Etteplan Oyj — Interim / Quarterly Report 2011

May 5, 2011

Etteplan´s Interim Report January-March 2011

Revenue continued to grow - operating profit improves towards the end of the year

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ETTEPLAN OYJ INTERIM REPORT MAY 5, 2011, at 02:00 p.m.

ETTEPLAN Q1: REVENUE CONTINUED TO GROW – OPERATING PROFIT IMPROVES TOWARDS THE END OF THE YEAR

Review period January-March 2011

• − The Group's revenue for continuing operations grew 19.3% and was EUR 29.6 million (1-3/2010: EUR 24.9 million).
• − Operating profit for continuing operations was EUR 1.2 million (EUR 1.1 million).
• − Profit for the period for continuing operations was EUR 0.7 million (EUR 0.7 million).
• − Operating cash flow was EUR -2.1 million (EUR -2.7 million).
• − Earnings per share for continuing operations were EUR 0.03 (EUR 0.03).
• − Number of personnel at the end of the period was 1,574 (March 31, 2010: 1,500).
• − Company keeps its estimate for outlook 2011 the same as it was in financial statement release published on February 15, 2011.

Outlook 2011

Current market outlook of machinery and equipment manufacturers is positive. The development of Etteplan's customers' order books influences quickly the development of Etteplan's revenue. We expect the revenue and operating profit for the year 2011 to grow compared to year 2010. Potential acquisitions in 2011 are not included in the estimate.

(EUR 1 000)	1-3/2011	1-3/2010	1-12/2010
Revenue	29,645	24,853	104,786
Operating profit/loss	1,159	1,125	6,054
Operating profit/loss, %	3.9	4.5	5.8
Profit/loss for the period	737	692	4,347
Profit/loss for the period, %	2.5	2.8	4.1
Equity ratio, %	41.5	39.8	43.6
Net gearing, %	34.2	31.3	24.1
Total assets	67,515	61,492	67,653

Key figures *)

*) continuing operations

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

"Business of Etteplan's central customers' developed positively and as a consequence demand for design services was at a good level. Our revenue grew almost with a fifth compared to the comparison period and we are satisfied with the achievements of our active sales work. Operating profit remained at the comparison period's level due to low profitability of business in Sweden in the beginning of the year during January-February. Operating profit was also burdened by several non-recurring investment items which prepare us for carrying out of coming customer projects. Most significant of these investments were related to IT-system development, personnel reorganization and recruitment. We continued recruitment in all our key market areas. Despite the increase in working capital caused by the strong growth, operating cash flow improved compared to the comparison period. We expect the operating profit to improve towards the end of year 2011."

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 2010 annual financial statements, but not all requirements of the IAS 34 standard for interim financial reporting have been followed in the accounting.

Business review for January-March 2011

Growth in demand for design services continued in Finland and Sweden during the review period. Etteplan's all central customer industries developed positively. The biggest growth in demand was in design and technical product information services among equipment manufacturers for mining industry. Growth in demand for design services among forest industry equipment manufacturers ceased during the period under review. In other customer industries the growth continued steady.

In Finland the utilization rate of design capacity was good and personnel turnover continued to be at a low level. Personnel turnover in Etteplan's units in Sweden followed design industry's development and increased in the latter half of year 2010 as the market conditions improved. Personnel turnover remained at an increased level during the review period. Due to the turnover the utilization rate of design capacity remained at a lower level in Sweden than the good demand situation would have presumed. New employees were recruited evenly throughout the review period.

A significant part of Etteplan's business is based on frame agreements. In Finland frame agreements and price revisions related to them are negotiated regularly to correspond with the overall cost level. Etteplan renegotiated the pricing of its key frame agreements in the period under review in Sweden. As a result of design services' price renegotiations in Sweden the prices improved but did not manage to affect the review period's result. The effects will be visible from the second quarter onwards in Sweden.

Mikael Vatn was appointed as new country director to Sweden in February. He has previously worked as General Manager for Securitas Direct Sverige AB. Before this he has worked as President and CEO for Energo Retea Group AB. Mikael Vatn is a member of Board in consulting company Tyréns AB.

Provision of offshoring services from Etteplan's units in China to Nordic clientele continued at a stabilized level. Sale of design services for customers operating in China grew during the review period.

Business in Russia picked up in the period under review. A contract was signed with OOO SRV Development relating to the first phase HPACAE -design to Septem City, a multifunctional area project, to be built in St. Petersburg.

Etteplan received an assignment from Andritz Pulp and Paper business area. The assignment is related to design of pulp mill for Stora Enso's and Arauco's joint venture Montes del Plata. Etteplan's part includes recovery boiler design for chemical recovery line as well as energy supply's power boiler design.

In March, first contract was signed for the new service product CSC (China Supply Chain) with ALLU Finland Oy. Etteplan offers its customers significant cost savings by supporting the transfer of part production and subcontracting to China. Service includes at broadest all phases from concept design to production and purchase of components and parts from China.

Etteplan deepened cooperation with Siemens Industrial Turbomachinery AB in Sweden during the review period. Etteplan commenced a trainee program together with Siemens for newly graduated engineers.

Revenue

Etteplan's revenue for continuing operations in the first quarter of the year grew 19.3% and amounted to EUR 29.6 million (1-3/2010: EUR 24.9 million). The growth was based on the improved market conditions and the strong market position.

Result

The operating profit for continuing operations remained at the same level with the comparison period and was EUR 1.2 million (1-3/2010: EUR 1.1 million). Sweden's operating profit was at significantly lower level in January-February compared to the comparison period. In addition, the operating profit was burdened by non-recurring items that include IT-systems development, personnel reorganization and recruitment costs.

Profit for the period for continuing operations before taxes was EUR 1.0 million (1-3/2010: EUR 1.0 million). Taxes amounted to EUR 0.3 million (EUR 0.3 million). The income tax calculated on profit before taxes in the consolidated income statement was 28.8% (29.7%).

Profit for the period for continuing operations remained at the same level with comparison period and was EUR 0.7 million (1-3/2010: EUR 0.7 million). Earnings per share for continuing operations were EUR 0.03 (EUR 0.03). Equity per share was EUR 1.42 (EUR 1.23). The return on investment was 12.4% (13.3%).

Result for the review period was EUR 0.7 million (1-3/2010: EUR 0.7 million).

Financial position and cash flow

Total assets on March 31, 2011, were EUR 67.5 million (December 31, 2010: EUR 67.7 million). Goodwill on the balance sheet was EUR 36.0 million (December 31, 2010: EUR 36.0 million). The Group's cash and cash equivalents stood at EUR 2.5 million (December 31, 2010: EUR 5.0 million). The Group's financial liabilities amounted to EUR 12.0 million (December 31, 2010: EUR 12.1 million) at period end. The total amount of uncommitted short term credit facilities is EUR 16.0 million. The equity ratio was 41.5% (December 31, 2010: 43.6%). The cash flow after investments improved and was EUR -2.2 million (1-3/2010: EUR -2.8 million). Cash flow improved despite the increased revenue and the increase in working capital that followed the revenue increase.

Capital expenditures

The Group's gross investments came to EUR 0.6 million (1-3/2010: EUR 0.4 million).

Personnel

The number of the Group's personnel averaged 1,573 (1-3/2010: 1,509) during the review period and was 1,574 (March 31, 2010: 1,500) at period end. The Group employed 619 people (March 31, 2010: 541) abroad at the end of the period.

Incentive plan for key personnel

The Board of Directors of Etteplan Oyj decided on a new share-based incentive plan for the Group key personnel in March 2011. The plan includes three earning periods, calendar years 2011, 2012 and 2013. The Board of Directors shall decide on the earnings criteria and on targets to be established for them for each earning period. During the earning period 2011, approximately 16 people belong to the target group of the plan. The earnings criteria of the earning period 2011 are the Etteplan Group´s operating profit (EBIT) and revenue.

The rewards to be paid on the basis of the plan from all earning periods 2011, 2012 and 2013 will correspond to the value of an approximate maximum total of 810,000 Etteplan Oyj shares (including also the proportion to be paid in cash).

Estimate of operating risks and uncertainty factors

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

There has been no change in the risk caused by the economic development on the whole in the review period. The risk caused by unpredicted changes in customers' business decreased during the review period compared to the previous quarter.

The company's business is based on professional personnel. The availability of competent professionals is an important factor to secure profitable growth and business. During the review period, the availability of competent personnel became more complicated in Sweden and caused an increased risk for business.

In other parts, the Group's risks have remained unchanged.

A detailed risk analysis can be found in Etteplan's annual report 2010.

Annual General Meeting

The Annual General Meeting of Shareholders of Etteplan Oyj was held at the premises of the Company in Vantaa on March 31, 2011. In accordance with the proposal of the Board of Directors' Nomination and Remuneration Committee the Annual General Meeting re-elected Tapio Hakakari, Heikki Hornborg, Robert Ingman, Pertti Nupponen, Satu Rautavalta and Teuvo Rintamäki to the Board.

The Annual General Meeting approved the Financial Statements for financial year 2010 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 fee for the auditor is paid according to invoice approved by the Company.

The Annual General Meeting authorized the Board of Directors to resolve to repurchase Company's own shares in one or more tranches using the Company's unrestricted equity. A maximum of 2,000,000 Company shares may be repurchased. The Company may deviate from the obligation to repurchase shares in proportion to the shareholders' holdings, i.e., the Board has the right to decide on a directed repurchase of Company shares.

The authorization includes the right for the Board to resolve to repurchase Company shares through a tender offer made to all shareholders on equal terms and conditions and at the price determined by the Board; or in public trading organized by the NASDAQ OMX Helsinki Ltd. at the market price valid at any given time, so that the Company's total holding of own shares does not exceed ten (10) per cent of all the shares in the Company. The minimum price for the shares to be repurchased is the lowest market price quoted for the Company shares in public trading and, correspondingly, the maximum price is the highest market price quoted for the Company shares in public trading during the validity of the authorization.

Should Company shares be repurchased in public trading, such shares will not be purchased in proportion to the current shareholders' holdings. Thus, there must be a substantial financial reason for the Company to repurchase Company shares. The shares may be repurchased in order to be used as consideration in potential acquisitions or in other structural arrangements. The shares may as well be used for carrying out Company's incentive schemes for its personnel. The repurchased shares may be kept by the Company, invalidated or transferred onwards.

The repurchase of shares will reduce the non-restricted equity.

The authorization is valid for 18 months from the date of the resolution of the Annual General Meeting starting on March 31, 2011 and ending on September 30, 2012. The authorization will replace the corresponding previous authorization.

Dividend

The Annual General Meeting passed a resolution, in accordance with the proposal of the Board of Directors, that a dividend of EUR 0.10 per share is paid for the financial year 2010. The remaining funds shall be left to the unrestricted equity. The dividend will be paid to the shareholders registered on the record date in the shareholders' register maintained by Euroclear Finland Ltd. The record date of the payment of dividend was April 5, 2011. The dividend was paid on April 12, 2011.

Shares

Etteplan's shares are listed in NASDAQ OMX Helsinki's Small Cap market capitalization group in the Industrials sector under the ETT1V ticker.

The company's share capital on March 31, 2011, 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 471,302 of its own shares on March 31, 2011. During the period under review, the company did not acquire nor dispose any company-held shares.

Outlook 2011

Current market outlook of machinery and equipment manufacturers is positive. The development of Etteplan's customers' order books influences quickly the development of Etteplan's revenue.

We expect the revenue and operating profit for the year 2011 to grow compared to year 2010.

Potential acquisitions in 2011 are not included in the estimate.

Financial information in 2011

Etteplan Oyj's interim reports will be published as follows: Second quarter results, 6 months Thursday August 11, 2011 Third quarter results, 9 months Monday November 7, 2011

Hollola, May 5, 2011

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 2010, Etteplan had turnover of EUR 104.8 million. The company currently has approximately 1,600 employees. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(EUR 1 000)	1-3/2011	1-3/2010	1-12/2010
Continuing operations Revenue	29 645	24 853	104 786
Other operating income	78	77	1 161
Materials and services	-1 943	-1 879	-9 847
Staff costs	-21 775	-18 229	-73 368
Other operating expenses	-4 465	-3 336	-15 185
Depreciation and amortisation	-381	-361	-1 494
Operating profit/loss	1 159	1 125	6 054
Financial income	78	212	761
Financial expenses	-230	-201	-758
Share of the result of associates	27	-150	-291
Profit/loss before taxes	1 034	986	5 766
Income taxes	-297	-293	-1 420
Profit/loss for the financial year, continuing operations	737	692	4 347
Discontinuing operations
Profit/loss for the financial year, discontinuing operations	0	-36	102
Profit/loss for the financial year	737	656	4 448
Other comprehensive income
Currency translation differences	54	1 077	2 620
Change in fair value of investments available for sale	4	0	139
Other comprehensive income, net of tax	58	1 077	2 759
Total comprehensive income/expense for the year	795	1 734	7 208
Income/expense attributable to
Equity holders of the company	763	647	4 422
Non-controlling interests	-26	9	27
	737	656	4 448
Total comprehensive income/expense attributable to
Equity holders of the company	813	1 717	7 159
Non-controlling interests	-18	17	49
	795	1 734	7 208
Earnings per share calculated from the result attributable
to equity holders of the parent company
Continuing operations
Basic earnings per share, EUR	0,03	0,03	0,19
Diluted earnings per share, EUR	0,03	0,03	0,19
Discontinuing operations
Basic earnings per share, EUR	0,00	0,00	0,01
Diluted earnings per share, EUR	0,00	0,00	0,01

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(EUR 1 000)		31.3.2011 31.3.2010	31.12.2010
ASSETS
Non-current assets
Tangible assets	1 854	1 476	1 625
Goodwill	36 028	32 315	36 028
Other intangible assets	903	968	967
Shares in associated companies	45	0	18
Investments available for sales	625	690	620
Other long-term receivables	4	3	4
Deferred tax assets	423	820	476
Non-current assets, total	39 882	36 271	39 738
Current assets
Trade and other receivables	25 171	20 676	22 894
Current tax assets	4	702	4
Cash and cash equivalents	2 458	3 843	5 018
Current assets, total	27 633	25 221	27 916
TOTAL ASSETS	67 515	61 492	67 653
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	2 584	2 586	2 584
Own shares	-1 958	-1 955	-1 958
Cumulative translation adjustment	107	-1 464	63
Other reserves	10 144	10 000	10 139
Retained earnings	4 533	2 788	2 312
Profit/loss for the financial year	763	647	4 422
Capital attributable to equity holders, total	27 874	24 304	29 264
Non-controlling interests	82	152	101
Equity, total	27 956	24 456	29 365
Non-current liabilities
Deferred tax liabilities	256	156	264
Financial liabilities	6 056	6 864	6 780
Non-current liabilities, total	6 312	7 020	7 044
Current liabilities
Financial liabilities	5 974	4 634	5 322
Trade and other payables	26 492	24 557	25 085
Reserves	0	810	106
Current income tax liabilities	781	15	731
Current liabilities, total	33 247	30 016	31 244
Liabilities, total	39 559	37 036	38 288
TOTAL EQUITY AND LIABILITIES	67 515	61 492	67 653
			9 (14)

CONSOLIDATED STATEMENT OF CASH FLOWS

(EUR 1 000)	1-3/2011	1-3/2010	1-12/2010
Operating cash flow Cash receipts from customers	27 379	23 600	102 248
Operating expenses paid	-29 398	-26 151	-99 027
Operating cash flow before financial items and taxes	-2 019	-2 551	3 221
Interest and payment paid for financial expenses	-137	-42	-1 582
Interest received	25	4	32
Income taxes paid	-1	-93	-166
Operating cash flow (A)	-2 132	-2 683	1 505
Investing cash flow
Purchase of tangible and intangible assets	-89	-59	-768
Acquisition of subsidiaries	0	0	-2 320
Acquisition of associates	0	-92	-113
Proceeds from sale of tangible and intangible assets	8	25	27
Loan receivables, decrease	0	0	1 065
Proceeds from sale of investments	0	1	2
Investing cash flow (B)	-81	-125	-2 107
Cash flow after investments (A+B)	-2 213	-2 808	-602
Financing cash flow
Short-term loans, increase	609	650	513
Short-term loans, decrease	0	0	-207
Long-term loans, increase	4	0	2 165
Long-term loans, decrease	-965	-834	-3 336
Dividend paid and other profit distribution	0	0	-788
Financing cash flow (C)	-352	-184	-1 653
Variation in cash (A+B+C) increase (+) / decrease (-)	-2 565	-2 992	-2 255
Assets in the beginning of the period	5 017	6 650	6 650
Exchange gains or losses on cash and bank equivalents	6	184	622
Assets at the end of the period	2 458	3 843	5 017

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Legends for table columns

• A) Share Capital
• B) Share Premium Account
• C) Unrestricted Equity Fund
• D) Other reserves
• E) Own Shares
• F) Cumulative Translation Adjustment
• G) Retained Earnings
• H) Total
• I) Non-controlling interests
• J) Equity total

(EUR 1 000)	A	B	C	D	E	F	G	H	I	J
Equity 1.1.2010	5 000	6 701	2 590	10 000	-1 949	-2 534	3 745	23 554	135	23 689
Comprehensive income
Profit/loss for the
financial year	0	0	0	0	0	0	4 422	4 422	27	4 448
Fair value reserve available-for-sale
assets	0	0	0	139	0	0	0	139	0	139
Cumulative translation
adjustment	0	0	0	0	0	2 597	0	2 597	23	2 619
Total comprehensive income/expense
for the year	0	0	0	139	0	2 597	4 422	7 158	49	7 207
Transactions with owners
Dividends	0	0	0	0	0	0	-788	-788	0	-788
Purchase of own
shares	0	0	0	0	-9	0	0	-9	0	-9
Share based
incentive plan	0	0	-6	0	0	0	10	4	0	4
Hybrid loan	0	0	0	0	0	0	-654	-654	0	-654
Changes in
ownership	0	0	0	0	0	0	0	0	-83	-83
Transactions with owners, total	0	0	-6	0	-9	0	-1 433	-1 447	-83	-1 531
Equity
31.12.2010	5 000	6 701	2 584	10 139	-1 958	63	6 734	29 264	101	29 365

(EUR 1 000)	A	B	C	D	E	F	G	H	I	J
Equity 1.1.2011	5 000	6 701	2 584	10 139	-1 958	63	6 734	29 264	101	29 365
Comprehensive income
Profit/loss for the
financial year	0	0	0	0	0	0	763	763	-26	737
Fair value reserve
available-for-sale
assets	0	0	0	4	0	0	0	4	8	12
Cumulative
translation adjustment	0	0	0	0	0	44	2	46	0	46
Total
comprehensive
income/expense
for the year	0	0	0	4	0	44	765	813	-18	795
Transactions with owners
Dividends	0	0	0	0	0	0	-1 971	-1 971	0	-1 971
Hybrid loan	0	0	0	0	0	0	-233	-233	0	-233
Transactions with
owners, total	0	0	0	0	0	0	-2 204	-2 204	0	-2 204
Equity 31.3.2011	5 000	6 701	2 584	10 143	-1 958	107	5 295	27 873	83	27 956
(EUR 1 000)	A	B	C	D	E	F	G	H	I	J
Equity 1.1.2010	5 000	6 701	2 590	10 000	-1 949	-2 534	3 745	23 554	135	23 689
Comprehensive income
Profit/loss for the
financial year	0	0	0	0	0	0	647	647	9	656
Cumulative
translation
adjustment	0	0	0	0	0	1 070	0	1 070	8	1 077
Total
comprehensive
income/expense for the year	0	0	0	0	0	1 070	647	1 717	17	1 734
Transactions with owners
Dividends	0	0	0	0	0	0	-788	-788	0	-788
Purchase of own
shares	0	0	0	0	-6	0	0	-6	0	-6
Share based in
centive plan	0	0	-4	0	0	0	6	2	0	2
Hybrid loan	0	0	0	0	0	0	-174	-174	0	-174
Transactions with
owners, total	0	0	-4	0	-6	0	-957	-967	0	-967
Equity 31.3.2010	5 000	6 701	2 586	10 000	-1 955	-1 464	3 435	24 304	152	24 456

KEY FIGURES

				Change to
(EUR 1 000)	1-3/2011	1-3/2010	1-12/2010	prev. year
Revenue	29 645	24 853	104 786	19,3%
Operating profit/loss	1 159	1 125	6 054	3,0%
Operating profit/loss, %	3,9	4,5	5,8
Profit/loss before taxes	1 034	986	5 766	4,9%
Profit/loss before taxes, %	3,5	4,0	5,5
Return on equity, %	10,3	11,5	16,4
Return on investment, % *)	12,4	13,3	17,0
Equity ratio, %	41,5	39,8	43,6
Gross interest-bearing debt	12 029	11 498	12 102	4,6%
Net gearing, %	34,2	31,3	24,1
Balance sheet, total	67 515	61 492	67 653	9,8%
Gross investments	587	389	2 538	50,9%
Earnings per share, EUR	0,03	0,03	0,19	0,0%
Diluted earnings per share, EUR	0,03	0,03	0,19	0,0%
Equity per share, EUR	1,42	1,23	1,48	15,4%
Personnel, average	1 573	1 509	1 594	4,2%
Personnel at end of the period	1 574	1 500	1 569	4,9%

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

RESERVES

(EUR 1 000)	Warranty provision	Reorganiza tion provision	Other provisions	Total
Reserves 1.1.2011	0	106	0	106
Unused amount reversed	0	-106	0	-106
Reserves 31.3.2011	0	0	0	0
Reserves 1.1.2010	187	1 198	50	1 435
Unused amount reversed	-187	-438	0	-625
Reserves 31.3.2010	0	760	50	810
Reserves 1.1.2010	187	1 198	50	1 435
Utilized during the period	-90	-220	0	-310
Unused amount reversed	-97	-872	-50	-1 019
Reserves 31.12.2010	0	106	0	106

NOTES TO THE FINANCIAL STATEMENT SUMMARY

General

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.

In 2010, Etteplan had turnover of EUR 104.8 million. The company currently has approximately 1,600 employees. 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 May 5, 2011.

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 2010 annual financial statements, but not all requirements of the IAS 34 standard for interim financial reporting have been followed in the accounting.

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 2010 annual financial statements. The annual financial statements are available at

http://www.etteplan.com/investors/annual-and-interim-reports/2011.aspx and the accounting policy is detailed on pages 28–32 of the annual report 2010. Formulas for the key figures are detailed on page 52 of the annual report 2010.

Income taxes

The taxes listed in the consolidated income statement 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 28.8%.

Risks

Etteplan's financial results are exposed to number of strategic, operational and financial risks. A description of risks can be found in Etteplan's annual report 2010 on page 66. A detailed financial risk analysis can be found in Etteplan's annual report 2010 on page 32.