Innofactor Plc — Capital/Financing Update 2011

Mar 31, 2011

Noting in the acquisition cost calculation the Innofactor Plc's losses confirmed in the taxation

Noting in the acquisition cost calculation the Innofactor Plc's losses confirmed in the taxation

Innofactor Plc Stock Exchange Release March 31, 2011, at 9:00 Finnish time

The Innofactor Plc financial statement on March 1, 2011, stated as follows:"Innofactor Plc has about EUR 38 million of losses confirmed in the taxation
for years 2001-2008 and these have so far not been taken into account in the
acquisition cost calculation and, thus, no imputed tax receivable has been
registered for them. According to IFRS 3, the acquisition cost calculation can
be revised and the imputed tax receivables entered within 12 months of the
acquisition. For the above mentioned reasons, the acquisition cost calculation
is preliminary."

The Large Taxpayers' Office has given a preliminary notice on the matter,
according to which "Innofactor Plc (former Westend ICT Plc) may deduct its
previously confirmed losses in the circumstances described in the application."
The Tax Recipients' Legal Services Unit has stated that "if Innofactor Plc
taxation is done in the manner indicated in the preliminary information, the
Unit will not use the right of appeal on behalf of the tax recipients."

Due to the preliminary notice of the Large Taxpayers' Office, Innofactor Plc
will update the acquisition cost calculation related to the reverse acquisition
of Westend ICT Plc during the second quarter of 2011 at the latest. It is
probable that a major portion of the business value generated by the
acquisition will be allocated to the imputed tax receivable.

INNOFACTOR PLC

Sami Ensio

CEO

Additional information:

Sami Ensio
CEO
Tel. +358 50 584 2029

Distribution:

NASDAQ OMX Helsinki
Main media
www.innofactor.com