Elektrobit Oyj - Company Announcement

ELEKTROBIT (EB) TARGETS COST SAVINGS OF ABOUT EUR 1.5 MILLION BY TEMPORARILY LAYING OFF A MAXIMUM OF 150 EMPLOYEES IN WIRELESS BUSINESS SEGMENT

STOCK EXCHANGE RELEASE
Free for publication on August 22, 2013, at 5.00 pm. (CEST+1)

ELEKTROBIT  (EB) TARGETS  COST SAVINGS  OF ABOUT  EUR 1.5 MILLION BY TEMPORARILY
LAYING OFF A MAXIMUM OF 150 EMPLOYEES IN WIRELESS BUSINESS SEGMENT

Elektrobit  (EB) has today  concluded personnel negotiations  to temporarily lay
off   a   maximum  of  150 employees  in  its  Wireless  Business  Segment.  The
negotiations  were started on August 8, 2013 to  adjust the company's cost level
to  correspond the weakened demand outlook for the rest of the year. As a result
of  the negotiations, EB has decided  to execute the temporary layoffs gradually
following  the  actual  capacity  situation  and  need. In September, EB aims to
temporarily lay off a maximum of 64 employees full or part time for a maximum of
90 days.  If necessary, the  company can execute  additional temporary layoffs a
maximum  of 86 employees during the fall. The temporary layoffs are estimated to
last  no later than until the end of January 2014. With these temporary layoffs,
EB  estimates to  achieve a  total of  EUR 1.5 million  cost savings,  which are
expected to materialize mainly during the fourth quarter. The need for temporary
layoffs  and cost savings  resulting respectively can  change as the outlook for
the rest of the year develops.

The  temporary layoffs layoffs concern  employees working in Elektrobit Wireless
Communications  Ltd and all EB's  sites in Finland, which  are Kajaani, Oulu andTampere.  Currently 536 employees are working  in Wireless Business Segment. The
underlying reasons for the layoffs are the decreased order volume for the second
half  of 2013 from a large  customer of EB, and  delays in some special terminal
projects. EB targets to achieve a higher order volume by the beginning of 2014.

The  weakened  demand  outlook  for  the  rest  of the year and the planned cost
savings resulting from the temporary layoffs have been taken into account in the
outlook  for  2013 given  in  the  interim report January-June 2013. The interim
report   January-June   2013 is   available   in   the  company's  web  page  at
www.elektrobit.com.

Oulu, August 22, 2013

Elektrobit Corporation
Jukka Harju
CEO

Further information:

Hannu Huttunen
President of the Wireless Business Segment
Tel. +358 40 344 3507

Distribution:

NASDAQ OMX Helsinki
Principal media

Elektrobit (EB)
EB creates advanced technology and turns it into enriching end-user experiences.
EB  is specialized  in demanding  embedded software  and hardware  solutions for
wireless  and automotive industries. The net sales from continuing operations in
2012 totaled   MEUR  185.4. Elektrobit  Corporation  is  listed  on  NASDAQ  OMX
Helsinki. www.elektrobit.com


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