Noting in the acquisition cost calculation the Innofactor Plc's losses confirmed in the taxation

31.03.2011 00:00

Innofactor Plc Stock Exchange Release March 31, 2011, at 9:00 Finnish time

Noting in the acquisition cost calculation the Innofactor Plc's losses confirmed in the taxation

The Innofactor Plc financial statement on March 1, 2011, stated as follows: "Innofactor Plc has about EUR 38 million of losses confirmed in the taxation for years 2001–2008 and these have so far not been taken into account in the acquisition cost calculation and, thus, no imputed tax receivable has been registered for them. According to IFRS 3, the acquisition cost calculation can be revised and the imputed tax receivables entered within 12 months of the acquisition. For the above mentioned reasons, the acquisition cost calculation is preliminary."

The Large Taxpayers' Office has given a preliminary notice on the matter, according to which "Innofactor Plc (former Westend ICT Plc) may deduct its previously confirmed losses in the circumstances described in the application." The Tax Recipients' Legal Services Unit has stated that "if Innofactor Plc taxation is done in the manner indicated in the preliminary information, the Unit will not use the right of appeal on behalf of the tax recipients."

Due to the preliminary notice of the Large Taxpayers' Office, Innofactor Plc will update the acquisition cost calculation related to the reverse acquisition of Westend ICT Plc during the second quarter of 2011 at the latest. It is probable that a major portion of the business value generated by the acquisition will be allocated to the imputed tax receivable.


INNOFACTOR PLC

Sami Ensio

CEO

Additional information:

Sami Ensio
CEO
Tel. +358 50 584 2029

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