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PATRIA REPORTS SOLID RESULTS

23 Apr 07. Patria Oyj Interim Report Jan-Mar 07. President and CEO, Jorma Wiitakorpi, in conjunction with the review: “The first quarter financial performance of the Group as a whole was as expected. The consolidated net sales and operating profit increased compared to the corresponding period last year despite of some delays in certain delivery projects. The implementation of the contract signed in December 2006 to deliver Patria AMV vehicles and Patria Nemo mortars to the Slovenian army has progressed as planned. Nammo completed its acquisition of Talley Defence Systems Inc. in U.S.A. at the end of March. I am confident that this acquisition will further strengthen Nammo. The outlook for the full year is mainly positive.” The value of new orders received by the Group during the review period was EUR 133.6m (2006: EUR76.4m). Defence material and maintenance accounted for 83% (73%) and civilian products for 17% (27%) of the new orders. At the end of the review period, the volume of the Group’s order stock was EUR888.0m (2006 EUR758.7m). The Group’s net sales for January – March totalled EUR 121.8m (2006: EUR90.4m). Defence material and maintenance accounted for 88% (82%) and civilian products for 12% (18%) of the net sales. Sales outside Finland accounted for 43% (46%) of the net sales. The Group’s operating profit for January – March was EUR 5.7m (2006: EUR1.1m), representing 4.6% (1.2%) of the net sales. The consolidated income before taxes amounted to EUR 5.6m (2006: EUR 0.9m). The Group’s equity ratio was 58.7% (60.2%) and net gearing -6% (-15%). Consolidated liquid funds at the end of the review period amounted to EUR48.5m (2006: EUR 63.7m). The Group’s interest-bearing liabilities
totalled EUR 35.7m (2006: EUR33.2m) at the end of the review period. The interest-bearing liabilities included finance lease liabilities of EUR 25.3m (2006: EUR 26.5m). The shareholders of Patria Oyj are the State of Finland with a 73.2% stake and the European Aeronautic Defence and Space Company EADS N.V.
(EADS) with a 26.8% stake.

The Group’s gross capital expenditures, excluding acquisitions, totalled EUR2.9m (EUR 2.6m).

Research and development

The Group’s expenditure on research and development during the review period amounted to EUR 9.7m (EUR 12.5m), representing 8% (14%) of the net sales. The most significant research and development areas included development of new generation mortar systems and armoured wheeled vehicles.

Personnel

During the review period the Group employed an average of 2 490 (2 399) persons. At the end of the review period the personnel totalled 2 499(2 392).

Business Segment Review

Land Solutions Business Segment develops and delivers armoured wheeled vehicles, mortar systems, ammunition products and their life cycle support services. Main products are Patria AMV vehicles, as well as Patria Nemo and AMOS mortar systems. The Business Segment’s success is based on extensive expertise on technology and total solutions, full-scope life cycle support and partnerships.

The Business Segment’s net sales for January – March amounted to EUR 92.8m (EUR 57.2m). The operating profit was EUR 5.7m(EUR 1.5m), representing 6% (3%) of the net sales.

The increase in the net sales and operating of the Business Segment compared to the corresponding period last year resulted from both the Vehicles Business Unit and Nammo. Nammo completed its acquisition of Talley Defence Systems Inc. in U.S.A. at the end of March.

Systems and Services Business Segment offers competitive maintenance, repair and modification solutions for helicopters and military aircraft. The Business Segment also supplies pilot training and provides systems for command and control, and situational awareness as well as systems integration and support. Systems and Services builds its success on leading expertise, advanced solutions and long-term partnerships.

The Business Segment’s net sales for January – March amounted to EUR 22

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