Stock Exchange & Press Releases 2009

As a part of the earlier announced profitability improvement program targeting to achieve EUR 10 million annual savings, EB is planning to close the site in Turku and focus the Wireless Segment's R&D activities in Finland to the other existing sites in Oulu, Kajaani, Tampere and Espoo. EB announced today the start of personnel negotiations concerning the whole Turku site personnel of 54 employees. EB's objective is to gradually ramp down Turku operations by the end of September, 2009.

 

EB's operations in Turku have been mainly focused on wireless networks R&D services and mobile WiMAX technology development.  By planning to consolidate the R&D operations to fewer sites, EB is seeking to improve its cost structure.

 

EB has earlier (November 20, 2008) announced profitability improvement and cost savings measures targeting to achieve EUR 40 million annual cost savings in comparison to the cost level of the first half of 2008. The cost saving measures totaling to EUR 30 million have been completed during 4Q 2008 and are gaining their full impact from the beginning of 2009. The additional measures targeting to EUR 10 million savings have been mostly identified and are currently being implemented. EB has announced the need to reduce personnel by 170 globally by the end of the first half of 2009, of which the reduction of 115 employees has already been concluded.

 

Further information:

Ari Virtanen

Executive Vice President, Wireless Solutions

Tel. +358 400 435 878

 

Outi Torniainen

Director, Communications and Marketing

Tel. +358 40 512 1375

 

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EB develops advanced technology and transforms it into enriching end user experiences. EB specializes in demanding embedded software and hardware solutions for the automotive industry and wireless technologies. The company's net sales for the year 2008 totaled EUR 172.3 million. Elektrobit Corporation is listed on NASDAQ OMX Helsinki Ltd. www.elektrobit.com