Second Quarter 2000January - June

August 9, 2000

2

From mutual to public company

HelsinkiTelephone

HPY Holding

Freefloat

Freefloat

68,4%

100% 100%

1994 1997 1998 1999 2000

Incorporation IPO ofHTC

Transformationof legal form

Holding companylisting

Merger Renaming

3

Growth Continued During 2Q

Elisa Communications’ key figures

Revenue EUR 593m (EUR 489m), rising 21%

EBIT EUR 129m (EUR 50m), rising 158%

Pre-tax profit EUR 119m (EUR 46m), rising 161%

Earnings / share (EPS) rose 160% to EUR 0.52 (EUR 0.20)

Excluding the profit of sales of Comptel shares

EBIT rose 41% to EUR 71m

Pre-tax profit rose 34% to EUR 61m

4

Revenue Breakdown 1H/2000

285

241

66

0

50

100

150

200

250

300

Mobile Fixed Others

5

EBIT Breakdown 1H/2000

52

14

4

0

10

20

30

40

50

60

Mobile Fixed Others*

* incl. EUR 8m undivided group’s costs

6

Mobile Operations and m-business

Radiolinja Group revenue was EUR 301m, rising 30%

Radiolinjan subcriptions totalled 1,350,500, including 1,243,000 in Finland and 107,500 in Estonia. Radiolinja’s share of Finnish GSM subscriptions was app. 37%.

Radiolinja’s share of net additions was app. 45%

ARPU was EUR 40 / month (36), Q1/2000 EUR 40 / month, Q2/2000 EUR 41 / month

Churn (annualised) was 12.5% (14.2%)

Value added services accounted 10% of revenue

Radiolinja Group Jan-June

EBITDA, M€ 96% revenue 32Adj. EBITDA, M€ 124% revenue 41ARPU/month 238Churn, annualised 12,5Traffic, millions of min 812Min / connections / month 113

7

ARPU (EUR/month/subscription)

44

42

38 3840

41

30

35

40

45

50

1996 1997 1998 1999 1Q/00 2Q/00

8

Churn (annualised), %

87

9

13,6 13,7

11,6

0

2

4

6

8

10

12

14

16

1996 1997 1998 1999 1Q/00 2Q/00

9

Mobile OperationsHighlights

Radiolinja updated its corporate image and launched new services:

DJ Esko service package (WAP- type service based on SIM-technology, Internet-connection, plenty of value-added services)

Account balance reminder and account limit services

Text message directory services

Group messages via mobile phone and new mobile portal

Yahoo! Expansion via Yahoo! Sweden product launches

Testing services such as navigational system, network security, electronic payment and UMTS network

Radiolinja announced it applied for the third GSM license in Lithuania

Elisa shareholding in Radiolinja rose to 98.2%

DJ Esko

Fixed Line Network & e-Business Highlights

Internet-traffic volumes up 42%, share of total traffic at 39% (30%)

Total number of connections was 731.063 (722.646). ISDN channels exceeded 191,500 units (139,750 units ), up 37%

ADSL connections approximately 1,300 units

Comprehensive directory media: 0100100.com

Kolumbus focused on secure connection services for wireless networks

Other OperationsHighlights

Comptel growth remained strong: revenues up 50% to EUR 15.2m and operating profit up 79% to EUR 6.6m

The nation-wide distribution was concentrated on Mäkitorppa Group. Mäkitorppa’s revenues up 25% to EUR 43.4m, operating result up sharply, but still slightly in the red.

Mäkitorppa had 20 shops in Germany, new shops established in Düsseldorf and Bremen regions

Tele-shops got a new look and the new Elisa ShopIT chain was formed

Elisa founded Star Communications Oy, focusing on consulting and network design, with Jaakko Pöyry Oy taking a 30% shareholding.

Offenbach

Düsseldorf

Frankfurt

Hanau

Halle

Rostock

Mainz

Potsdam

Bremen

Hannover

Münster

Jena

Essen

Wuppertal

Bremerhaven

Saarbrücken

Leipzig

German Operations

The Group’s German operations transferred to Elisa Kommunikation GmbH. Significant change in the German operations.

Elisa Kommunikation GmbH becomes leading German city carrier -consolidator - the group has almost 30 subsidiaries and affiliates

Acquisition of TIMe start-up management GmbH including all its affiliates and subsidiaries

Ownership of Mäkitorppa GmbH transferred to Elisa Kommunikation GmbH

Berlin

13

German Operations (cont)

Elisa Kommunikation GmbH took a 100% holding in the national operator, Drillisch Festnetz GmbH in order to strengthen its voice and internet operations

The consolidated revenues of the German group are expected to reach nearly FIM 1 billion this year, and by the year end approximately 800 people will be working for the group

Heavy start-up investments generated an operating loss for Elisa Kommunikation GmbH totalling EUR 5.6m.

14

Elisa Group’s Income Statement

Elisa Communications Corporation

M€ 1-6 / 00 1-6 / 00 adj..* 1-6 / 99** Growth

Revenue 593 593 489 21 %

EBITDA 215 157 114 37 %

EBITDA margin 36 % 26 % 23 %

Depreciation 70 70 60

Goodwill depreciation 16 16 5

EBIT 129 71 50 41 %

EBIT margin 22 % 12 % 10 %

Pre Tax Profit 119 61 46 34 %

Net Profit*** 65 24 24 -2 %

EPS, EUR 0,52 0,19 0,20 -5 %

CEPS, EUR 1,22 0,89 0,74 20 %

Diluted no. of shares, mio 123,4 123,4 120,0

*Excl. Comptel’s sales profit (EUR 58m)** Comparable (without one-time items)***Excl. Holding minorities

15

Development of Revenue, EURm

491

594

375432

785

1070

0

200

400

600

800

1000

1200

1996 1997 1998 1999 1H/00

16

Pre Tax Profit, EURm

48

116

1932

80

205

0

50

100

150

200

250

1996 1997 1998 1999 1H/00

17

Fixed Asset Investments,EURm

109

11199

124

220 220

0

50

100

150

200

250

1996 1997 1998 1999 1H/00

18

Equity Ratio, %

53

60 60

5148

0

20

40

60

80

1996 1997 1998 1999 1H/00

19

Post-Fiscal Events

Elisa shareholding in KSP Yhtiöt Oyj up to 21.9%

Elisa divested Omnitele holdings and acquired its consultancy services related to broad band operations

Elisa Kommunikation GmbH acquired the Saarbrücken-based city operator, pulsaar GmbH (100%)

Partnership agreement with Micromedia - towards the most comprehensive directory (direct lines, e-mail addresses etc.)

20

Outlook for 2000

Growth prospects are better than the average growth in the sector. Revenues for the year are still expected to show about 20% growth.

EBITDA margin is expected to improve slightly

Despite heavy investments in Radiolinja and Datatie shares, and development of the German operations the management expects EBIT margin to remain at last year’s level

Development and organisation of German operations are proceeding as planned

Voice and value-added services will increase revenues of the mobile business while growth in subscriptions will slow

Subscription-based revenues (ARPU) are expected to show growth both in fixed line and mobile networks

The loss of Elisa Kommunikation GmbH is forecasted at over EUR 17m for the fiscal year

21

Appendix

22

Development of ISDN and ADSL Channels

* sales started November 1, 1999

6/00 6/99 change -%

ISDNChannels

191 516 139 750 +37 %

ADSLChannels*

1 306 0

PSTN andothers

538 241 582 896 -7,7 %

Total 731 063 722 646 +1,0 %

23

Development by Quarters

171

200224

244 236256

266

313294 299

0

50

100

150

200

250

300

350

1Q/98 2Q/98 3Q/98 4Q/98 1Q/99 2Q/99 3Q/99 4Q/99 1Q/00 2Q/00

24

Personnel

3736 3814

4589

54895977

0

2000

4000

6000

8000

1996 1997 1998 1999 2Q/00

25

HTC Group’s Income Statement

Helsinki Telephone Corporation

M€ 1-6 / 00 1-6 / 00 adj.* 1-6 / 99 Growth

Revenue 594 594 491 21 %

EBITDA 215 157 121 30 %

EBITDA margin 36 % 27 % 25 %

Depreciation 70 70 60

Goodwill depreciation 19 19 8

EBIT 127 69 54 28 %

EBIT margin 21 % 12 % 11 %

Pre Tax Profit 116 58 48 21 %

Net Profit 62 21 24 -14 %

EPS, EUR 1,16 0,38 0,46 -16 %

CEPS, EUR 2,81 2,04 1,75 16 %

Diluted no. of shares, mio 53,4 53,4 52,1

*Excl. Comptel’s sales profit (EUR 58m)

26

Elisa Group Profit ModelJanuary 1 - June 30, 2000

FIMmHTC Profit 367,3

HPY Holding Profit 94,2Elimination of dividend -91,8 2,5

Realisation of group reserve 16,4

Minority share of HTC -125,8

Profit of HPY Holding Group 260,4