News

GROWTH ACCELERATED TOWARDS YEAR-END

The growth rate of the SSH Communications Security Group continued to be
strong throughout the entire fiscal period 2000 and consolidated net sales
grew to 15.6 Meur. The fiscal year 1999 covered nine months, in comparison
with that period the growth of sales was 185.3 %. The company’s product
development focus remained strong, the addition of over 50 new R&D
professionals. Most of the R & D expenses were expensed in the period. 
These totalled 7,1 Meur (1999:1,2 Meur).

- Consolidated net sales grew by 185.3 % and came to 15.6 Meur. Three
quarters of net sales were generated outside Finland.
- SSH enjoyed continued strong success in its biggest market, the US. This
situation also continued steadily through the last quarter of the year.
- In the last quarter, a record number of 12 new license deals with a value
in excess of 50,000 euros each were concluded, half of these were royalty
based.
- The fourth version of the popular IPSec Express-toolkit product, which
now also supports the Internet IPv6-protocol, was launched in October.
- A major IPSec-licensing and framework agreement with Intel was launched 
in November.
- A license agreement with Nokia Networks was launched in November. Nokia
will use the SSH IPSec-, NAT Traversal- and TLS-technology in its
DSL-products (Digital Subscriber Line)
- A new Secure Shell version for Windows NT-servers was launched in early
December. In January, 2001 interfaces for the major authentication systems
were added to the Secure Shell.

MARKETS AND MARKET POSITION

The total market for Internet security is expected to grow from the 3
billion USD-level of 1999 to some 9 billion USD by the year 2003. Growth
focuses particularly strongly on areas with a growth potential 
significantly superior to the in themselves fast growing current 
applications. The data security market in the US is the biggest in 
the world - its share of the total market is estimated at around 40 %. 
In the future, however, the relative share of Europe and Japan will 
grow.

SSH is well positioned on the key markets for data security. In Silicon
Valley, Palo Alto, 28 SSH-experts were engaged in sales, technical support
and local marketing at the end of the year 2000. Personnel there quadrupled
during the year. In April a new subsidiary was opened in Japan, which
concluded two major license deals by December. A product development unit
was set up in Kuopio at the beginning of the year. The unit focuses on the
application of IPSec-technology for work stations and mobile terminals. 
The first product launches were carried out in the summer of 2000.

During the year, SSH concluded a large number of new licensing and
cooperation agreements which will boost growth and market coverage.

NET SALES AND RESULTS

SSH Communications Security consolidated net sales in the fiscal year 2000
rose to 15.6 Meur. In the nine-month fiscal period of 1999 sales were 5.5
Meur. The increase is 185.3 %. In total sales the share of North America 
was 46,3 %, of Finland 26.8 %, of Other Europe 23.2 % and of 
other markets 3.7 %.

Out of the total sales figure around 64 % came from one-time license
payments and around 36 % from royalty payments with advance payments and
related annual maintenance fee income related to these.

The Group is focused in one business sector and therefore does not provide
segment information on net sales and operating profit.

The strong development input, the boosting of Group personnel by 117 
people and the dedicated internationalization process affected the 
operating profit. Personnel expenses almost quadrupled in comparison 
with the previous fiscal year and came to 7.8 Meur, or about 50 % of 
net sales.

The operating result was -1.7 Meur in comparison with +2.2 Meur in the
previous fiscal period. A number of one-time expenses have been entered in
the accounts for the year 2000. These consisted i.e. of new office startup
costs and exceptionally active recruitment of key personnel in all business
locations. The one-time expenses totalled 0.7 Meur and they were fully
expensed in the income statement. The listing one time expenses in December
were 1.6 Meur. The net result for the period was -2.5 Meur (1999: +1.1
Meur).

PROFITABILITY

SSH Communications Security´s return on investment (ROI) was -2.35 % (1999:
28.4 %) and return on equity (ROE) -2.51 % (1999: 14.31 %). Earnings per
share were -0.04 euros (1999: 0.07 euros) and equity per share at the 
end of December was 1.96 euros (1999: 0.65 euros).

BALANCE SHEET AND FINANCING

The balance sheet total at the end of the year 2000 was 59.3 Meur in
comparison with 17.6 Meur at the same time the year before. The almost
tripling of the balance sheet was due to the share issues (the personnel
issue and the Helsinki Exchanges listing issue). The Group´s strong
financial position boosted interest income which rose to 0.9 Meur (1999:
0.09 Meur).

Cash and cash equivalents at the end of the fiscal period stood at 51.0 
Meur (1999: 15.7 Meur) and accounts receivable were 5.0 Meur 
(1.5 Meur). The ratio of cash and cash equivalents to the balance 
sheet total was 86.2 % on the balance sheet date.  Equity grew 
to 54.3 Meur which meant that the equity/aseets ratio grew to 93.0 % 
(86.9 %).

At the end of December net gearing, which illustrates indebtedness,
was -94.16 Meur (-102.9 %). With the exception of a small equity loan the
Group has no interest-bearing debt.

PERSONNEL

At the end of fiscal year 2000, total Group personnel was 172 , compared to
55 at the end of FY 1999 of 55.  During the year the average number of
employees was 130, compared with 43 the previous year. In 2000, SSH
Communications Security Corporation personnel grew by 117 people. Of total
personnel, approximately 46 % are engaged in research and development
activites.

RESEARCH AND DEVELOPMENT

SSH Communications Security focuses increasingly on  the developing and
marketing of Internet data security products. The scope was broadened both
with respect to products and markets by starting up end-user sales. 
Entirely new products were introduced and a number of product 
improvements launched.

The major new expense area, was the expansion of data security product
development for the virtual networks of companies and organizations,
wireless IP-based networks and network administration. SSH is actively
developing data security solutions for the wireless Internet and the third
generation mobile networks.  This development investment, which includes a
significant portion of outsourced product development, has temporarily
raised the company´s product development expenses to a record level, 
as highas 45.2 % of net sales. In 1999 the corresponding input 
came to 21.9 % of net sales.

SSH developed and launched the first technology and program which solve the
security issues raised by the Internet IPv4 address translation (Network
Address Translation, NAT). SSH NAT Traversal was introduced in September 
and it immediately attracted good demand.

PERSONNEL ISSUE

The Extraordinary General Meeting on June 28, 2000 decided to 
direct a share issue to the company´s personnel in Finland. The 
pre-emptive rights of shareholders were waived to make it possible 
for personnel, who have a decisive role in the success of the 
company, to engage themselves also in the role of owners. In the 
same connection the holders of warrants were offered the alternative 
to cancel these in favour of a corresponding number of new shares. 
In the share issue, which was carried out in the period June
29-July 7, 2000 the company´s equity grew by 17.7 Meur.

SHARE ISSUE AND SALE, LISTING

In December 2000 SSH Communications Security Corporation arranged 
a share issue and sale whereafter the company listed on the main 
list of the Helsinki Exchanges. In the share issue and sale shares 
were sold to domestic and international institutional investors 
and to the public in Finland. In the share issue and sale a total of 
2,250,000 shares with a nominal value of 0.03 euros were offered 
at a price of 16.00 euros per share. The share  issue was seven-fold 
oversubscribed. As a result of the issue SSH´s equity grew by 24.2 Meur. 
The listing issue brought SSH around 7,000 new shareholders. 
The SSH share was quoted on the Helsinki Exchanges main list 
for the first timeon December 22, 2000. Its trading symbol is SSH1V, 
ISIN-code FI0009008270and round-lot 50 shares.

The ten largest shareholders of SSH Communications Security Corporation 
on December 31, 2000 were the following:

Owner	Number of shares	%
1. Applied Computing Research(ACR)Oy	17,102,400	62.01
2. Kaukonen, Kalle	852,000	3.09
3. Nixu Oy	520,000	1.89
4. Promotion Capital I Ky	480,000	1.74
5. Merita Bank	474,650	1.72
6. Mattila Samuli	469,310	1.70
7. Varma Sampo Mutual Pension
   Insurance 	400,900	1.45
8. Markula Jussi	382,297	1.39
9. Ilmarinen Mutual Pension Insurance 	333,300	1.21
10.Evli-Select Investment Fund	288,900	1.05

 _______________________________________________________
Total	21,303,757	77.25
Other shareholders	6,274,242	22.75
_______________________________________________________
Total number of shares	27,577,999	100.00
Nominee-registered shares	552,850	2.00

CAPITAL LOAN

The company has one capital loan. The loan amount is 0.245 Meur, the 
loan period is 8 years and the lender is The Foundation for Promotion 
of Finnish Technology, TEKES.

ANNUAL GENERAL MEETING 2000

SSH Communications Security Corporation´s Annual General Meeting 
was held on April 11, 2000. Tatu Ylönen, Chairman, George Adams, 
Martti M Kaila, Arto T Karila, Markku Kangas and Vesa Sorasahi 
were elected Board Members. The AGM adopted the Financial Statements 
for 1999 and the Board´s Proposal for theAllocation of Profit, 
according to which no profit was distributed for the year 1999.

AUTHORIZATIONS


The Board carried out the listing issue based on the authorization 
to raise share capital provided by the AGM. The Board also used 
this authorization to grant new warrants (according to the authorization 
the Board may offer a maximum of 2,291,000 new nominal value 
0.03 euro shares at a price set by the Board and otherwise on 
terms decided by the Board).

The Board was also authorized by the AGM to grant 1,200,000 new 
warrants with a separate authorization. Based on this authorization 
to grant new warrants the Board has also granted 42,000 warrants 
with a subscription price of 6.50 euros within the execution 
period November 1, 2000-November 1, 2010.


AGREEMENTS

SSH Communications Security and F-Secure concluded a new license 
and sales agreement for the SSH Secure Shell product in October 
2000. According to this agreement, both F-Secure and SSH have 
the right to sell the Secure Shell products through their own 
channels with their own brands.  According to the agreement SSH is 
responsible for the further development of the Secure Shell technology. 
The companies cancelled the previous exclusive license agreement, 
and replaced it with this new one. This agreement remains in force 
for three years, whereafter it is cancelled in stages considering
that F-Secure has the responsibility to pay royalties to SSH for 
as long as it licenses and sells Secure Shell based products.

PROSPECTS

SSH enters the year 2001 from a good position; its products are 
competitive and its markets display demand and growth. SSH’s research 
and development team has been able to supply the market with 
new products in a well-balanced manner with short lead-times. 
The company has several significant new launches in the pipeline 
for the first half of 2001.

Net sales are expected to continue growing rapidly during the 
current fiscal period and the objective is to achieve annual 
growth of 110-150 % depending on the market demand and the acceptance 
of the new products. The bulk of growth is expected to come from 
the IPSec- and Secure Shell product families. In the ongoing 
year the increase in personnel will be modest. By well-managed 
cost control, the result is expected to turn out positive. The
cyclical fluctuations between the different quarters are significant 
and the positive result is therefore expected to accumulate mostly 
in the second half of the year.

THE BOARD´S PROPOSAL FOR THE ALLOCATION OF THE RESULT

The Board proposes that no dividend be paid for the fiscal year 2000 and
that the loss be entered in retained earnings.

FINANCIAL STATEMENTS

The euro is the accounting and reporting currency of SSH Communications
Security as of 2001. The figures in this Financial Statements Bulletin are
presented in million euros with two decimals and therefore the sums of the
columns do not necessarily match.

CONSOLIDATED INCOME STATEMENT
Meur	   	  			    1-12/00  4-12/99

NET SALES	15.62	5.48
Materials and services	1.76	0.07
Gross margin	13.86	5.40
R & D expenses	6.71	1.20
Sales & marketing expenses	6.53	1.63
Administration expenses	2.57	0.45
Other operating income	0.27	0.04
OPERATING RESULT	-1.67	2.16
Financial income and expenses	0.81	-0.72
RESULT BEFORE
EXTRAORDINARY ITEMS	-0.86	1.44
Extraordinary expenses	-1.64	0
RESULT BEFORE APPROPRIATIONS
AND TAXES	-2.51	1.44
Taxes*)	0.00	0.38
NET RESULT	-2.51	1.07

*) Taxes are proportionate to the result for the period.

CONSOLIDATED BALANCE SHEET
Meur	   31.12.00		31.12.99

ASSETS
FIXED ASSETS
Intangible assets	0.66		0.00
Tangible assets	1.41		0.05
CURRENT ASSETS
Short-term receivables	6.13		1.76
Financial securities, cash
and bank deposits	51.10		15.75
TOTAL	59.31		17.57

SHAREHOLDERS´ EQUITY AND LIABILITIES
EQUITY
Share capital	0.83		0.04
Premium fund	54.58		13.45
Retained earnings	1.15		0.13
Net income for the period	-2.51		1.07
Capital loans	0.25		0.58
EQUITY TOTAL	54.25		15.31
LIABILITIES
Short-term liabilities	5.06		2.25
LIABILITIES TOTAL	5.06		2.25
TOTAL	59.31		17.57

STATEMENT OF THE SOURCES AND APPLICATIONS OF FUNDS, Meur

Cash flow from operations		-3.8
Cash flow from investments		-2.4
Cash flow before financing		-6.2
Cash flow from financing			41.6
Cash flow after financing		35.3

SSH Communications Security has no long-term receivables or loans. The
capital loan is a Foundation for the Promotion of Finnish Technology 
loan for eight years and the loan amount is 245,218 euros. The 
interest is one percentage point above the Bank of Finland´s base rate.

KEY FIGURES
	1-12/00		4-12/99

Earnings per share, EUR	-0.04		0.07
Equity per share, EUR	1.96		0.65
Dividends per share, EUR	0		0
Dividend/result, %	0		0
P/E	-429
The adjusted number of shares
on average in the period
	24,083,092		20,764,364
The adjusted number of shares
at the end of the period
	27,577,999		22,710,000

In computing the per share data no dilution has been considered, 
because the diluted key figures would be better than the undiluted 
ones.

Net sales, EUR	15,624,983		5,477,612
Operating result, EUR	- 1,670,212 		2,164,105
  % of net sales	-10.69		39.51
Result before extraordinary
items, appropriations and
taxes, EUR	-863,654		1,444,835
  % of net sales	-5.53		26.38
Return on equity, %	-2.51		14.31
Return on investment,% 	-2.35		28.04
Interest-bearing
net debt	- 50,853,789		-15,175,352
Net gearing, %	-94,16		-102,89
Equity/assets ratio,%	93.01		86.86
Gross investments in
fixed assets	2,436,682		61,368
  % of net sales	15.59		1.12
R & D expenses
  % of net sales	45.20		31.74
R & D expenses
  % of net sales
(investments excluded)	42.92		31.74

The order book is not material information in the company´s field of
business.

PERSONNEL

Average number in the period	130		43
Number at end of period	172		55

CONTINGENT COMMITMENTS
Meur	31.12.00		31.12.99

Guarantees

Rent guarantees	1.2		0

Vehicle leasing payments
- next year 	0.06		0.03
- thereafter	0.06		0.07

The social overhead expenses for the warrants exercised in the 
period have been expensed in the income statement. The social 
overhead commitment on the warrants to be executed in future 
years is 396,930 euros as estimated based on the average share 
quotation on the last day of the fiscal year (15.27 euros). The 
possible future social overhead expenses triggered by the warrants 
have not been included in the income statement or balance sheet.

QUATERLY KEY FINANCIAL FIGURES
                      1-3/00 4-6/00 7-9/00 10-12/00
NET SALES                	2,83   3,04   4,43   5,33
Materials and services 0,04   0,32	   0,86   0,54
Gross margin           2,79   2,72   3,57   4,79
R & D expenses         1,19   1,71   1,96   1,85
Sales & marketing      0,83   1,25   1,54   2,90
Administration         0,27   0,65   0,87   0,78
Other operating income 0,04   0,08   0,02   0,13
OPERATING RESULT       0,54  -0,80  -0,78  -0,62


FINANCIAL INFORMATION

SSH Communications Security Corporation publishes the following 
Interim Statements in 2001:

First quarter on May 10, 2001
Two first quarters on August 9, 2001
Three first quarters on November 1, 2001

The figures in the Financial Statements Bulletin are unaudited.

Helsinki, February 15, 2001

SSH COMMUNICATIONS SECURITY CORPORATION
Board of Directors

Markku Kangas
President and CEO



Distribution:
Helsinki Stock Exchanges
The Main Media


The company arranges a presentation of its financial statements 
in its own offices at the address Fredrikinkatu 42, Helsinki, 
7th Floor, on Thursday February 15 at 3 p.m. The hosts are Markku 
Kangas, Tatu Ylönen and Johanna Lamminen.


Certain statements that are not historical facts including certain
statements made over the course of this document may be forward-looking 
in nature. Such forward-looking statements involve known and 
unknown risks, uncertainties and other factors that may cause 
the actual results, performance and achievements of the Company 
to be materially different from any future results, performance 
or achievements implied by such forward-looking statements.

© 2002 SSH Communications Security Corp. All rights reserved. ssh® is a registered trademark of SSH Communications Security Corp in the United States and in certain other jurisdictions. All other names and marks are property of their respective owners.