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Elektrobit Group Oyj - ELEKTROBIT CORPORATION (EB) TARGETS EUR 2 MILLION ANNUAL COST SAVINGS IN ITS WIRELESS BUSINESS SEGMENT

February 19, 2013

ELEKTROBIT CORPORATION (EB) TARGETS EUR 2 MILLION ANNUAL COST SAVINGS IN ITS WIRELESS BUSINESS SEGMENT


STOCK EXCHANGE RELEASE

Free for publication on February 19, 2013, at 8.00 am (CET+1)

ELEKTROBIT CORPORATION (EB) TARGETS EUR 2 MILLION ANNUAL COST SAVINGS IN ITS WIRELESS BUSINESS SEGMENT

Elektrobit Corporation (EB) starts measures to improve its cost structure in Wireless Business Segment. These actions target at EUR 2 million annual cost savings in order to better align the operations with the current business requirements. The actions are expected to cause approximately EUR 1 million non-recurring costs in the first quarter of 2013.

As part of the measures to improve the cost structure, EB plans to reduce its personnel in the Wireless Business Segment globally by approximately 30 persons in total. Hence, EB will start personnel negotiations in Finland to dismiss maximum of 9 persons. Employees working full time in customer projects are excluded from these personnel negotiations. EB will also concentrate some of its Wireless Business Segment operations to Finland and move the centre of its US operations from west coast to east coast, where many of the public sector customers are located. On February 15, 2013 Wireless Business Segment employed 575 persons in total.

Earlier, EB booked non-recurring items of approximately EUR 4 million thus weakening the fourth quarter 2012 results, due to the financial challenges faced by one of its customers in the USA. Based on the current information, the planned sale of EB's products and services to this customer will not materialise. In addition, part of the common cost base of the Wireless Business Segment, previously allocated to the Test Tools product business that was sold on January 31, 2013, was not included in the Transaction.

The estimated cost savings of the actions and the estimated non-recurring costs are included in the 2013 outlook given today in the Company's Financial Statement Bulletin. The complete Financial Statement Bulletin is available on the Company's website at www.elektrobit.com .

Oulu, February 19, 2013

Elektrobit Corporation
Jukka Harju
CEO

Further information:
Jukka Harju
CEO
Tel. +358 40 344 5466

Distribution:
NASDAQ OMX Helsinki
Principal media

Elektrobit (EB)
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales from continuing operations in 2012 totaled MEUR 185.4. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com