Elektrobit Oyj - Company Announcement

ELEKTROBIT CORPORATION (EB) RAISES ITS OPERATING RESULT GUIDANCE FOR 2013 DUE TO BETTER THAN EXPECTED LAST QUARTER AND GIVES MORE PRECISE NET SALES OUTLOOK FOR 2013

STOCK EXCHANGE RELEASE
Free for publication on December 17, 2013, at 7.10 p.m. (CET+1)

ELEKTROBIT CORPORATION (EB) RAISES ITS OPERATING RESULT GUIDANCE FOR 2013 DUE TO
BETTER  THAN EXPECTED LAST QUARTER AND GIVES  MORE PRECISE NET SALES OUTLOOK FOR
2013

Elektrobit  Corporation  (EB)  raises  its  profit  guidance for 2013 due to the
better  than expected last quarter.  The reason for the  improvement of the last
quarter  is higher than expected net  sales and better profitability in projects
in the Automotive Business Segment. EB expects the operating result of the whole
year  2013 to be  approximately at  level of  EUR 8 million  (restated operating
profit  without non-recurring items  of EUR 5.1 million,  in 2012). Net sales is
expected  to grow slightly more than expected  in the last quarter and net sales
of  2013 to be approximately at the level of EUR 200 million (restated net sales
of EUR 173.9 million, in 2012).

As  estimated earlier  the operating  profit in  2013 in the Automotive Business
Segment  will accumulate  mainly during  the second  half of  the year (EUR 1.2
million,  1H 2013). This is affected by the higher software license sales during
the latter half of the year and other seasonality factors, as well as the demand
for  EB's automotive software solutions that has remained good during the end of
the year.

In  the Wireless  Business Segment  the operating  result in  the second half of
2013 is  expected to be  at the same  level or lower  than in the  first half of
2013 (EUR  0.1 million,  1H 2013). The  Wireless  Business  Segment started cost
saving  measures in August 2013 due  to the decreased order  volume from a large
customer  of EB and  due to the  delays in some  special terminal projects. With
these  measures EB estimates to achieve EUR 0.8 million cost savings, which will
materialize mainly during the fourth quarter. In the fourth quarter, in addition
to  R&D service  sales, there  will be  product based  income from the authority
markets in the Wireless Business Segment.

Earlier  in the Interim Report released  on November 7, 2013 EB expected for the
year  2013 that net  sales will  grow and  operating result  will be at the same
level  as it was in 2012 without non-recurring  items (restated net sales of EUR
173.9 million,  and restated operating profit without non-recurring items of EUR
5.1 million, in 2012).

The  non-recurring net profit of about EUR 24 million, resulted from the sale of
the  Test Tools product business, has no impact on the operating result of 2013
and  therefore has no impact  on the operating result  guidance. All profits and
costs  related  to  the  mentioned  business  will be presented in the Financial
Statement bulletin in the group's income statement, below operating profit under"result for the period from discontinuing operations".

The  profit outlook  for the  year 2013 does  not include possible non-recurring
income  or costs related to the  reorganization cases of TerreStar Networks Inc.
More  information about the  reorganization cases of  TerreStar Networks and the
amount  of  the  receivables  and  collecting  the  receivables as well as other
uncertainties  regarding the outlook is presented in  the Report by the Board of
Directors 2012 available at www.elektrobit.com/annualreport.

EB  will publish its Financial Statement  Bulletin on February 20, 2014 at 8.00
am.

Oulu, December 17, 2013

Elektrobit Corporation (EB)
Board of Directors

Further information:
Jukka Harju
CEO
Tel. +358 40 344 5466

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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