Basware to focus its strategy for strong international growth


Basware Corporation stock exchange release, January 25, 2011 at 09:00

Basware's Board of Directors and company management have adjusted the company's
strategy and goals for the next 4-year period. The company will focus strongly
on international growth and therefore Basware is considering to raise additional
equity financing from the market.

Basware Automation Services, launched in 2009, grew 56.0 percent in 2010, and
have shown their unique competitiveness internationally. In order to utilize the
achieved competitive edge, the company will increase its efforts to support the
growth of Automation Services.

The company aims to be the leading e-invoice company worldwide. Acquisitions
will support the growth of the e-invoicing service. Its annual volume in 2010
amounted to 13.6 million transactions. The e-invoicing market is growing
strongly, and Basware aims to reach the 100 million invoice mark by 2014.

In order to support international growth, Basware is developing its
organizational structure into stronger geographical regions. The country
specific organizations will be combined into regional structure. The regional
structure gives a boost to and enables additional investments in sales,
marketing, supplier activation services of Automation Services, and other
customer functionalities. At the same time, Basware is surveying opportunities
for rearranging its product and business portfolio in order to enhance the
international product and service business.

According to Basware's view, the significance of the service concept will
continue its solid growth in the future as well, which is the reason for
marketing the company's next-generation product concept strongly also as
services. The company's aim is to transfer the installations of existing
customers through product updates to Software as a Service (SaaS) model to a
considerable extent in the future. Service offering development will continue
vigorously. Basware will launch new Invoice Automation process outsourcing
offering for the global market during first half of 2011. Offering new and more
extensive service models to the customer will improve the company's
profitability and increase its continuous net sales.

Basware has adjusted its pricing model to be very flexible according to customer
needs. From now on, software solutions will be available to customers with one-
time license fee, monthly subscription, and according to the SaaS model.

In order to consolidate international growth further, Basware is increasing the
focus on acquisitions in its strategy and organization. The company has been
active in mergers and acquisitions and is now further strengthening the activity
by establishing a new executive team-level M&A function with the aim of actively
engaging in potential mergers and acquisitions in support of the company's
strategy. In order to increase financial flexibility and preparedness to carry
out potential acquisitions Basware is considering to raise additional equity
financing from the market during the first quarter of 2011. Such additional
financing is planned to be raised by means of a directed share issue to
institutional investors.  Nordea has been appointed as financial adviser to
Basware in relation to the potential share issue.

The role of offshoring operations will continue to grow in the company's
strategy. R&D and Automation Services operations at Basware's Indian office have
already succeeded in gaining a significant role. The company is surveying the
development of offshoring in order to improve profitability also with regard to
new service business operations and internal support functions. The company is
also investigating the possibility of new geographical regions in expanding
offshoring.

Basware's long-term objectives were specified further. The new strategic
guidelines facilitate strong international growth and positive development of
operating profit margin. The long term target is to grow annually 15-30 percent
in net sales and more than 50 percent in Automation Services. The company's
long-term target for operating profit margin is 15-20 percent improving towards
the end of the period.

For more information, please contact
CEO Ilkka Sihvo, Basware Corporation,
Tel. +358 9 8791 7251 or +358 40 501 8251



BASWARE CORPORATION
Ilkka Sihvo

DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.basware.com




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