PRELIMINARY INFORMATION OF IFRS COMPARATIVE FIGURES FOR THE THIRD QUARTER OF

CITYCON OYJ STOCK EXCHANGE RELEASE 21 OCTOBER 2004 11.30 a.m. PRELIMINARY INFORMATION OF IFRS COMPARATIVE FIGURES FOR THE THIRD QUARTER OF 2004 In this bulletin, Citycon presents preliminary comparative IFRS figures for the first three quarters of 2004. In the bulletin issued on 31 August 2004, the company presented the preliminary opening IFRS balance as at 1 January 2004, preliminary comparative figures for the first and second quarters, and the major impacts of the transition from FAS (Finnish Accounting Standards) to IFRS (International Financial Reporting Standards). Preliminary comparative figures for the entire financial year will be issued by Citycon in the annual financial statements 2004. The segment information required by IAS 14 will be given starting with the first quarter of 2005.The final reconciliation required by IFRS 1 (First-time adoption of IFRS) will also be presented in the interim report for the first quarter of 2005 as Citycon starts reporting according to IFRS for the first time. The comparative information has been prepared in accordance with the latest versions of IFRS. The 'notes' column refers to the additional information explained in the separate section. A summary of Citycon's most significant accounting principles is included in the end of this release. Citycon will go over to reporting in accordance to IFRS in its interim reports and final accounts for 2005. The timetable for the transition has not been changed. The figures are unaudited. Key figures Note FAS Q3 Preliminary FAS Preliminary IFRS Q3 Q3 IFRS Q3 Cum. Cum. Earnings per share, EUR 0.04 0.06 0.13 0.20 Earnings per share, diluted, EUR 0.04 0.06 0.12 0.20 Equity per share, EUR 2.00 2.02 2.00 2.02 Return on equity (ROE), % 8.9 11.9 8.5 13.8 Return on investment (ROI), % 6.4 8.2 6.2 7.9 Equity ratio, % g 38.1 29.3 38.1 29.3 Preliminary IFRS Q3 2004 comparison Income statement EUR Million FAS Q3 Change Prel. FAS Change Prel. Q3 IFRS Q3 Q3 IFRS Q3 Cum. Cum. Q3 Cum. Turnover 22.0 -0.9 21.1 66.1 -2.8 63.3 Other income 0.2 0 0.2 0.3 -0.1 0.2 Change in value of investment property, note a) Expenses Depreciation and Impairments 1.9 -1.7 0.2 5.7 -5.5 0.2 Share of associated companies profit, note b 0.1 -0.1 0 0.3 -0.3 0 Other expenses 7.2 -1.3 5.9 22.8 -2.2 20.6 Operating profit 13.0 2.1 15.2 37.5 5.1 42.7 Net financial expenses -6.8 0.2 -6.6 -19.7 0.2 -19.5 Profit before and taxes 6.2 2.4 8.6 17.8 5.3 23.2 Taxes, note d) -1.7 -3.3 -2.4 -5.0 -2.3 Profit 4.5 1.8 6.2 12.8 8.0 20,9 Earnings per share, EUR 0.04 0.02 0.06 0.13 0.07 0.20 Earnings per share, diluted, EUR 0.04 0.02 0.06 0.12 0.07 0.20 Preliminary IFRS Q3 2004 comparison Balance sheet EUR million Note FAS Change Preliminary 30. Sept. 30. Sept. 2004 2004 Assets Non-current assets Intangible assets 4.7 -4.3 0.3 Tangible assets 740.5 -739.4 1.1 Investment properties a 740.0 740.0 Investments Holdings in associated companies b 55.3 -55.3 0 Treasury shares c 4.7 -4.7 0 Other investments 21.4 -21.2 0.2 Investments, total 81.4 -81.2 0.2 Deferred tax asset d Non current assets, total 826.6 -84.9 741.6 Current assets Short-term receivables 2.9 -0.4 2.4 Cash and cash equivalents 27.9 -0.6 27.3 Current assets, total 30.8 -1.0 29.8 Assets, total 857.3 -86.0 771.4 Liabilities and shareholders' equity Equity attributable to equity holders of the parent Share capital 156.3 0 156.3 Share premium fund 35.1 -0.1 34.9 Treasury share fund c 4.7 -4.7 0 Treasury shares c 0 -4.7 -4.7 Fair value reserve e -10.9 -10.8 Other funds 6.6 0 6.6 Retained profits a,b,d 13.0 9.7 22.7 Profit 12.8 8.0 20.9 Capital loan f 68.5 -68.5 0 Shareholders' equity, total 296.9 -71.1 225.7 Minority interest 101.3 -101.3 0 Liabilities Long term liabilities f 426.5 82.7 509.2 Deferred tax liability d 4.3 4.3 Long term liabilities, total 426.5 87.0 513.5 Short-term liabilities 32.8 -0.5 32.2 Short-term liabilities, total 32.8 -0.5 32.2 Liabilities, total 459.2 86.4 545.7 Liabilities and shareholders' equity, total 857.3 -86.0 771.4 Preliminary statement of changes in shareholders' equity Attributable to equity holders of the parent EUR million Share Share Fair value Treasury Retained Total capital premium reserve shares and profits equity fund and capital other loan reserves FAS Balance 31 Dec.2003 142.8 34.8 73.1 27.3 278.0 IFRS Balance 1 Jan. 2004 142.8 34.8 -7.7 -4.7 36.9 202.2 Cash flow hedges -4.7 -4.7 Profit 8.4 8.4 Total recognised income and expense -4.7 8.4 8.4 Dividends -14.3 - 14.3 IFRS Balance 31 Mar. 2004 142.8 34.8 -12.4 -4.7 31.0 191.5 Cash flow hedges 4.8 4.8 Profit 6.3 6.3 Total recognised income and expense 4.8 6.3 11.1 IFRS Balance 30 June 2004 142.8 34.8 -7.6 -4.7 37.3 202.6 Cash flow hedges -3.3 -3.3 Profit 6.2 6.2 Total recognised income and expense -3.3 6.2 3.0 Share Offering 13.5 6.7 20.2 IFRS Balance 30 Sep. 2004 156.3 41.5 -10.9 -4.7 43.5 225.7 Cash flow statements Cash flow statements are not presented. as the differences between IFRS cash flow statement and the cash flow statement prepared according to Finnish Accounting Standards are not considered to be material. The directed share offering and the comparative IFRS information for it Share Change Share Share Change Share offering offering offering offering excluded included excluded included FAS FAS IFRS IFRS Share capital, EUR, million 142.8 13.5 156.3 142.8 13.5 156.3 Sharehoder's equity, EUR, million, note h) 276.6 20.3 296.9 205.6 20.2 225.7 Total number of shares, million 105.8 10.0 115.8 105.8 10.0 115.8 Details of the targeted share offering can be found in the stock exchange bulletins issued by Citycon in September 2004. Notes to the preliminary comparative financial information for Q3 in 2004 a) Investment properties have been valued at fair value and the change in values has been recorded in the income statement and the equity in the opening balance. b) Consolidation principles of mutual real estate companies have been changed. c) Own shares held by the parent company are not presented in assets. but are deducted from equity. d) Deferred taxes have been recognised for all temporary differences according to IAS 12 Income Taxes. e) The fair value of cash flow hedging derivatives has been included in the balance sheet and the changes in the values in cash flow hedge reserve in equity. f) Capital loan has been classified as a liability in the IFRS balance sheet. g) The covenant calculation used in the financial agreements will remain the same. h) The transaction costs related to the acquisition of equity have been treated as a reduction in shareholders' equity with an adjustment for income tax. Summary of Citycon's most significant IFRS accounting principles The consolidated financial statements for 2005 of Citycon are to be prepared in accordance with International Financial Reporting Standards (IFRS). The comparative figures of 2004 are restated from previous applied Finnish Accounting Standards (FAS) to IFRS. Principles of consolidation Mutual real estate companies are consolidated by proportional consolidation, where Citycon's share of assets. Liabilities, income and expenses of the company is combined line by line with similar items in the Citycon's financial statements. Investment properties Investment property is property (land or building – or part of a building – or both) held to earn rental income or capital gain or both. In the valuation of investment properties according to IAS 40 Citycon has decided to use the fair value model. which will result in changes in value being posted to the income statement. The valuation of investment properties is assessed in accordance with International Valuation Standards (IVS) at least once a year by on external valuer to the income statement. The valuation of investment properties is assessed in accordance with International Valuation Standards (IVS) at least once a year by on external valuer. Property. plant and equipment Property (other than investment property), plant and equipment are recorded at historical cost and depreciated over the estimated economic lives of the assets. Machinery and equipment is depreciated over a period of from 4 to 10 years. Intangible assets Intangible assets include software licenses. They are recorded at cost and amortised on straight-line basis over 5 years. Impairment Property. plant and equipment and intangible assets are assessed at each balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount shall be estimated. An impairment loss is recognised in the income statement if the carrying amount exceeds the recoverable amount. Revenue recognition Revenue comprise mainly of rental income from investment property. Rental income is recognised on a straight-line basis over the term of the lease. Leases Leases. for which Citycon acts as a lessee. are classified as finance leases and recognised as assets and liabilities if the risks and rewards have been transferred. A lease is classified as an operating lease if it does not transfer substantially all the, risks and rewards incidental to ownership. Pension benefits Employee pension cover has been arranged through statutory pension insurance. The contributions to defined contribution plans are charged to the income statement in the period to which they relate. Equity and equity-related compensation benefits IFRS 2 Share-based payment -standard has been applied to share options that were granted after 7 November 2002 and have not vested before 1 January 2005. For such option plans the fair value of the equity instruments granted is measured at grand date and the options are expensed over the vesting period of the instrument. Share offering expenditure The transaction costs related to the acquisition of equity have been treated as a reduction in shareholders' equity with an adjustment for income tax. Capital loan The capital loan is treated under IFRS as a liability. Reacquired own equity instruments (treasury shares) Treasury shares are deducted from the shareholders' equity. Derivatives Interest rate derivatives are used as hedging instruments. They are designated as cash flow hedges of the future interest payments on variable rate liabilities. Hedging instruments are measured at fair value and the change in value that relates to the effective part of the hedge is recognised directly in equity. The ineffective part, if any, is recognised in the income statement. Fair value changes remain in equity until the hedged cash flow is recognised. Provisions Provisions are recognised, when the group has a present legal or constructive obligation as a result of past events, when it is probable that an outflow of resources will be required to settle the obligation and when a reliable estimate of the amount can be made. Taxes Income taxes include taxes based on taxable profit for the financial period, adjustments to prior year taxes and change in deferred taxes. Deferred tax assets and liabilities are recognised using the liability method for all temporary differences arising from the difference between the tax basis of assets and liabilities and their carrying values in IFRS, the enacted tax rate is used in the determination of deferred income tax. Helsinki. 21 October 2004 Citycon Oyj Board of Directors Further information CEO Petri Olkinuora Tel. +358 9 6803 6738 or +358 400 333 256 petri.olkinuora@citycon.fi CFO Pirkko Salminen Te. +358 9 6803 6730 or + 358 50 3022 485 pirkko.salminen@citycon.fi Distribution Helsinki Exchanges Main media www.citycon.fi Independent Auditors' Review Report to the Board of Directors of Citycon Oyj We have reviewed the preliminary comparative IFRS information for the first three quarters of 2004. These statements are the responsibility of the company. We conducted our review in accordance with the International Standard on Auditing applicable to review engagements. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Based on our reviews, we are not aware of any material modifications that should be made to the preliminary comparative information for the first three quarters of 2004, for them to be in conformity with the IFRS principles. Helsinki, October 21, 2004 Ari Ahti Jaakko Nyman Authorized Public Accountant Authorized Public Accountant

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