Stock Exchange & Press Releases 2007

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Elektrobit Group Oyj - EB, ELEKTROBIT CORPORATION, SELLS ITS PROPERTIES IN OULU AND MAKES NON-RECURRING WRITE-OFFS, WHICH HAVE NOT BEEN TAKEN INTO ACCOUNT IN THE COMPANY'S GUIDANCE FOR THE REST OF THE YEAR 2007

December 28, 2007

EB, ELEKTROBIT CORPORATION, SELLS ITS PROPERTIES IN OULU AND MAKES NON-RECURRING WRITE-OFFS, WHICH HAVE NOT BEEN TAKEN INTO ACCOUNT IN THE COMPANY'S GUIDANCE FOR THE REST OF THE YEAR 2007


STOCK EXCHANGE RELEASE
Free for publication on December 28, 2007 at 3.00 pm. (EET)
 
EB, ELEKTROBIT CORPORATION, SELLS ITS PROPERTIES IN OULU AND MAKES NON-RECURRING WRITE-OFFS, WHICH HAVE NOT BEEN TAKEN INTO ACCOUNT IN THE COMPANY'S GUIDANCE FOR THE REST OF THE YEAR 2007
 
 
EB has today sold the properties located at Tutkijantie in Oulu to Foriva Oy owned by EU Invest A/S. The cash and debt free purchase price for the sold properties is approximately EUR 16.4 million. EB will continue its business operations in the sold properties with long-term lease-back contract. The assessment regarding the potential sale of EB's property in Oulunsalo is still ongoing.
 
EB has re-assessed the value of the remaining properties in Oulunsalo and, as a result, has executed a non-recurring write-off of approximately EUR 4 million. At the same time, the group's operations related goodwill valuations have been re-assessed and an additional write-off concerning certain non-core operations of about EUR 1 million has been made thereof.
 
Property sales transaction and conducted write-offs will lead to non-recurring revenue of approximately EUR 1.5 million for the fourth quarter of 2007. The estimated cash-flow impact for the fourth quarter of 2007 is approximately EUR 0.2 million and for the first quarter of 2008 approximately EUR 13.3 million.
 
The non-recurring items related to the property sales transaction and write-offs have not been taken into account in the guidance given as part of EB's interim report published on November 7, 2007. EB expected its operating loss for the second half of 2007 to reduce significantly compared to the operating loss of the first half of 2007 (EUR -13.8 million), with the third and the fourth quarter of 2007 being approximately at the same level. The operating loss for the third quarter of 2007 amounted to EUR 4 million.
 
                                           
December 28, 2007
 
Elektrobit Corporation
Board of Directors
 
 
FURTHER INFORMATION:
Pertti Korhonen
CEO
Tel. +358 40 344 5148
 
Panu Miettinen
CFO
Tel. +358 40 344 5338
 
 
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Principal media
 
 
EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for automotive and wireless industries. The net sales for the year 2006 totalled MEUR 181.5. Elektrobit Corporation is listed on OMX Helsinki. www.elektrobit.com
 
Foriva Oy is a company under EU Invest A/S. EU Invest A/S is a Danish investment company specialized in the acquisition of retail, office and logistic properties.