F-Secure continues solid growth and good profitability for Q1 of 2008

The strength of the service-based business again yields strong results for the company

F-Secure Corporation continues its steady growth and increased its revenue by 15% during its first quarter of 2008. The company’s quarterly revenues reached an all-time high of 26.6m€. The strategically important Internet Service Provider business grew by 8% compared to the fourth quarter of 2007, and 41% year over year. Profitability remained on a good level with an EBIT of 5.3m€, representing 20% of revenues.

The company’s long-term strategy of making data security available as a service continues to be successful. F-Secure now partners with 169 Internet Service Providers (ISP’s) around the world, and is the clear leader in this globally growing segment of the Internet security market. At the end of 2007 F-Secure security services were available through ISP partners that cover 37% of all broadband subscribers in Europe, 10% in North America, and 9% in Asia-Pacific region. The service-based business model with ISP’s is repeatedly proving its strength and now represents 41% of the company’s revenues, up from 34% in the same quarter last year.

The protection of smartphones is another strategic growth opportunity for F-Secure. In Q1 the company continued expanding its co-operation with both handset manufacturers and mobile operators, both of which are key in making mobile security available to end-users. In addition to the continued good co-operation with Nokia, the company announced new partnerships with Sony Ericsson on a global basis and with Toshiba Information Systems in Europe to provide security solutions for the smartphones these companies deliver. Mobile operators are also increasingly interested in the service, and a new partnership was announced with CSL, the largest mobile operator in Hong Kong.

"It is encouraging to see that our long-term investment in the ISP business continues to drive our growth in a sustainable fashion", said Kimmo Alkio, President and CEO of F-Secure Corporation. "We have good confidence in our ability to reliably protect an increasing amount of Internet and mobile users around the world", he continues.

For more information, please contact:

F-Secure Corporation

Kimmo Alkio, CEO,
Tel. +358 9 2520 5500

Taneli Virtanen, CFO,
Tel. +358 9 2520 5655

Jukka Kotovirta, Investor Relations,
Tel. +358 40 588 3933

Email: firstname.lastname@f-secure.com