TRAINERS' HOUSE GROUP'S INTERIM REPORT 7 AUGUST 2008 AT 08:30AM Trainers' House still performing well In January-June: -Net sales for the quarter, amounting to EUR 24.3 million, were up 53.2% on the equivalent figure for the previous year (EUR 15.9 million). -Operating profit before depreciation resulting from the allocation of the purchase price of Trainers' House Oy amounted to EUR 4.5 million, or 18.3% of net sales. -Operating profit grew by 157.1%, totalling EUR 2.8 million or 11.7% of net sales(EUR 1.1 million, 7.0% of net sales). -Earnings per share were EUR 0.02 (EUR 0.02). In the second quarter: -Net sales for the quarter, amounting to EUR 12.3 million, were up 57.7% on the equivalent figure for the previous year (EUR 7.8 million). -Operating profit before depreciation resulting from the allocation of the purchase price of Trainers' House Oy amounted to EUR 2.2 million, or 17.8% of net sales. -Operating profit grew by 97.3%, totalling EUR 1.4 million or 11.3% of net sales(EUR 0.7 million, 9.0%). Key figures -At the end of the period, interest-bearing liabilities totalled EUR 25.1 million(EUR 0.7 million), cash and cash equivalents EUR 8.4 million (EUR 0.5 million),and net liabilities EUR 16.7 million (EUR 0.1 million). During the period under review, long-term interest-bearing debt was paid off in the amount of EUR 9.1 million. -Net gearing was 27.0% (0.6%). At the end of 2007, net gearing was 27.6%. -At the end of the period under review, the equity ratio was 61.6% (74.7%). At the end of 2007, the equity ratio was 56.0%. OUTLOOK FOR THE FUTURE The company renews the financial forecast presented in the financial statements, according to which the like-for-like operating profit for 2008 is expected to exceed that of the previous year. The like-for-like pro forma operating profit (= EBITDA - operative depreciations, before depreciation resulting from the allocation of acquisition cost) was EUR 7.3 million, or 15.6% of net sales. The estimate is based on the actual results, current order book as well as the historical profit-making ability of the merged companies. Due to the summer holidays, the bulk of the net sales and profit for the second half year will be generated in the last quarter of 2008. CEO JARI SARASVUO ON THE FINANCIAL REPORT “As a cash flow fanatic, I feel grateful about the result of the first half and particularly the second quarter. Even though the result met our expectations, we had to stay focused and work even harder than usual to secure a good holiday feeling. Expenses totalling almost one million euro related to the development of SaaS services burdens the first half's profitability. More of this will follow. While our H1 like-for-like net sales decreased slightly (-2.7 %), I am happy about the fact that the entire Group closed more sales in Q2 than in last year's Q2 (+ 3 %). Despite the modest growth figures, I consider the result a defensive victory and a cause of happiness. Even though H2 is always challenging due to holidays, I'm confident that we will fulfil our promises. It is about time to accept that in 2007 our customers' euros answered our call more easily than this year. We have faced up to the challenge by meeting more customers and by offering them better services. During our 9,300 customer visits, we have received signals indicating that the economic upswing is coming to an end for many companies. The stalling of the economy allows Trainers' House to accelerate the implementation of its growth strategy. In difficult times, customers raise their requirements, which is something that supports our vision. Leading companies with modern methods of sales and marketing will become even more important during the economic downturn. When the euro gets shy, customers prefer to buy value rather than just hard work. The benefits of the growth system services offered by Trainers' House are easy to measure in euros. We believe that this change in economic conditions serves the strategy, through which we aim to accomplish the next step of our story." For more information, please contact: Jari Sarasvuo, CEO, tel. 0500 665 666 Mirkka Vikström, CFO, tel. 050 376 1115 Press conference: Trainers' House will hold a press and analyst conference regarding the financial statements bulletin on 7 August, at noon-1 pm, at the company's office located at Porkkalankatu 11, Helsinki. Those wishing to participate should contact Mia Luostarinen, tel. 040 755 6146 or e-mail mia.luostarinen@trainershouse.fi. A live videocast from the conference will be available at www.trainershouse.fi - Investors starting at noon on 7 August 2008. TRAINERS' HOUSE GROUP'S INTERIM REPORT 1 JANUARY - 30 JUNE 2008 REVIEW OF OPERATIONS Business operations Trainers' House Plc is a business growth company formed when Satama Interactive Plc acquired the entire share capital of Trainers' House Oy in 2007 and the companies merged on 31 December 2007. In connection with the merger, the combined company adopted the name Trainers' House Plc. The Group has offices in Ruoholahti and Hernesaari, Helsinki, and in Tampere and Turku. The Group's international operations are based in Düsseldorf, Stockholm and St. Petersburg. Trainers' House aims to integrate the company's business operations into a single entity that helps customers to grow. The company's areas of expertise: marketing and communications, training and management systems are developed into a growth system in which each component serves the whole. The growth system is comprised of an operating model and a BLARP management system based on the Software as a Service (SaaS) model. The company's strategic goals are to increase cash flow in Finland, develop SaaS services that support the Growth System concept, and expand the company's international operations based on these services. In the short term, traditional training and project work will continue to have a major role in the company's net sales. Trainers' House is an established operator in Finland, but the company aims to grow also internationally through organic growth and acquisitions. In the first half of 2008, the company has been integrating its business operations, developing its corporate structure to better suit the company's new strategy, and investing strongly in SaaS product development. The company has launched a customer acquisition programme based on a new mode of operation at its international offices in Sweden, Germany and Russia. While these investments will temporarily slow down growth in net sales, they are necessary for achieving the growth and profitability targets set for the future. SaaS services SaaS services (Software as a Service) are software products sold to customers as continuous services as part of the Growth System. The development of SaaS services plays a key role in the company's strategy. In the short term, investments in SaaS service development will weaken profitability, because the services have little impact on net sales. During the first half year, these expenses totalled almost EUR 1 million. However, in the long term we expect the share of SaaS services in our net sales to increase rapidly. In the second quarter, the company established a separate unit for SaaS sales, marketing and service development in order to emphasize the key role of SaaS product development. The product development expertise of the unit was strengthened by increasing the number of personnel and by utilizing our offshore partners. The unit currently employs more than 20 people. The company's first continuous service product, the growth management system BLARP (Business Live Action Role Play), has so far been sold to eight customers. Three deliveries have proceeded to production use. Product development continues under close customer guidance. The company has started the development of two new SaaS services. The Polku (path) service aims to support personal growth, while the latter, still unnamed service supports the growth of the entire organization. The Polku is a target programme for personal growth. The other new service combines the best practices of the digital working environment with goal-oriented leadership, improved work efficiency and a sense of community at the workplace. Divestments In the first quarter, Trainers' House sold its mobile technology unit to Nice-business Solutions Finland Oy. In connection with the divestment, 19 employees were transferred to Nice-business Solutions. The divestment has not had any significant impact on the company's net sales or result in the period under review. FINANCIAL PERFORMANCE Corporate structure and comparative figures The comparative figures for the first half of the year are Satama Interactive Plc's actual figures for the first six months of 2007. Satama divested its Dutch operations in autumn 2007, and the comparative figures have been adjusted to correspond to the structure of the continuing and discontinued operations. The comparative figures used for reporting operating profit include the reported operating profit as well as operating profit before depreciation of allocated acquisition cost related to the acquisition of Trainers' House Oy. According to the company's management, these figures provide a more accurate view of the company's productivity. The company uses the adjusted operating profit as comparative data in presenting forecasts on future development. After the merger, the volume and profitability of operations improved significantly year on year. Net sales increased by 53.2% from the previous year, amounting to EUR 24.3 million (15.9 million). Operating profit before depreciation resulting from the allocation of acquisition cost amounted to EUR 4.5 million, or 18.3% of net sales (EUR 1.1 million, or 7.0% of net sales). The efficiency of operations has also clearly improved year on year. Turnover per person increased by 28.8 % compared to last year. A total of EUR 10.2 million of the purchase price of Trainers' House Oy was allocated in intangible assets with a limited useful life. This item is depreciated over a period of five years. Depreciation resulting from the allocation totalled EUR 1.6 million in the period under review. The total portion of depreciation for 2008 is EUR 3.0 million. Operating profit after this depreciation was EUR 2.8 million, or 11.7% of net sales. The following table itemizes the Group's key figures (in thousands of euros): 1-6/2008 1-6/2007 Net sales 24,327 15,882 Expenses Personnel-related expenses -12,301 -9,994 Other expenses -7,034 -4,445 EBITDA 4,992 1,444 Depreciation of non-current assets -541 -336 Operating profit before depreciation of allocation of acquisition cost 4,451 % of net sales 18.3 Depreciation of allocation of acquisition cost -1,603 EBIT 2,848 1,108 % of net sales 11.7 7.0 Financial income and expenses -941 10 Profit/loss before tax 1,907 1,118 Tax -678 -389 Profit for the period from continuing operations 1,229 729 Discontinued operations 358 Profit for the period 1,229 1,088 % of net sales 5.1 6.8 The result for the period includes deferred taxes for the period. Recognized taxes have no impact on cash flow, because the company's balance sheet contains deferred tax assets from losses carried forward. On 30 June 2008, deferred tax assets on the balance sheet totalled EUR 8.0 million. The following table itemizes the distribution of net sales for continuing operations and shows the quarterly profits or losses from the beginning of 2007 (in thousands of euros). In the table, the figures for 2007 are adjusted to reflect the company's continuing operations. Q107 Q207 Q307 Q407 2007 Q108 Q208 Net sales 8,070 7,812 5,945 8,161 29,989 12,009 12,318 Operating profit before depreciation of acquisition cost 403 705 287 724 2,119 2,259 2,192 Operating profit 403 705 287 724 2,119 1,458 1,390 Pro forma comparison In the pro forma comparison, the company's actual net sales and profit for the first half of 2008 are compared with the pro forma figures for the same period in 2007. The pro forma figures describe the net sales and profit of the merged company, had the merger of Satama and Trainer's House Oy taken place on 1 January 2007. The pro forma result is theoretical. Satama divested its Dutch operations in autumn 2007, and the comparative figures have been adjusted to correspond to the structure of the continuing and discontinued operations. The pro forma figures are as follows: 1-6/2008 1-6/2007 Net sales 24,327 24,997 Operating profit before depreciation of allocation of acquisition cost 4,451 4,774 % of net sales 18.3 19,1 Depreciation of allocation of acquisition cost -1,603 - 1,603 EBIT 2,848 3,171 % of net sales 11.7 12.7 Average number of personnel 389 427 Pro forma net sales and operating profit were slightly lower than last year. The efficiency of operations, measured by turnover per person and operating profit per person, improved year on year. LONG-TERM OBJECTIVES Trainers' House Plc's Board of Directors has set the following long-term financial objectives for the company: The company will target 15% annual organic growth and 15% operating profit, and will aim to pay 30-50% of its annual profit as a dividend. We expect to achieve these goals once our Growth System concepts have been completed and along with the internationalization of Trainers' House Plc. FINANCING, INVESTMENTS AND SOLVENCY Cash flow from operating activities was good in the period under review. Cash flow before financial items totalled EUR 3.4 million (EUR 0.2 million) and cash flow after financial items was EUR 2.6 million (EUR 0.2 million). Cash flow from investments totalled EUR 0.0 million (EUR -0.7 million) and cash flow from financing was EUR -11.4 million (EUR 0.5 million). Cash flow from financing was affected most significantly by the repayment of a loan related to the acquisition of Trainers' House Oy totalling EUR 9.1 million and a dividend paid out in the amount of EUR 2.7 million. Cash flow from financing was affected positively in the amount of EUR 0.5 million by subscriptions made under warrant 2003C, for which the subscription period ended on 1 February 2008. On 30 June 2008, the Group's liquid assets totalled EUR 8.4 million (0.5 million). The equity ratio was 61.6% (74.7%) and net gearing 27.0% (0.6%). At the end of the period under review, the company had EUR 25.1 million of interest-bearing debt (EUR 0.7 million). The balance sheet ratios have improved since the merger completed at the end of 2007. On 31 December 2007, the equity ratio was 56.0% and net gearing 27.6%. Financial risks Currency risks are insignificant, because Trainers' House operates principally in the euro zone. Interest rate risk is managed by covering part of the risk with hedging agreements. A bad debt provision, which is booked on the basis of ageing and case-specific risk analyses, covers risks to accounts receivable. SHORT-TERM BUSINESS RISKS AND FACTORS OF UNCERTAINTY The general outlook in the company's operating environment remains uncertain, which may influence the purchase decisions made by the company's customers and thereby affect the financial position of Trainers' House Plc. Other than this factor, Trainers' House Plc is not aware of any extraordinary risks that could have a significant negative impact on the company's operations. About risks Trainers' House is an expert organization. Market and business risks are part of regular business operations, and their extent is difficult to define. Typical risks in this field are associated with, for example, general economic development, distribution of the clientele, technology choices and development of the competitive situation and personnel expenses. Risks are managed through the efficient planning and regular monitoring of sales, human resources and business costs, enabling a quick response to changes in the operating environment. The success of Trainers' House as an expert organization also depends on its ability to attract and retain skilled employees. Personnel risks are managed with competitive salaries and incentive schemes as well as investments in employee training, career opportunities and general job satisfaction. Risks are discussed in more detail in the annual report and on the company's website at: www.trainershouse.fi > Investors. AUTHORIZATIONS BY THE BOARD OF DIRECTORS The Annual General Meeting authorized the Board of Directors to decide on the repurchase of the company's own shares. Under the authorization, whether on one or on several occasions, a maximum of 6,500,000 shares, which corresponds to approximately 9.62% of the company's shares, may be acquired. The authorization shall remain in force until 30 June 2009. At the same time the AGM countermanded the earlier comparable authorization. The Board of Directors is otherwise authorized to decide on all conditions related to the acquisition of own shares, including the manner of acquisition of shares. The authorization does not exclude the right of the Board of Directors to decide on a directed acquisition of own shares as well, if there is significant financial reason for the company to do so. The authorization had not been exercised on 30 June 2008. The AGM authorized the Board to decide on a share issue including the conveyance of own shares, and the issue of special rights. With these authorizations related to share issue and/or issue of special rights, whether on one or on several occasions, a maximum of 13,000,000 new shares may be issued and/or treasury shares may be transferred, which corresponds to approximately 19.24% of the company's shares. The authorization shall remain in force until 30 June 2009. At the same time the AGM countermanded the earlier comparable authorization. The Board of Directors is otherwise authorized to decide on all terms regarding the share issue and issue of special rights, including the right to also decide on a directed share issue and a directed issue of special rights. Shareholders' pre-emptive subscription rights can be deviated from, provided that there is significant financial reason for the company to do so. The authorizations had not been exercised on 30 June 2008. PERSONNEL At the end of the period under review, the Group employed 391 (379) people, of whom 382 (318) were located in Finland. SHARES AND SHARE CAPITAL The company's shares have been listed on the OMX Nordic Exchange since 2000. Until 28 December 2007, the company's shares were listed under the name Satama Interactive Plc (SAI1V) and as of 31 December 2007 under the name Trainers' House Plc (TRH1V). At the beginning of the period under review, Trainers' House Plc had issued 74,577,375 shares and the company's registered share capital amounted to EUR 866,941.67. The company's share capital was increased by a total of EUR 13,801.92 during the period under review, as a result of subscriptions made on account of the 2003C warrants issued under the personnel's option programme. The total number of new shares subscribed for was 656,500. A total of 7,217,171 treasury shares acquired by Trainers' House Plc in the merger of Satama Interactive Plc and Trainers' House Oy were invalidated during the period under review. The invalidation did not affect the company's share capital. The change in the number of shares was registered in the trade register on 7 March 2008. At the end of the period under review, the company did not possess any treasury shares. At the end of the period, the share capital of Trainer's House Plc totalled EUR 880,743.59. The number of shares totalled 68,016,704. The undiluted and diluted average number of shares totalled 69,210,766 and 69,472,670 respectively during the period under review. In accordance with the decision of the Annual General Meeting, Trainers' House paid a dividend of EUR 0.04 per share on 11 April 2008. The dividend paid totalled EUR 2.7 million, or 31.4% of the profit for 2007. Share performance A total of 18.3 million shares, 26,5 % of the average number of shares, were traded on the Helsinki Exchanges during the review period for a value of EUR 22.7 million (18.6 million shares, 45,3 % and EUR 21.0 million, respectively). The period's highest share quotation was EUR 1.44 (EUR 1.24), the lowest EUR 0.99 (EUR 1.00) and the closing price EUR 1.00 (EUR 1.16). The weighted average price was EUR 1.26 (EUR 1.13). At the closing price on 30 June 2008, the company's market capitalization was EUR 68.0 million (EUR 47.8 million). PERSONNEL OPTION PROGRAMMES Trainers' House Plc has one option programme for its personnel, included in the personnel's commitment and incentive scheme. The Annual General Meeting held on 29 March 2006 decided to commence an employee option programme involving 2,000,000 warrants. Due to the resulting subscriptions, the share capital of Trainers' House Plc may increase by a maximum of EUR 42,046.98 and the number of shares by a maximum of 2,000,000. Half of the warrants are titled 2006A and the other half 2006B. The subscription period for shares converted under the 2006A warrant is to begin on 1 September 2008 and to end on 28 February 2009. The subscription period for the shares converted under the 2006B warrant is to begin on a date determined by the Board of Directors after publication of the interim report for the second quarter of 2009, but not later than on 1 September 2009, and end on 28 February 2010. The dividend-adjusted subscription price after dividend payment is EUR 0.98 for shares converted under the 2006A warrant, and EUR 1.14 for shares converted under the 2006B warrant. CHANGES IN OWNERSHIP During 2007, the company became aware of 8 notices of change in ownership passing the disclosure threshold. Information on notices of change in ownership is available on the company's website at www.trainershouse.fi > Investors. The merger of Trainers' House Oy affected the company's shareholder base significantly. More than half of the company's shares are currently owned by its employees. The company's CEO Jari Sarasvuo and his controlled company Isildur Oy currently hold a total of 35.5% of the share capital of Trainers' House Plc. The Finnish Financial Supervision Authority has granted an exemption to Jari Sarasvuo and Isildur Oy regarding the obligation to present a mandatory redemption offer concerning the company. The terms and conditions of the exemption require that the combined shareholding of Mr. Sarasvuo and Isildur Oy in Trainers' House will decline to 30% or under within one (1) year from the date that the new shares have been registered. Information on the company's ownership structure and major shareholders is available on the company's website at www.trainershouse.fi > Investors. CONDENSED FINANCIAL STATEMENTS AND NOTES The interim report was compiled in accordance with the IAS 34 standard. The Group divested its Dutch operations in 2007, and the comparative figures for 2007 have been adjusted to correspond to the structure of the continuing and divested operations. In accordance with the risk management principles described in the company's financial statements, the company has hedged to manage part of the interest rate risk of financial liabilities and has also adopted hedge accounting. Amendments to and interpretations of published standards, as well as the new standards effective as of 1 January 2007 are presented in detail in the Financial Statements for 2007. Adoption of the standards did not cause any such impact on the accounting principles applied to the financial statements that would have called for retroactive changes to previous years' figures. The Group will adopt all the new and amended standards and interpretations that entered into force on 1 January 2008. The Group estimates that these new interpretations will not affect the consolidated financial statements. In producing this interim report, Trainers' House has applied the same accounting principles for key figures as in its Financial Statements for 2007. The calculation of key figures is described on page 45 of the Financial Statements included in the Annual Report 2007. The figures given in the interim report are unaudited. INCOME STATEMENT, IFRS (kEUR) Group Group Group Group Group 01/04/- 01/04/- 01/01/- 01/01/- 01/01/- 30/06/08 30/06/07 30/06/08 30/06/07 31/12/07 CONTINUING OPERATIONS Net sales 12,318 7,812 24,327 15,882 29,989 Other income from operations 5 5 170 8 61 Costs: Materials and services 1,573 984 2,842 1,933 3,437 Personnel-related expenses 6,234 4,727 12,301 9,994 18,663 Depreciation 1,084 174 2,144 336 713 Other operating expenses 2,042 1,227 4,362 2,520 5,116 Operating profit 1,390 705 2,848 1,108 2,119 Financial income and expenses -404 15 -941 10 -259 Share from profit/loss of associated companies -103 Profit/loss before tax 987 720 1,907 1,118 1,758 Tax -178*) -262*) -678*) -389*) 3,082*) Profit for the period Continuing operations 808 458 1,229 729 4,839 Discontinued operations 226 358 3,822 Profit/loss for the period 808 684 1,229 1,088 8,661 Attributable to equity holders of the parent company 808 684 1,229 1,088 8,661 Earnings per share as calculated from the profit attributable to shareholders of the parent company: Undiluted earnings/share (EUR), Continuing operations 0.01 0.01 0.02 0.02 0.12 Discontinued operations 0.01 0.01 0.09 Diluted earnings/share (EUR), Continuing operations 0.01 0.01 0.02 0.02 0.12 Discontinued operations 0.01 0.01 0.09 *) The tax included in the income statement is deferred. BALANCE SHEET, IFRS (kEUR) Group Group Group 30/06/08 30/06/07 31/12/07 ASSETS Non-current assets Property, plant and equipment 1,158 1,540 1,706 Goodwill 51,772 10,020 52,467 Other intangible assets 18,614 433 20,162 Other financial assets 4 54 230 Other receivables 24 101 24 Deferred tax receivables 7,992 5,306 9,149 Total non-current assets 79,563 17,454 83,738 Current assets Inventories 15 15 Accounts receivable and other receivables 13,144 12,691 11,690 Cash and cash equivalents 8,364 534 17,120 Total current assets 21,523 13,225 28,824 Total assets 101,086 30,680 112,562 SHAREHOLDERS' EQUITY AND LIABILITIES Equity attributable to equity holders of the parent company Share capital 881 867 867 Share issue 256 Premium fund 13,943 13,228 13,228 Hedging reserve 70 Distributable non-restricted equity fund 31,872 31,348 Translation differences -2 -1 -2 Retained earnings 15,174 8,832 16,551 Total shareholders' equity 61,937 22,925 62,247 Long-term liabilities Deferred tax liabilities 4,727 5,739 Other long-term liabilities 24,870 658 34,012 Accounts payable and other liabilities 9,553 7,096 10,563 Total liabilities 39,149 7,755 50,314 Total shareholders' equity and liabilities 101,086 30,680 112,562 CASH FLOW STATEMENT, IFRS (kEUR) Group Group Group 01/01- 01/01- 01/01- 30/06/08 30/06/07 31/12/07 Profit/loss for the period 1,229 1,088 8,661 Adjustments to profit for the period 4,678 904 -5,854 Change in working capital -2,482 -1,749 -366 Financial items -810 -7 -315 Cash flow from operations 2,615 236 2,127 Acquisition of subsidiaries -26,858 Divestment of subsidiaries 7,857 Investments in tangible and intangible assets -180 -661 -751 Capital gains on tangible and intangible assets 326 Capital gains on other investments -187 Change in the additional trade price -98 -67 Cash flow from investments 48 -728 -19,939 Share issue subject to charges 491 135 391 Dividend distribution -2,721 Increase/decrease in long-term loans -9,143 33,639 Increase/decrease in short-term loans -46 285 219 Increase/decrease in long-term receivables 59 136 Cash flow from financing -11,418 479 34,385 Change in cash and cash equivalents -8,756 -12 16,573 Opening balance of cash and cash equivalents 17,120 547 547 Closing balance of cash and cash equivalents 8,364 534 17,120 CHANGE IN SHAREHOLDERS' EQUITY (kEUR) Equity attributable to equity holders of the parent company Dis- tribu- table Trans- Hed- non-re- lation ging stric- dif- Share Share Premium re- ted fe- Retained capital issue fund serve equity rence earnings Total Equity 01/01/2007 859 13,101 -1 7,704 21,663 Translation differences -1 -1 Stock options used 8 127 135 Share-based payments 40 40 Profit/loss for the period 1,088 1,088 Equity 30/06/2007 867 13,228 -1 8,832 22,925 Equity 01/01/2008 867 256 13,228 31,348 -2 16,551 62,247 Cashflow hedging 70 70 Stock options used 14 -256 715 473 Share-based payments 115 115 Taxes related to bookings to shareholders' equity 524 524 Profit/loss for the period 1,229 1,229 Dividend distribution -2,721 -2,721 Equity 30/06/2008 881 13,943 70 31,872 -2 15,174 61,937 INVESTMENTS (kEUR) Group Group Group 01/01- 01/01- 01/01- 30/06/08 30/06/07 31/12/07 Gross investments in tangible and intangible assets and shares 277 739 64,440 Gross investments % of net sales 1.1 4.7 214.9 RELATED-PARTY TRANSACTIONS (kEUR) Group Group Group 01/01- 01/01- 01/01- 30/06/08 30/06/07 31/12/07 Management's emoluments Salaries and other short-term employee benefits 309 452 726 Share-based payments 31 PROVISIONS FOR LIABILITIES AND CHARGES (kEUR) Trainers' House implemented a major restructuring programme in the second quarter of 2006. A provision of EUR 1.3 million was made in the financial statements of the second quarter of 2006 to cover the expenses arising from the restructuring programme. On 31 December 2007, EUR 64 thousand of the provision remained unused. In 2008, the remaining provision has been used to cover actual expenses. Restructuring provision (kEUR) Group Group Group 01/01- 01/01- 01/01- 30/06/08 30/06/07 31/12/07 Provisions 1 January 64 160 160 Provisions used -64 -60 -96 Provisions 30 June/31 December 0 100 64 PERSONNEL Group Group Group 01/01- 01/01- 01/01- 30/06/08 30/06/07 31/12/07 Average number of personnel 389 373 369 Personnel at the end of the period 391 379 400 COMMITMENTS AND CONTINGENT LIABILITIES Group Group Group 30/06/08 30/06/07 31/12/07 Collaterals and contingent liabilities given for own commitments 3,827 5,255 4,144 Interest rate swaps Fair value 122 Nominal value 14,000 OTHER KEY FIGURES Group Group Group 30/06/08 30/06/07 31/12/07 Equity-to-assets ratio (%) 61.6 74.7 56.0 Net gearing (%) 27.0 0.6 27.6 Shareholders' equity/share (EUR) 0.91 0.56 0.92 Return on equity (%) 8.6 5.9 11.5 Return on investment (%) 4.3 9.2 3.5 Return on equity and return on investment are based on the previous 12 months. Helsinki, 7 August 2008 TRAINERS' HOUSE PLC BOARD OF DIRECTORS Further information: Jari Sarasvuo, CEO, tel. +358 (0)500 665 666 Mirkka Vikström, CFO, tel. +358 (0)50 376 1115 DISTRIBUTION OMX Nordic Exchange, Helsinki Prominent media sources www.trainershouse.fi - Investors