F-Secure Group's financial results January 1-June 30,2003

Helsinki, Finland - August 6, 2003

For the second quarter of 2003, F-Secure reported revenues of 9.1 million euros. This represents the same level as for the previous quarter and for the second quarter of 2002. The operating result was EUR 0.4 million negative for the second quarter (1.4 m negative in 2Q02).

The anti-virus revenues continued to increase at a steady rate, by 6% in the second quarter. The Security as a Service business (service subscriptions through ISPs) grew steadily and the second quarter of 2003 was the 9th consecutive quarter with approximately 20% growth. Related revenues grew by 131% in the first six months. The encryption business declined by 14% in the second quarter.

New Security as a Service partners during the second quarter were Glocalnet and Eesti Telefon (Estonia). Glocalnet is the 3rd largest ISP in Sweden. This further increases F-Secure’s market share in Sweden as the Group is already offering security services through Telia. The Group launched the Security as a Service concept in the North American market in May. Other new customer wins were Saudi Aramco, the world’s largest oil company, Microsoft MSN, Alma Media, and the Finnish Parliament.

The Group launched a new retail channel to consumers in cooperation with a pan-European software re-publisher WSKA in Germany, France and the UK. The cooperation provides access to key retail chains such as Media Markt, Carrefour and Dixon’s. Still the Group’s main focus remains the small and medium businesses (SMB) sector. Similar partnerships will be developed in other territories.

The Company’s virus scanning and protection system F-Secure Anti-Virus was given the VB100 award for the third time in a row by Virus Bulletin magazine. The independent test results of the Virus Bulletin magazine demonstrate once again that F-Secure is the technology leader in virus protection.The French Décision Micro & Réseaux gave the product highest points for performance. In addition, The Virus Test Center of the University of Hamburg ranked F-Secure’s detection rates to be excellent in all categories together with only one other vendor.

The F-Secure Internet Gatekeeper anti-virus gateway product for web and email traffic was introduced in Q2.

Key events after the end of the reporting period

During Q3 F-Secure Group will launch its most important product for the year. F-Secure Anti-Virus Client Security product contains anti-virus, email scanning, firewall, intrusion detection and application control in one single package. This product provides complete protection and prevents security threats such as the one caused by the July 2003 RPC vulnerability in Microsoft Windows. Experts agree that this hole is among the most serious ever seen and it affects tens of millions of computers around the world.

The first shipments of the F-Secure Mobile Filter, which is content security solution for wireless download systems, were made in Q3.

“In 2003 our key goal is to grow the anti-virus business faster than the industry in the European Small and Medium Businesses and consumer market. Our excellent Security as a Service concept, new products introduced and increasing the number of reselling partners will support our efforts in this challenging business environment”, says Risto Siilasmaa, President and CEO of F-Secure Corporation.

Financial Reporting

A press and analyst conference will be arranged today, August 6th, 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 15.30 Finnish time (14.00 CET, 1.00 pm UK time). Instructions at: http://www.europe.fsecure.com/investor-relations/

The quarterly report for the third quarter of 2003 will be published on October 30th. 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, Director of Finance    tel.358 9 2520 5655