F-Secure Grew Faster Than All The Other Antivirus Vendors On The Market

F-Secure is again the fastest growing antivirus company in the world with an antivirus and intrusion prevention revenue growth rate of 50% for the whole year of 2004

F-Secure has again proven to be the fastest of the AV companies: fastest in growth, and fastest in responding to new viruses and threats. The reliability of the company’s protection service is being matched by sustained financial performance with revenues of 12.6 million euros for the 4th quarter of 2004 and 47.3 million for the full year. The operating result was EUR 1.8 million positive for the fourth quarter and for the full year of 2004 the operating result was EUR 6.8 million positive.

Antivirus and intrusion prevention revenues increased by 50% to a record level of 40.9m. However, sales grew even stronger that can be seen in growth of deferred revenues in balance sheet. The reason for the accelerating sales growth is strong channel execution, an extensive and well-received product portfolio and a healthy marketing investment. The fact that F-Secure was the fastest growing company worldwide in the anti-virus business during 2004 is a strong indication of the competitiveness of the company’s products and business.

Corporate customer revenues were 28.1m (22.6m), representing 69% of the anti-virus and intrusion prevention business. Revenues through the service provider channel were 8.6m (3.5m), representing 21% of the anti-virus and intrusion prevention business. Annual growth in this segment was 137%. The consumer revenues were 4.1m (0.9m), representing 10% of the anti-virus and intrusion prevention business. The revenue growth rate was very high (335%) as this is a relatively new segment to the Group. Handheld and wireless security revenues represented less than 1% of the anti-virus and intrusion prevention business.

The Group’s newest product releases have further continued to enjoy success in the industry press. F-Secure Internet Security 2005 has performed extremely well and won numerous comparative reviews in leading magazines (e.g. PC Pro in UK, PC Magazine in Italy, c’t in Germany). In addition, F-Secure was selected to receive the 2004 Frost & Sullivan Technology Innovation Award. The award comes in recognition of F-Secure’s pioneering anti-virus solutions in mobile security.

Security as a Service was launched successfully in North America where the key partners were Charter Communications (US), Insight Communications (US), Cogeco Cable (Canada) and Shaw Communications (Canada).

“The Group’s key goal is to continue to grow its anti-virus and intrusion prevention business faster than the industry. This will be achieved through a wide channel in the key European markets and an increasingly comprehensive product offering, including for instance antispyware,” says Risto Siilasmaa, President and CEO of F-Secure Corporation. “2005 is expected to be a significant year for Security as a Service, both with consumer and corporate end customers. The Group is well positioned to benefit from the overall development with a comprehensive, leading product offering and an ever-stronger position with service providers in Europe and North America.”

“F-Secure already has six consecutive quarters of growth and profitability behind it with strong execution through a strengthening channel and a revitalized brand awareness campaign. The company also continues to display thought-leadership outside its anti-virus core competence area – e.g. in such thriving markets as mobile security and Managed Security Services (MSS). From a customer perspective, F-Secure’s track record of very quick response rates to newly emerging threats is of utmost importance. This has a significant effect on the quality of service and protection a security company is able to deliver,” says Thomas Raschke, Program Manager for IDC’s European Security Products & Strategies research service.

Financial Reporting

A press and analyst conference will be arranged today, February 15, 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/

Quarterly reports for 2005 will be published on April 26 (Q1), August 2 (Q2) and October 25 (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.

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