Digia Oyj - Company Announcement

DIGIA INITIATES COOPERATION NEGOTIATIONS TO COMPLETE ITS MOBILE BUSINESS ADAPTATION ACTIVITIES

DIGIA PLC STOCK EXCHANGE RELEASE 11 August 2011, 09:01 a.m.



DIGIA INITIATES COOPERATION NEGOTIATIONS TO COMPLETE ITS MOBILE BUSINESS
ADAPTATION ACTIVITIES 



Digia Plc will today initiate new cooperation negotiations aimed to reduce
staff. The company's objective is that with these cooperation negotiations the
company's Mobile Solutions business can be conclusively adapted to match the
demand in the significantly changed market situation. The adaptation activities
are an answer to the declined turnover and profitability in product creation
services related business, that originate from the substantial and permanent
decline in services demand which has created an overcapacity in human resources
for the company. 

Within the cooperation negotiations are the personnel in Mobile Solutions
segment in all of the company's offices in Finland. In addition within the
negotiations are certain administrative and support functions. In total,
approximately 290 employees are affected by the negotiations. The company
estimates that the downsizing need concerns a maximum of 190 employees, to whom
the company is unable to assign work. In the end of July, the company employed
a total of 1,491 persons. 

The negotiations and the need for personnel reduction doesn't concern the
Enterprise Solutions segment, which accounted for approximately 58 % of the
company's total turnover in 2010 and 62 % on the first half of this year. The
company has evaluated the Enterprise Solution segment to grow organically at
least according to the foreseeable moderate growth of the IT market during the
rest of the year 2011 and its profitability to develop favourably and to remain
at its normal good level. 

By company outlook, the demand for the strong focus areas in Enterprise
Solutions business - development of ERP, e-commerce and multi-channel customer
experience management solutions - are at a good level. The company aims to
strengthen the Enterprise Solutions segment through systematic training and
targeted and precise recruiting. 

Digia Plc


Board of Directors



Further information:
Juha Varelius, President and CEO
Tel. +358 400 855849, E-mail: juha.varelius@digia.com



Distribution
NASDAQ OMX Helsinki
Key media