F-Secure grows steadily and profitably

F-Secure continues its successful growth strategy as the total revenue of the second quarter rose by 35% to a record 19.8 million euro. The operating profit increased by 88% to 2.8 million euro.

The company is the clear global leader in offering the Security as a Service concept through Internet Service Providers. F-Secure has a 36% share of the European broadband ISP market and a 25% share of the European and North American markets combined. The core strength of the company lies in the Service Platforms, a solution that beats the competition in offering the operators an easy way to sell data security services to their customers. These unique Service Platforms have enabled the fast growth in the number of new partnerships as well as increased the satisfaction levels of current partners to new heights. F-Secure has launched itself heavily into the Asian markets and started partnerships in India with the largest ISP Reliance Communication as well as with Exattnet and in Taiwan with Gamania.

F-Secure has created an innovative new consumer channel by publishing a cooperation agreement with Barclays Bank in England. The company offers a virus protection solution to Barclays’ two million online banking customers.

There are more than 300 mobile malware threats targeting the open operating system, and the company believes the number to grow steadily. This emphasizes the need for an up-to-date security solution for mobile multimedia devices. The sales of F-Secure Mobile Anti-Virus increased during the quarter signaling increased end user awareness of security threats. The close partnership between F-Secure and Nokia continues and F-Secure Mobile Anti-Virus is now available for the new S60 3rd edition devices.

F-Secure’s concern for future threats is shared by most mobile operators. The group signed an agreement with Orange Group to provide a mobile antivirus service to Orange smartphone users. The Group also announced partnerships with ONE (Austria) to offer antivirus services from ONE’s mobile portal and with Mobitel (Slovenia).

The German magazine c’t announced F-Secure as the clear winner over five other mobile data security products. The tests were conducted by AV-Test.org, an independent company specializing in testing antivirus and security products.

"Our strategy is to continue growing the virus protection and intrusion prevention business significantly faster than the industry by investing in the Security as a Service concept. Our success in the European market strengthens our belief in the concept in other geographical markets as well, which is showcased by the deals we have closed in Asia", says the company’s President and CEO Risto Siilasmaa. "We are also investing in growing the traditional distribution channels and developing an even better selection of products and services. These measures should help us reach our strategic goals and we are confident about the future."

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Financial Reporting

A press and analyst conference will be arranged today, August 1, at 11 am Finnish time at the Group’s Headquarters, Tammasaarenkatu 7, Helsinki. A conference call for international investors and analysts will be arranged at 1530 Finnish time (1430 CET, 1.30 pm UK time). Instructions can be found on our Investor Relations pages.

Quarterly report for Q3 2006 will be published on October 24 (Q3). A Stock Exchange bulletin will be sent at 9 am Finnish time to the Helsinki Exchanges, a press and analyst conference will be arranged at 11 am Finnish time in Helsinki, and an international conference call will be arranged in the afternoon. Full details will be provided later on the Group's web site.

Additional information:

F-Secure Corporation
Risto Siilasmaa, President and CEO    
tel.358 9 2520 5510

Taneli Virtanen, CFO                          
tel.358 9 2520 5655