China Widens Door to Software Imports as F-Secure Passes Rigid Government Evaluation of Anti-Virus Products

F-Secure Announces Formal Entry into Largest Pacific-Rim Market

Espoo, Finland - December 12, 2000

ESPOO, Finland, Dec. 12, 2000 - F-Secure Corp. [HEX: FSC], a leading developer of centrally managed security solutions for the mobile, distributed enterprise, today announced it has received clearance from the Chinese government to sell its products in that country. The announcement came hot on the heels of an arduous government evaluation in which F-Secure's anti-virus software was graded in the top tier with both Chinese and foreign products.

Mr. Risto Siilasmaa, President and CEO, F-Secure Corporation said, "China is a huge market, the largest in the Asia-Pacific region, and F-Secure welcomes the opportunity to do business here. The fact that our products ranked so high in the official government evaluation sends the sure signal that we will be a serious contender."

In anticipation of China's entry into the World Trade Organization and the emergence of foreign competition, the government is encouraging all enterprises and government agencies to implement strong measures for information security. Furthermore, the government is urging all agencies to begin doing business over the Internet, driving the increased need for security. This activity directly coincides with F-Secure's global expansion, targeting distributed enterprises and those that do business across international borders.

According to International Data Corporation estimates, Internet access in China more than quadrupled from two million to nine million people between 1998 and 1999. This rampant growth, coupled with worldwide security alerts, prompted the Chinese government to declare 2000 as "The Year of Information Security." This growth continued apace in 2000, with estimates of the yearend 2000 Asian Internet market at 23 million people. Through its regional office in Hong Kong, F-Secure has long been investing in its Asia-Pacific development, leading to the establishment of and cooperation with local strategic partners. To address the burgeoning Chinese market, the company has been participating in a complex and rigid approval process since 1999.

Mr. Siilasmaa said: "China has very stringent requirements for any foreign company wanting to do business here. The company and its business practices were evaluated by government officials in visits to our Finnish headquarters, looking into our stability and international presence. We believe that passing this type of scrutiny in less than a year bodes well for success in this demanding market."

F-Secure believes the approval of its business application by the Chinese government validates the company's readiness and strategy. Mr. Siilasmaa continued: "We are ready for this opportunity, and have no less authority than the government to certify this claim. The timing of this agreement in the Year of Information Security is especially fitting."

Aside from clearing companies' business practices, the Chinese government also conducted technology evaluations. While the top-ranked anti-virus product on the list is Chinese, F-Secure is in the top tier of four products for standalone use and only two for networked security.

F-Secure targets large organizations, including state-owned enterprises throughout China, that need a centrally managed, policy based infrastructure with integrated products. The company's integrated family of security applications comprises anti-virus, file encryption, VPN and distributed firewalls.