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
The figures are unaudited.
Key figures
Note FAS Q3 Preliminary FAS Preliminary
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 Cum. Cum. Q3
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)

Depreciation and
Impairments 1.9 -1.7 0.2 5.7 -5.5 0.2
Share of associated
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

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
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

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

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
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
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
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.

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. 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

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.

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 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.

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

CFO Pirkko Salminen
Te. +358 9 6803 6730 or + 358 50 3022 485

Helsinki Exchanges
Main media

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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