The Financial Supervision Authority (FIN-FSA) has issued a public warning to
Cencorp Corporation for neglect of the disclosure obligation. 

The FIN-FSA is of the view that Cencorp's conduct has repeatedly during the
year 2006 been in violation of financial markets provisions, since it has
provided unjustified estimates of the company's prospects and has delayed the
correction of these estimates and because, due to the recognition of a deferred
tax asset, has failed to give a true and fair view of the result of the
company's operations and financial position in its financial statements for
2005 and 2006. Due to the continuous and repetitive nature of the company's
misconduct, FIN-FSA is of the opinion that the company's behaviour qualifies
for a public warning. 

The prospects of the company's net sales and results published by Cencorp in
2006 were unjustified, since in publishing its prospects, the company failed to
pay due attention to its actual performance and uncertainties related to its
business operations, such as changes in customers' purchasing behaviour and
tightening of the competitive situation. The further the period proceeded, the
clearer the excessive optimism of the prospects became. The company revised its
prospects during the period, but these changes were inadequate and were not
made without undue delay. The company has failed to provide sufficient
justifications for the guidance it issued. 

The financial statements for 2005 and 2006 failed to give a true and fair view
of the result of the company's operations and financial position, as the
consolidated financial statements contained a material error. The company
should not have recognised deferred tax assets for the carryforward of unused
tax losses in its consolidated financial statements for years 2005 and 2006.
The criteria for recognising a deferred tax asset for carryforward of unused
tax losses were not met, since the company had a history of recent losses and
it could not present in its consolidated financial statements for 2005 and 2006
other convincing evidence, as required by IAS 12 Income Taxes, that sufficient
taxable profit would be available against which the unused tax losses could be
utilised. The amount of the error was material, since the deferred tax asset,
the recognition criteria of which was not met, amounted to 24% of equity in the
consolidated balance sheet on 31 December 2005, and 51% of equity on 31
December 2006. The company announced its decision to restate in its financial
statements for 2007 the comparative figures for 2005 and 2006 concerning the
deferred tax asset. 

This is the first public warning issued by the FIN-FSA. A public warning is an
administrative sanction, which the FIN-FSA has been authorised to issue since

The decision is not legally final as Cencorp Corporation has the right to
appeal the decision, issued on 3 March 2008, with the Market Court within 30
days of receiving the decision. 


Jarmo Parkkonen		Terhi Lambert-Karjalainen
Deputy Director-General		Head of Communications

For further information, please contact
Mr Jarmo Parkkonen, tel +358 10 831 5255

Annex: Decision by the Financial Supervision Authority (decision and appendices
are available, in Finnish, on the Financial Supervision Authority's Internet
pages at 

DISTRIBUTION Helsinki Stock Exchange, main media