Elektrobit Oyj - Company Announcement

EB, ELEKTROBIT CORPORATION GIVES MORE PRECISE PROFIT OUTLOOK FOR THE SECOND HALF OF 2010

STOCK EXCHANGE RELEASE

Free for publication on December 30, 2010, at 8:00 a.m. (CET+1)

EB, ELEKTROBIT CORPORATION GIVES MORE PRECISE PROFIT OUTLOOK FOR THE SECOND HALF
OF 2010

EB,  Elektrobit Corporation gives  more precise guidance  for the second half of
2010 based  on  more  specific  outlook  available.  Excluding the impairment of
accounts  receivables of  EUR 8.3 million  from its  customer TerreStar Networks
Inc.,  which  has  filed  for  reorganization,  and  other  non-recurring  costs
amounting  to approximately EUR 3.3 million, EB expects the operating loss to be
approximately  EUR  7 -  8 million.  Including  the  non-recurring costs and the
booked impairment of the accounts receivables of EUR 8.3 million, EB expects the
operating loss to be approximately EUR 18 - 20 million in total.

The  outlook from the  operative business has  clarified towards the  end of the
year,  and  it  has  become  evident  that  the  sales to the customer TerreStar
Networks  that filed for reorganization  will be low in  the last quarter of the
year.  As earlier informed, the operating profit in the second half of 2010 will
be  negatively affected by non-recurring  costs of approximately EUR 2.6 million
due  to the  termination of  employments and  other measures  resulting from the
decreased  amount of personnel  and lower sales  volumes after the conclusion of
the  personnel  negotiations  in  Wireless  Solutions  Business and EB corporate
functions in December. Further, the operating profit in the second half of 2010
will  be negatively affected by other non-recurring costs estimated to amount to
approximately EUR 0.7 million.

As already informed earlier and provided in the outlook of the interim report on
October  28, 2010, EB had expected  the operating profit  for the second half of
2010, excluding  the impairment of  accounts receivables of  EUR 8.3 million, be
clearly  lower than the operating  profit for the second  half of 2009 (EUR 0.0
million).  Respectively EB still  expects the net  sales for the  second half of
2010 will be higher than in the second half of 2009 (EUR 73.6 million).

EB  announced  on  October  20, 2010, that  TerreStar Networks and certain other
affiliates   of   TerreStar  Corporation  have  filed  voluntary  petitions  for
reorganization.  Potential implications of the  filing for reorganization on the
parties´  business relations  in the  future cannot  be currently evaluated, but
based  on the  current understanding  the total  business volume between the two
parties will not be significant in the near future.

Based on EB's current understanding, there is no reason to believe that EB would
not  be  able  to  collect  in  due  course  at  least that portion of TerreStar
Networks´  receivables  that  exceed  the  amount  of the impairment of accounts
receivables.  At  the  worst,  TerreStar  Networks´  reorganization  process and
challenges  in obtaining  funding may  also result  in a  booking of significant
impairment of accounts receivables and even termination of the business relation
should  TerreStar Networks,  in an  exercise of  its business  judgment and with
Court  approval,  determine  that  it  will  not  comply  with  its  contractual
obligations  towards  EB  as  provided  by  EB. Should the business relationship
completely  terminate in short-term,  and the accounts  receivables could not be
collected,  this would additionally lower  EB´s operating profit non-recurringly
by approximately EUR 11 million, at maximum (USD-nominated items as per exchange
rate of December 29, 2010).

EB  aims  to  collect  the  amounts  owed  to  it in full either through the re-
organization  process of TerreStar Networks or through legal proceedings against
TerreStar Corporation published on November 20, 2010, and/or for example through
selling of the earlier mentioned accounts receivables. The above mentioned legal
proceedings  are partly based on a guarantee issued by TerreStar Corporation for
EB's  accounts receivables from TerreStar Networks and partly based on TerreStar
Corporation's direct contractual obligations towards EB.

It  is  possible  that  based  on  later  information  related  to the TerreStar
Networks´   reorganization  and  to  the  legal  proceedings  against  TerreStar
Corporation  and based  on the  completion of  the Financial Statement 2010, the
view may need to be reconsidered.

At  the moment, EB's receivables from TerreStar Networks amount to approximately
USD  26.0 million (EUR 19.8 million as per exchange rate of December 29, 2010),
out of which USD 25.7 million (EUR 19.6 million as per exchange rate of December
29, 2010) are outstanding.

EB,  Elektrobit Corporation  will release  Financial Statement  Bulletin 2010 on
February 17, 2011, at 8:00 a.m.


Oulu, December 30, 2010

Elektrobit Corporation
Board of Directors


Further information:

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

For  further  information  on  TerreStar  and  TerreStar  Networks,  please  see
www.terrestar.com and www.TerreStarInfo.com.

Distribution:

NASDAQ OMX Helsinki
Major media

EB, Elektrobit Corporation
EB  develops  advanced  technology  and  transforms  it  into enriching end user
experiences.   EB  specializes  in  demanding  embedded  software  and  hardware
solutions  for the automotive industry  and wireless technologies. The company's
net sales for the year 2009 totaled EUR 153.8 million. Elektrobit Corporation is
listed on the NASDAQ OMX Helsinki.www.elektrobit.com



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