Elektrobit Oyj - Company Announcement

EB, ELEKTROBIT CORPORATION, LOWERS PROFIT GUIDANCE FOR THE FIRST HALF OF 2011

STOCK EXCHANGE RELEASE

Free for publication on March 29, 2011, at 5.30 p.m. (CEST+1)

EB, ELEKTROBIT CORPORATION, LOWERS PROFIT GUIDANCE FOR THE FIRST HALF OF 2011

EB expects a clearly negative operating profit for the first half of 2011. It is
expected that the operating result during the second quarter of the year will be
better  than during  the first  quarter of  the year.  EB still expects that net
sales  in the first half of  2011 will be lower than in  the first half of 2010
(EUR  86.2 million).  Earlier  in  the  Financial Statement Bulletin on February
17, 2011, EB  announced for the first half of 2011 that it expected net sales to
be  lower than in the first half of 2010 (EUR 86.2 million) and operating profit
to be lower than in the first half of 2010 (EUR 1.8 million).

The  main reason for the revised profit outlook is a lowered revenue forecast in
the Wireless Business Segment due to slower than expected order book development
in  the  new  satellite  communication  service  solutions  and due to increased
competition  in  the  area  of  smart  phones  related R&D services. The revenue
forecast  still contains uncertainties in particular  with respect to the timing
of individual projects.

The  profit outlook for the first half  of 2011 is still based on the assumption
that  there  will  not  be  further  bookings  of  impairments  of EB's accounts
receivables  from TerreStar  Networks Inc.  It is  possible that  based on later
information   related   to   TerreStar  Networks'  and  TerreStar  Corporation's
reorganizations,  this  outlook  may  need  to  be  reconsidered. Information on
TerreStar Networks' and TerraStar Corporation's reorganizations are presented in
the  October 20 and 25, November  20, December 30, 2010, and February 17, 2011,
stock exchange releases at www.elektrobit.com.

EB will release the January-March 2011 Interim Report on April 29, 2011.


Oulu, March 29, 2011
EB, Elektrobit Corporation
Board of Directors

More information:

Jukka Harju
Chief Executive Officer
Tel. +358 40 344 5466

Distribution:

NASDAQ OMX Helsinki
Major 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
wireless and automotive industries. The net sales for the year 2010 totaled MEUR
161.8. Elektrobit      Corporation      is      listed     on     NASDAQ     OMX
Helsinki.www.elektrobit.com


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