Citycon Oyj's Interim Report for 1 January - 31 March 2008

Stock exchange releases - 24 April 2008


Summary of the First Quarter of 2008 Compared with the Previous
Quarter

- Turnover increased by 2.3 per cent, to EUR 44.3 million (Q4/2007:
EUR 43.3 million).
- Net rental income grew by 9.5 per cent, to EUR 29.7 million (EUR
27.1 million).
- Net cash from operating activities per share was EUR 0.06 (EUR
0.06).
- Earnings per share remained at EUR 0.04 (EUR 0.04).
- Direct earnings per share were EUR 0.04 (EUR 0.06). The decline was
due mainly to positive tax effect during the comparison period.
- Operating profit including the fair value changes rose to EUR 27.4
million (EUR 24.5 million).
- The fair value change of investment properties was positive by
EUR 1.4 million (EUR 0.7 million) due to higher net rental income and
despite the increased average net yield requirement. The fair market
value of investment properties grew to EUR 2,226.6 million
(EUR 2,215.7 million). The average net yield requirement for
investment properties was at 5.7 per cent (5.6 per cent) at the end
of the reporting period, according to an external appraiser.
- Net financial expenses came to EUR 16.1 million (EUR 14.5 million).
The period's net financial expenses include EUR 1.4 million (EUR 0.2
million gain) one-off, non-cash expense resulting from the quarterly
valuation of the company's interest rate hedging contracts, mainly
due to the decline of long-term interest rates.
- In February, Citycon sold 40 per cent of its holding in the Iso
Omena shopping centre to the Singaporean GIC Real Estate, for
EUR 131.6 million. The purchase price corresponded to the price
Citycon paid for Iso Omena in September 2007.

Summary of the First Quarter of 2008 Compared with the Corresponding
Quarter of 2007

- Turnover increased by 29.3 per cent, to EUR 44.3 million (Q1/2007:
EUR 34.2 million), mainly as a consequence of new property
acquisitions carried out during 2007.
- Profit before taxes decreased to EUR 11.3 million (EUR 40.9
million), including a EUR 1.4 million (EUR 31.5 million) increase in
the fair value of investment properties.
- The company's direct result rose to EUR 9.5 million
(EUR 6.7 million), up mainly because of business expansion, decreased
administrative expenses and lower taxes than during the reference
period.
- Direct result per share was EUR 0.04 (EUR 0.04).
- Earnings per share came to EUR 0.04 (EUR 0.18). The decrease
resulted from greater changes in the fair value of properties during
the reference period and the higher number of shares.
- Net rental income increased by 28.0 per cent, to EUR 29.7 million
(EUR 23.2 million).
- Net rental income for like-for-like properties rose by
3.1 per cent.
- Net cash flow from operating activities per share rose to EUR 0.06
(EUR 0.05).
- - The equity ratio was 43.0 per cent (45.5%).
- At the beginning of the year, Citycon announced its commitment to
sustainable construction, with its key pilot project being the
Liljeholmstorget shopping centre underway in Stockholm.
- Citycon signed two long-term loan agreements on competitive terms:
a loan agreement for 280 million Estonian crowns (approx. EUR 17.9
million) and a credit facility of EUR 50 million, resulting in total
liquidity of EUR 332.8 million including unutilized committed debt
facilities amounting to EUR 282.1 million and cash EUR 50.7 million.

Key Figures


1-12/
Q1/2008 Q1/2007 Change-% 1) Q4/2007 2007
Turnover, EUR million 44.3 34.2 29.3% 43.3 151.4Net rental income, EUR
million 29.7 23.2 28.0 % 27.1 103.4
Operating profit, EUR
million 27.4 50.4 -45.7 % 24.5 300.7
% of turnover 61.8% 147.1% - 56.6% 198.6%
Profit before taxes, EUR
million 11.3 40.9 -72.4% 10.0 253.5
Profit attributable to
parent
company shareholders,
EUR million 9.1 33.0 -72.5% 9.3 200.3
Direct result, EUR
million 2) 9.5 6.7 42.3% 13.8 36.3
Indirect result, EUR
million -0.4 26.3 -101.5% -4.6 164.0

Earnings per share
(basic), EUR 0.04 0.18 -77.1% 0.04 1.00
Earnings per share
(diluted), EUR 0.04 0.16 -73.8% 0.04 0.91
Direct result per share
(diluted), (Diluted EPRA
EPS), EUR 2) 0.04 0.04 15.8% 0.06 0.18
Net cash from operating
activities per share, EUR 0.06 0.05 12.6% 0.06 0.20

Fair market value of
investment properties,
EUR million 2,226.6 1,546.9 43.9% 2,215.7

Equity per share, EUR 4.33 3.60 20.2% 4.44
Net asset value (EPRA
NAV) per share, EUR 4.70 3.82 23.1% 4.83
EPRA NNNAV per share, EUR 4.31 3.35 28.6% 4.42
Equity ratio, % 43.0 45.5 - 43.9
Gearing, % 111.8 105.5 - 111.8
Net interest-bearing debt
(fair value), EUR million 1,149.4 783.3 46.7 % 1 147.3
Net rental yield, % 3) 5.5 6.7 - 5.8
Occupancy rate, % 96.0 96.7 - 95.7
Personnel
(at the end of the
period) 104 89 16.9% 102


1) Change-% is calculated from exact figures and refers to the change
between 2008 and 2007.
2) In comparison to previous practice direct result excludes the
changes in fair value of financial instruments that are recognized in
the income statement. Please see the note 4 "Reconciliation between
direct and indirect result" for direct result calculations and note 5"Earnings per share" for calculation of direct result per share.
3) Includes the lots for development projects.

CEO Petri Olkinuora comments on the beginning of 2008:
"Turnover and net rental income continued to grow, and direct result
as well as cash flow from operating activities performed well. The
growth in net rental income was also reflected in the increased fair
market value of our properties.

Citycon is an expert in asset management and property development.
Our development and redevelopment projects progressed as planned, the
main projects including Liljeholmstorget shopping centre in
Stockholm, Rocca al Mare in Tallinn and Trio in Lahti. Sustainable
construction plays a more and more emphasized role in our development
and redevelopment activity and we are seeking for an international
LEED certification for our main projects. It is my belief that in the
future customers are increasingly interested in modern shopping
centres focused in green values. It is also a question of a new way
of competing providing us with another competitive edge in a current
market."

Business Environment

During the period, economic trends remained positive for retail
trade. According to Statistics Finland's preliminary data, Finland
enjoyed continuously favourable trends during the first quarter of
2008. Statistics Sweden reported growing retail sales in Sweden for
January-February, and also Statistics Estonia announced a slight
growth in Estonian retail. In spite of the positive retail trade
growth figures, consumer confidence has declined in Citycon's
operating regions. Early in the year consumer confidence was,
nevertheless, positive in Finland and Sweden, but it remained
negative in Estonia and Lithuania (source: Reuters Knowledge). The
most important factor of uncertainty influencing general economic
development is a high inflation rate, particularly in the Baltic
countries.

The competition in the property investment market is still active,
and prices paid for prime properties are at the previous year's
levels. On the other hand, the spread in yield requirements between
prime and other properties increased clearly not only in the Baltic
countries but also in Finland and Sweden (source: Jones Lang LaSalle,
Suomen kiinteistömarkkina, 1/2008). In general, the international
credit crunch has had milder effects in Citycon's operating regions
than at the global level, although it is resulting in weakening
consumer confidence and rising credit margins. While the increase in
construction costs has been rapid in all of Citycon's countries of
operation, it decelerated in the first quarter (sources: Statistics
Finland, Statistics Sweden, Statistics Estonia).

Business and Property Portfolio Summary

Citycon's core business includes the development of shopping centres
and shopping-centre management. The company has acquired such
shopping centres, which provide potential for increased net yield in
long-term through active development efforts and retail property
management. Citycon is involved in the day-to-day operations of its
shopping centres and, in collaboration with its tenants, aims to
continuously increase the attractiveness, number of visitors, sales
and profits of the shopping centres. In all of its shopping centres,
Citycon is an active investor responsible for the properties'
business operations. This differentiates Citycon from traditional,
ownership-centred real estate companies - both in terms of its
operations and as an investment target.

Citycon operates in Finland, Sweden and the Baltic countries. In
Finland, Citycon is the market leader in the shopping centre
business, while in Sweden it is one of the most dynamic operators in
the shopping centre sector. The company has established a firm
foothold in the Baltic countries. Thanks to its careful market
research and good local knowledge, Citycon has been able to acquire
shopping centres in the major growth centres in the countries where
it operates. Citycon's investments are focused on areas where the
population and purchasing power can be expected to grow.

At the end of the reporting period, Citycon owned 33 (28) shopping
centres and 52 (52) other properties. Of the shopping centres, 22
(19) were located in Finland, eight (7) in Sweden and three (2) in
the Baltic countries.

The market value of the company's property portfolio totalled
EUR 2,226.6 million, of which Finnish properties accounted for
71.3 per cent (67.7%), Swedish properties for 23.7 per cent (26.8%)
and Baltic ones for 5.0 per cent (5.5%). The gross leasable area at
the end of the period was 923,750 square metres.

Changes in Fair Value of Investment Properties

Citycon measures its investment property at fair value, under the IAS
40 standard, according to which changes in investment properties'
fair value are recognised through profit or loss. In accordance with
the International Accounting Standards (IAS) and the International
Valuation Standards (IVS), an external professional appraiser
conducts a valuation of Citycon's property portfolio on a
property-by-property basis at least once a year. However, in 2007,
Citycon chose to have its properties valued by an external appraiser
on a quarterly basis, due to market activity and rapidly changing
market conditions, and will pursue this practice also in 2008.

Citycon's property portfolio is valued by Realia Management Oy, a
part of the Realia Group. Realia Management Oy works in association
with the world's leading provider of real estate services, the
international company CB Richard Ellis. A summary of Realia
Management Oy's Property Valuation Statement on the end of March
status can be found at www.citycon.fi.

During the reporting period, the fair value of Citycon's property
portfolio rose by EUR 1.4 million as a result of development and
redevelopment projects, and changes in general market conditions and
the leasing business. The period saw a total value increase of
EUR 18.6 million and a total value decrease of EUR 17.2 million.
Increase in fair value decelerated over the reference period.

The average net yield requirement defined by Realia Management Oy for
Citycon's property portfolio came to 5.7 per cent (Q1/2007: 6.5%).
The average net yield requirement increased compared to the previous
quarter (Q4/2007: 5.6%) due to changes in the property market
conditions.

Lease Portfolio and Occupancy Rate

At the end of the quarter, Citycon had a total of 3,665 (3,387)
leases. The average length of the lease agreements was 3.0 (2.9)
years. The period-end occupancy rate for Citycon's property portfolio
was 96.0 per cent (96.7%), and net rental yield was 5.5 per cent
(6.7%). The decrease in net rental yield was mainly due to the
changes in the property portfolio's fair value. The occupancy rate
was reduced slightly as a result of an increase in the number of
premises temporarily vacated due to redevelopment projects, but
increased compared to the previous quarter (Q4/2007: 95.7%).

The company's net rental income grew during the reporting period by
28.0 per cent, to EUR 29.7 million. The leasable area rose by
19.0 per cent to 923,750 square metres. Net rental income for
like-for-like properties grew by 3.1 per cent. Like-for-like
properties are properties held by Citycon throughout the 24-month
reference period, excluding properties under development and
expansion as well as lots. The majority of like-for-like properties
are located in Finland. The calculation method for net yield and
standing (like-for-like) investments is based on guidelines issued by
the KTI Institute for Real Estate Economics and the Investment
Property Databank (IPD).

Lease Portfolio Summary


1-12/
Q1/2008 Q1/2007 Change-% Q4/2007 2007
Number of leases started
during the period 124 114 8.8 164 512
Total area of leases
started, sq.m. 24,240 17,960 35.0 27,819 103,408
Occupancy rate at end
of the period ,% 96.0 96.7 -0.7 95.7 95.7
Average length of lease
portfolio at the end of
the period, year 3.0 2.9 3.4 3.0 3.0


Acquisitions and Divestments

Citycon's strategy focuses on the development and redevelopment of
the company's shopping centres. Furthermore, the company actively
monitors developments in the shopping centre market across its
operating regions, acquiring new shopping centres when it detects
interesting properties on sale. In the period under review, no new
shopping centres were acquired.

In the first quarter, Citycon sold 40 per cent of the Iso Omena
shopping centre to an affiliate of GIC Real Estate, the property
investment arm of the Government of Singapore Investment Corporation.
The purchase price totalled EUR 131.6 million. Following the sale,
Citycon owns 60 per cent of the Iso Omena shopping centre. The
parties have agreed that Citycon will continue to be responsible for
the management of Iso Omena and proceed with its development
according to Citycon's operating concept.

Related to the Lippulaiva shopping centre's extension, Citycon
acquired all shares in MREC Kiinteistö Oy Majakka and, at the same
time, divested its entire holding in MREC Kiinteistö Oy Ulappatori.
Kiinteistö Oy Majakka owns undeveloped land in the surroundings of
Lippulaiva, in the area planned for the shopping centre's extension
in Espoo, Finland. Citycon continues to have a right of possession
for the leasable areas of MREC Kiinteistö Oy Ulappatori. The right of
possession will terminate when the extension project is completed or
during 2011 at the latest. In addition to that, Citycon sold its 44
per cent holding in Pukinmäki retail centre in Helsinki, Finland.

Development Projects

Keeping its shopping centres competitive both for the customers and
for the lessees constitutes the core of Citycon's strategy. The
company aims to increase the long-term cash flow and return from its
retail properties as well as their footfall and effectiveness through
development projects. In the short term, however, such projects may
weaken returns from some properties, as some of the retail premises
have to be temporarily vacated for refurbishment, and this affects
the rental income.

Sustainable Construction

Citycon's development projects progressed according to plan during
the period. In its development projects, Citycon is paying increasing
attention to environmental management methods and solutions.
Currently, the company has three pilot projects under sustainable
construction, aiming at the identification of best practices in
shopping centre projects from the sustainable construction
standpoint. The pilot projects include building a new shopping centre
in Liljeholmen, Stockholm, and the redevelopment and extension
projects of the Rocca al Mare shopping centre in Tallinn and the Trio
shopping centre in Lahti.

Citycon seeks to obtain the international LEED (Leadership in Energy
and Environmental Design) environmental certification for its
projects. The assessment applied in the pilot projects comprises a
total of over 60 points, reviewing various factors, such as the
energy efficiency of the property, indoor air quality, the choice of
materials, the utilisation of public transport and minimising the
environmental impacts of construction work. On the basis of the
assessment, concrete development measures will be planned in order to
establish systematic sustainable construction practices.

Current Development Projects

The table below shows a list of the most significant development and
redevelopment projects in progress, as decided by the Board of
Directors. In addition, Citycon is planning and preparing a number of
other development and redevelopment projects. More information on
planned projects can be found on Citycon's website at www.citycon.fi,
in the management presentations and the Annual Report 2007.

The capital expenditure during the period relating to all development
projects amounted to EUR 23.0 million in Finland, EUR 7.7 million in
Sweden and EUR 5.7 million in the Baltic countries.

Development Projects in Progress


Actual gross
Expenditure
Estimated up to Estimated
total cost 31 March 2008 year of
Property Location (EUR million) (EUR million) completion
Espoo,
Lippulaiva Finland 60-70 1) 20.8 2011
Lahti,
Trio Finland 60 30.2 2008
Seinäjoki,
Torikeskus Finland 4.0 2.1 2009
Åkersberga Österåker,
Centrum Sweden 27 2) 3.8 2010
Stockholm,
Liljeholmstorget Sweden 120 23.9 2009
Tallinn,
Rocca al Mare Estonia 68 19.0 2009
Botkyrka,
Tumba Centrum Sweden 35-37 3) 1.6 2011


1) Both planned development stages are included in the figure.
2) Citycon owns 75 per cent of the Åkersberga shopping centre, and
the overall project cost totals approximately EUR 40 million.
3) Both planned development stages are included in the figure, the
second stage requiring approval from the Citycon Board. The
investment in the first stage, already launched, is estimated at
EUR 8 million.

The company's largest development project is the construction of a
new shopping centre in Liljeholmen, Stockholm. The project advances
within the planned budget and schedule. The new shopping centre is
expected to open its doors in October-November 2009, but some
agreements with new tenants have already been signed.

The refurbishment and expansion project for the Tumba Centrum
shopping centre, located in the municipality of Botkyrka, south of
Stockholm, was initiated late in 2007 with interior work. In the
first quarter, the project progressed as planned. With its first
stage now underway, the project is scheduled for completion in 2011.
The Åkersberga shopping centre development and redevelopment project
has been delayed due to a tenant's complaint, and the project plan is
currently under revision. The project is intended to start in 2008.

The second stage of development of the Trio shopping centre in
downtown Lahti began in the period under review. The company is
investing a total of approximately EUR 60 million in Trio's
redevelopment, which also represents a major input for the
development of the city centre and business life in Lahti. Following
the completion of the development project, the shopping centre's
sales are expected to rise from the current figure of EUR 80 million
to EUR 110 million. The aim is to attract approximately 7 million
customers to the shopping centre annually.

Redevelopment and extension of the Rocca al Mare shopping centre
started in February 2007. The first stage of the shopping centre's
modernisation is planned to be completed in the autumn of 2008, and
the second and third stages of the redevelopment project are also
underway. The completely renovated Rocca al Mare is expected to open
its doors ahead of the originally planned schedule, in the autumn of
2009.

As regards the extension project for the Lippulaiva shopping centre
in Espoo, construction permit is currently pending and the project
launch is intended for this year. If the project advances to the
planned schedule, the refurbished and extended Lippulaiva will open
its doors in 2011.

In addition to the development and redevelopment projects decided
upon, Citycon is preparing several other projects, whose
implementation has not yet been approved by the Board of Directors.
In the reporting period, the planning of these projects advanced as
planned.

Business Units

Citycon's business operations are divided into three business units:
Finland, Sweden and the Baltic Countries. These are further divided
into business areas Retail Properties and Property Development. The
Finnish business unit also includes the function Commercial
Development, responsible for the commercial development of Citycon's
Finnish shopping centres.

Finland

Citycon is the market leader in the Finnish shopping centre business,
and it has 22 shopping centres and 45 other retail properties in
Finland. The company's net rental income from Finnish operations grew
by 27.7 per cent, to EUR 22.3 million.. The business unit accounted
for 75.3 per cent of the company's total net rental income. During
the last 12 months, the rolling twelve-month occupancy cost ratio for
like-for-like properties was 8.7 per cent (Q4/2007: 8.6%). The
occupancy cost ratio is calculated as the share of net rent and
potential service charges paid by a tenant to Citycon out of the
tenant's sales excluding VAT. The VAT percentage is an estimate.

Lease Portfolio Summary, Finland

1-12/
Q1/2008 Q1/2007 Change-% Q4/2007 2007
Number of leases started
during the period 100 106 -5.7 151 442
Total area of leases
started, sq.m. 21,800 16,900 29.0 18,640 74,400
Occupancy rate at end of
the period ,% 95.7 96.4 -0.7 95.6 95.6
Average length of lease
portfolio at the end of
the period, year 3.2 3.2 0.0 3.1 3.1


Financial Performance, Finland

1-12/
Q1/2008 Q1/2007 Change-% Q4/2007 2007
Gross rental income,
EUR million 30.4 23.3 30.5 29.1 100.7
Turnover, EUR million 31.4 23.9 31.2 30.2 104.3
Net rental income,
EUR million 22.3 17.5 27.7 21.0 75.7
Net fair value gains on
investment property,
EUR million -1.8 14.0 -112.8 -2.1 148.5
Operating profit,
EUR million 19.3 30.2 -35.9 17.5 218.7
Capital expenditure,
EUR million 22.8 22.9 -0.5 32.5 429.1

Fair market value of
investment properties,
EUR million 1,587.4 1,046.6 51.7 1,587.0
Net rental yield, % (1 5.8 7.3 - 6.2
Net rental yield, like-for-
like properties, % 6.4 7.5 - 6.8


1) Includes the lots for development projects.

Sweden

Citycon has achieved a substantial position in the Swedish shopping
centre market and has eight (7) shopping centres and seven (6) other
retail properties in Sweden, located in the Stockholm and Gothenburg
areas and Umeå. The company's net rental income from Swedish
operations improved by 30.7 per cent, to EUR 5.8 million, and the
business unit's net rental income accounted for 19.4 per cent of
Citycon's total net rental income.

Lease Portfolio Summary, Sweden

1-12/
Q1/2008 Q1/2007 Change-% Q4/2007 2007
Number of leases started
during the period 8 3 166.7 13 49
Total area of leases
started, sq.m. 840 270 211.1 9,179 25,800
Occupancy rate at end of
the period ,% 96.1 97.2 -1.1 95.1 95.1
Average length of lease
portfolio at the end of the
period, year 2.3 1.9 21.1 2.4 2.4


Financial Performance, Sweden

1-12/
Q1/2008 Q1/2007 Change-% Q4/2007 2007
Gross rental income,
EUR million 9.2 7.9 15.8 9.4 35.4
Turnover, EUR million 10.7 8.6 24.5 11.1 39.0
Net rental income,
EUR million 5.8 4.4 30.7 4.7 21.6
Net fair value gains on
investment property,
EUR million 2.1 15.1 -86.0 2.7 55.6
Operating profit,
EUR million 7.2 18.8 -61.9 7.3 74.3
Capital expenditure,
EUR million 8.2 61.7 -86.7 5.5 142.4

Fair market value of
investment properties,
EUR million 527.0 414.8 27.1 517.5
Net rental yield, % (1 4.6 4.6 - 4.6
Net rental yield, like-for-
like properties, % 5.6 5.8 - 5.3


1) Includes the lots for development projects.

Baltic Countries

At the end of the reporting period, Citycon owned three shopping
centres in the Baltic countries: Rocca al Mare and Magistral in
Tallinn, Estonia, and Mandarinas in Vilnius, Lithuania. Due to the
limited size of the Baltic market and the limited availability of
suitable properties, Citycon has been cautious with investments in
the region. However, the company is continuously looking for
potential investment opportunities in the region. Net rental income
from Baltic operations increased by 18.7 per cent to EUR 1.6 million.
The business unit accounted for 5.3 per cent of the company's total
net rental income.

Lease Portfolio Summary, Baltic Countries

1-12/
Q1/2008 Q1/2007 Change-% Q4/2007 2007
Number of leases started
during the period 16 5 220.0 0 21
Total area of leases
started, sq.m. 1,600 790 102.5 0 3,208
Occupancy rate at end of
the period ,% 100.0 100.0 0.0 100.0 100.0
Average length of lease
portfolio at the end of the
period, year 2.6 3.2 -18.8 2.8 2.8


Financial Performance, Baltic Countries

1-12/
Q1/2008 Q1/2007 Change-% Q4/2007 2007
Gross rental income,
EUR million 2.2 1.6 36.9 2.1 7.7
Turnover, EUR million 2.2 1.8 25.9 2.0 8.0
Net rental income,
EUR million 1.6 1.3 18.7 1.4 6.0
Net fair value gains on
investment property,
EUR million 1.1 2.4 -56.1 0.1 9.3
Operating profit,
EUR million 2.5 3.5 -28.2 1.2 14.5
Capital expenditure,
EUR million 5.7 0.3 2,025.6 5.6 31.7

Fair market value of
investment properties,
EUR million 112.2 85.6 31.1 111.2
Net rental yield, % (1 6.0 6.6 - 6.2


1) Includes the lots for development projects.

Turnover and Profit

Turnover for the period totalled EUR 44.3 million (EUR 34.2 million),
mainly coming from the rental income generated by Citycon's retail
premises. Gross rental income accounted for 94.2 per cent (95.7%) of
turnover.

Operating profit decreased to EUR 27.4 million (EUR 50.4 million).
Profit before taxes came to EUR 11.3 million (EUR 40.9 million) and
profit after taxes was EUR 11.3 million (EUR 34.6 million). The
decrease in operating profit was due mainly to higher changes in the
fair value of the property portfolio during the reference period.

The effect of changes in fair value of the property portfolio, of
gains on sales and of other one-off items on the profit attributable
to the parent company's shareholders was EUR -0.4 million
(EUR 26.3 million). Taking this effect into account, the direct
result was EUR 2.8 million above the reference period level. The
profit growth results from increased net rental income and lower
administrative expenses. Current taxes on direct results were lower
during the period than during the comparison period in spite of
profit growth. The lower current taxes resulted mostly from higher
depreciation of buildings in Finland, reducing the parent company's
result under the local Finnish Accounting Standards (FAS) and thereby
also current taxes.

Earnings per share came to EUR 0.04 (EUR 0.18). Direct result per
share (EPRA EPS) came to EUR 0.04 (EUR 0.04). Net cash flow from the
operating activities per share amounted to EUR 0.06 (EUR 0.05).

Human Resources and Administrative Expenses

At the end of the period, Citycon Group had a total of 104 (89)
employees, of whom 72 were employed in Finland, 25 in Sweden and
seven in the Baltic countries. Administrative expenses decreased to
EUR 3.9 million (EUR 4.3 million), including EUR 0.1 million
(EUR 0.2 million) in share-based, non-cash implicit expenses related
to employee stock options and the company's share-based incentive
scheme. The lower expenses when compared to the reference period's
figure were due to lower annual employee bonuses and change in
treatment of wages and salaries relating to development and
redevelopment projects.

Capital Expenditure and Divestments

Citycon's reported gross capital expenditure in the period totalled
EUR 37.0 million (EUR 84.9 million). Of this, property acquisitions
accounted for EUR 0.2 million (EUR 78.6 million), property
development for EUR 36.5 million (EUR 6.2 million) and other
investments for EUR 0.3 million (EUR 0.1 million). The investments
were mainly financed with existing financing arrangements.

The period saw a partial divestment of the shopping centre Iso Omena,
involving sale of a 40 per cent holding to a company in the GIC Real
Estate Group. The purchase price came to EUR 131.6 million.

Balance Sheet and Financial Position

The period-end balance sheet total stood at EUR 2,357.0 million
(EUR 1,594.4 million). Liabilities totalled EUR 1,343.9 million
(EUR 869.0 million), with short-term liabilities accounting for
EUR 159.2 million (EUR 137.4 million). The Group's liquidity remained
on a strong level. At the end of the period under review, liquidity
was EUR 332.8 million, of which EUR 282.1 million consisted of
undrawn, committed credit facilities or term loan agreements and EUR
50.7 million of cash and cash equivalents. The above-normal cash and
cash equivalent levels were due to dividend payment and equity return
made on 2 April. For the purpose of short term liquidity management
the company uses a EUR 100 million non-binding domestic commercial
paper programme under which EUR 31.0 million was unutilized at the
end of the reporting period.

Year-on-year interest-bearing debt increased by EUR 397.1 million to
EUR 1,183.2 million (EUR 786.2 million). The fair value of the
Group's interest-bearing debt stood at EUR 1,200.1 million
(EUR 804.1 million). Short-term interest-bearing debt constitutes
approximately 7.5 per cent of the total interest-bearing debt of the
Group. The available liquidity at the end of the period was
sufficient to cover maturing interest-bearing debt for the next four
years.

The Group's cash and cash equivalents totalled EUR 50.7 million
(EUR 20.8 million). The fair value of Group interest-bearing net debt
stood at EUR 1,149.4 million (EUR 783.3 million).

The year-to-date average interest rate was 4.93 per cent (4.56%)
during the reporting period. The average loan maturity, weighted
according to principals of the loans, increased to 5.1 years
(4.6 years). The average time to fixing was 3.1 years (3.9 years).
The interest rate, interest-rate swaps included, averaged
4.81 per cent on 31 March 2008. The interest coverage ratio (the
previous 12 months' profit before interest expenses, taxes,
depreciation, changes in fair value and one-off items relative to net
financial expenses) was 2.0 (2.2).

The Group's equity ratio stood at 43.0 per cent (45.5%). Period-end
gearing stood at 111.8 per cent (105.5%).

Of Citycon's period-end interest-bearing debt, 73.2 per cent (76.7%)
was in floating-rate loans, of which 71.2 per cent (79.1%) had been
converted to fixed-rate loans by means of interest-rate swaps.
Fixed-rate debt accounted for 78.8 per cent (84.0%) of the Group's
period-end interest-bearing debt, interest-rate swaps included. The
loan portfolio's hedging ratio has been in line with the Group's
financing policy, and the company increased the hedging ratio during
the period.

Citycon applies hedge accounting, whereby changes in the fair value
of interest-rate swaps subject to hedge accounting are recognised
under equity. The period-end nominal amount of interest-rate swaps
totalled EUR 675.2 million (EUR 537.9 million), with hedge accounting
applied to interest-rate swaps whose nominal amount totalled
EUR 598.6 million (EUR 487.9 million). On 31 March 2008, the nominal
amount of all the Group's derivative contracts totalled
EUR 783.0 million (EUR 586.1 million), and their fair market value
was EUR 2.0 million (EUR 3.6 million).

Net financial expenses increased by EUR 6.6 million, to
EUR 16.1 million (EUR 9.5 million). This increase came mainly from
higher interest expenses due to the higher level of interest-bearing
debt, a higher weighted-average interest rate and non-cash
mark-to-market loss of EUR 1.4 million (gain of EUR 0.6 million) from
derivatives recognised in the income statement. The net financial
expenses increased by EUR 4.7 million during the reference period
excluding the non-cash profit effect of derivatives. The net
financial expenses in the income statement include EUR 0.5 million
(EUR 0.4 million) in non-cash expenses related to the option
component on convertible bonds.

Loan Market Transactions

Regardless of the prevailing uncertainty in the financial market,
Citycon signed two long-term loan agreements during the reporting
period. Local financing for the Magistral shopping centre, acquired
in the summer of 2007, was finalised through signing a loan agreement
for 280 million Estonian crowns, for a term of approximately five
years. Additionally, the company increased its committed long-term
credit limits by signing a EUR 50 million five-year revolving credit
facility agreement. For both of the loan agreements, the loan margins
obtained were competitive. At the end of the period, both loans
remained undrawn.

Near-term Risks and Uncertainties

Risk management aims to ensure that Citycon meets its strategic and
operational goals. The company's risk-management process involves
identifying business-related risks, analysing their significance,
planning and implementing risk-management actions, reporting on risks
on a regular basis and controlling risks. During 2007, Citycon rolled
out its holistic Enterprise Risk Management (ERM) programme. The
company updates its guidelines for risk-management principles,
approved by the Board of Directors, on a regular basis in response to
possible changes in its business.

Citycon estimates that major near-term risks and uncertainties are
associated with economic development in the company's operating
regions and changes in the fair value of investment properties and
interest rates. As the focus of Citycon's growth strategy is shifting
from property acquisitions to development and construction of its own
properties, the risks associated with project management and with
increasing construction costs will be more significant. A marked
increase in interest rates, materialisation of a major project risk,
considerably higher construction costs, a decline in the fair value
of investment properties or a sharp economic slowdown in Finland,
Sweden or the Baltic countries could have an adverse effect on
Citycon's business and profit performance. The turbulence in the
financial markets that began in the summer of 2007 has resulted in a
clear increase in short-term interest rates and difficulties in
banks' own funding activities, which may significantly affect the
availability of funding for Citycon and increase future credit
margins and financing costs if the uncertainty continues for a
prolonged period. This could have a negative effect on the
implementation of Citycon's strategy and on the company's business
and profits. The company aims to hedge the risk of changes in the
financial market by applying a conservative financing policy, which
has thus far kept the company's financial expenses from rising
significantly and the availability of financing from decreasing.

More details of the company's risk management are available in the
Annual Report 2007 and, concerning financing risks, in the Financial
Statements 2007, on pages 35-36.

Annual General Meeting 2008

Citycon Oyj's Annual General Meeting (AGM) took place in Helsinki,
Finland, on 13 March 2008. The AGM adopted the consolidated financial
statements and the parent company's financial statements for the
financial year 2007 and discharged the members of the Board of
Directors and the Chief Executive Officer from liability. The AGM
decided on a dividend of EUR 0.04 per share for the financial year
2007 and, in addition, on equity return of EUR 0.10 per share from
the invested unrestricted equity fund. The record date for the
dividend payment and equity return was 18 March 2008, and the
dividend and the equity return were paid on 2 April 2008.

Board Members and Their Remuneration

The number of Board members remained at eight with Gideon Bolotowsky,
Raimo Korpinen, Tuomo Lähdesmäki, Claes Ottosson, Dori Segal and Thom
Wernink being re-elected to the Board for a one-year-term. Per-Håkan
Westin, M.Sc. (Eng.), born in 1946, and Amir Bernstein, LL.M., born
in 1969, were elected as new members to the Board. Thom Wernink was
re-elected Board Chairman and Tuomo Lähdesmäki Deputy Chairman. In
the view of the Board of Directors, all Board members are independent
of the company as non-executive directors and Gideon Bolotowsky,Raimo Korpinen, Tuomo Lähdesmäki, Thom Wernink and Per-Håkan Westin
are independent of major shareholders.

The AGM decided that the Chairman of the Board of Directors be paid
an annual fee of EUR 160,000, the Deputy Chairman EUR 60,000 and
ordinary members of the Board EUR 40,000. In addition, the AGM
decided that the Chairman of the Board and the Chairmen of the
Board's committees be paid a meeting fee of EUR 700 and the other
Board and committee members EUR 500 per meeting. Following the AGM,
the Citycon Board of Directors decided in its meeting to issue a
recommendation according to which each Board member should, during
his/her term of office, possess a number of the company's shares at
least equivalent to his/her remuneration for one year.

Board Committees

In its meeting following the AGM, the Board also elected the members
for the Board Committees. With regard to the Audit Committee, Raimo
Korpinen was re-elected as the Chairman, and Gideon Bolotowsky,
Per-Håkan Westin and Thom Wernink as members. The composition of the
Compensation Committee remained intact, comprising Tuomo Lähdesmäki
as the Chairman and Gideon Bolotowsky and Thom Wernink as ordinary
members.

For the Investment Committee, Thom Wernink was re-elected as the
Chairman, and Amir Bernstein, Raimo Korpinen, Dori Segal and
Per-Håkan Westin as members. Elected to the Nomination Committee were
Tuomo Lähdesmäki as the Chairman and, as members, Amir Bernstein,
Claes Ottosson and Thom Wernink.

Auditor

In accordance with the AGM's decision, Ernst & Young Oy, a firm of
authorised public accountants, continues as the auditor of the
company with Authorised Public Accountant Tuija Korpelainen as the
chief auditor.

Amendment of the Terms and Conditions of the Option Plan 2004

As proposed by the Board of Directors, the AGM decided to amend the
terms and conditions of stock option plan 2004 as follows: from the
share subscription prices of stock options 2004 A/B/C shall, before
share subscription, for each record date for dividend payment and/or
equity return, be deducted half of the amount of dividends and half
of the amounts returned from the invested unrestricted equity fund.

Following this decision, the subscription prices of the 2004 option
rights are, as of 18 March 2008, as follows: subscription price with
the 2004 A options EUR 2.2732 per share, with B options EUR 2.6608
per share and with C options EUR 4.3613 per share.

Shareholders, Share Capital and Shares

Trading and Share Performance

During the January-March period, the number of Citycon shares traded
on the OMX Nordic Exchange Helsinki totalled 41.6 million
(36.6 million), at a total value of EUR 153.7 million
(EUR 196.2 million). The highest quotation was EUR 4.28 (EUR 6.00)
and the lowest EUR 3.13 (EUR 4.64). The reported trade-weighted
average price was EUR 3.69 (EUR 5.37) and the share closed at
EUR 3.88 (EUR 5.86). The company's market capitalisation at the end
of March totalled EUR 857.4 million (EUR 1,126.7 million).

Notifications of Changes in Shareholdings

In March, Citycon Oyj received two notifications of changes in
shareholdings:

FIL Limited (formerly Fidelity International Limited) notified the
company that the holdings of its direct and indirect subsidiaries in
Citycon Oyj had fallen below the five per cent threshold. According
to the notification, FIL Limited and its direct and indirect
subsidiaries held a total of 10,904,704 Citycon shares on
5 March 2008, equivalent to 4.93 per cent of the company's share
capital and voting rights.

AXA Investment Managers notified the company that the holdings of AXA
S.A. and its subsidiaries in Citycon Oyj's voting rights and share
capital had risen above the threshold of five per cent. According to
the notification, AXA Group held 11,892,688 shares on 21 March 2008,
equivalent to 5.38 per cent of the company's voting rights and share
capital.

Share Capital

At the beginning of 2008, the company's registered share capital
totalled EUR 259.6 million and the number of shares 221.0 million.
During the period, the number of shares increased by 606 shares, as a
result of exercise of stock option rights in December 2007. At the
end of the period, the company's registered share capital totalled
EUR 259,570,510.20, and the number of shares came to 220,981,817. The
company has a single series of shares, with each share conferring
entitlement to one vote at general meetings of shareholders. The
shares have no nominal value.

Board Authorisations

The AGM for 2007 authorised the Board of Directors to decide on
issuing new shares and disposing of treasury shares through paid or
free share issues. New shares can be issued and treasury shares can
be transferred to shareholders in proportion to their existing
shareholding or through a directed share issue waiving the
pre-emptive rights of shareholders, if a weighty financial reason
exists for doing so. The Board can also decide on a free share issue
to the company itself. In addition, the Board was authorised to grant
special rights referred to in Section 1 of Chapter 10 of the Finnish
Limited Liability Companies Act, entitling their holders to receive,
against payment, new shares in the company or treasury shares. The
combined number of new shares to be issued and treasury shares to be
transferred, including the shares granted on the basis of the special
rights, may not exceed 100 million.

The Board exercised this authorisation in September 2007, when it
decided on a share issue based on the shareholders' pre-emptive
subscription right. A maximum of 27,594,782 shares were offered for
subscription by shareholders. As a result of this, the number of
shares that can be issued or disposed of on the basis of the
authorisation now totals 72,405,218. This authorisation is valid for
five years from the date of the AGM.

The Board of Directors has no other authorisations.

Stock Options 2004

The Annual General Meeting held on 15 March 2004 authorised the issue
of a maximum of 3,900,000 stock options. The stock options 2004 A and
2004 B are listed on the OMX Nordic Exchange Helsinki.

The terms and conditions of the 2004 stock option scheme were amended
during the period, by decision of the AGM as described above. The
following table shows basic information on the 2004 stock option
scheme.

Basic Information on Stock Options 2004 as at 31 March 2008


2004 A 2004 B 2004 C
No. of options granted 1,040,000 1,090,000 1,080,000
No. held by Veniamo-Invest 260,000 210,000 220,000
Oy ¹)
Subscription ratio, 1:1,2127 1:1,2127 1:1,2127
option/shares
Subscription price per 2.2732 2.6608 4.3613
share, EUR ²)
Subscription period 1 Sept. 2006 1 Sept. 2007 1 Sept. 2008
begins/began
Subscription period ends 31 March 2009 31 March 2010 31 March 2011
No. of options exercised 336,720 - -
No. of shares subscribed 376,316 - -
with options


¹) Veniamo-Invest Oy cannot subscribe for its parent company's
shares.
²) Following the dividend payment and equity return in 2008. The
share subscription prices are reduced by half of the per-share
dividends paid and per-share equity returned. However, the share
subscription price is always at least EUR 1.35.

During the reporting period, no options attached to Citycon's 2004
stock option scheme were exercised for the subscription of shares.
After the end of the period, 3,729 shares were subscribed based on
the 2004 A stock options at a per-share subscription price of
EUR 2.2732. The new shares are expected to be registered with the
Finnish Trade Register on 28 April 2008. The outstanding stock
options under the 2004 option scheme entitle their holders to
subscribe for a further 3,492,824 new shares. Shares subscribed
entitle their holders to a dividend for the financial year 2008.

Events after the Reporting Period

On 15 April 2008, Citycon agreed with a Nordic bank group on a
commercial paper programme in Sweden worth SEK 1,000,000,000
(approximately EUR 106 million). Citycon intends to use the proceeds
from the commercial paper programme in the short-term liquidity
management of the Group's Swedish operations. Under the programme,
commercial papers may be issued either in Swedish crowns or in euros.
The arranger of the commercial paper programme is Skandinaviska
Enskilda Banken AB (publ.), with Danske Bank A/S, Sverige Filial,
Nordea Bank AB (publ.) and Swedbank AB (publ.) as other members of
the bank group.

Outlook

Citycon will continue to focus on increasing net operating income and
cash flow. The company expects the development and redevelopment
projects to continue to play an important role in its business for
the current financial year. The company will continue to focus on
developing and redeveloping its shopping centres while also seeking
to implement its expansion strategy through selected acquisitions.
Citycon is also considering the divestment of its non-core properties
- such as, its residential properties in Sweden.

The company expects its net rental income and direct operating profit
excluding fair value changes to increase in the course of the
financial year. The estimate is based on the property portfolio's
growth, on investments in shopping-centre management and on expansion
and redevelopment projects coming on stream.

Helsinki, 23 April 2008

Citycon Oyj

Board of Directors




UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
31 March 2008

Condensed Consolidated Income Statement, IFRS


1-12/
EUR million Note 1-3/2008 1-3/2007 Change-% 2007

Gross rental income 41.7 32.8 27.3% 143.7
Service charge income 2.6 1.5 74.2% 7.7
Turnover 3 44.3 34.2 29.3% 151.4
Property operating expenses 14.6 11.1 31.2% 47.8
Other expenses from
leasing operations 0.1 0.0 -570.6% 0.3
Net rental income 29.7 23.2 28.0% 103.4
Administrative expenses 3.9 4.3 -8.9% 16.5
Other operating income
and expenses 0.2 0.0 235.7% 0.5
Net fair value gains on
investment property 1.4 31.5 -95.6% 213.4
Net gains on sale of
investment property 0.1 - 0.0% -0.1

Operating profit 27.4 50.4 -45.7% 300.7

Net financial income and
expenses 16.1 9.5 70.0% 47.3
Profit before taxes 11.3 40.9 -72.4% 253.5
Current taxes -2.3 -1.4 56.2% -3.4
Change in deferred taxes 2.3 -4.8 -146.8% -46.2
Profit for the period 11.3 34.6 -67.4% 203.9

Attributable to
Parent company shareholders 9.1 33.0 -72.5% 200.3
Minority interest 2.2 1.6 35.8% 3.6

Earnings per share (basic), EUR 5 0.04 0.18 -77.1% 1.00
Earnings per share (diluted),
EUR 5 0.04 0.16 -73.8% 0.91

Direct result 4 9.5 6.7 42.3% 36.2
Indirect result 4 -0.4 26.3 -101.5% 164.1
Profit for the period
attributable to parent
company shareholders 9.1 33.0 -72.5% 200.3


Condensed Consolidated Balance Sheet, IFRS


31 Mar. 31 Mar. 31 Dec.
EUR million Note 2008 2007 2007
Assets

Non-current assets
Investment property 6 2,226.6 1,546.9 2,215.7
Development property 7 55.4 5.7 33.2
Other property, plant and equipment 1.0 0.8 0.9
Derivative financial instruments
and other non-current assets 9 6.1 7.0 10.7
Total non-current assets 2,289.1 1,560.4 2,260.5

Current assets
Derivative financial instruments 9 1.4 0.4 1.2
Trade and other receivables 15.8 12.9 22.7
Cash and cash equivalents 8 50.7 20.8 24.2
Total current assets 67.9 34.0 48.1

Total assets 2,357.0 1,594.4 2,308.6

Liabilities and Shareholders' Equity

Equity attributable to parent company
shareholders
Share capital 259.6 259.6 259.6
Share premium fund and
other restricted reserves 131.1 131.1 131.1
Fair value reserve 9 0.6 0.5 4.9
Invested unrestricted equity fund 10 177.2 98.9 199.3
Retained earnings 10 387.6 219.1 387.0
Total equity attributable to
parent company shareholders 956.1 709.2 982.0
Minority interest 57.0 16.2 28.9
Total shareholders' equity 1,013.1 725.4 1,010.9

Liabilities

Interest-bearing debt 1,094.9 682.3 1,049.3
Derivative financial
instruments and other non-
interest bearing liabilities 9 5.5 3.8 2.4
Deferred tax liabilities 84.3 45.5 88.1
Total long-term liabilities 1,184.7 731.6 1,139.9

Interest-bearing debt 88.4 103.9 104.7
Trade and other payables 70.8 33.5 53.1
Short-term liabilities 159.2 137.4 157.8

Total liabilities 1,343.9 869.0 1,297.7

Total liabilities and
shareholders' equity 2,357.0 1,594.4 2,308.6



Condensed Consolidated Statement of Changes in Shareholders' Equity,
IFRS
EUR million


Equity attributable to parent company
shareholders

Share
premium Invested
fund unrest-
and Fair ricted
Share Share other value equity Retained
EUR million capital issue reserves reserve fund earnings
Balance at
1 Jan. 2007 225.7 0.1 131.1 -1.3 - 209.7
Cash flow hedges 1.8
Profit for the
period 33.0
Total recognized income
and expense for the period 1.8
Share issues 33.8 98.9
Share
subscriptions
based on stock
options 0.1 -0.1 0.0
Dividends (Note
10) -23.4
Translation
differences -0.4
Share-based
payments 0.2
Balance at
31 Mar. 2007 259.6 - 131.1 0.5 98.9 219.1

Balance at
1 Jan. 2008 259.6 - 131.1 4.9 199.3 387.0
Cash flow hedges -4.4
Profit for the period 9.1
Total recognized
income
and expense for
the period -4.4 9.1
Dividends and return
from the invested
unrestricted equity
fund (Note 10) -22.1 -8.8
Translation
differences 0.3
Share-based
payments 0.1
Other changes
Balance at
31 Mar. 2008 259.6 - 131.1 0.6 177.2 387.6



Equity Minority Shareholders'
attributable to interest equity, totalparent company
shareholders
Balance at 1 Jan. 2007 565.3 15.0 580.3
Cash flow hedges 1.8 1.8
Profit for the period 33.0 1.6 34.6
Total recognized income
and expense for the period 34.8 1.6 36.4
Share issues 132.6 132.6
Share subscriptions
based on stock options 0.0 0.0
Dividends (Note 10) -23.4 -23.4
Translation differences -0.4 -0.4 -0.8
Share-based payments 0.2 0.2
Balance at 31 Mar. 2007 709.2 16.2 725.4

Balance at 1 Jan. 2008 982.0 28.9 1,010.9
Cash flow hedges -4.4 -4.4
Profit for the period 9.1 2.2 11.3
Total recognized income
and expense for the period 4.7 2.2 6.9
Dividends and return from
the invested
unrestricted equity fund
(Note 10) -30.9 -30.9
Translation differences 0.3 0.1 0.4
Share-based payments 0.1 0.1
Other changes 0.0 25.7 25.7
Balance at 31 Mar. 2008 956.1 57.0 1,013.1



Condensed Consolidated Cash Flow Statement, IFRS


EUR million Note 1-3/2008 1-3/2007 1-12/2007

Operating activities
Profit before taxes 11.3 40.9 253.5
Adjustments 14.8 -21.7 -164.9
Cash flow before change in
working capital 26.1 19.2 88.5
Change in working capital -3.7 -5.1 0.2

Cash generated from operations 22.4 14.1 88.8

Paid interest and other
financial charges -14.0 -4.4 -42.7
Received interest and other
financial income 0.8 1.4 3.1
Taxes paid 3.8 -1.6 -10.0

Cash flows from operating activities 13.0 9.6 39.3

Investing activities
Acquisition of subsidiaries,
less cash acquired 6 -14.4 -96.9 -517.6
Acquisition of investment
properties 6 - - -16.0
Capital expenditure on
investment properties 6 -19.9 -5.7 -39.3
Capital expenditure on
development properties,
other PP&E and intangible assets 7 -12.2 -1.2 -24.5
Sale of investment property 7.7 - 0.3
Cash flows from investing activities -38.7 -103.9 -597.1

Financing activities
Proceeds from share issue - 132.2 232.4
Equity contribution from
minority shareholder 25.7 - -
Proceeds from short-term loans 165.1 36.2 773.1
Repayments of short-term loans -181.5 -19.9 -727.9
Proceeds from long-term loans 229.0 60.9 535.8
Repayments of long-term loans -186.0 -96.0 -228.9
Dividends paid 10 - -19.3 -23.4
Cash flows from financing activities 52.2 94.1 561.1

Net change in cash and
cash equivalents 26.5 -0.2 3.3
Cash and cash equivalents
at period-start 8 24.2 21.3 21.3
Effects of exchange rate changes 0.1 -0.3 -0.4
Cash and cash equivalents
at period-end 8 50.7 20.8 24.2



NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basic company data
Citycon is a real estate company investing in retail premises.
Citycon operates mainly in Finland, Sweden and the Baltic countries.
Citycon is a Finnish public limited company established under Finnish
law and domiciled in Helsinki. The Board of Directors approved the
interim financial statements on 23 April 2008.

2. Basis of preparation and accounting policies

Citycon prepares its consolidated financial statements in accordance
with the International Financial Reporting Standards (IFRS). The
interim condensed consolidated financial statements for the three
months ended 31 March 2008 have been prepared in accordance with IAS
34 Interim Financial Reporting. Same accounting principles and
policies are followed in the interim financial statements as in the
annual financial statements for the year 2007. The interim financial
statements do not include all the disclosures required in the annual
financial statements. Therefore, they should be read in conjunction
with Citycon's annual financial statements for the year 2007.

3. Segment Information
Citycon's business consists of the regional business units Finland,
Sweden and the Baltic Countries.


EUR million 1-3/2008 1-3/2007 Change-% 1-12/2007
Turnover
Finland 31.4 23.9 31.2% 104.3
Sweden 10.7 8.6 24.5% 39.0
Baltic Countries 2.2 1.8 25.9% 8.0
Total 44.3 34.2 29.3% 151.4

Operating profit
Finland 19.3 30.2 -35.9% 218.7
Sweden 7.2 18.8 -61.9% 74.3
Baltic Countries 2.5 3.5 -28.2% 14.5
Other -1.6 -2.1 -20.0% -6.8
Total 27.4 50.4 -45.7% 300.7

EUR million
Assets
Finland 1,605.2 1,053.5 52.4% 1,594.2
Sweden 556.4 418.3 33.0% 542.2
Baltic Countries 132.4 85.9 54.2% 125.3
Other 63.0 36.7 71.7% 46.9
Total 2,357.0 1,594.4 47.8% 2,308.6


The significant increase in segment assets is due to the acquisitions
of the shopping centres and the increase in fair value of investment
properties.

4. Reconciliation between direct and indirect result

Due to the nature of Citycon's business and the requirement to apply
IFRS, the consolidated income statement includes a plenty of items
related to non-operating activities. In addition to the consolidated
income statement under IFRS, Citycon also presents its profit for the
period with direct result and indirect result separately specified,
in an attempt to enhance the transparency of its operations and to
facilitate comparability of financial periods. Direct result
describes the profitability of the Group's operations during the
financial period disregarding the effects of fair value changes,
gains or losses on sales and other extraordinary items. Earnings per
share calculated based on direct result corresponds to the earnings
per share definition recommended by EPRA.

In comparison to previous practice direct result excludes the changes
in fair value of financial instruments that are recognized in the
income statement. In order to hedge against interest rate risk,
Citycon has entered into, in accordance with its interest rate risk
management policy, interest rate and inflation derivatives which do
not qualify under hedge accounting treatment under IFRS. Changes in
fair value of such derivatives are recognized in the income
statement. These derivatives hedge the group against interest rate
risk and in accordance with the terms of the derivatives Citycon
receives floating money market interest rate which has a matching
interest rate determination procedure with group's floating rate
debt. The interest rate which Citycon pays under these derivatives
does not depend on the money market interest rate which means that
these derivatives hedge Citycon against rising floating interest
rates. The aim is to ensure effectiveness of the hedges by matching
the interest rate fixing procedure between the derivatives recognized
in the income statement and floating rate debt of Citycon.



Q1/ Q4/ Q3/ Q2/ Q1/
EUR million 2008 2007 2007 2007 2007

Direct result
Net rental income 29.7 27.1 27.3 25.8 23.2
Administrative expenses -3.8 -3.9 -4.0 -4.3 -4.3
Other operating income
and expenses 0.0 0.6 0.0 -0.1 0.0
Net financial income
and expenses -14.7 -14.7 -11.9 -10.1 -10.0
Current taxes -1.2 3.2 -2.4 -2.8 -1.4
Change in deferred taxes -0.1 1.7 -0.5 -0.7 -0.6
Minority interest -0.4 -0.2 -0.3 -0.2 -0.1
Total 9.5 13.8 8.2 7.6 6.7

Direct result per share diluted
(Diluted EPRA EPS), EUR 0.04 0.06 0.04 0.04 0.04

Indirect result
Net fair value gains on
investment property 1.4 0.7 21.1 160.1 31.5
Profit on disposal of
investment property 0.1 0.0 -0.1 - -
Administrative expenses
related to disposals -0.2 - - - -
Other operating income
and expenses 0.1 - - - -
Movement in fair value of
financial instruments -1.4 0.2 -1.4 0.1 0.6
Current taxes related to disposals -1.1 - - - -
Change in deferred taxes 2.4 -5.0 -4.5 -32.3 -4.2
Minority interest -1.8 -0.4 0.1 -0.9 -1.5
Total -0.4 -4.6 15.2 127.0 26.3

Indirect result per share, diluted 0.00 -0.02 0.07 0.56 0.12

Profit for the period
attributable to parent
company shareholders 9.1 9.3 23.4 134.6 33.0



5. Earnings per share


1-3/2008 1-3/2007 1-12/2007

A) Earnings per share calculated from the profit for the
period

Earnings per share, basic
Profit attributable to parent company
shareholders (EUR million) 9.1 33.0 200.3
Issue-adjusted average number of shares
(Million) 221.0 183.8 199.4
Earnings per share (basic) (EUR) 0.04 0.18 1.00

Earnings per share, diluted
Profit attributable to parent company
shareholders (EUR million) 9.1 33.0 200.3
Expenses arising from convertible loan,
adjusted with the tax effect deduction
(EUR million) 1.4 1.4 5.7
Profit used in the calculation of diluted
earnings per share (EUR million) 10.5 34.4 206.0
Issue-adjusted average number of shares
(Million) 221.0 183.8 199.4
Convertible capital loan impact
(Million) 26.2 25.9 26.2
Adjustments for stock options (Million) 1.0 2.4 1.5
Issue-adjusted average number of shares
used in the calculation of diluted
earnings
per share (Million) 248.1 212.1 227.1
Diluted earnings per share (EUR) 0.04 0.16 0.91


B) Earnings per share calculated from the direct result for the
period


Direct result per share, diluted (Diluted EPRA EPS)
Direct result (EUR million) (Note 4) 9.5 6.7 36.2
Expenses arising from convertible loan,
adjusted with the tax effect deduction
(EUR million) 1.4 1.4 5.7
Profit used in the calculation of diluted earnings
per share (EUR million) 10.9 8.1 41.9
Issue-adjusted average number of shares used in
the calculation of diluted earnings per share
(Million) 248.1 212.1 227.1
Direct result per share, diluted
(Diluted EPRA EPS) 0.04 0.04 0.18



6. Investment property


31 Mar. 31 Mar. 31 Dec.
EUR million 2008 2007 2007

At period-start 2,215.7 1,447.9 1,447.9
Acquisitions during the period 0.2 78.6 531.3
Investments during the period 15.2 6.2 44.8
Disposals during the period -7.6 - -0.3
Transfer into the development properties -0.7 -5.7 -6.2
Fair value gains on investment property 18.6 35.2 220.8
Fair value losses on investment property -17.2 -3.7 -7.5
Exchange differences 2.5 -11.6 -15.1
At period-end 2,226.6 1,546.9 2,215.7


An external professional appraiser has conducted the valuation of the
company's properties with a net rental income based cash flow
analysis. Market rents, occupancy rate, operating expenses and yield
requirement form the key variables used in the cash flow analysis.
The segments' yield requirements and market rents used by the
external appraiser in the cash flow analysis were as follows:


Yield requirement (%) Market rents (€/m²)
31 Mar. 31 Mar. 31 Dec. 31 Mar. 31 Mar. 31 Dec.
2008 2007 2007 2008 2007 2007
Finland 5.7 6.5 5.7 21.1 17.2 21.1
Sweden 5.4 6.2 5.4 13.5 13.1 13.2
Baltic Countries 6.6 6.8 6.4 19.5 14.6 16.4
Average 5.7 6.5 5.6 19.2 15.9 19.0



7. Development property

As at 31 March 2008, the development properties consisted of the
capital expenditure relating to extension projects in Rocca al Mare,
Åkersberga, Liljeholmen and Lippulaiva shopping centres.


31 Mar. 31 Mar. 31 Dec.
EUR million 2008 2007 2007
At period-start 33.2 - -
Investments during the period 20.5 - 26.4
Capitalized interest 1.0 - 0.6
Transfer from investment property 0.7 5.7 6.2
At period-end 55.4 5.7 33.2



8. Cash and cash equivalents


EUR million 31 Mar. 2008 31 Mar. 2007 31 Dec. 2007

Cash in hand and at bank 13.9 20.6 24.2
Short-term deposits 36.8 0.2 -
Total 50.7 20.8 24.2



9. Derivative Financial Instruments


EUR million 31 Mar. 2008 31 Mar. 2007 31 Dec. 2007
Nominal Fair Nominal Fair Nominal Fair
amount value amount value amount value
Interest rate derivatives
Interest rate swaps
Maturity:
less than 1 year 40.0 0.1 50.0 0.4 40.0 0.2
1-2 years 112.6 -1.2 40.0 0.1 112.5 -0.6
2-3 years 83.0 -1.7 86.0 -1.5 83.0 -1.1
3-4 years 110.0 1.2 83.0 -2.1 70.0 1.7
4-5 years 20.0 -0.2 40.0 0.7 20.0 0.2
over 5 years 309.6 3.0 238.9 5.8 309.0 8.5
Total 675.2 1.2 537.9 3.3 634.5 8.8



Foreign exchange derivatives
Forward agreements
Maturity:
less than 1 year 107.7 0.8 48.1 0.3 40.4 0.3
Total 107.7 0.8 48.1 0.3 40.4 0.3



The fair value of derivative financial instruments represents the
market value of the instrument with prices prevailing on the balance
sheet date. Derivative financial instruments are used in hedging the
interest rate risk of the interest bearing liabilities and foreign
currency risk. The fair values include foreign exchange gain of EUR
1.3 million (EUR 0.4 million) which is recognized in the income
statement.

Hedge accounting is applied for interest rates swaps which have
nominal amount of EUR 598.6 million (EUR 487.9 million). The fair
value gain recognized in the fair value reserve under shareholders'
equity taking account the tax effect totals EUR 0.6 million (EUR 0.5
million).

10. Dividends and return from the invested unrestricted equity fund

In accordance with the proposal by the Board of Directors and the
decision by the Annual General Meeting held on 13 March 2008 dividend
for the financial year 2007 amounted to EUR 0.04 per share and EUR
0.10 per share was decided to be returned from the invested
unrestricted equity fund (dividend of EUR 0.14 for the financial year
2006).
Dividend and equity return for the financial year 2007 were paid on 2
April, 2008.


EUR million 31 Mar. 2008 31 Mar. 2007
Distributed dividends and equity return 30.9 23.4
Paid dividends and equity returns - 19.3



11. Contingent Liabilities


EUR million 31 Mar. 2008 31 Mar. 2007 31 Dec. 2007
Mortgages on land and
buildings 46.7 20.5 46.4
Bank guarantees 49.0 20.5 49.8
Capital commitments 34.8 57.6 31.0


At 31 March 2008, Citycon had capital commitments of EUR 34.8 million
relating mainly to development projects.

12. Key Figures


1-12/
1-3/2008 1-3/2007 Change-% 2007

Earnings per share (basic), EUR 0.04 0.18 -77.1% 1.00
Earnings per share (diluted), EUR 0.04 0.16 -73.8% 0.91
Equity per share, EUR 4.33 3.60 20.2% 4.44
Net asset value (EPRA NAV)
per share, EUR 4.70 3.82 23.1% 4.83
Equity ratio, % 43.0 45.5 - 43.9



The formulas for key figures can be found from the 2007 annual
financial statements.

The figures are unaudited.


Financial reports in 2008

In 2008, Citycon will publish another two interim reports as follows:

January-June 2008 on Friday, 18 July 2008, and
January-September 2008 on Thursday, 16 October 2008.

For further information, please contact:
Mr Petri Olkinuora, CEO
Tel. +358 9 6803 6738 or +358 400 333 256
petri.olkinuora@citycon.fi

Mr Eero Sihvonen, CFO
Tel. +358 9 6803 6730 or +358 50 557 9137
eero.sihvonen@citycon.fi

Distribution:
OMX Nordic Exchange Helsinki
Major media
www.citycon.fi



Report on Review of Citycon Oyj's Interim Financial Information for
the period January 1-March 31, 2008

To the Board of Directors of Citycon Oyj

Introduction

We have reviewed the accompanying consolidated balance sheet of
Citycon Oyj as of March 31, 2008 and the related statements of
income, changes in equity and cash flows for the three-month period
then ended, and explanatory notes prepared in accordance with
International Financial Reporting Standards as adopted by the EU. The
Board of Directors and the Managing Director are responsible for the
preparation and fair presentation of this interim financial
information in accordance with the Securities Market Act, chapter 2,
paragraph 5 a. Based on our interim review we express at the request
of the Board of Directors a report in accordance with the Securities
Market Act, chapter 2, paragraph 5 a.

Scope of Review

We conducted our review in accordance with International Standard on
Review Engagements 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity." A review of
interim financial information consists of making inquiries, primarily
of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance
with Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.

Opinion

Based on our review, nothing has come to our attention that causes us
to believe that the accompanying interim financial information,
prepared in accordance with International Financial Reporting
Standards as adopted by the EU, does not give a true and fair view of
the financial position of the entity as at March 31, 2008, and of its
financial performance and its cash flows for the three-month period
then ended in accordance with the Securities Market Act.

April 24, 2008

ERNST & YOUNG OY
Authorized Public Accountants


Tuija Korpelainen
Authorized Public Accountant
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