SanomaWSOY's Interim Report January 1 - June 30, 2002

SanomaWSOY's operating profit increased in January - June 88% and was EUR 56.8 (30.2) million. Operating profit improved especially due to gains on the sales of assets and integration of new magazines operations with the Group. Profit before extraordinary items was EUR 53.9 (45.7) million and earnings per share EUR 0.15 (0.19). In the second quarter, net sales were EUR 580.5 (362.2) million, operating profit was EUR 42.7 (17.5) million and profit before extraordinary items was EUR 30.0 (27.6) million.

SanomaWSOY Corporation's interim report is also unaudited interim financial statements, 1 January - 30 June 2002 that has been prepared as an appendix to the merger plan relating to Rautakirja Oyj's merger with SanomaWSOY Corporation.

SanomaWSOY's net sales and operating profit will grow significantly in 2002, as the net sales and operating profit generated at operations acquired from VNU will impact the consolidated figures for the full year instead of one quarter. The Group's net sales are expected to increase to approximately EUR 2,400 million. Operating profit is expected to improve by one third, if the economic trend meets the expectations. Some of the profit increase will be generated from gains on sales of non-core assets. Net sales

SanomaWSOY's net sales increased in the first half of 2002 by 57% compared with the corresponding period in 2001 and totalled EUR 1,135.5 (723.6) million. The growth mainly derived from the magazine operations integrated with the Group at the beginning of October 2001; these include the present Sanoma Uitgevers, Sanoma Magazines Belgium, Sanoma Magazines International and Aldipress. SWelcom, WSOY and Rautakirja also increased their net sales. The comparable net sales remained unchanged from the previous year's level. Result

The Group's operating profit increased by 88% in January - June compared with the corresponding period in 2001 and totalled EUR 56.8 (30.2) million. Operating profit improved especially due to gains on the sales of assets and integration of new magazine operations. EBITA (operating profit before amortisation of goodwill, consolidated goodwill and immaterial rights) was EUR 105.2 (39.0) million. Comparable operating profit excluding new magazine operations increased by 4%.

SanomaWSOY's profit before extraordinary items increased by 18% to EUR 53.9 (45.7) million. Profit after taxes totalled EUR 23.3 (32.8) million. Earnings per share amounted to EUR 0.15 (0.19). Investments

As planned, investments were evaluated carefully. Investments fell by nearly half from the previous year to EUR 52.8 (98.5) million. The biggest investments related to the Sanomala printing unit. The R&D expenditure booked as expenses totalled EUR 11.2 (9.0) million. Market situation

The Research Institute of Finnish Economy, ETLA, continued to estimate in June that GDP in the Euro area will increase 1.5% this year. Total production in Finland is projected to increase by 2%, up from 0.7% in 2001. According to Statistics Finland, consumers' confidence in Finnish economy in June was stronger than a year before.

Media advertising in Finland decreased by 2% in the first half of the year according to Gallup Mainostieto. The advertising trend picked up in June and grew by 5% from the level of June 2001. Newspaper advertising fell by 4% and magazine advertising by 2% in Finland in January - June. TV advertising grew by 2%. According to an estimate by Zenith-Media, magazine advertising will decrease by 4% in the Netherlands and grow by 3% in Belgium, 18% in Hungary, 13% in Romania and 1% in the Czech Republic this year.

The Finnish retail market grew by 4% during January - April. SanomaWSOY/Rautakirja merger plan

According to a merger plan approved by the Boards of Directors of SanomaWSOY and Rautakirja in June, Rautakirja, in which SanomaWSOY currently holds 57%, will be merged into SanomaWSOY. The merger will enable full usage of the Group's resources in international expansion projects and simplify the ownership structure. It will give more flexibility in possible internal reorganisation of the business and restructuring of the Group while enhancing efficient financing and capital planning.

According to the merger plan, Rautakirja's shareholders will receive a merger consideration of 5.3 new SanomaWSOY B-shares for each Rautakirja A- or B-share held by them. The extraordinary general meetings of SanomaWSOY and Rautakirja, to be held on 18 September 2002, will take a decision on the merger.

The intended time for the registration of the enforcement of the merger is 1 March 2003. In connection with the merger, Rautakirja's operations will be incorporated into a new Rautakirja Oy that will continue operations on the present basis. In the merger, SanomaWSOY will issue not more than 33,551,120 SanomaWSOY B-shares, of which not more than 18,773,018 shares will be issued to SanomaWSOY subsidiaries Sanoma Corporation and Werner Söderström Corporation as merger consideration. Those of Rautakirja's existing shareholders that are external to SanomaWSOY Group will receive a merger consideration of not more than 14,778,101 shares that after the merger will represent about 8.25% of the total number of SanomaWSOY A- and B-shares. SanomaWSOY Corporation will receive no merger consideration in the merger for those Rautakirja shares that it owns directly. Other key events

In the first quarter of the year, Sanoma Magazines Finland sold its directory-publishing unit Blue Book, and SanomaWSOY Corporation sold some of its real estate holdings. SanomaWSOY continued its strategy of selling its non-core assets also during the second quarter: in April, Sanoma Magazines sold its shares of British business unit BEAP to a group of investors, including BEAP's operative management and ABN Amro Capital. The value of the deal was slightly over EUR 50 million. The result of the first quarter will impact the final price of the transaction. Sanoma's business unit Startel sold its 33.4% participation in Ecovision AB to Fininfo S.A. and its StarDesk and StarWeb operations to Ecovision. In July, after the review period, Sanoma's subsidiary Arnedo Oy sold 10.7% of the share capital of Ilkka-Yhtymä Oyj, after which its participation in the company decreased to 23.5%.

Rautakirja's business unit Lehtipiste acquired the remaining 50% of the share capital of Estonian magazine distribution company AS Lehepunkt in June. Established at the end of 1999, the company has previously operated as a joint venture, in which Rautakirja and the Estonian AS Ekspress Grupp held 50% each.

In June, Sanoma signed a letter of intent for the acquisition of the publishing rights for Veikkaaja magazine from Oy Veikkaus Ab. The ownership of the magazine and the publishing responsibility will transfer to Sanoma at the beginning of September 2002. The value of the deal is EUR 5 million. Administration

In accordance with the Articles of Association, the term of the Board of Directors elected in connection with the SanomaWSOY merger ended at the Annual General Meeting held in April 2002. The meeting decided to retain the number of Board members at 11 and re-elected the following persons: Robert Castrén, Aatos Erkko, Jane Erkko, Marjukka af Heurlin, Paavo Hohti, Kyösti Järvinen, Esko Koivusalo, Robin Langenskiöld, Jaakko Rauramo, Rafaela Seppälä, and Hannu Syrjänen. Jaakko Rauramo was elected Chairman and Paavo Hohti Vice Chairman of the Board. All the above-mentioned persons have announced that they will vacate their seats for a new election at the Annual General Meeting in spring 2003.

Theo Bouwman (58), President of the SanomaWSOY Group's magazine division Sanoma Magazines and a member of SanomaWSOY's Management Group, announced in June his resignation from his post. Eija Ailasmaa, Sanoma Magazines Finland's President and Sanoma Magazines B.V's Executive Vice President, was appointed to perform the duties of President of Sanoma Magazines B.V. for the time being and as of 1 August. Dividend

SanomaWSOY's Annual General Meeting passed a decision to distribute a dividend of EUR 0.51 per share. The record date for the dividend payment was 12 April 2002, and the dividend was paid on 19 April 2002.

The signatories of SanomaWSOY's shareholders' agreement, who together hold more than 50% of all shares and votes in SanomaWSOY, have agreed to vote for and also otherwise operate in a way to ensure that SanomaWSOY will take a decision in the Annual General Meeting to be held in 2003 to distribute a dividend of at least EUR 0.26 per share for the 2002 financial year. Balance sheet and financial position

SanomaWSOY's consolidated balance sheet totalled at the end of the review period EUR 2,774.2 (1,440.9) million, and its equity excluding capital notes was EUR 768.1 (788.4) million. Equity ratio including capital notes continued to increase during the second quarter and reached 40.8%. The positive impact of capital notes on equity ratio equals 7.7 percentage points.

At the end of the period, the Group's interest-bearing liabilities amounted to EUR 1,269.4 (216.8) million. The book value of securities and cash was EUR 202.3 (307.0) million and their market value was EUR 222.6 (360.1) million. Interest-bearing liabilities decreased during the second quarter despite the dividend payment in April. Net debt at the end of the review period was EUR 1,067.1 million.

The Group's net financial items in January - June totalled EUR -2.9 (15.5) million. Financial income was EUR 47.8 (30.3) million and financial expenses amounted to EUR 50.6 (14.7) million. Most of the financial income, EUR 32.0 (15.5) million, was generated from the gains on sales of shares. During the second quarter, shares were divested selectively from the Group's portfolio, taking into account the difficult market conditions. Financial expenses mainly consisted of interest expenses on interest-bearing liabilities, EUR 32.9 (4.9) million, and of decrease in value of securities, EUR 14.7 (9.8) million. During the second quarter, the Group implemented a cash pooling system covering several European countries; the objective is to improve the efficiency of the Group's cash management and reduce financial costs. Shares

A total of 52,809 SanomaWSOY A-shares and 4,040,528 B-shares were traded during the first six months of the year. The total share turnover was EUR 50.0 (29.6) million.

Series A-shares were traded at an average price of EUR 12.40 and B-shares at an average price of EUR 12.20 in January - June. The high for the A-shares was EUR 13.40 and the low EUR 10.30. The corresponding figures for B-shares were EUR 13.63 and EUR 10.50.

SanomaWSOY's market capitalisation at the end of June less shares hold by the Group was EUR 1,494.0 (1,644.0) million. The number of shares held by the Group was 7,187,276 B-shares, representing 4.94% of the share capital and 1.23% of the votes. The conversion period of convertible capital notes issued in 2001 began on 2 January 2002. No notes were converted by the end of the review period. Personnel

The average number of persons under employment contract during the first half of the year totalled 18,681 (13,928). Translated into full-time positions, this was equivalent to 15,263 (10,908).

SANOMA Newspaper publishing and printing

Sanoma's net sales for the first six months amounted to EUR 223.4 (238.1) million. The 6% net sales decrease was mainly due to a fall in media advertising: according to Gallup Mainostieto, money spent on newspaper advertising decreased by 4% and job advertising by 33%. In June, however, newspaper advertising turned to moderate growth. Sanoma's advertising revenue decreased more than the overall market because of its high proportion of job advertising, although at a slower rate in the second quarter. Advertising revenue represented 50% of Sanoma's total net sales. Circulation revenue grew slightly while exports of printed products decreased.

Sanoma's operating profit improved clearly in the second quarter compared with the previous corresponding period, in spite of the net sales decrease. In January - June, operating profit was EUR 20.9 (21.5) million. Sanoma's result from own operations improved and costs decreased compared with the previous corresponding period thanks to cost-saving measures, lower paper prices and higher gains on the sales of shares and operations. However, smaller share of Rautakirja's result, EUR 2.1 (3.3) million, weakened the division's result. EBITA was EUR 24.4 (24.7) million. The previous year's comparable figure includes damages of EUR 3 million, which have been appealed, booked as Helsingin Sanomat's expenses.

Investments totalled EUR 23.3 (49.9) million, and mostly related to the Sanomala printing unit.

Net sales from the Helsingin Sanomat business unit fell by 6% and advertising revenue by 10%, mostly due to the poor development of job advertising. There were, however, some signs of an upturn in June when Helsingin Sanomat's media net sales increased slightly more than 3%, and the decline of job advertising slowed down to 6%. Circulation revenue improved slightly driven by price increases, and Helsingin Sanomat's circulation remained unchanged from the previous year. The unit's operating profit improved thanks to cost-saving measures. The number of personnel has been reduced in an orderly manner due to improved efficiency of operations.

Ilta-Sanomat's net sales remained unchanged from the previous year, although newsstand sales fell short of the record figure of 2001. However, the share of newsstand sales of tabloids improved both compared with the previous year and the previous quarter and was 61.1%. Advertising revenue grew by more than 5%, and operating profit improved. The activities of Veikkaaja Magazine will be integrated with Ilta-Sanomat's operations from the beginning of September in accordance with the letter of intent. Veikkaaja will increase Ilta-Sanomat's net sales by about EUR 7 million on an annual level.

Kymen Lehtimedia's net sales dropped by 12% because of a decline in exports of printed products to Russia. Circulation revenue increased supported by price increases but advertising revenue decreased from the previous year. Operating profit almost reached the previous year's level thanks to implemented cost-saving measures.

Although Infosto's net sales decreased by 16%, its operating profit improved significantly. These developments were largely the result of the decision to focus on developing consumer-to-consumer products and services and to withdraw from non-core online operations of new products' electronic market place. The circulation revenue of Keltainen Pörssi reached the previous year's level thanks to price increases, although the circulation volume decreased to some extent. The paper's advertising revenue also reached the previous year's level.

Startel's net sales dropped by 15% because of the lower volume of media advertising. Operating loss diminished as a result of the sale of shares and operating assets by which Startel sold its 33.4% holding in Ecovision AB to Fininfo S.A. and the StarDesk and StarWeb operations to Ecovision. After the deal, Startel is increasingly focusing on production of economic news. During the review period, Taloussanomat signed a cooperation agreement with the Union of Professional Engineers in Finland (IL); according to the agreement, IL will subscribe the Saturday issue of Taloussanomat as a membership benefit for its members as of 1 September. The number of new subscriptions at the beginning of September will be about 33,000.

The transfer of Esmerk's production to larger units has been nearly completed. The number of language areas and information sources to be monitored was increased in this connection.

Development in the advertising market during the first six months was weaker than anticipated; however, an upturn in media advertising is expected in the next few months. Sanoma's net sales for the whole year will not reach the previous year's figure because of the weak development of newspaper advertising in the first half of the year. For Sanoma this means a need to adapt operations to the prevailing market situation. Operating profit is estimated to improve slightly as a result of cost-saving measures but this will require a clearly improving growth trend of media advertising. Top priority for the year is to improve long-term profitability by efficient cost management and by a leaner structure. SANOMA MAGAZINES Magazine publishing, press distribution

The comparable financial information for the first two quarters of 2001 includes only the figures of Sanoma Magazines Finland.

Sanoma Magazines' net sales in January - June totalled EUR 484.2 (80.9) million. Magazine advertising decreased in Finland and the Netherlands but grew in Belgium, Hungary and Romania. Advertising revenue represented about 25% of Sanoma Magazines' net sales in the first six months.

Operating profit for the first six months was EUR 34.6 (7.3) million and EBITA was EUR 73.7 (7.7) million. Operating profit improved following the divestment of Sanoma Magazines Finland's business unit Blue Book in March and the sale of the British crossword puzzle publishing unit BEAP in April.

Investments totalled EUR 11.9 (2.4) million. The investments mostly related to Sanoma Uitgevers' projects.

Net sales from the Dutch-based Sanoma Uitgevers totalled EUR 226.9 million. Advertising revenue and circulation revenue decreased in the Dutch magazine market in the first half of the year due to economic downturn.

In June, Sanoma Uitgevers decided to initiate a reorganisation in the company. The purpose is to cut fixed costs by about EUR 15 million on an annual level and improve the efficiency of the unit. An estimated 70 - 120 jobs of the existing 1,500 ones will be cut down. The program will weaken Sanoma Uitgevers' result for the year, but it will have a significant positive long-term impact on the results from 2003 onwards.

Net sales deriving from Aldipress totalled EUR 104.0 million in the first half of the year. The new distribution centre under construction in Duiven is progressing on schedule, and the two production lines have been taken into use.

Sanoma Magazines Finland's net sales were EUR 81.8 (80.9) million, boosted by the good development of circulation and newsstand sales. In the Finnish magazine market, newsstand sales did not develop according to expectations, but Sanoma Magazines Finland's sales exceeded the overall market development. Advertising revenue declined due to sluggish economy.

In April, Sanoma Magazines Finland launched a new magazine, Sport, targeted at active women. A decision was taken to discontinue the publication of Sköna Dagar in Sweden due to the low circulation figures.

Sanoma Magazines Belgium's net sales for the first half of the year totalled EUR 75.8 million. Both advertising and circulation revenue developed well. The Belgian advertising market grew in the first six months, and the growth of circulation revenue was supported by the success of weekly magazines published in the Flemish-speaking region of Belgium.

Net sales deriving from Sanoma Magazines International, which operates in Hungary, Slovakia, the Czech Republic, Romania and Croatia, amounted to EUR 48.9 million. Eastern European countries did not suffer from the economic downturn to the same extent as Western European countries, and Sanoma Magazines International enjoyed dynamic development, particularly in Hungary and Romania. Two new magazines, Wellness and Best, were launched in Hungary. A magazine called Story was launched in Romania and Croatia.

In April, Sanoma Magazines finalised the sale of the shares of its business unit British European Associated Publishers Ltd. (BEAP). After the sale, Sanoma Magazines International operates no more in Britain.

Sanoma Magazines is expected to reach net sales of around EUR one billion and its EBITA ratio is estimated to be 12. Operating profit is expected to be slightly below 6% due to significant goodwill amortisation. SWELCOM Electronic media

SWelcom's net sales for January - June remained largely unchanged from the previous year at EUR 42.6 (42.4) million. The good success of HTV's broadband Internet services enhanced net sales, but Nelonen's advertising sales decreased from the previous year. Advertising revenue represented about 58% of net sales.

Operating loss decreased to EUR 11.5 (12.8) million. The decrease was mainly due to the refocusing and adaptation of the activities of Internet and mobile service producer 2ndhead to the current operative level. Nelonen's operating loss decreased slightly as well. On the other hand, the result was encumbered by the loss from the operations of SWelcom's associated company Suomen Urheilutelevisio Oy (a digital sports channel). SWelcom's EBITA was EUR -10.0 (-11.4) million.

SWelcom's investments totalled EUR 4.1 (6.6) million. The biggest investments related to the construction of HTV's cable network and development of a cable modem system.

Nelonen's net sales for the review period fell slightly below the figure of the comparable period and totalled EUR 25.3 (26.2) million. Sales of advertising time amounted to EUR 24.6 (25.8) million. Operating loss was reduced by 7%.

Nelonen's daily coverage improved to 46 (42) %, and weekly coverage to 75 (74) %. Nelonen has a strong market position and image among advertisers. According to a corporate image survey of media companies made by Gallup Finland, advertisers see Nelonen as the most modern advertising media, and it is also perceived as a forerunner. According to advertisers, the price/quality ratio of the channel is also the best of the market.

In June, the Ministry of Communications and Transport announced that it invites applications for three licenses from providers of telenet services in the terrestrial digital television network and a maximum number of three program licenses for terrestrial digital TV operations. SWelcom has decided to announce its intention to apply a network licence, but the final decision will be taken later during August - September. SWelcom has for the time being made no decision to apply a program licence.

HTV's net sales increased by 25% in January - June. Operating profit improved over the previous corresponding period thanks to a growth in the sales of broadband Internet services. By the end of June, the number of households connected to HTV's cable network approached 224,800. About 7,600 of these were new subscribers that had joined in the first half of the year, and in the latter half of the year the same amount of new households will be connected to the cable network. HTV's subscription prospects continue to be good in the next few years as well. At the end of June, more than 23,700 customers had acquired the new broadband Internet connection.

The mobile consumer portal 2ndhead.com was closed at the beginning of the summer as part of 2ndhead Oy's operative refocusing and cost saving program. Today 2ndhead.com operates as the mobile service technology platform for SanomaWSOY Group's products.

In June, SWelcom signed a letter of intent to sell 15.1% of Suomen Urheilutelevisio shares to Avanti Broadcasting. After the deal, SWelcom's holding will decrease to 19.9%. The final agreement will be signed by the end of August.

Development of the TV advertising market in the first six months was weaker than anticipated, and it will be difficult to close the gap during the rest of the year. Net sales are projected to grow by less than 10% in 2002 and the operating result is expected to continue improving clearly. Nelonen will improve its profitability significantly boosted by the halving of the TV licence fee as from 1 July 2002 following a law reform. Halving of the fee will reduce Nelonen's costs by approximately EUR 2.8 million this year. Achievement of the targets will depend on the trend of the overall TV advertising market. WSOY Publishing, printing and calendar operations

WSOY's net sales increased by 4% in the first six months to EUR 98.0 (94.1) million. All units posted improved sales figures compared with the previous year in spite of the sluggish market situation.

Operating profit was EUR 4.8 (5.0) million. Operating profit from own operations increased to EUR 2.3 (1.2) million but share of Rautakirja's result fell to EUR 2.7 (4.4) million. The result derived from own operations was enhanced especially by the progress of the measures aimed at strengthening new operations and the Norwegian calendar unit. EBITA was EUR 7.0 (7.0) million.

WSOY's investments in January - June totalled EUR 3.8 (8.2) million. The biggest single investment in the second quarter was the replacement investment of a four-colour offset printing machine for WS Bookwell.

Net sales from Publishing increased to EUR 72.8 (68.2) million, and operating profit to EUR 7.2 (6.1) million. General Literature increased its sales by more than 4% and added its market share significantly in spite of the weak demand for books in the spring. Especially children's books and juvenile books were successful and high demand for J.R.R. Tolkien's works continued. In educational materials WSOY managed to retain its market share notwithstanding the harsher competition. Subscriptions of multi-volume books recovered: Outstanding orders by Weilin+Göös in Finland increased by 30% and Bertmark AB's outstanding orders in Scandinavia grew by 11%.

The most successful new company operating in the publishing sector was the map and location-based service producer Genimap, whose net sales increased by more than 25%. The new TransGT system created by the company to serve transport and freight traffic was well received, and several cooperation projects connected with mobile and Internet localisation progressed as planned. Much interest was shown in the OPIT service, which supplies e-learning materials for schools, and the number of paying users developed as anticipated.

Net sales from Printing operations totalled EUR 31.5 (30.5) million, and operating profit was EUR 3.7 (3.8) million. Demand for printing of books and advertising products declined from the previous year but WS Bookwell, Lönnberg Painot and Dark have received a promising volume of new orders for the autumn.

Net sales from Calendar operations totalled EUR 4.9 (4.9) million and operating loss was EUR 6.6 (7.6) million. The effect of cost reductions showed in the improved result particularly in the Norwegian unit Emil Moestue. The profit from Calendar operations is traditionally generated during the second half of the year.

The first half of the year did not fully redeem WSOY's expectations: the overall book market was quiet and products based on new publishing technology are still awaiting their real breakthrough that would generate return on the development expenditure. In this situation, WSOY focused on controlling costs and defending its strong market position. WSOY's net sales are projected to increase by 5% in 2002 according to previous estimates, and the division's operating profit will improve. RAUTAKIRJA

Kiosk operations, press distribution, bookstores, movie theatre operations, restaurant operations and eBusiness

Rautakirja's net sales grew by 6% in the first six months to EUR 340.9 (321.5) million. Growth was strongest in the Movie theatre operations and Restaurant operations; also the Kiosk operations grew dynamically. Comparable net sales increased by 3%.

Comparable operating profit grew by 5%. However, operating profit fell to EUR 11.2 (18.4) million from the previous year, as the figure of the previous year includes a profit of EUR 7.8 million on the sale of the shares of Norwegian Narvesen. Operating result increased especially in Movie theatre and Restaurant operations. EBITA was EUR 13.3 (20.3) million and earnings per share EUR 1.40 (2.24).

Rautakirja's investments totalled EUR 9.4 (14.9) million. The biggest investments were acquisition of the remaining 50% of the share capital in the Estonian magazine distribution company AS Lehepunkt in June and the construction project of a multiplex in Vilnius, Lithuania.

Net sales from Kiosk operations increased by 7% to EUR 180.6 million. Most of the growth was attributable to the corporate adjustments in Latvia in the latter half of 2001; also net sales deriving from the Finnish R-kiosks, Veikkausrasti outlets and the Estonian company Lehti-Maja Eesti AS increased. Operating profit fell compared with the previous year and amounted to EUR 6.1 million. R-kiosks posted improved results both in Finland and Estonia, while Veikkausrasti's result declined. The result from Latvian kiosk operations remained still unprofitable.

Press distribution increased by 1% and posted net sales of EUR 81.7 million. Structural changes completed especially in the Baltic countries boosted net sales. Operating profit decreased by 24% to EUR 4.0 million. Operating profit declined at the Finnish Lehtipiste but increased at the Estonian Lehepunkt. Rautakirja extended its press distribution operations during the review period both in Estonia and Latvia. In Latvia, NB Logistika SIA, a subsidiary of Narvesen Baltija SIA, which in turn is jointly owned by Rautakirja and the Norwegian Reitan Narvesen, became operative at the beginning of May. The company manages newsstand sales of local and international magazines in Latvia. In June, Rautakirja acquired the remaining 50% of the share capital of Estonian AS Lehepunkt, previously owned by Rautakirja and AS Ekspress Grupp on a 50 - 50 basis. The company's share of the Estonian magazine distribution market is approximately 90%.

Net sales from Bookstores decreased by 1% to EUR 48.0 million and operating loss increased to EUR 1.6 million. The result is traditionally generated in the latter part of the year. Operating profit fell in Finland where as the result of the Estonian unit remained in previous year's level. Suomalainen Kirjakauppa's book sales developed well in the first six months, with the exception of children's books and juvenile books, which had in the comparison year reached record-high sales especially in juveniles' fantasy books. Strong sales of pocket books continued.

Net sales from Movie theatre operations grew by 17% and amounted to EUR 23.7 million. The growth was mainly based on a good film offering; this trend is expected to continue. Operating profit quadrupled to EUR 1.4 million. Profit increased in Finland, Estonia and Latvia. Building of new cinema theatres in the Baltic countries progressed as planned, and the foundation stones of future multiplex theatres in Vilnius and Riga were laid during the review period.

Net sales from Restaurant operations grew by 20% and totalled EUR 23.1 million. The growth derived from newly integrated units. Operating loss decreased by more than one fifth and was EUR 0.7 million.

Net sales from eBusiness totalled EUR 0.6 million and operating loss EUR 0.9 million. The eBusiness operation will be broken up, and some of its activities will be transferred to other operating units, as its projects have failed to turn into actual business on anticipated schedule.

Rautakirja's net sales are estimated to grow about 5% this year. The result is expected to fall below the record performance of 2001, which included a profit of EUR 7.8 million on the sale of Narvesen's shares. The operating result will remain largely unchanged from the previous year's level.

Helsinki, 8 August 2002

Board of Directors

SanomaWSOY Corporation Interim report tables

Figures are unaudited.

NOTES

SANOMAWSOY CORPORATION

Raija Kariola
Vice President
Investor Relations and Group Communications

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