Elektrobit Oyj - Company Announcement

EB, ELEKTROBIT CORPORATION DISMISS AND TEMPORARILY DISMISS PERSONNEL IN FINLAND AFTER THE CONCLUSION OF THE PERSONNEL NEGOTIATIONS

STOCK EXCHANGE RELEASE

Free for publication on December 13, 2010, at 9:00 am (CET+1)

EB, ELEKTROBIT CORPORATION DISMISS AND TEMPORARILY DISMISS PERSONNEL IN FINLAND
AFTER THE CONCLUSION OF THE PERSONNEL NEGOTIATIONS
EB,  Elektrobit  Corporation  concluded  the  personnel  negotiations started on
October  28, 2010, with its personnel in  Elektrobit Wireless Communications Ltd
and  Elektrobit Corporation in Finland on  December 9, 2010, and the company has
today  decided the measures to be taken. The target of the negotiations has been
to  improve  the  profitability  and  to  decrease  the  amount  of personnel to
correspond  the decreased sales volumes and  sales outlook in Wireless Solutions
Business.
As  the result of the negotiations  EB will dismiss 60 employees and temporarily
dismiss  85 employees in Wireless Solutions  Business and EB corporate functions
based  on financial and production-related reasons. The temporary dismissals are
going  to be indefinite but estimated to  remain in force until August 1, 2011.
The  dismissals and temporary dismissals will affect all EB's offices in Finland
located  in  Espoo,  Kajaani,  Oulu,  and  Tampere.  At  the  beginning  of  the
negotiations  the  estimated  number  of  dismissals or temporary dismissals was
approximately  150 at  the  maximum.  After  the personnel reductions EB employs
approximately 1,520 persons of which approximately 500 in Finland.
The terminations of employments, and other measures resulting from the decreased
amount  of personnel and  lower sales volumes,  are estimated to  result in non-
recurring  charges of approximately EUR 2.6 million in the second half of 2010.
The   estimated  cost  savings  resulting  from  the  dismissals  and  temporary
dismissals,  if fully executed, will be approximately EUR 4 million and the cost
savings  from the other related measures  approximately EUR 1 million by the end
of  the first half  of 2011. The earlier  mentioned non-recurring charges do not
affect  the outlook for EB's operating profit  published on October 28, 2010, in
the January-September 2010 interim report.
The restructuring measures have no direct impact on EB's customer projects.
Oulu, December 13, 2010
Elektrobit Corporation
Jukka Harju
CEO
Further information:
Jukka Harju
Chief Executive Officer
Tel. +358 40 344 5466
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


[HUG#1471574]