Interim ReportJanuary-September 2000

November 8, 2000

Elisa grew faster than the market

Elisa Communications’ 3Q key figures

Revenue EUR 899 million (EUR 756 million), rising 19 %

EBIT EUR 154 million (EUR 78 million), rising 99 %

Pre-tax profit EUR 136 million (EUR 74 million), rising 84 %

Excluding the profit of sales of Comptel shares

EBIT EUR 96 million, rising 23 %

Pre-tax profit EUR 78 million, rising 5 %

Revenue and EBIT Breakdown 3Q/2000

Revenue breakdown

Mobile48 %

Fixed40 %

Others12 %

Mobile62 %

Fixed30 %

Others**8 %

EBIT breakdown*

* excl. the sales profit of Comptel shares** excl. group costs (EUR 13m)

Radiolinja’s Market Share Growing

Radiolinja Group’s 3Q key figures

Radiolinja Group’s revenues amounted to EUR 455 million, rising 23%

Radiolinja’s subscriptions totalled 1,395,010, including 1,276,970 in Finland and 118,040 in Estonia

Radiolinja’s share of GSM subscriptions in Finland was app. 37% and the share of all mobile subscriptions 36%. For major customer sector, corresponding share was almost 50%

Radiolinja’s market share continued to grow, the share of net additions was about 43%

ARPU was EUR 40/month (38), 1Q/2000 EUR 40/month, 2Q/2000 EUR 41/month, 3Q/2000 EUR 40/month

Churn (annualised) was 12.0% (14.4)

Value added services generated 10% of revenues

Radiolinja Group Jan-Sep

EBITDA, EURm 138% of net sales 30Adjusted EBITDA, EURm* 179% of net sales 39ARPU, EUR/month 40Churn, % 12Call minutes, billion 1.3Call minutes/subscription/month 114

*adj. with leasing payments

ARPU (EUR/month/subscription)

44

42

38 3840

4140

20

30

40

50

1996 1997 1998 1999 1Q/00 2Q/00 3Q/00

Churn (annualised), %

8,07,0

9,0

13,6 13,7

11,6 11,5

0

2

4

6

8

10

12

14

16

1996 1997 1998 1999 1Q/00 2Q/00 3Q/00

Latest in Mobile Services

New SMS based services

Radiolinja and Riot E, a Finnish wireless entertainment company, brought mobile games based on 20th Century Fox movies to Radiolinja’s customers

Leisure time and entertainment services: Forum, Dating, Relationships etc.

A new e-billing service for business customers

Radiolinja and ABB Control Oy introduced eNäpsä!, a new integrated electricity distribution, control and monitoring system for homes

Fixed Network and e-BusinessBroadband and Value-Added Services

By the end of 3Q, the total number of subscriptions was 730,931 (724,714). The number of ISDN subscriptions was up 32%, amounting to 200,741.

New subscription prices and call rates on July 1, 2000

The number of ADSL subscriptions doubled in 3Q, amounting to approx. 2,700

Internet-traffic volume up 46%, share of total traffic 40%

Datatie launched new LanPlus service package; LAN service solution

Kolumbus introduced new ASP services: a Web based document management system and an ADSL based Kolumbus service for SMEs

Kolumbus launched a new portal and the new Kolumbus Surf service exclusive of monthly charges

Kolumbus introduced the new Hotelli Kultakala (Hotel Goldfish) service application (3D chat)

Directory Media business will be incorporated in the beginning of 2001

Fixed Network and e-BusinessBroadband and Value-Added Services

Other OperationsHighlights

Comptel’s net sales continued to grow intensively:

net sales EUR 43 (27) million, up 60%

operating profit EUR 17 million, up 94%

export up 66%, amounting to EUR 29 million

Comptel Chinchilla, a new mediator product, was introduced in September

Mäkitorppa Group’s sales developed favorably

sales of terminal equipment increased in all markets

subscription sales grew strongly on the corresponding figure for last year in the domestic market

subscription sales quadrupled in Estonia

in Germany, subscription sales almost tenfold compared to previous year’s figures

Kama Store Oy, a chain of stores strongly targeted at the youth market, started operations

EPStar Oy acquired Omnitele’s broadband technology

related consulting business

Elisa Research Center founded a competence center in

Tampere. Research there focuses on new technologies

and other new areas of research.

Elisa Research Center implemented a WLAN, which

enables top-speed internet connections from all the hotel’s

premises, at the Seaside Hotel in Helsinki

Other OperationsHighlights

Germany: Elisa’s strategic market

A leading industrial country in the heart of Europe

The German telecom market approx. 15 times that of the Finnish

Germany has 13 cities the size of Helsinki, with over 500,000 inhabitants in each

Elisa’s German operations offer significant growth potential for the whole Group

•1995 1998 1999 2000 2001

Consulting

Project consulting and technical support services

Acquisition of minority interests

Consolidation

An operator providing value-added services

Elisa in Germany

Consulting business (city carriers and MobilCom, amongst others) More market know-how through consulting and technical support

services Acquisition of minority interests in city carriers Consolidation Focused customer segments Expansion from local to national services supported by the national

backbone Provider of added value to customers

Strategic Basis for Business

Building a local multi-brand presence, based on strong customer relations, through city carriers and the Mäkitorppa chain

Creating a high quality national service brand with Elisa’s value-added products and services

.... ....

German Operations Elisa Kommunikation GmbH acquired the entire share capital

of Pulsaar GmbH

Elisa Kommunikation GmbH’s share capital raised to EUR 110 million

Mäkitorppa had 21 stores at the end of 3Q, and the number is estimated to rise to about 40 by the end of the year

Combined net sales of German subsidiaries and associated companies are estimated to reach EUR 135 million in 2000, of which EUR 7 million were consolidated in the Group’s net sales

Elisa Kommunikation sub-group’s effect on January-September operating profit EUR -8 million and on net result EUR -15 million

The loss generated by Elisa Kommunikation GmbH in 2000 is expected to amount to EUR 25 million

Düsseldorf

Berlin

Frankfurt/MainOffenbach

HanauMainz

Essen

Leverkusen

Oberhausen Halle

Jena

PotsdamHannover

Saarbrücken

Dresden

Münster

Wuppertal

Bremen

Bremerhaven

Rostock

Leipzig

Group Income StatementElisa Communications Group

EURm 1-9/ 00 1-9 / 00 adj.* 1-9 / 99** Growth**

Revenue 899 899 756 19 %

EBITDA 286 228 177 29 %

EBITDA margin 32 % 25 % 23 %

Depreciation 109 109 91

Goodwill depreciation 23 23 8

EBIT 154 96 78 23 %

EBIT margin 17 % 11 % 10 %

Pre-tax Profit 136 78 74 5 %

Net Profit ** 71 30 36 -17 %

EPS, EUR 0,57 0,24 0,30 -20 %

CEPS, EUR 1,63 1,30 1,12 16 %

Diluted no. of shares, million 124,5 124,5 120,4

*Excl. Comptel’s sales profit (EUR 58m)** Comparable

Revenue, EURm

756374

430

781

1068

899

0

400

800

1200

1996 1997 1998 1999 1-9/00

Pre Tax Profit, EURm

741932

79

210*

136*

0

50

100

150

200

250

1996 1997 1998 1999 1-9/00

*incl. one-time items

Fixed Asset Investments, EURm

148

99

120

221 222

158

0

50

100

150

200

250

1996 1997 1998 1999 1-9/00

Equity Ratio, %

42

53

605754

0

20

40

60

80

1996 1997 1998 1999 30.9.2000

Post-Fiscal Events

Elisa Communications Corporation’s Extraordinary Meeting on October 20, 2000, decided to offer a bond loan with warrants to Elisa Group’s personnel and to grant authorization to increase the share capital

Radiolinja applied for Lithuania’s third GSM 900 license in October 2000

Radiolinja to cooperate with Nokia in the development and distribution of mCatch positioning system services

Radiolinja launched a new Tilausviesti (Message-on-demand) service (e.g. STT’s news services)

Hotelli Kultakala (Hotel Goldfish), the new Kolumbus portal service application, won the 1st prize in Markkinointi&Mainonta (Marketing&Advertising) magazine’s competition for new media

Elisa Business Line (customer services for SMEs) is expanding its operations to cover all of Finland

www.0100100.com e-directory service introduced a new 0100100 directory assistance service

Future Outlook

Growth prospects better than the average in the sector. Revenues for the year are expected to amount to app. EUR 1.27 billion, an increase about 19%

EBITDA margin is estimated to improve slightly on the comparable figures for the previous year

The company management expects EBIT to amount to about EUR 140 million for 2000, and with profit of sale of Comptel shares close to EUR 200 million

Profitability (EBIT-%) in 4Q is expected to be better than in 3Q

Pre-tax profit is estimated to be lower than last year, owing to increases in depreciation on consolidated goodwill and investments in the German operations in 2Q and 3Q

The growth of the Group is estimated to clearly exceed the industry average in 2001

Appendix

Mobile Revenue EBIT InvestmentsRadiolinja 455 95 230group bookings -23 -24 -156Total 432 71 74share of associated companies -1,0

Fixed Network Revenue EBIT InvestmentsElisa Communications 380 176 71Datatie 76 4 26FinnetCom 11 -1 1group bookings -105 -89 -22Total 362 91 76Sales of Comptel shares 58share of associated companies 6

Others Revenue EBIT InvestmentsComptel 43 17 3Mäkitorppa Group 66 -1 5Heltel 26 2 1Elisa Kommunikation GmbH 7 -8 1Other companies 2 0group bookings* -39 -16 -2Total 105 -6 8share of associated companies -8

Elisa Group 899 154 158Sales of Comptel shares 58share of associated companies -3,0

* Group bookings incl. group costs EUR 13 million

Revenue, EBIT and Investments Breakdown3Q (EURm)

Development of ISDN and ADSL Channels

* sales started November 1,1999

9/00 9/99 Change -%

ISDN channels 200 741 151 658 +32,4 %

ADSLchannels*

2 659 0

PSTN andothers

528 211 573 056 -7,8 %

Total 730 931 724 714 +0,9%

Development of Revenue by Quarters

EURm

171

200224

244 236256 266

313294 299 306

0

50

100

150

200

250

300

350

1Q/98 2Q/98 3Q/98 4Q/98 1Q/99 2Q/99 3Q/99 4Q/99 1Q/00 2Q/00 3Q/00

Personnel

3736 3814

4589

5489

6120

0

2000

4000

6000

8000

1996 1997 1998 1999 1-9/00