F-Secure Group's Financial Results January 1 - December 31, 2002

Helsinki, Finland - February 13, 2003

Highlights (comparisons made to the same period one year ago):

- The operating result improved and was EUR 0.7m positive in Q4 (0.8m negative), 1.7m negative for the full year (12.2m negative)
-Cash flow 1.7m positive for Q4, 3.6m positive for the full year -Revenues 9.9m for the fourth quarter (down 11%), 38.5m for the full year (down 8%). This represents an increase of 3% from the previous quarter and a decrease of 11% from the fourth quarter of 2001.
- For the full year 2002 revenue was 38.5 million euros, representing a decline of 8% from 2001.

The anti-virus business remained stable with an annual growth of revenues of 4% in 2002 compared to 2001. The number of anti-virus service subscriptions grew with an accelerating speed towards the end of the year. However, in Q4 anti-virus revenues declined by 8% compared to 4Q01. The encryption business declined by 15% in 2002 compared to one year ago.

Business In Brief

Security software spending remained cautious during the entire year, especially at the higher end corporate market. New license sales were weak in all other areas than anti-virus for consumers and small businesses. However, maintenance and support sales to existing customers remained strong.

During the year the Group continued to develop new business in the handheld and wireless content security space and signed a number of key partnership contracts with leading vendors Fujitsu-Siemens, Hewlett-Packard and Nokia. However, the overall demand for handheld devices has continued to remain low compared to the market expectations a year earlier. The impact can be seen in the slow ramp-up of revenues in this business area.

Security as a Service

The Security as a Service business (service subscriptions through ISPs) advanced further as key service provider partners in France and Sweden started promoting their anti-virus and firewall services during 2002. The business grew well, and Q4 was the seventh consecutive quarter of more than 20% quarter-to-quarter growth of subscriptions. Service subscriptions accounted for 9% of anti-virus revenues in the fourth quarter and 7% of the anti-virus revenues for the full year.

Product Leadership

The F-Secure Anti-Virus 5.40, released in Q2, has been deployed by most customers and received very positive feedback. During the recent virus outbreaks the Group has shown very fast virus detection and removal times compared to other players in the industry. This has created significant savings to F-Secure customers. The product was granted the VB100 award for 100% virus protection by the Virus Bulletin magazine and the West Coast Labs' Checkmark Level 1 and Level 2 certifications.

“One of our goals for 2002 was to reach a positive quarter. Through an unrelenting process in search of profitability we have crept step-by-step closer to a positive operating profit. We finished 2002 by reaching this important milestone and showing a 7% profit. This is the result of a strong team that has learned to work well together through overcoming difficult market conditions and constant need to cut costs”, says Risto Siilasmaa, President and CEO of F-Secure Corporation.

Financial Reporting

A press and analyst conference will be arranged today, February 13, 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 at http://www.europe.f-secure.com/investor-relations/.

For full stock exchange release, please visit: http://www.Europe.F-Secure.com/investor-relations/news/

The Annual Report will be published on March 18. Annual General Meeting will be held on March 26. Quarterly reports for 2003 will be published on April 29 (Q1), August 5 (Q2) and October 30 (Q3).

Additional information:
F-Secure Corporation
Risto Siilasmaa, President and CEO     tel.358 9 2520 5510
Markku Pirskanen, CFO                       tel.358 9 2520 5606