Jul 21 2010 08:00 am

Tectia Interim Report, January 1 - June 30, 2010

Helsinki, Finland - 
SUMMARY                                                                         

April-June                                                                      

- Net sales totaled EUR 2.2 million, up by 23.8 % percent year on year (EUR 1.8 
million in 4-6/2009).                                                           
- Operating loss amounted to EUR -0.1 million (an operating loss of EUR -1.3    
million in 4-6/2009), profit EUR 0.1 million (EUR -1.2 million).                
- Earnings per share EUR 0.00 (EUR -0.04).                                      


January-June                                                                    

- Net sales totaled EUR 4.5 million, up by 24.1 % percent year on year (EUR 3.6 
million in 1-6/2009).                                                           
- Operating loss amounted to EUR -0.1 million (an operating loss of EUR -2.0    
million in 1-6/2009), profit EUR 0.1 million (EUR -1.8 million).                
- Earnings per share EUR 0.00 (EUR -0.06).                                      
                                                                                
The company's financial position remained healthy, with equity ratio 66.4 %     
(76,4%) and liquid assets at the end of the period EUR 5.0 million (EUR 6.2     
million).                                                                       

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| KEY FIGURES             |       |       |        |        |         |        |
--------------------------------------------------------------------------------
|                         |  4-6/ |  4-6/ |   1-6/ |   1-6/ |  Change |  1-12/ |
|                         |  2010 |  2009 |   2010 |   2009 |       % |   2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales (MEUR)        |   2.2 |   1.8 |    4.5 |    3.6 |    24.1 |    8.8 |
--------------------------------------------------------------------------------
| Operating profit/loss   |  -0.1 |  -1.3 |   -0.1 |   -2.0 |    92.4 |   -1.5 |
| (MEUR)                  |       |       |        |        |         |        |
--------------------------------------------------------------------------------
|   % of net sales        |  -2.5 | -70.9 |   -2.1 |  -55.5 |         |  -17.1 |
--------------------------------------------------------------------------------
| Profit/loss before      |   0.1 |  -1.2 |    0.1 |   -1.8 |   101.9 |   -1.2 |
| taxes (MEUR)            |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Profit/loss (MEUR)      |   0.1 |  -1.2 |    0.1 |   -1.8 |   101.8 |   -1.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, %     |       |       |    5.0 |  -38.1 |         |  -12.4 |
--------------------------------------------------------------------------------
| Return on investment, % |       |       |    5.6 |  -36.2 |         |  -10.8 |
--------------------------------------------------------------------------------
| Liquid assets           |       |       |    5.0 |    6.2 |   -18.9 |    6.4 |
--------------------------------------------------------------------------------
| Gearing (%)             |       |       | -174.5 | -146.5 |         | -144.2 |
--------------------------------------------------------------------------------
| Equity ratio (%)        |       |       |   66.4 |   76.4 |         |   71.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share      |  0.00 | -0.04 |   0.00 |  -0.06 |   104.8 |  -0.04 |
| (EUR)                   |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Shareholders' equity    |       |       |   0.10 |   0.14 |   -30.8 |   0.15 |
| per share (EUR)         |       |       |        |        |         |        |
--------------------------------------------------------------------------------


CEO's BUSINESS REVIEW                                                           

The company continued its´ renewal towards more customer oriented Tectia. A new 
global marketing message was taken into use. Information security software      
solution concept SAMS consists of: Secure, Automate, Manage and Share. Tectia   
SAMS is the fastest track to business information security.                     

In second quarter 2010 net sales amounted to EUR 2.2 million with an increase of
23.8 percent compared to the previous year. The cost savings excluding one-time 
costs were EUR -0.2 million (-9 %) compared to the previous year. The operating 
loss was EUR -0.1 million compared with a loss of EUR -1.2 million (including   
one-time costs EUR -0.6 million) in the second quarter 2009. The company's      
financial position remained healthy with an equity ratio of 66.4 percent and EUR
5.0 million in liquid assets.                                                   

Net sales for the first half of 2010 amounted to EUR 4.5 with an increase of    
24.1 percent compared to the previous year. License sales growth was 46.2       
percent compared to first half of year 2009. The operating loss was EUR -0.1    
compared to the previous year 2009 loss of EUR -2.0 million (including one-time 
costs EUR -0.6 million).                                                        

In the U.S. the company signed an agreement with a F500 retailer. In Europe an  
agreement was signed with an eastern European integrator for unified enterprise 
level security offering to their financial sector end-customer. This was the    
first significant deal in this market sector. As well a contract was signed with
a leading international IT services provider which provides integrated solutions
with high security to large multi-national clients.                             

The company invested in building its strategic competence by appointing new head
of Global Channel Management, who will be responsible for developing and        
managing the company's global indirect sales channels and the company's Channel 
Partner Certification program.                                                  

The company launched a new corporate website on June 30 as part of a corporate  
re-branding exercise. The launch of the new web service signals a significant   
shift away from merely being a technology developer to becoming a trusted       
partner and leading provider of enterprise-level security solutions to address  
real-time security challenges.                                                  

The company implemented successfully new global ERP-system in beginning of May. 
Project succeeded as planned into production and now enables more efficient and 
growth supporting order, delivery and financial management.                     

The change of the new business name to Tectia Oyj, in English Tectia            
Corporation, which was decided by SSH Communications Security Oyj's Annual      
General Meeting on March 3, 2010 was registered in the Trade Register on April  
1, 2010.                                                                        

The key strategic objective is to continue efforts on developing the company    
into a sales and marketing oriented software house with strong value-added      
offering and customer focus in real-time security for networked, modern         
organizations.                                                                  

Jari Mielonen                                                                   
CEO                                                                             




REPORTING                                                                       

This interim report follows IAS 34 (Interim Financial Reporting) accounting     
standard. The same accounting principles have been used in the financial        
statements for 2009 except those mentioned below. The figures are non-audited.  
This interim report also complies with the year 2010 renewed IFRS 3 and IAS 27  
standards, which do not have any substantial effect on company's financial      
reporting.                                                                      

FUTURE OUTLOOK                                                                  

For the fiscal year 2010, Tectia estimates its net sales to grow from 2009 and  
expects the net result to be positive.                                          

NET SALES                                                                       

Consolidated net sales for April-June totaled EUR 2.2 million (EUR 1.8 million),
up by 23.8 %, year on year.                                                     

Consolidated net sales for January-June totaled EUR 4.5 million (EUR 3.6        
million), up by 24.1 %, year on year.                                           

The Americas, the Europe, Middle East and Africa market area and the Asia       
Pacific region accounted for 68.1 percent (66.0 percent), 22.8 percent (25.1    
percent) and 9.1 percent (8.9 percent) of reported net sales, respectively.     

--------------------------------------------------------------------------------
| TECTIA NET SALES |        |        |         |          |          |         |
--------------------------------------------------------------------------------
| EUR Million      |   4-6/ |   4-6/ |    1-6/ |     1-6/ | Change % |   1-12/ |
|                  |   2010 |   2009 |    2010 |     2009 |          |    2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BY SEGMENT       |        |        |         |          |          |         |
--------------------------------------------------------------------------------
|   AMERICAS       |    1.4 |    1.2 |     3.1 |      2.4 |     28.0 |     5.5 |
--------------------------------------------------------------------------------
|   APAC           |    0.2 |    0.1 |     0.4 |      0.3 |     36.8 |     0.8 |
--------------------------------------------------------------------------------
|   EMEA           |    0.6 |    0.5 |     1.0 |      0.9 |     14.8 |     2.5 |
--------------------------------------------------------------------------------
| Tectia Group     |    2.2 |    1.8 |     4.5 |      3.6 |     24.1 |     8.8 |
| Total            |        |        |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BY OPERATION     |        |        |         |          |          |         |
--------------------------------------------------------------------------------
|   License sales  |    0.8 |    0.6 |     1.8 |      1.3 |     46.2 |     4.1 |
--------------------------------------------------------------------------------
|   Maintenance    |    1.4 |    1.2 |     2.7 |      2.4 |     12.5 |     4.7 |
--------------------------------------------------------------------------------
|   Total          |    2.2 |    1.8 |     4.5 |      3.6 |     24.1 |     8.8 |
--------------------------------------------------------------------------------



The majority of Tectia's invoicing is U.S. dollar based. During the report      
period, the U.S. dollar's average exchange rate to euro strengthened            
approximately 0.4 percent compared to the same period a year ago. With          
corresponding period in 2009 exchange rates net sales would have increased 0.6  
percent in addition to reported 2010 net sales.                                 

RESULTS AND EXPENSES                                                            

Operating loss for April-June amounted to EUR -0.1 million (an operating loss of
EUR -1.3 million), with net profit totaling EUR 0.1 million (a loss of EUR -1.2 
million).                                                                       

Operating loss for January-June amounted to EUR -0.1 million (an operating loss 
of EUR -2.0 million), with net profit totaling EUR 0.1 million (a loss of EUR   
-1.8 million). On-going cost savings activities reduced costs excluding one-time
costs by EUR -0.5 million and -10 percent compared to corresponding period.     
There are no relevant transactions after reporting period that would affect on  
company's results and profitability.                                            

Research and development expenses for the April-June reporting period totaled   
EUR -0.6 million (EUR -1.0 million), while sales, marketing and customer support
expenses amounted EUR -1.2 million (EUR -1.6 million) and administrative        
expenses EUR -0.5 million (EUR -0.5 million).                                   

Research and development expenses for the January-June reporting period totaled 
EUR -1.1 million (EUR -1.9 million), while sales, marketing and customer support
expenses amounted EUR -2.4 million (EUR -2.8 million) and administrative        
expenses EUR -1.1 million (EUR -1.1 million).                                   

Organizational change took in place starting from 2010 where customer support   
-unit from research and development was transferred to management of sales and  
marketing as part of Customer Market Operations (CMO) organization. Previous    
corresponding figures are according to old organizational structure. Costs of   
transferred functions are EUR -0.3 million for second quarter 2010 and EUR -0.6 
million for first half 2010. Effect on corresponding figures are EUR -0.3       
million for second quarter 2009, EUR -0.6 million for first half 2009 and EUR   
-1.0 million for total 2009.                                                    

BALANCE SHEET AND FINANCIAL POSITION                                            

The financial position of Tectia remained at a healthy level during the report  
period, despite the capital returned to shareholders.  The consolidated balance 
sheet total on June 30, 2010 stood at EUR 6.9 million (EUR 7.7 million), of     
which liquid assets accounted for EUR 5.0 million (EUR 6.2 million), or 72.1    
percent of the balance sheet total. On June 30, 2010, gearing, or the ratio of  
net liabilities to shareholders' equity, was -174.5 percent (-146.5) and the    
equity ratio stood at 66.4 percent (76.4).                                      

The reported gross capital expenditure for the period totalled EUR -0.0 million 
(EUR 0.0 million). The reported financial income consisted mainly of interest on
fixed-term deposits and exchange rate gains. Financial income and expenses      
totalled EUR 0.2 million (EUR 0.2 million).                                     

During January-June, Tectia reported a positive cash flow of EUR 0.0 million    
(EUR -1.8 million) from business operations, and investments showed a negative  
cash flow of EUR -0.0 million (EUR 10.0 million). Cash flow from financing      
totaled EUR -1.1 million (EUR -8.5 million), mainly consisting of capital       
returned to shareholders and investments to short-term financial assets. Total  
cash flow from operations, investments and financing was negative EUR -1.2      
million (EUR -0.3 million) during the period.                                   

RESEARCH AND DEVELOPMENT                                                        

Research and development expenses for April-June totaled EUR -0.6 million (EUR  
-1.0 million), the equivalent of 29.8 percent of net sales (51.9 percent).      

Research and development expenses for January-June totaled EUR -1.1 million (EUR
-1.9 million), the equivalent of 24.3 percent of net sales (52.3 percent).      
During the report period Tectia did not capitalize any research and development 
expenses.                                                                       

HUMAN RESOURCES AND ORGANIZATION                                                

At the end of June, the Group had 70 employees on its payroll, up by 7 persons  
from the previous year, an increase of 11 percent.                              

At the end of the period, 39 percent of the employees worked in R&D, 43 percent 
in sales and marketing, and 18 percent in corporate administration.             

SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE                             

The reported trading volume of Tectia Corporation shares totaled 3 040 299      
(valued at EUR 2 727 350). The highest quotation was EUR 1,15 and the lowest EUR
0,76 The trade-weighted average share price for the period was EUR 0,90 and the 
share closed at EUR 0,92(June 30, 2010).                                        

Company's principal owner Tatu Ylönen holdings directly and through his company,
Tatu Ylönen Oy, holds now 47.1 percent of the company's shares, Assetman Oy     
holds 13.4 percent and Tero Kivinen 4.8 percent. More information about the     
shareholding can be obtained from the company´s web site.                       

SSH Management Investment Corp is now fourth largest owner holding 4.8 of the   
company and it is part of the Tectia Group due to shareholder agreement.        

During reporting period was established a subsidiary Tectia Limited in Hong Kong
owned by 100% by Tectia Corporation. No other changes occurred in Tectia group  
structure.                                                                      

SHARE CAPITAL AND BOARD AUTHORIZATIONS                                          

The company's registered share capital on June 30, 2010 was EUR 897,034.47      
consisting of 29,901,149 shares. During the reporting period option rights were 
exercised in I/1999 and II/2003 option programs. According to the I/1999 option 
program, 100 shares were subscribed for using class C option certificates, 100  
shares using class D option certificates, 500 shares using class E option       
certificates, 650 shares using class F certificates and 350 shares using class H
option certificates. According to the II/2003 option program, 500 shares were   
subscribed for using class C option certificates and 500 shares using class D   
option certificates.  Exercise of options rights increased share capital 81.00  
EUR.                                                                            

The Annual General Meeting approved the Board of Directors' proposal to         
authorize the Board of Directors to decide upon the issuing of in total         
5,500,000 shares, in one or more tranches, as share issues against payment or by
giving stock options or other special rights entitling to shares, as defined in 
Chapter 10 Section 1 of the Finnish Companies Act, either in accordance with the
shareholders' pre-emptive right to share subscription or deviating from this    
right. The authorization will be valid until the next Annual General Meeting,   
but will expire on June 30th 2011 at the latest.                                

The Annual General Meeting approved the Board of Directors' proposal to         
authorize the Board of Directors to decide upon the acquiring of a maximum of   
2,000,000 of the company's own shares, in one or more tranches, with assets     
belonging to the company's free equity. This amount corresponds approximately to
6.69 per cent of all shares of the company. The compensation to be paid for the 
acquired shares shall be determined on the date of acquisition on the basis of  
the trading rate determined for the company's share in a public trading arranged
by NASDAQ OMX Helsinki Ltd. Furthermore, the Annual General Meeting decided to  
authorize the Board of Directors to decide upon a distress concerning a maximum 
of 1,500,000 own shares, in one or more tranches. The amount corresponds        
approximately to 5.02 per cent of all shares of the company. The authorization  
to acquire the shares and the authorization concerning the distress shall be    
valid at most for eighteen (18) months after the decision of the Annual General 
Meeting.                                                                        

DIVIDEND AND OTHER DISTRIBUTION OF ASSETS                                       

The Annual General Meeting decided upon the distribution of assets from the     
invested non-restricted equity fund to the shareholders in such a way that      
assets would be distributed 0.05 euro per share. The amount distributed was in  
total 1,494,922.45 euro. The return of equity was paid to the shareholders who  
on the record date on March 8th 2009 were registered in the shareholders'       
register of the company held by Euroclear Finland Oy. The payment date was March
15th 2009.                                                                      

Furthermore, the Annual General Meeting decided to lower the subscription price 
of the shares, which can be subscribed on the basis of the option plans released
by the company between years 2000-2002, with an amount corresponding to the     
distribution of assets, i.e. 0.05 euro per each option right. The subscription  
price of the shares shall, however, always have at least the same value as the  
par value.                                                                      

RISKS AND UNCERTAINTIES                                                         

During reporting period there have not been any significant changes in company's
business risks or uncertainties. More details to risks and uncertainties are    
reported in 2009 financial statement and annual report pp. 19-20.               

RELATED PARTY TRANSACTIONS                                                      

During reporting period there have not been any significant related party       
transactions. Company's related party transactions are reported in 2009         
financial statement and annual report pp. 51-52.                                

TABLES                                                                          

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| COMPREHENSIVE INCOME STATEMENT  |       |        |        |         |        |
--------------------------------------------------------------------------------
| EUR million                     |       |        |        |         |        |
--------------------------------------------------------------------------------
|    |                            |   4-6 |    4-6 |    1-6 |     1-6 |   1-12 |
|    |                            | /2010 |  /2009 |  /2010 |   /2009 |  /2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Net sales                  |   2.2 |    1.8 |    4.5 |     3.6 |    8.8 |
--------------------------------------------------------------------------------
|    | Cost of goods sold         |   0.0 |    0.0 |   -0.1 |     0.0 |   -0.1 |
--------------------------------------------------------------------------------
|    | Gross profit               |   2.2 |    1.8 |    4.5 |     3.6 |    8.7 |
--------------------------------------------------------------------------------
|    | Other operating income     |   0.0 |    0.0 |    0.0 |     0.1 |    0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Product development        |  -0.6 |   -1.0 |   -1.1 |    -1.9 |   -3.8 |
|    | expenses                   |       |        |        |         |        |
--------------------------------------------------------------------------------
|    | Sales. marketing and       |  -1.2 |   -1.6 |   -2.4 |    -2.8 |   -4.3 |
|    | customer support costs     |       |        |        |         |        |
--------------------------------------------------------------------------------
|    | Administrative expenses    |  -0.5 |   -0.5 |   -1.1 |    -1.1 |   -2.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Operating profit/loss      |  -0.1 |   -1.3 |   -0.1 |    -2.0 |   -1.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Financial income and       |   0.1 |    0.0 |    0.2 |     0.2 |    0.3 |
|    | expenses                   |       |        |        |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Profit/loss before taxes   |   0.1 |   -1.2 |    0.1 |    -1.8 |   -1.2 |
--------------------------------------------------------------------------------
|    | Taxes                      |   0.0 |    0.0 |    0.0 |     0.0 |    0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Net profit/loss for the    |   0.1 |   -1.2 |    0.1 |    -1.8 |   -1.2 |
|    | period                     |       |        |        |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Other profit and loss      |       |        |        |         |        |
|    | account items:             |       |        |        |         |        |
--------------------------------------------------------------------------------
|    | Foreign subsidiary         |   0.0 |    0.1 |    0.1 |    -0.1 |   -0.1 |
|    | translation differences    |       |        |        |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Total comprehensive income |   0.1 |   -1.1 |    0.2 |    -1.8 |   -1.3 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| EARNINGS PER SHARE     |      |      |                                       |
--------------------------------------------------------------------------------
|                        | 4-6/ | 4-6/ |  1-6/ |  1-6/ | 1-12/ |       |       |
|                        | 2010 | 2009 |  2010 |  2009 |  2009 |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share     | 0,00 | -0,0 |  0,00 | -0,06 | -0,04 |       |       |
| (EUR)                  |      |    4 |       |       |       |       |       |
--------------------------------------------------------------------------------
| Earnings per share.    | 0,00 | -0,0 |  0,00 | -0,06 | -0,04 |       |       |
| diluted (EUR)          |      |    4 |       |       |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

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| BALANCE SHEET                        |            |            |             |
--------------------------------------------------------------------------------
| EUR million                          |            |            |             |
--------------------------------------------------------------------------------
|    |                                 | 30/06/2010 | 30/06/2009 |  31/12/2009 |
--------------------------------------------------------------------------------
|    | ASSETS                          |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Non-current assets              |            |            |             |
--------------------------------------------------------------------------------
|    |   Tangible assets               |        0.2 |        0.2 |         0.2 |
--------------------------------------------------------------------------------
|    |   Intangible assets             |        0.1 |        0.0 |         0.0 |
--------------------------------------------------------------------------------
|    |   Investments                   |        0.0 |        0.0 |         0.0 |
--------------------------------------------------------------------------------
|    | Total non-current assets        |        0.3 |        0.2 |         0.3 |
--------------------------------------------------------------------------------
|    |                                 |            |            |             |
--------------------------------------------------------------------------------
|    | Current assets                  |            |            |             |
--------------------------------------------------------------------------------
|    |   Trade and other receivables   |        1.6 |        1.3 |         2.7 |
--------------------------------------------------------------------------------
|    |   Short-term financial assets   |        2.2 |        4.5 |         2.5 |
--------------------------------------------------------------------------------
|    |   Cash and cash equivalents     |        2.8 |        1.7 |         3.9 |
--------------------------------------------------------------------------------
|    | Total current assets            |        6.6 |        7.5 |         9.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Total assets                    |        6.9 |        7.7 |         9.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | LIABILITIES AND SHAREHOLDERS'   |            |            |             |
|    | EQUITY                          |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Shareholders' equity            |        2.8 |        4.2 |         4.4 |
--------------------------------------------------------------------------------
|    | Non-current liabilities         |            |            |             |
--------------------------------------------------------------------------------
|    |   Provisions                    |        0.1 |        0.0 |         0.1 |
--------------------------------------------------------------------------------
|    |   Non-current interest-bearing  |        0.0 |        0.1 |        0.0  |
|    |   liabilities                   |            |            |             |
--------------------------------------------------------------------------------
|    | Total long-term liabilities     |        0.1 |        0.1 |         0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Current liabilities             |        4.0 |        3.5 |         4.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Total equity and liabilities    |        6.9 |        7.7 |         9.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CASH FLOW STATEMENT                  |            |            |             |
--------------------------------------------------------------------------------
| EUR million                          |   1-6/2010 |   1-6/2009 |   1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Cash flow from business         |        0.0 |       -1.8 |        -2.4 |
|    | operations                      |            |            |             |
--------------------------------------------------------------------------------
|    | Cash flow from investments      |       -0.0 |       10.0 |        12.0 |
--------------------------------------------------------------------------------
|    | Cash flow from financing        |       -1.1 |       -8.5 |        -7.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Increase(+) / decrease (-) in   |       -1.2 |       -0.3 |         1.9 |
|    | cash                            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    | Cash at period start            |        3.9 |        2.0 |         2.0 |
--------------------------------------------------------------------------------
|    | Effect of exchange rate         |        0.1 |        0.0 |         0.0 |
--------------------------------------------------------------------------------
|    | Cash at period end              |        2.8 |        1.7 |         3.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| STATEMENT ON CHANGES IN   |       |       |           |             |        |
| SHAREHOLDERS' EQUITY      |       |       |           |             |        |
--------------------------------------------------------------------------------
| EUR       | Share | Share |  Fair | Trans |  Fund for | Unrestricte |  Total |
| million   | Capi- | Premi | value | -lati |       own |    d equity |        |
|           |   tal |  -um  | reser |    on |    shares |   funds and |        |
|           |       |       |  -ves | diff. |           |    retained |        |
|           |       |       |       |       |           |    earnings |        |
--------------------------------------------------------------------------------
| Sharehold |   0.9 |   0.0 |   0.1 |  -0.9 |           |        14.4 |   14.5 |
| ers'      |       |       |       |       |           |             |        |
| equity    |       |       |       |       |           |             |        |
| Jan. 1.   |       |       |       |       |           |             |        |
| 2009      |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change    |   0.0 |   0.0 |   0.0 |  -0.1 |           |        -8.5 |        |
--------------------------------------------------------------------------------
| Net       |       |       |       |       |           |        -1.8 |        |
| profit    |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehold |   0.9 |   0.0 |   0.2 |  -0.9 |           |         4.1 |    4.2 |
| ers'      |       |       |       |       |           |             |        |
| equity    |       |       |       |       |           |             |        |
| Jun. 30.  |       |       |       |       |           |             |        |
| 2009      |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change    |   0.0 |   0.0 |  -0.1 |  -0.1 |           |         0.8 |        |
--------------------------------------------------------------------------------
| Net       |       |       |       |       |           |         0.6 |        |
| profit    |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------
| Managemen |       |       |       |       |      -1.1 |             |        |
| t         |       |       |       |       |           |             |        |
| Incentive |       |       |       |       |           |             |        |
| plan      |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehold |   0.9 |   0.0 |   0.1 |  -1.0 |      -1.1 |         5.5 |    4.4 |
| ers'      |       |       |       |       |           |             |        |
| equity    |       |       |       |       |           |             |        |
| Dec. 31.  |       |       |       |       |           |             |        |
| 2009      |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change    |   0.0 |   0.0 |   0.0 |  -0.3 |       0.1 |        -1.4 |        |
--------------------------------------------------------------------------------
| Net       |       |       |       |       |           |         0.1 |        |
| profit    |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehold |   0.9 |   0.0 |   0.1 |  -1.3 |      -1.0 |         4.2 |    2.8 |
| ers'      |       |       |       |       |           |             |        |
| equity    |       |       |       |       |           |             |        |
| Jun. 30.  |       |       |       |       |           |             |        |
| 2010      |       |       |       |       |           |             |        |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| NET SALES BY SEGMENT  |          |          |          |          |          |
--------------------------------------------------------------------------------
| EUR million           |     4-6/ |     4-6/ |     1-6/ |     1-6/ |    1-12/ |
|                       |     2010 |     2009 |     2010 |     2009 |     2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AMER                  |      1.4 |      1.2 |      3.1 |      2.4 |      5.5 |
--------------------------------------------------------------------------------
| APAC                  |      0.2 |      0.1 |      0.4 |      0.3 |      0.8 |
--------------------------------------------------------------------------------
| EMEA                  |      0.6 |      0.5 |      1.0 |      0.9 |      2.5 |
--------------------------------------------------------------------------------
| Tectia Group total    |      2.2 |      1.8 |      4.5 |      3.6 |      8.8 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS |          |          |          |          |          |
| BY SEGMENT            |          |          |          |          |          |
--------------------------------------------------------------------------------
| EUR million           |     4-6/ |     4-6/ |     1-6/ |     1-6/ |    1-12/ |
|                       |     2010 |     2009 |     2010 |     2009 |     2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AMER                  |      0.9 |      0.1 |      2.0 |      0.5 |      2.5 |
--------------------------------------------------------------------------------
| APAC                  |      0.1 |      0.0 |      0.2 |      0.2 |      0.5 |
--------------------------------------------------------------------------------
| EMEA                  |      0.2 |      0.1 |      0.2 |      0.2 |      1.1 |
--------------------------------------------------------------------------------
| Common Group          |     -1.2 |     -1.6 |     -2.5 |     -2.9 |     -5.5 |
| expenses*             |          |          |          |          |          |
--------------------------------------------------------------------------------
| Tectia Group total    |     -0.1 |     -1.3 |     -0.1 |     -2.0 |     -1.5 |
--------------------------------------------------------------------------------

* Common Group expenses include Group administration expenses (e.g. management  
and finance) and product management and R&D expenses for corporate headquarters.


--------------------------------------------------------------------------------
| KEY FIGURES AND RATIOS           |             |           |            |    |
--------------------------------------------------------------------------------
| EUR million                      |    1-6/2010 |  1-6/2009 |       1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales                        |         4.5 |       3.6 |             8.8 |
--------------------------------------------------------------------------------
| Operating profit/loss	        |        -0.1 |      -2.0 |            -1.5 |
--------------------------------------------------------------------------------
| Operating profit/loss. as % of   |        -2.1 |     -55.5 |           -16.9 |
| net sales                        |             |           |                 |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary |         0.1 |      -1.2 |            -0.3 |
| items and taxes                  |             |           |                 |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary |         2.0 |     -32.2 |            -2.9 |
| items and taxes. as % of net     |             |           |                 |
| sales                            |             |           |                 |
--------------------------------------------------------------------------------
| Profit/loss before taxes         |         0.1 |      -1.8 |            -1.2 |
--------------------------------------------------------------------------------
| Profit/loss before taxes. as     |         2.0 |     -48.8 |           -13.3 |
| % of net sales                   |             |           |                 |
--------------------------------------------------------------------------------
| Return on equity (%)             |         5.0 |     -38.1 |           -12.4 |
--------------------------------------------------------------------------------
| Return on investment (%)         |         5.6 |     -36.2 |           -10.8 |
--------------------------------------------------------------------------------
| Interest-bearing net liabilities |        -4.8 |      -6.1 |            -6.4 |
--------------------------------------------------------------------------------
| Equity ratio (%)                 |        66.4 |      76.4 |            71.4 |
--------------------------------------------------------------------------------
| Gearing (%)                      |      -174.5 |    -146.5 |          -144.2 |
--------------------------------------------------------------------------------
| Gross capital expenditure        |         0.0 |       0.0 |             0.1 |
--------------------------------------------------------------------------------
|   % of net sales                 |         0.0 |       0.0 |             1.3 |
--------------------------------------------------------------------------------
| R&D expenses                     |         1.1 |       1.9 |             2.8 |
--------------------------------------------------------------------------------
|   % of net sales                 |        24.3 |      52.2 |            31.6 |
--------------------------------------------------------------------------------
| Personnel. period average        |          67 |        68 |              66 |
--------------------------------------------------------------------------------
| Personnel. period end            |          70 |        63 |              64 |
--------------------------------------------------------------------------------

Calculation for key figures and ratios are presented in 2009 financial statement
and annual report. There have not been changes in calculation rules after that. 

--------------------------------------------------------------------------------
| PER-SHARE DATA                    |               |             |            |
--------------------------------------------------------------------------------
| EUR                               |      1-6/2010 |    1-6/2009 |   -12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share. undiluted     |          0.00 |       -0.06 |      -0.04 |
--------------------------------------------------------------------------------
| Earnings per share. diluted       |          0.00 |       -0.06 |      -0.04 |
--------------------------------------------------------------------------------
| Equity per share                  |          0.10 |        0.14 |       0.15 |
--------------------------------------------------------------------------------
| No. of shares at period end       |        29 901 |      28 798 |     29 898 |
| (thousand)                        |               |             |            |
--------------------------------------------------------------------------------
| Share performance                 |               |             |            |
--------------------------------------------------------------------------------
|   Average price                   |          0.90 |        0.85 |       0.79 |
--------------------------------------------------------------------------------
|   Low                             |          0.76 |        0.65 |       0.65 |
--------------------------------------------------------------------------------
|   High                            |          1.15 |        1.24 |       1.24 |
--------------------------------------------------------------------------------
| Share price. period end           |          0.92 |        0.67 |       0.77 |
--------------------------------------------------------------------------------
| Market capitalization. period end |          27.5 |        19.3 |       23.0 |
| (EUR million)                     |               |             |            |
--------------------------------------------------------------------------------
| Volume of shares traded (million) |           3.0 |         2.8 |        5.1 |
--------------------------------------------------------------------------------
| Volume of shares traded. As       |          10.2 |         9.6 |       17.0 |
| % of                              |               |             |            |
| total                             |               |             |            |
--------------------------------------------------------------------------------
| Value of shares traded (EUR       |           2.7 |         2.3 |        4.0 |
| million)                          |               |             |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES             |              |             |            |
--------------------------------------------------------------------------------
| EUR million                        |    30.6.2010 |   30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Rent security deposits             |          0.1 |             |        0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing commitments outside        |              |             |            |
| the balance sheet                  |              |             |            |
--------------------------------------------------------------------------------
|   Maturing within 1 year           |          0.4 |         0.6 |        0.6 |
--------------------------------------------------------------------------------
|   Maturing between 1 and 5 years   |          0.9 |         0.3 |        1.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

DISCLAIMER                                                                      

The content in this report is provided by Tectia Corporation ("Tectia") and its 
third party content providers for your personal information only. And does not  
constitute an offer or invitation to purchase any securities. Nor does it       
provide any form of advice (investment. tax. legal) amounting to investment     
advice. Or make any recommendations regarding particular investments or         
products. Tectia does not provide investment advice or recommendations to buy or
sell its shares or the shares of others. If you are interested in investing in  
Tectia. Please contact your financial adviser for further details and           
information. Past performance of Tectia shares is not indicative of future      
results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW TECTIA EXPRESSLY       
DISCLAIMS ALL WARRANTIES. EXPRESSED OR IMPLIED. AS TO THE AVAILABILITY. ACCURACY
OR RELIABILITY OF ANY OF THE CONTENT PROVIDED. OR AS TO THE FITNESS OF THE      
INFORMATION FOR ANY PURPOSE.                                                    

Tectia Corporation will release its next interim report and financial statements
for January 1st -September 30th. 2010 in 20th of October 2010. Further          
information will be available on the company's website in due course.