Stock Exchange & Press Releases 2004

The acquisition price for the CIM-Tech Oy will be paid by issuing 4.799.987 new Elektrobit Group Plc. shares. The new shares will be issued to CIM-Tech Oy's shareholders in a directed issue, which will be approved by the Board of Directors of Elektrobit Group Plc today on the basis of the authorisation given to the Board of Directors by the Annual General Meeting on March 25, 2003, and will be subscribed for today. Determination of the acquisition price is based on the negotiated outcome, which the parties reached concerning the value of the companies' shares outstanding. 50 per cent of the new shares are subject to transfer restrictions, which shall expire with regard to 25 per cent of the shares in 2006 and with regard to 25 per cent of the shares in 2007. As a result of the acquisition CIM-Tech Oy will become a wholly-owned subsidiary of Elektrobit Group Plc. The shares received by Elektrobit Group Plc. in connection with the acquisition will be recorded at current value in the accounts.

 

The acquisition is in line with the Elektrobit Group's strategic objectives. According to the strategy, Elektrobit Group seeks to grow faster than the telecommunications industry in average by, among other things, ensuring high competence and continuous development of core competencies. Elektrobit has comprehensive and wide software know-how. During 2003 additional personnel was hired to back up Symbian and Series-60 based business operations. As a result of the acquisition the amount of Symbian experts in the Elektrobit Group will be increased by 32 software designers. The operations of CIM Technologies Group will be reported as a part of the Elektrobit Group's Contract R&D Business Unit. The acquisition is not estimated to have any significant effect on the Elektrobit Group's operating profit level during 2004.

 

"The CIM Technologies Group complements our software know-how extremely well and especially on the growing smart phone and production testing fields. We welcome the experts of CIM Technologies Group to be part of our team", says Juha Sipilä, CEO of Elektrobit Group Plc.

 

"As part of the Elektrobit Group we can benefit from the global corporate network, extensive clientele and deep knowledge in the fields of mobile communication and industrial manufacturing. We are very excited about the deepened co-operation with the Elektrobit Group", says Kauko Väinämö, Managing Director of CIM-Tech Oy.

 

Elektrobit is an expert in the fields of mobile technologies, life-cycle testing of electronic products and production automation. The CIM Technologies Group's core competences include the development of wireless terminals, systems and machine vision solutions, which complement Elektrobit Group electronics and software design know-how. This enables the offering of even more extensive and cost efficient services to the existing and prospect customers of Elektrobit Group.

 

CIM-Tech Oy, established in 1991, is a software company for advanced solutions. The business is diverged into three business units: Telecommunication software solutions, tools for the development and testing of the software, and testing services (CIM NETWORKS), Industrial machine vision solutions and measuring equipment (CIM VISIONSOLUTIONS) and Software for wireless terminals (CIM WIRELESS). Net sales of the CIM-Tech Group in 2003 amounted to approximately 2.9 million euro (in 2002 approximately 1.9 million euro) and the operating profit to approximately 0.0 million euro (in 2002 0.0 million euro). During the years 2000-2003 the average growth of net sales was approximately 26 per cent. The company is located in Oulu, Finland.

 

In Oulunsalo, March 8, 2004

 

Elektrobit Group Plc.