Elektrobit Oyj - Company Announcement

Bittium Corporation's strategic guidelines

Stock Exchange Release

Free for publication on July 1, 2015 at 3.30 pm (CEST+1)

Bittium Corporation's strategic guidelines

The  Board of Directors  of Bittium Corporation  has updated company's strategic
guidelines  after the  sale of  the Automotive  business and  the change  of the
company name on July 1, 2015. Bittium carries on its Wireless business according
to  the announcements made on February  19, 2015, and according to the strategic
guidelines  described below. The net sales  of the business, previously reported
as  Wireless Business Segment, was EUR 53.0 million and operating profit was EUR
1.0 million in 2014.

Bittium  offers  products  and  product  platforms,  R&D services and customized
solutions to companies and authorities in various industries. Bittium's offering
is  based  on  strong  and  extensive  know-how  in  radio  technology, embedded
software,  electronics and product  integration. This know-how  is a result of a
long-term  relationship with the world's leading mobile technology companies and
with  the Finnish defense forces as well as research programs started already in
the  1980s on radio  technology focusing  on e.g.  spread spectrum  and software
radio technologies.

Bittium  provides  R&D  services  and  customized  solutions  for  the  wireless
telecommunication  market and for companies needing mobile connectivity in their
products. Bittium offers products and customized products which are based on its
product  platforms for defense,  public safety and  other authorities as well as
for  industrial  use.  Manufacturing  of  the  products  has  been outsourced to
electronics manufacturing companies.

Rapid development of wireless technologies will continue. More radio spectrum is
being  allocated for  public mobile  networks and  the use of frequencies varies
from country to country. Data traffic in mobile networks continues to grow fast,
which  creates demand  for smaller  network cells  and low  power base stations.
These  drivers continue to drive the  need for research and development services
for mobile radio network equipment. In addition, the usage of mobile networks in
industrial  internet solutions will increase the need for wireless solutions for
industrial  customers.  Mobile  connectivity  is  related  to people, as well as
machines and things.

Defense,   security   and   other  government  agencies  require  more  wireless
communications  capacity  and  more  developed  solutions  at lower price points
compared  to the previous generations  of wireless communication devices. Modern
and  low cost commercial mobile  communications technologies offer opportunities
to  develop advanced and cost  efficient solutions for their  needs. At the same
time,  the increasing  need for  secure mobile  connectivity together  with more
advanced  solutions  creates  demand  for  services  as  well  as  new  business
opportunities for companies that can combine both security and latest commercial
technologies in their products. The markets for defense, public safety and other
public  authority applications  in wireless  sectors are  slow to  evolve due to
their  nature.  Other  typical  market  characteristics  are long lead times for
purchasing  decisions, which  is due  to the  long planning processes typical of
government  projects. Once a supplier has  been selected, product deliveries are
typically executed over several years.

The  demand  for  Bittium's  R&D  services  in  wireless  telecommunications and
industrial  markets is as a whole expected to remain rather stable in the coming
years.  Net sales growth is  sought from the company's  own products and product
platforms,  which Bittium is introducing to the international defense and public
authority  markets. Bittium continues to  make product development and marketing
investments  for these markets. In defense applications, Bittium offers advanced
and  high capacity IP  based tactical communication  solutions (Bittium Tactical
Wireless  IP Network,  Bittium Tough  VoIP, Bittium  Tactical LTE  Access Point,
Bittium  Tough  Mobile).  For  use  of  the public safety and other authorities,
Bittium  offers  Bittium  Tough  Mobile  LTE  smartphone  and  tailored security
solutions, which support LTE frequencies reserved for public safety authorities.
These  devices  combine  modern  mobile  technology  with  durability  and  high
standards for information security. For IoT (Internet of Things) markets Bittium
offers wireless connectivity solutions based on its own Bittium IoT (Internet of
Things)  Device Platform.  The demand  for these  solutions is  expected to grow
especially for healthcare, wearable devices and industrial applications.

Bittium  continues to  make targeted  R&D investments  for products  and product
platforms   as  well  as  for  technology  development.  Bittium  is  developing
partnerships  and  will  explore  M&A  opportunities  that  would strengthen its
competitiveness and create new future market opportunities.

Financial targets

The  target during 2015 - 2017 is  to grow the net  sales at least 10 % annually
and reach EBIT level 10 % of net sales at the latest in 2017.

Bittium  targets, by the year  2017, to clearly increase the  share of net sales
generated  from own products and product platforms, from the 26.7 % level of net
sales in 2014



Oulu, July 1, 2015

Bittium Corporation
Board of Directors



Further Information:

Jukka Harju
CEO
Bittium Corporation
Tel. +358 40 344 5466

Distribution:

NASDAQ Helsinki
Main media



Bittium

Bittium  is  specialized  in  developing  reliable and secure communications and
connectivity solutions using the latest technologies and deep knowledge on radio
technology.  Bittium provides innovative products and customized solutions based
on  its product platforms, and R&D services for customers in various industries.
Bittium  also  offers  high  quality  information  security solutions for mobile
devices  and portable computers. Net sales  of continuing operations in 2014 was
EUR  53.0 million and operating profit was EUR 1.0 million. Bittium is listed on
Nasdaq Helsinki. www.bittium.com






[HUG#1933358]

Attachments:

Bittium Corporation strategic guidelines.pdf