Stonesoft focuses on its core business by selling Embe Systems Oy

Stock Exchange Release

Stonesoft focuses on its core business by selling Embe Systems Oy

STONESOFT CORP. STOCK EXCHANGE RELEASE 19.12.2006 AT 2:40 P.M

Stonesoft Corp. has today signed an agreement to sell all Embe Systems Oy´s shares to Nice-business Solutions Finland Oy.

With this deal Stonesoft further strengthens its strategy of focusing on integrated network security and business continuity by providing globally the StoneGate network security platform, which unifies firewall, VPN, and intrusion detection and prevention.

According to the signed agreement the cash consideration is for a maximum of EUR 4.65 million. The purchase price consists of a fixed purchase price and a variable purchase price, which is bound to Embe’s annual profit/loss for 2007. The fixed purchase price is EUR 3.63 million, which will be transferred to the liquid funds of Stonesoft Group at the end of 2006. Stonesoft Group will book a sales gain of EUR 2.2 million in January 2007. The sales gain is not taxable for Stonesoft Group. The title and possessor right to the shares will be transferred to the buyer on January 1st, 2007.

Embe Systems Oy is a Finnish company located in Oulu. It provides subcontractor services for mobile phone / base station research and development. The company employs 73 people. The signed agreement does not have any impact on their employments. For the fiscal year 2005 the company reported net sales of EUR 5.8 million and operating profit before extra ordinary items and taxes of EUR 0.22 million. The corresponding figures for January-September 2006 were EUR 3.9 million and EUR 0.16 million. The above-mentioned profit figures contain the group’s internal charges, which have an impact on the operating profit/loss of Stonesoft Group. The costs related to these internal charges will not fully disappear along with the deal.

Further information, please contact:

CEO Ilkka Hiidenheimo, Stonesoft Corp.
tel. +358 9 4767 11
e-mail: ilkka.hiidenheimo@stonesoft.com

CFO Mikael Nyberg, Stonesoft Corp.
tel. +358 9 4767 11
e-mail: mikael.nyberg@stonesoft.com

Stonesoft Corp.

Ilkka Hiidenheimo
CEO

Distribution

Helsinki Stock Exchange
Main media

Tuesday, December 19, 2006