December 12, 2018
Stock exchange release
Free for publication on December 12, 2018 at 10.30 am (CET +1)
Bittium Corporation’s subsidiary Bittium Wireless Ltd and the Finnish Defence Forces signed an Agreement on Purchasing the Bittium Tough SDR™ tactical radios
Oulu, Finland, December 12, 2018 – Bittium Wireless Ltd, a subsidiary of Bittium Corporation and Finnish Defence Forces Logistics Command have today signed an Agreement on the purchase of Bittium Tough SDR™ handheld and vehicle radios, and their related accessories. The value of the Purchase Agreement is approximately EUR 10.5 million (excl. VAT) (EUR 13 million, incl. VAT) at the maximum. The new software-defined-radio based tactical radios will be used at the first phase by the Army and the delivery will be completed at the latest by the end of the year 2020. This purchase agreement does not change Bittium Corporation’s financial outlook for the year 2018 published on August 8, 2018 in the half-year financial report.
The Purchase Agreement signed today, is based on the Letter of Intent for purchase of new tactical radios, signed by Bittium and Finnish Defence Forces on August 8, 2017. The Purchase Agreement signed today is a natural continuum to the Letter of Intent. Bittium issued a stock exchange release on the Letter of Intent on August 8, 2017.
The purchase agreement includes terms for optional additional purchase, according to which, the Finnish Defence Forces have an option to purchase additional tactical radios and their related accessories, training and system management for the use of Army, Air Force and Navy, based on the prices agreed in the Purchase Agreement. If these optional additional purchase amounts would materialize in full, the total value of the purchase would be approximately EUR 207 million (excl. VAT) (EUR 257 million, incl. VAT) at the maximum. As agreed in the Letter of Intent, the Finnish Defence Forces aim at making these additional purchases during the next ten years. The materialization of the purchase is affected by the yearly state budget allocations for the administrative of the Ministry of Defence. There will be separate purchase orders for these optional additional purchases.
Bittium Tough SDR handheld and vehicle radios are intended for renewing the Finnish Defence Forces’ existing stock of tactical radios with modern, software defined radio based broadband data transfer radios to support the reformed combat doctrine. The tactical radios are compatible with Bittium Tactical Wireless IP Network™ (TAC WIN) SDR based system already used by the Finnish Defence Forces. In the first phase, the tactical radios will be used by the Land forces. With this purchase, the Army will start a phased replacement of analogical field radios. In the software defined radio based radios a part of the performance will be created through the software used in the radio. This way with the help of software development the performance of the radio can be developed throughout their whole life cycle.
“The Finnish Defense Forces are global pioneers in the field of modern tactical communication and software-defined radio and we are proud of our seamless cooperation with them”, says Hannu Huttunen, CEO of Bittium Corporation. “This long-term cooperation with our domestic customer creates us also a solid ground and reference for our international growth.”
Bittium issued a stock exchange release yesterday, on December 11, 2018, on the authorization of the Minister of Defence Jussi Niinistö for the Finnish Defence Forces Logistics Command to enter into an Agreement with Bittium Wireless Ltd, on the purchase of Bittium Tough SDR™ handheld and vehicle radios, and their related accessories. This Agreement was signed today.
Bittium Tough SDR product family
The Bittium Tough SDR product family of tactical radios consists of Bittium Tough SDR Handheld™, tactical handheld radio for individual soldiers, and Bittium Tough SDR Vehicular™, tactical radio for vehicle installations. Bittium Tough SDR products help to produce and share real time situational awareness (location, image, voice, video, and sensor data) to all levels of the organization. This improves the performance and the effectiveness of the tactical troops, and leading the troops is easier based on the up-to-date situational awareness and more reliable connections. The uniquely wide range of frequency bands in the radios improves combat survivability. Using several waveforms, even simultaneously, improves compatibility and enables operations on different levels and missions. Together with the SDR based Bittium Tactical Wireless IP Network™ (TAC WIN) system, used for forming a tactical broadband mobile IP backbone network, it is possible to bring broadband data and voice to all mobile troops starting from brigade level and all the way across the battlefield.
Oulu December 12, 2018
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Bittium specializes in the development of reliable, secure communications and connectivity solutions leveraging its 30 year legacy of expertise in advanced radio communication technologies. Bittium provides innovative products and services, customized solutions based on its product platforms and R&D services. Complementing its communications and connectivity solutions, Bittium offers proven information security solutions for mobile devices and portable computers. Bittium also provides healthcare technology products and services for biosignal measuring in the areas of cardiology, neurology, rehabilitation, occupational health and sports medicine. Net sales in 2017 were EUR 51.6 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com