LEVERATOR PLC INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2008

Leverator Plc     Interim Report     30 October 2008 at 9.35 a.m.

Business

Leverator Plc’s (Leverator) business consists of the issue of bonds and the grant of loans to CapMan Mezzanine IV L.P. mezzanine fund (CMM IV). Leverator’s result is formed by the difference between interest received from CMM IV’s loans and interest paid to bondholders. The issued bonds are listed on the Helsinki Exchanges.

Bonds

Leverator has issued a serial loan with a fixed coupon interest of 8.162%. The bonds will be issued in a maximum of five tranches in accordance with the loan capital needed by CMM IV, and investors have committed to subscribe all five tranches. The last tranche will be issued no later than 21 June 2009.

The tranches have a maximum size of MEUR 60 each. The maximum total issue is MEUR 192. The bonds’ trading lot is MEUR 0.5 and the final loan maturity is 21 June 2016. Leverator has a call option to repay the bonds or part thereof not earlier than 22 June 2009. In the event that the bonds are called prior to 22 June 2011, a premature payment premium is paid as specified in the listing particulars.

Leverator’s financial performance is impacted by the time of new tranche issues.

Issued tranches and Leverator’s financial performance

No tranches were issued during the review period. Leverator’s turnover for the review period was EUR 0, because the Company’s interest earnings and interest expenses are presented as financial items in the income statement. Leverator’s operating loss was EUR 37,380 (EUR 46,223 for the review period 1 January – 30 September 2007) and financial income and expenses totalled EUR 102,837 (EUR 86,216). The result for the review period was EUR 36,645 (EUR 20,882).

Leverator’s solvency and risks

The security for the bonds is Leverator’s receivable from CMM IV. The security for this receivable to Leverator is CMM IV’s mezzanine loan receivables from portfolio companies as well as associated options and portfolio company shares that are possibly subscribed on the basis of those options.

Leverator’s solvency to pay the bonds’ interest and principal is based on CMM IV’s solvency to pay the loan receivable and interest to Leverator. CMM IV’s solvency is dependent on its mezzanine loan receivables from portfolio companies and on the value of associated options or shares as well as on CMM IV’s right to call the commitments and clawback of the Fund’s Limited Partners and on the credit limit of CMM IV. The most significant risk or uncertainty factor in Leverator’s operations is that the portfolio companies would not be able to pay their debt to the fund, or that the fund’s solvency would be put at risk due to some other cause.

An examination of CMM IV’s solvency to manage the loan receivable to Leverator is first carried out in order to determine Leverator’s solvency.

CMM IV’s solvency

* The values reported by CMM IV’s management company. 

CMM IV’s solvency exceeds the balance of the loan receivable to Leverator; therefore Leverator’s receivable from CMM IV can be accounted for in full in the calculation below.

Leverator’s solvency

Leverator’s solvency exceeds the balance of the bonds.

Leverator’s more detailed financial position is presented in the balance sheet, income statement and cash flow statement in Appendix 1. There are no exceptional liabilities of Leverator or CMM IV in the knowledge of Leverator’s Board of Directors that should be considered in the above calculations.

Leverator’s ownership

The owners of Leverator Plc are CapMan Plc, Etera Mutual Pension Insurance Company, Foundation for Economic Education, Ilmarinen Mutual Pension Insurance Company, OP Life Assurance Company Ltd, Pharmacy Pension Fund, Sampo Life Insurance Company Ltd, Varma Mutual Pension Insurance Company and Yleisradio Pension Fund with equal holdings.

Leverator’s management

On 7 May 2008 the shareholders of Leverator Plc elected the following members to the Company’s Board of Directors: Mr Risto Autio, Mr Magnus Backström, Mr Kari Joutsa, Mr Harri Lemmetti, Mr Olli Liitola, Mr Jyrki Orpana, Mr Jorma Tammenaho, Mr Hannu Tarkkonen and Mr Kyösti Ylikortes. The members elected Mr Jyrki Orpana as Chairman of the Board. 

Adoption of IFRS standards (IAS)

As of 1 January 2007, Leverator Plc has adopted International Financial Reporting Standards (IFRS) in its financial reporting. 

Future outlook

According to the management’s best vision, no substantial changes in Leverator’s position are expected during year 2008. The time of the next tranche issue is difficult to estimate. Changes in the Company’s other financial position are not expected during 2008. It is highly probable that the Company’s interest earnings will cover its interest payable and other expenses.

Leverator Plc will publish its Financial Statements 1 January – 31 December 2008 on 29 January 2009.

Helsinki 30 October 2008

LEVERATOR PLC

Board of Directors

For further information, please contact:

Martti Timgren, CEO, tel. +358 207 207 582 or mobile +358 50 531 9772

DISTRIBUTION

Helsinki Exchanges

Principal media

Bondholders

APPENDIX 1.                     Balance sheet, income statement, cash flow statement and statement of changes in equity

Interim Report 1 January – 30 September 2008 has been prepared in compliance with International Financial Reporting Standards (IFRS) applying IAS and IFRS standards, as well as SIC and IFRIC interpretations, valid on 31 December 2007. The figures in the Interim Report are unaudited.

APPENDIX 1.    BALANCE SHEET, INCOME STATEMENT, CASH FLOW STATEMENT AND STATEMENT OF CHANGES IN EQUITY