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Elektrobit Group Oyj - EB, ELEKTROBIT CORPORATION, STRATEGIC GUIDELINES

June 04, 2009

EB, ELEKTROBIT CORPORATION, STRATEGIC GUIDELINES


 
STOCK EXCHANGE RELEASE             
Free for publication, June 4, 2009, 9.05 am (CEST +1)
 
EB, ELEKTROBIT CORPORATION, STRATEGIC GUIDELINES
 
The Board of Directors of EB, Elektrobit Corporation, has approved EB's strategic guidelines. The objective is to further improve profitability and strengthen EB's position as a global provider of Automotive and Wireless solutions, products and services.
 
EB's business operations have experienced changes during the previous year, including the change in the business model reported in October 2008 related to mobile WiMAX technology by shifting from investing upfront in the product development to the development of customer-financed solution business model and the exit from RFID technology business reported in February 2009. A significant profitability improvement program was launched during the second half of 2008 that started to gain impact from the beginning of 2009. The focus areas of the profitability improvement have been sharpening business portfolio, adjusting the R&D investments, increasing the resource utilization, reducing the high cost subcontracting and reducing of EB personnel.
 
According to the strategy, EB will focus on two business segments - Automotive and Wireless. EB's long-term objective is to be a global leading provider of solutions, products and services in its selected businesses. The most important short-term objective is the improvement of profitability.
 
In order to achieve long-term growth, EB will continue its R&D investments in the Automotive and Wireless segments. EB's objective is to develop its partnerships further and identify M&A opportunities that will increase the company's competitiveness and broaden the market opportunities. 
 
Within the Automotive Business Segment, EB specializes in software for cars. Applications include in-car software platforms and communications protocols, user interface solutions, navigation software, and software development environments. Our main customers include leading car manufacturers, car electronics suppliers and chip suppliers for the automotive industry. 
 
Within the Wireless Business Segment, EB offers customised device and network solutions, technology platforms and R&D services for industries utilising wireless technologies, and testing tools for the measurement, modeling and simulation of radio channel environments. The Wireless Business Segment's customers include mobile phone and network equipment manufacturers, satellite and mobile phone network operators, defense and security authorities, and chip manufacturers.
 
 
 
"Our most important objective is to improve profitability further and achieve positive operating profit development. EB has prime international customers and we wish to continue strengthening our position as an innovative and reliable partner that provides solutions that create new business opportunities to our customers. Our professional personnel provide a solid foundation for the execution of our strategy," says CEO Jukka Harju.
 
Further information:
 
Jukka Harju
CEO
Tel. + 358 40 344 5466
 
Outi Torniainen
Director, Communications and Marketing
Tel. +358 40 512 1375
 
Distribution:
NASDAQ OMX Helsinki Ltd
Principal media
 
EB, Elektrobit Corporation
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 the NASDAQ OMX Helsinki Ltd.  www.elektrobit.com