled in Hollola.

Etteplan is a specialist in industrial equipment engineering and technical product information solutions and services. Our customers are global leaders in their fields and operate in areas like the automotive, aerospace and defence industries as well as the electricity generation and power transmission sectors, and material flow management.

Etteplan has comprehensive competence in electronics and embedded systems development, automation and electrical design, mechanical design and technical product information solutions and services.

Etteplan's strength lies in its highly skilled employees who, being located near to the customers, are able to develop close, long term business relationships. We implement solutions globally according to customer needs.

In 2009, Etteplan had turnover of EUR 98.7 million. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.

The Etteplan Oyj Board of Directors approved the interim report for publication at its meeting of August 11, 2010.

Basis for preparation

The interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and the preparation and accounting policies presented in the 2009 annual financial statements.

Monetary figures in the interim report are presented in thousands of euros. All figures in the tables have been rounded up or down, due to which the sums of figures may deviate from the sum totals presented.

In interim report the accounting principles used were the same as for the 2009 annual financial statements. The annual financial statements are available at http://etteplan.smartpage.fi/en/annualreport09/, and the accounting policy is detailed on pages 26-30 of the annual report 2009. Formulas for the key figures are detailed on page 45 of the annual report 2009. The IFRS changes that came in force in 2010 are described in the annual report 2009.

Use of estimates

This interim report includes forward-looking estimates and assumptions. Accordingly, outcomes may deviate from these estimates, which are based on the management's current best knowledge.

KEY FIGURES

				Change to
(EUR 1 000)	1-6/2010	1-6/2009	1-12/2009	prev.year
Revenue	51 635	54 766	98 700	-5,7 %
Operating profit/loss	2 984	-3 184	-3 587	193,7 %
Operating profit/loss, %	5,8	-5,8	-3,6
Profit/loss before taxes	2 667	-3 511	-4 304	176,0 %
Profit/loss before taxes, %	5,2	-6,4	-4,4
Return on equity, %	15,2	-21,4	-13,0
Return on investment, % *)	16,5	-13,8	-8,6
Equity ratio, %	42,6	28,8	38,5
Gross interest-bearing debt	11 388	23 515	11 585	-51,6 %
Net gearing, %	30,4	99,8	20,8
Balance sheet, total	61 775	74 001	61 704	-16,5 %
Gross investments	821	273	4 763	200,9 %
Earnings per share, EUR	0,08	-0,13	-0,17	146,2 %
Diluted earnings per share, EUR	0,08	-0,13	-0,17	146,2 %
Equity per share, EUR	1,33	1,07	1,20	22,5 %
Personnel, average	1 502	1 715	1 765	-12,4 %
Personnel at end of the period	1 483	1 663	1 544	-10,8 %

*) Return on investment has been calculated from result before taxes

Discontinuing operations

As discontinuing operations are treated business operations sold in year 2009 that include selling of majority holding in Etteplan Tech AB in Sweden and selling of majority holding in business in Italy. Discontinuing operations are estimated not to cause costs in the second half of year 2010.

Discontinuing operations

(EUR 1 000)	30.6.2010	30.6.2009	31.12.2009
Income statement
Incomes	6	7 186	15 322
Expenses	480	-9 867	-18 724
Result before taxes	486	-2 681	-3 401
Income taxes	-126	712	442
Result after taxes	360	-1 969	-2 960
Loss on disposal before taxes	0	0	-8 234
Income taxes	0	0	127
Loss on disposal after taxes	0	0	-8 107
Total loss for discontinuing operations	360	-1 969	-11 067
Cash flow statement
Operating cash flow	0	0	-2 484
Investing cash flow	0	0	1 275
Financing cash flow	0	0	1 080
Change in cash	0	0	-129
Effect of discontinuing operations to Etteplan financial position
Assets
Property, plant and equipment	0	0	74
Other intangible assets	0	0	7 155
Receivables	0	0	3 751
Cash and cash equivalents	0	0	-131
Assets total	0	0	10 849
Liabilities
Financial liabilities	0	0	233
Trade and other payables	0	0	3 282
Liabilities total	0	0	3 515

Revenue and operating profit quarterly

(EUR 1 000)	Q1/2010	Q2/2010
Revenue	24 853	26 782
Operating profit	1 125	1 859
% of revenue	4,5	6,9

Tangible and intangible assets

	Property,
(EUR 1 000)	plant, equipment	Goodwill	Other intangible assets
Acquisition cost 1.1.2010	11 255	31 184	5 573
Exchange difference	172	1 556	30
Corporate transactions	0	0	0
Increases	666	0	58
Decreases	-2	-10	-1
Acquisition cost 30.6.2010	12 091	32 730	5 660
Accumulated depreciation and
impairment 1.1.2010	-9 796	0	-4 531
Exchange difference	-159	0	-26
Corporate transactions	0		0
Depreciation on disposals	-7		0
Depreciation	-479	0	-242
Accumulated depreciation and
impairment 30.6.2010	-10 441	0	-4 799
Book value 30.6.2010	1 650	32 730	861
Acquisition cost 1.1.2009	13 173	33 207	5 839
Exchange difference	20	127	0
Corporate transactions	0	0	0
Increases	256	361	16
Decreases	-34	0	0
Acquisition cost 30.6.2009	13 415	33 695	5 855
Accumulated depreciation and
impairment 1.1.2009	-10 688	0	-4 280
Exchange difference	-21	0	4
Corporate transactions	0	0	0
Depreciation	-595	0	-282
Accumulated depreciation and
impairment 30.6.2010	-11 304	0	-4 558
Book value 30.6.2010	2 111	33 695	1 297

Financial liabilities

(EUR 1 000)	30.6.2010	30.6.2009	31.12.2009
Non-current	6 715	10 982	7 626
Current	4 674	12 533	3 959
Total	11 389	23 515	11 585

Reserves

		Reorgani
	Warranty	zation	Other
(EUR 1 000)	provision	provision	provisions	Total
Reserves 1.1.2010	187	1 198	50	1 435
Utilized during the period	-74	-116	0	-190
Unused amount reversed	-113	-349	-50	-512
Reserves 30.6.2010	0	733	0	733
Reserves 1.1.2009	0	0	0	0
Additional provisions	0	4 369	0	4 369
Reserves 30.6.2009	0	4 369	0	4 369
Reserves 1.1.2009	0	0	0	0
Additional provisions	187	1 198	50	1 435
Reserves 31.12.2009	187	1 198	50	1 435

Derivatives

(EUR 1 000)	30.6.2010	30.6.2009	31.12.2009
Currency swaps
Fair value	0	0	-6
Nominal value	0	0	1 317
Interest rate swaps
Fair value	0	2	1
Nominal value	0	5 143	4 500
Interest rate options
Fair value	-106	-169	-141
Nominal value	8 679	8 679	8 679

Pledges, mortgages and guarantees

(EUR 1 000)	30.6.2010	30.6.2009	31.12.2009
For own debts
Other contingencies	218	86	55
Leasing liabilities
For payment under year	927	1 207	983
For payment 1-5 years	1 943	1 597	1 107
Total	3 088	2 889	2 145

Related-party transactions

The Group's related-party includes parent company, subsidiaries and associated companies. Relatedparty includes also Board of Directors, Management group and CEO.

As the transactions with related-party are recognized those business transactions which are not eliminated in consolidation. Related-party transactions are priced according to Group's normal pricing basis and sales conditions.

The following transactions were carried out with related parties:

(EUR 1 000)	30.6.2010	30.6.2009	31.12.2009
Sales of services to related parties
Associated companies	599	0	0
Other related parties	15	6	7
Total	615	6	7
Purchase of services from related parties
Key personnel	48	48	95
Associated companies	344	81	256
Other related parties	156	172	344
Total	548	301	695
Receivables from related parties
Associated companies	282	0	0
Other related parties	7	1	0
Total	289	1	0
Payables to related parties
Associated companies	3	0	92

Acquisition and disposition of company shares

The company held 470,634 of its own shares on June 30, 2010. During the period under review, the company did not acquire nor dispose any company-held shares.

Shares and share capital

On June 30, 2010, Etteplan Oyj had 20,179,414 shares (including the shares held by the Company) and share capital amounted to EUR 5,000,000.00.

Dividends

On March 24, 2010, the Annual General Meeting passed a resolution on a motion by the Board of Directors to pay a dividend for the 2009 financial year of EUR 0.04 per share, or a total of EUR 788,351.20. The dividend was paid on April 7, 2010.

Income taxes

The taxes listed in the consolidated statement of comprehensive income have been calculated with the tax rate appropriate for the projected full-year result. The estimated average effective tax rate for the year has been set separately for each relevant country. The effective tax rate used in the interim report is 28.6 (26.6)%.

Risks

Etteplan´s financial results are exposed to number of strategic, operational and financial risks.

Etteplan Group's most significant goodwill are related to the Swedish operations. The current impairment test shows no reason for goodwill write-down.

A detailed risk analysis can be found in Etteplan´s Annual report 2009.

Major shareholders June 30, 2010

Name	Number of shares	Holding of shares, %
Mönkkönen Tapani	4 075 600	20,20
Ingman Group Oy Ab	3 500 000	17,34
Oy Fincorp Ab	2 199 603	10,90
Hornborg Heikki	1 143 220	5,67
Varma Mutual Pension Insurance Company	608 328	3,01
Alfred Berg Finland Fund	501 699	2,49
Etteplan Oyj	470 634	2,33
Tuori Klaus	351 000	1,74
Alfred Berg Small Cap Fund	331 090	1,64
Nordea Bank Finland Plc.	321 786	1,59
Hakakari Tapio/Webstor Oy	316 180	1,57
Aktia Capital Small Cap Fund	298 200	1,48
Fondita Nordic Micro Cap Placeringsfond	297 000	1,47
Svenska Handelsbanken AB (Publ),
Filialverksamheten i Finland	277 628	1,38
Evli Bank Plc.	267 895	1,33
Tuori Aino	256 896	1,27
Kempe Anna	225 000	1,11
Aiff Ulf	220 546	1,09
Tuori Kaius	178 370	0,88
Alfred Berg Optimal Small Cap Fund	170 421	0,84
Other shareholders	4 168 318	20,66
Total	20 179 414	100,00