SSH INTERIM REPORT FOR JANUARY 1 - SEPTEMBER 30, 2008

SSH COMMUNICATIONS SECURITY CORP STOCK EXCHANGE RELEASE, October 22,
2008, at 9:00 a.m.
 
- Net sales for January-September totaled EUR 6.3 million, down by
47.4 % percent year on year (EUR 11.9 million in Q1-Q3/2007).
- Third-quarter net sales came to EUR 2.0 million, down by 75.0
percent on a year earlier (EUR 7.8 million in Q3/2007). The third
quarter of the previous year contained the company's largest order so
far.
- Operating loss for January-September amounted to EUR -1.1 million
(an operating profit of 3.2 million in Q1-Q3/2007), loss EUR -0.4
million (3.9 million). Third-quarter operating profit was EUR -0.3
million and net profit was EUR -0.1 million. In spite of the loss the
company's financial position remained healthy, with equity ratio
92.5% (93.4%)and liquid assets at the end of the period EUR 16.1
million (EUR 20.9 million).
- The company signed four significant license agreements during the
period. The largest order, value about EUR 0.6 million, came from a
US public sector contractor.
 
KEY FIGURES
                           7-9/  7-9/  1-9/   1-9/ 1-12/
                           2008  2007  2008   2007  2007
 
Net sales (MEUR)            2.0   7.8    6.3  11.9  14.2
Net sales, change %       -75.0 342.6  -47.4  94.8  58.1
Operating profit/loss
(MEUR)                     -0.3   4.4   -1.4   3.2   2.2
  % of net sales          -16.9  55.9  -22.7  27.2  15.7
Operating profit/loss,
change %                 -107.6 996.5 -143.9 327.6 262.8
Profit/loss before taxes
(MEUR)                     -0.1   4.6   -0.9   3.9   3.1
  % of net sales           -7.6  59.2  -13.9  32.4  21.9
Number of employees
at period end                75    84     75    84    83
 
Earnings per share (EUR)               -0.04  0.14  0.11
Shareholders' equity per
share (EUR)                             0.53  0.75  0.72
 
SSH Communications Security is a world-leading provider of enterprise
security solutions and end-to-end communications security, and the
original developer of the Secure Shell protocol. The company's SSH
Tectia solution addresses the most critical needs of large
enterprises, financial institutions and government agencies.
 
NET SALES
 
Consolidated net sales for January-September totaled EUR 6.3 million
(EUR 11.9 million), down by -47.4 % percent, year on year. Net sales
for the third quarter totaled EUR 2.0 million, a decrease of 75.0 %
compared to the corresponding quarter for year 2007.
 
The majority of SSH's invoicing is based on the U.S. dollar. During
the report period, the U.S. dollar's average exchange rate to euro
weakened approximately 13 percent compared to the same period a year
ago. At constant currency, net sales would have decreased -43 percent
compared to the January-September period and -74 percent compared to
the third quarter of year 2007.
 
RESULTS AND EXPENSES
 
Operating loss for January-September amounted to EUR -1.4 million
(Q1-Q3/2007: an operating profit of EUR 3.2 million), with net loss
totaling EUR -1.1 million (a profit of EUR 3.9 million). Operating
loss for the third quarter totaled EUR -0.3 million (a profit of EUR
4.4 million), with net loss amounting to EUR -0.4 million (a profit
of EUR 4.6 million).
 
Research and development expenses for the report period totaled EUR
2.9 million (EUR 2.6 million), while sales and marketing expenses
amounted EUR 3.6 million (EUR 5.0 million) and administrative
expenses EUR 1.2 million (EUR 1.2 million).
 
The result of the reporting period is influenced by a EUR 0.2 million
writeoff of a deferred tax asset.
 
During the reporting period, SSH Communications Security KK, fully
owned subsidiary of SSH, was liquidated. The procedure incurred no
material expenses as the charges were covered by a restructuring cost
recorded in the previous financial year.
 
BALANCE SHEET AND FINANCIAL POSITION
 
The financial position of SSH remained at a healthy level during the
report period, which also included a distribution of EUR 4.3 million
to the shareholders. The consolidated balance sheet total on
September 30, 2008 stood at EUR 19.0 million (EUR 25.2 million), of
which liquid assets accounted for EUR 16.1 million (EUR 20.9
million), or 84.7 percent of the balance sheet total. The company's
interest bearing liabilities, EUR 0.2 million, comprised lease
finance commitments. On September 30, 2008, gearing, or the ratio of
net liabilities to shareholders' equity, was -106.1 percent (-98.6)
and the equity ratio stood at 92.5 percent (93.4).
 
In August, permission was obtained to implement the decrease of the
company's share premium fund, decided by the Annual Shareholders
Meeting on March 27, 2008.  Share premium fund was decreased by
transferring all assets from the fund to unrestricted equity fund.
 
The reported gross capital expenditure for the period totaled EUR 0.1
million (EUR 0.1 million), plus lease financed commitments EUR 0.2
million (0.0). The reported financial income consisted mainly of
interest on fixed-term deposits. Financial income and expenses
totalled EUR 0.6 million (EUR 0.6 million).
 
During January-September, SSH reported a negative cash flow of EUR
-2.1 million from business operations, and investments showed a
positive cash flow of EUR +6.8 million. Cash flow from financing
totaled EUR -4.3 million. Cash flow from operations, investments and
financing resulted in the company showing a positive total cash flow
of EUR 0.4 million during the period.
 
CHANGE IN ACCOUNTING PRACTISE FOR RECORDING PROFITS FROM SALES (IAS8)
 
The accounting practice for recording of maintenance sales revenue
was restated in September 2008, with all maintenance sales revenue
being now periodised. Earlier, only significant sales items
(exceeding EUR  5 000) were periodised over the lifetime of the
maintenance period. The new practice is in accordance with IAS 8.
The change did not have material impact on net sales in
January-September 2008 or in other periods. The change, however,
reduces share capital and increases short-term liabilities. For
consistency, comparison data has been restated as well. The impact of
the restate is as follows:
 
RESTATE IMPACT
(MEUR)                   1-3/ 1-6/ 1-9/ 1-9/ 1-12/
                         2008 2008 2008 2007  2007
 
Net sales                 0.0 -0.1  0.0  0.0   0.1
Operating profit/loss     0.0 -0.1  0.0  0.0   0.1
Profit/loss before taxes  0.0 -0.1  0.0  0.0   0.1
 
Earnings per share (EUR)  0.0  0.0  0.0  0.0   0.0
 
Shareholders' equity     -0.4 -0.4 -0.4 -0.4  -0.4
Long-term liabilities     0.0  0.0  0.0  0.0   0.0
Short-term liabilities    0.4  0.4  0.4  0.4   0.4
Total liabilities and
shareholders' equity      0.0  0.0  0.0  0.0   0.0
 
Quarterly values of original and restated financials are presented at
the end of this interim report.
 
MARKET DEVELOPMENTS
 
The most significant users of the company's products are large
enterprises and public sector organizations. The most important
market area is the USA. During the current year macro economic
factors have affected the demand, and many customers have been forced
to postpone their projects.
 
Large enterprise, financial, and public sector organizations have a
growing need for improved data security in several ways. SSH is
confident that legislative reforms in developed countries, global
data security standards, as well as many industry and company level
data security development programs will continue to drive demand
favorably for SSH Tectia. We believe as the macro-level outlook
starts stabilizing, the demand in the important market segments will
normalize.
 
SALES PERFORMANCE
 
SSH'S NET SALES
EUR million       7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 1-12/
                  2008 2008 2008   2007 2007  2007
 
BY SEGMENT
  AMER             1.2  1.8  1.3    1.5  7.3  11.7
  APAC             0.2  0.2  0.3    0.2  0.2   0.8
  EROW             0.5  0.7  0.5    0.6  0.3   1.8
  SSH Group total  2.0  2.5  1.8    2.3  7.8  14.2
 
BY OPERATION
  License sales    0.8  1.5  0.7    1.1  6.8  10.1
  Maintenance      1.1  1.0  1.1    1.1  1.1   4.1
  Total            2.0  2.5  1.8    2.3  7.8  14.2
 
The Americas, the Asia Pacific region, and the 'Europe and Rest of
the World' market area accounted for 61.4 percent (85.2 percent),
11.2 percent (5.0 percent) and 27.4 percent (9.8 percent) of reported
net sales, respectively.
 
During the report period, SSH concluded five new license agreements
that were worth more than EUR 100,000. The ten largest customers
accounted for 40 percent of reported net sales, with the largest
single customer accounting for approximately 9 percent.
 
PRODUCTS AND MARKETING
 
During the report period, SSH focused its sales and marketing efforts
on large enterprises, financial institutions, and government agencies
in the USA, Europe, and Asia, in line with its long-term strategy.
The company continued also developing its partner network in the same
focus markets.
 
The marketing focus was on the company's new Tectia security
solutions of IBM mainframe environment and SSH Tectia's enhanced file
transfer applications for large internal enterprise networks. The
company continued the development of the new third generation
architecture-based products. The company also made further
development of the productisation to provide higher value, new
features and expanded uses, as well as enabling easier purchasing for
the customers.
 
New applications, support of all essential enterprise OS platforms
including IBM mainframes, versatile integration capabilities, and
centralized management have made SSH Tectia the most extensive
integrated end-to-end communications security solution in the market.
 
RESEARCH AND DEVELOPMENT
 
Research and development expenses for January-September totaled EUR
2.9 million (EUR 2.6 million), the equivalent of 46.7 percent of net
sales (22.0 percent). During the report period SSH didn't capitalize
any research and development expenses.
 
HUMAN RESOURCES AND ORGANIZATION
 
At the end of September, the Group had 75 employees on its payroll,
down by 9 from the previous year, an decrease of 10.7 percent.
 
At the end of the period, 53.3 percent of the employees worked in
R&D, 36.0 percent in sales and marketing, and 10.7 percent in
corporate administration.
 
BOARD AND AUDITORS
 
The Annual General Meeting (AGM) on March 27, 2008 re-elected Tomi
Laamanen, Timo Ritakallio and Tatu Ylönen to SSH Communications
Security Corp.'s Board of Directors. New board members, Pyry Lautsuo
and Juha Mikkonen were elected to the board. Tomi Laamanen continues
as chairman.
 
The AGM again elected to have PricewaterhouseCoopers Oy, authorized
public accountants, as the company's auditor, with Henrik Sormunen,
authorized public accountant, acting as the principal auditor.
 
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
 
The reported trading volume of SSH Communications Security Corp.
shares totaled 2,798,440 (valued at EUR 3,914,988). The highest
quotation was EUR 1.69 and the lowest EUR 0.99. The trade-weighted
average share price for the period was EUR 1.41, and the share closed
at EUR 1.05 (September 28, 2008).
 
During the report period, the ownership structure of the company did
not change essentially. Tatu Ylönen holds, directly and through his
company, Tatu Ylönen Oy, 52.9 percent of the company's shares,
Assetman Oy holds 14.7 % and Tero Kivinen holds 5.2 percent. More
information about the shareholding can be obtained from the company's
web site.
 
During the report period, the Group decided to have the Japanese
subsidiary SSH Communications Security K.K go into voluntary
liquidation. This is a fully owned subsidiary of SSH. This
arrangement is a part of the re-structuring of company's Asian sales
organization, with a goal to sharpen the geographical sales focus, to
increase the role of resellers and to decrease costs.
 
SHARE CAPITAL AND BOARD AUTHORIZATIONS
 
The company's registered share capital on September 30, 2008 was EUR
856,508.25, consisting of 28,550,275 shares. During the report
period, SSH increased its share capital twice, based on subscription
to the new shares under SSH's stock-option plan. In total, 750 new
SSH shares were subscribed under the I/1999 stock option plan, 1,913
shares under the I/2003 stock option plan and 11,500 shares under the
II/2003 stock option plan respectively. With these subscriptions the
company's share capital was increased by EUR 424.89.
 
The Annual General Meeting 27 March 2008 decided, in accordance with
the proposal made by the Board of Directors, to authorize the Board
of Directors to decide on issuing the maximum of 5,500,000 shares in
one or more new share issues or on issuing special rights to share
subscription as defined in the Finnish Companies Act Chapter 10,
section 1, with or without subscription rights to shareholders. This
authorization is effective until the next Annual General Meeting, but
will expire 30 June 2009, at the latest. The Board has not exercised
this authorization.
 
The Annual General Meeting also authorized the Board of Directors to
decide on dividend distribution and/or on distribution of assets from
the invested unrestricted equity fund. By virtue of the
authorization, the distributed assets can be a maximum of 0.15 euro
per share and EUR 4,350,000 in total. The authorization is valid
until 31 December 2008. Further, the Board of Directors was
authorized to lower the subscription price of shares that can be
subscribed on the grounds of the stock option plans released by the
Company between years 2000 and 2003, at an amount which equates the
distribution of assets. On 2 April 2008, after the end of the report
period, the Board of Directors decided to distribute 0.15 euro per
share from the invested unrestricted equity fund to the shareholders,
and to lower the subscription price of the 2000 - 2003 stock option
plans by the same amount. The date of payment was 15 April, 2008.
 
CORPORATE GOVERNANCE
 
The company complies with the corporate governance recommendations
for listed companies issued by the NASDAQ OMX Helsinki, the Central
Chamber of Commerce of Finland, and the Confederation of Finnish
Industry and Employers. More information on corporate governance is
available on the company's Web site (www.ssh.com).
 
PROSPECTS
 
The outlook of the world economy has weakened fast. The company
estimates its results to remain at loss for the year 2008.
 
The company's actual sales so far and estimations for the rest of the
year have been impacted especially by the slow-down of IT investments
of banks and other financial sector enterprises, as well as the
development of sales to other large customers in the USA. The company
continues arrangements to cut operating expenses and return to
profitability.
 
INCOME STATEMENT
EUR million                 7-9/ 7-9/  1-9/ 1-9/ 1-12/
                            2008 2007  2008 2007  2007
 
  Net sales                  2.0  7.8  6.3  11.9  14.2
  Purchasing and production
  costs                      0.0  0.0  0.0   0.0   0.0
  Gross profit               2.0  7.8  6.3  11.9  14.2
  Other operating income     0.0  0.0  0.1   0.1   0.1
  Expenses
    Product development     -0.9 -0.8 -2.9  -2.6  -3.7
    Sales and
    marketing               -1.0 -2.3 -3.6  -5.0  -6.5
    Administration          -0.4 -0.3 -1.2  -1.2  -1.7
 
  Operating profit/loss     -0.3  4.4 -1.4   3.2   2.2
 
  Financial income and
  expenses                   0.2  0.3  0.6   0.6   0.9
 
  Profit/loss before taxes  -0.1  4.6 -0.9   3.9   3.1
  Taxes                     -0.2  0.0 -0.2   0.0   0.0
 
  Net profit/loss for the
  period                    -0.4  4.6 -1.1   3.9   3.1
 
EARNINGS PER SHARE          1-9/  1-9/ 1-12/
                            2008  2007  2007
 
Earnings per share (EUR)    -0.04 0.14    0.11
Earnings per share, diluted
(EUR)                       -0.04 0.13    0.11
 
BALANCE SHEET
EUR million                                  9/30/ 9/30/ 12/31/
                                              2008  2007   2007
 
  ASSETS
 
  Fixed and other non-current assets
    Tangible assets                            0.4   0.1    0.1
    Intangible assets                          0.0   0.1    0.1
    Deferred tax assets                        0.0   0.2    0.2
  Total fixed and other
  non-current assets                           0.4   0.5    0.5
 
  Inventories and current assets
    Short-term receivables                     2.5   3.7    3.0
    Short-term investments                    14.0  15.5   20.3
    Cash and cash equivalents                  2.1   5.4    1.7
  Total inventories and current assets        18.6  24.7   25.1
 
  Total assets                                19.0  25.2   25.5
 
  LIABILITIES AND SHAREHOLDERS' EQUITY
 
  Shareholders' equity                        15.1  21.2   20.4
  Long-term liabilities
    Provisions                                 0.0   0.0    0.2
    Long-term financial
    liabilities                                0.1   0.0    0.0
  Total long-term liabilities                  0.1   0.0    0.2
 
  Short-term liabilities                       3.8   4.0    4.9
 
  Total liabilities and shareholders' equity  19.0  25.2   25.5
 
CASH FLOW STATEMENT
EUR million                                   1-9/ 1-9/ 1-12/
                                              2008 2007  2007
 
  Cash flow from business operations          -2.1  3.9   5.1
  Cash flow from investments                   6.8 -0.2  -5.0
  Cash flow from financing                    -4.3  0.0   0.0
 
  Increase(+) / decrease (-) in liquid assets  0.4  3.7   0.1
 
  Liquid assets at period start                1.7  1.7   1.7
  Adjustment for translation difference        0.0 -0.1  -0.1
  Liquid assets at period end                  2.1  5.4   1.7
 
STATEMENT ON CHANGES IN SHAREHOLDERS'
EQUITY
EUR million              Share     Share  Fair Trans-   Unrest- Total
                          Capi     Premi value lation    ricted
                           tal       -um reser  diff.    equity
                                          -ves        funds and
                                                       retained
                                                       earnings
 
Shareholders'
equity
Jan. 1, 2007               0.9      11.5   0.1   -0.8       6.3  18.0
Change                     0.0       0.0   0.0   -0.2      -2.1
 
Shareholders' equity
Sep. 30, 2007              0.9      11.5   0.1   -1.0       4.2  21.6
Change                     0.0       0.0   0.0   -0.1       5.2
 
Shareholders'
equity
Dec. 31, 2007              0.9      11.5   0.1   -1.1       9.4  20.8
Change                     0.0     -11.5   0.0    0.1       7.3
Net profit                                                 -0.9
 
Shareholders'
equity
Sep. 30, 2008              0.9       0.0   0.1   -1.4      15.5  15.1
 
NET SALES BY SEGMENT
EUR million          7-9/ 7-9/ 1-9/ 1-9/ 1-12/
                     2008 2007 2008 2007  2007
 
AMER                  1.2  7.3  4.2 10.2  11.7
APAC                  0.2  0.2  0.7  0.6   0.8
EROW                  0.5  0.3  1.4  1.2   1.8
SSH Group total       2.0  7.8  6.3 11.9  14.2
 
OPERATING PROFIT/LOSS BY SEGMENT
EUR million                      7-9/ 7-9/ 1-9/ 1-9/ 1-12/
                                 2008 2007 2008 2007  2007
 
AMER                              0.5  5.6  1.9  7.0   7.6
APAC                              0.2  0.0  0.2  0.3   0.3
EROW                              0.3  0.0  0.8 -0.1  -0.1
Common Group expenses*           -1.3 -1.3 -4.3 -3.9  -5.5
SSH Group total                  -0.3  4.4 -1.4  3.2   2.2
 
* Common Group expenses include Group administration expenses (e.g.,
management and finance) and product management and R&D expenses for
corporate headquarters.
 
KEY FIGURES AND RATIOS
                                   1-9/  1-9/  1-12/
                                   2008  2007   2007
 
Net sales (MEUR)                    6.3  11.9   14.2
Operating profit/loss (MEUR)       -1.4   3.2    2.2
Operating profit/loss, as % of
net sales                         -22.7  27.2   15.7
Profit/loss before extraordinary
items and taxes (MEUR)             -0.9   3.9    3.1
Profit/loss before extraordinary
items and taxes, as % of net
sales                             -13.9  32.4   21.9
Profit/loss before taxes (MEUR)    -0.9   3.9    3.1
Profit/loss before taxes, as
% of net sales                    -13.9  32.4   21.9
Return on investment (%)           -3.3  15.3   17.1
Return on equity (%)               -4.7  15.0   16.3
Interest-bearing net liabilities
(MEUR)                            -16.0 -20.9  -22.0
Equity ratio (%)                   92.5  93.4   91.3
Gearing (%)                      -106.1 -98.6 -107.8
Gross capital expenditure (MEUR)    0.0   0.1    0.1
  % of net sales                    0.0   0.7    0.7
R&D expenses (MEUR)                 2.9   2.6    3.7
  % of net sales                   46.7  22.0   25.9
Personnel, period average            78    81     81
Personnel, period end                75    84     83
 
PER-SHARE DATA
                                1-9/   1-9/  1-12/
                                2008   2007   2007
 
Earnings per share, undiluted
(EUR)                          -0.04   0.14   0.11
Earnings per share, diluted
(EUR)                          -0.04   0.13   0.11
Equity per share (EUR)          0.53   0.74   0.72
No. of shares at period end
(thousands)                   28 550 28 507 28 536
Share performance (EUR)
  Average price                 1.41   1.51   1.63
  Low                           0.99   1.12   1.12
  High                          1.69   2.00   2.39
Share price, period end         1.05   1.92   1.61
Market capitalization, period
end (MEUR)                      30.0   54.7   45.9
Volume of shares traded
(in millions)                    2.8   11.8   15.0
Volume of shares traded, as
% of total                       9.8   41.4   52.6
Value of shares traded, in
millions of euros                3.9   18.0   24.5
Price-to-earnings ratio (P/E)                 14.8
 
CONTINGENT LIABILITIES
EUR million                     9/30 9/30 12/31
                                2008 2007  2007
  Rental liabilities             0.0  0.0   0.1
  Leasing commitments outside
  the balance sheet
     Maturing within 1 year      0.7  0.6   0.7
     Maturing between 1 and 5
     years                       0.7  0.8   1.1
  Currency derivatives (not
  included in hedge accounting)
  Fair value                     0.0  0.0   0.0
  Nominal value                  0.0  1.8   0.0
 
This interim report has been compiled observing IAS 34 (Interim
Financial Reporting) accounting standard. The same accounting
principles have been used in the financial statements for 2007. These
data are based on unaudited figures.
 
IMPACT OF THE CHANGE IN ACCOUNTING PRACTISE FOR RECORDING PROFITS
FROM SALES (IAS8)TO GROUP'S FINANCIALS PER QUARTER
 
1-3/ 2007                ORIGINAL  RESTATED DIFFERENCE
(MEUR)                      VALUE     VALUE
Net sales (MEUR)              2.6       2.6        0.0
Operating profit/loss         0.0       0.0        0.0
Profit/loss before taxes      0.2       0.1        0.0
 
Earnings per share (EUR)      0.0       0.0        0.0
 
Shareholders' equity         17.6      18.1        0.4
Long-term liabilities         0.0       0.0        0.0
Short-term liabilities        3.2       2.8       -0.4
Total liabilities and
shareholders' equity         20.9      20.9        0.0
 
1-6/ 2007                ORIGINAL  RESTATED DIFFERENCE
(MEUR)                      VALUE     VALUE
Net sales (MEUR)              4.1       4.1        0.0
Operating profit/loss        -1.1      -1.1        0.0
Profit/loss before taxes     -0.8      -0.8        0.0
 
Earnings per share (EUR)      0.0       0.0        0.0
                                                   0.0
Shareholders' equity         16.7      17.1        0.5
Long-term liabilities         0.0       0.0        0.0
Short-term liabilities        2.9       2.5       -0.5
Total liabilities and
shareholders' equity         19.6      19.6        0.0
 
1-9/ 2007 (MEUR)         ORIGINAL  RESTATED DIFFERENCE
                            VALUE     VALUE
Net sales (MEUR)             11.9      11.9        0.0
Operating profit/loss         3.2       3.2        0.0
Profit/loss before taxes      3.9       3.8        0.0
 
Earnings per share (EUR)      0.0       0.0        0.0
                                                   0.0
Shareholders' equity         21.2      21.6        0.4
Long-term liabilities         0.0       0.0        0.0
Short-term liabilities        4.0       3.6       -0.4
Total liabilities and
shareholders' equity         25.2      25.2        0.0
 
1-12/ 2007               ORIGINAL  RESTATED DIFFERENCE
(MEUR)                      VALUE     VALUE
Net sales (MEUR)             14.2      14.1       -0.1
Operating profit/loss         2.2       2.2       -0.1
Profit/loss before taxes      3.1       3.0       -0.1
 
Earnings per share (EUR)      0.0       0.0        0.0
                                                   0.0
Shareholders' equity         20.4      20.8        0.4
Long-term liabilities         0.2       0.2        0.0
Short-term liabilities        4.9       4.5       -0.4
Total liabilities and
shareholders' equity         25.5      25.5        0.0
 
1-3/ 2008                ORIGINAL  RESTATED DIFFERENCE
(MEUR)                      VALUE     VALUE
Net sales (MEUR)              1.8       1.9        0.0
Operating profit/loss        -0.9      -0.8        0.0
Profit/loss before taxes     -0.7      -0.6        0.0
 
Earnings per share (EUR)      0.0       0.0        0.0
                                                   0.0
Shareholders' equity         19.8      20.2        0.4
Long-term liabilities         0.2       0.2        0.0
Short-term liabilities        3.7       3.3       -0.4
Total liabilities and
shareholders' equity         23.7      23.7        0.0
 
1-6/ 2008                ORIGINAL  RESTATED DIFFERENCE
(MEUR)                      VALUE     VALUE
Net sales (MEUR)              4.3       4.4        0.1
Operating profit/loss        -1.1      -1.0        0.1
Profit/loss before taxes     -0.7      -0.6        0.1
 
Earnings per share (EUR)      0.0       0.0        0.0
                                                   0.0
Shareholders' equity         15.4      15.9        0.4
Long-term liabilities         0.4       0.4        0.0
Short-term liabilities        3.5       3.0       -0.4
Total liabilities and
shareholders' equity         19.3      19.3        0.0
 
1-9/ 2008                ORIGINAL  RESTATED DIFFERENCE
(MEUR)                      VALUE     VALUE
Net sales (MEUR)              6.3       6.3        0.0
Operating profit/loss        -1.4      -1.4        0.0
Profit/loss before taxes     -0.9      -0.9        0.0
 
Earnings per share (EUR)      0.0       0.0        0.0
                                                   0.0
Shareholders' equity         15.1      15.5        0.4
Long-term liabilities         0.1       0.1        0.0
Short-term liabilities        3.8       3.4       -0.4
Total liabilities and
shareholders' equity         19.0      19.0        0.0
 
STATEMENT ON CHANGES IN
SHAREHOLDERS' EQUITY
EUR million        Share   Share     Fair       Trans-  Unrest- Total
                 Capital Premium   value        lation   ricted
                                 reserves differ-rence   equity
                                                          funds
                                                            and
                                                       retained
                                                       earnings
 
Shareholders'
equity
1.1.2007             0.9    11.5      0.1         -0.8      6.3  18.0
Shareholders'
equity ,
restated
1.1.2007             0.9    11.5      0.1         -0.8      5.9  17.5
 
Shareholders'
equity
30.3.2007            0.9    11.5      0.1         -0.9      6.4  18.1
Shareholders'
equity ,
restated
30.3.2007            0.9    11.5      0.1         -0.9      6.0  17.6
 
Shareholders'
equity
30.6.2007            0.9    11.5      0.1         -0.9      5.6  17.1
Shareholders'
equity ,
restated
30.6.2007            0.9    11.5      0.1         -0.9      5.1  16.7
 
Shareholders'
equity
30.9.2007            0.9    11.5      0.1         -1.0     10.1  21.6
Shareholders'
equity ,
restated
30.9.2007            0.9    11.5      0.1         -1.0      9.7  21.2
 
Shareholders'
equity
31.12.2007           0.9    11.5      0.1         -1.1      9.4  20.8
Shareholders'
equity ,
restated
31.12.2007           0.9    11.5      0.1         -1.1      8.9  20.4
 
Shareholders'
equity
30.3.2008            0.9    11.5      0.1         -1.0      8.7  20.2
Shareholders'
equity ,
restated
30.3.2008            0.9    11.5      0.1         -1.0      8.3  19.8
 
Shareholders'
equity
30.6.2008            0.9    11.5      0.1         -1.1      4.5  15.9
Shareholders'
equity ,
restated
30.6.2008            0.9    11.5      0.1         -1.0      3.9  15.4
 
Shareholders'
equity ,
restated
30.9.2007            0.9     0.0      0.1         -1.4     15.5  15.1
 
DISCLAIMER
 
The content in this report is provided by SSH Communications Security
Corp ("SSH") and its third party content providers for your personal
information only, and does not constitute an offer or invitation to
purchase any securities. Nor does it provide any form of advice
(investment, tax, legal) amounting to investment advice, or make any
recommendations regarding particular investments or products. SSH
does not provide investment advice or recommendations to buy or sell
its shares or the shares of others. If you are interested in
investing in SSH, please contact your financial adviser for further
details and information. Past performance of SSH shares is not
indicative of future results. EXCEPT AS PROVIDED BY APPLICABLE
COMPULSORY LAW SSH EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR
IMPLIED, AS TO THE AVAILABILITY, ACCURACY OR RELIABILITY OF ANY OF
THE CONTENT PROVIDED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY
PURPOSE.
 
FINANCIAL REPORTING
 
The company will hold a briefing on its interim report for equity
analysts and the media in Hotel Scandic Marski, Filip 1-cabinet, 2nd
floor, address Mannerheimintie 10, 00100 Helsinki on Wednesday,
October 22nd 2008, starting at 11:00 a.m.
 
SSH Communications Security Corp will release its next interim report
and financial statements for January 1-December 31, 2008 in February
2009. Further information will be available on the company's website
in due course.
 
Helsinki, on October 22, 2008
 
SSH COMMUNICATIONS SECURITY CORP
Board of Directors
 
Arto Vainio
CEO
 
For further information, please contact:
 
Arto Vainio, CEO                tel. +358 (0)20 500 7400
Mika Peuranen, CFO              tel. +358 (0)20 500 7419
 
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.ssh.com
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.