Elektrobit Oyj - Company Announcement

EB, ELEKTROBIT CORPORATION, LOWERS THE NET SALES AND OPERATING PROFIT GUIDANCE, CONTINUES TO IMPROVE PROFITABILITY AND TO ADJUST THE COST STRUCTURE

STOCK EXCHANGE RELEASE
Available for publication on October 1st 2008 at 9.42 am. (CEST+1)

EB, ELEKTROBIT CORPORATION, LOWERS THE NET SALES AND OPERATING PROFIT
GUIDANCE, CONTINUES TO IMPROVE PROFITABILITY AND TO ADJUST THE COST
STRUCTURE

EB expects the net sales for the second half of 2008 to be lower than
in the first half of 2008 (EUR 88.3 million) and the operating result
from business operations for the second half of 2008 without the
non-recurring items to be better than the operating loss without the
non-recurring items from the first half of 2008 (EUR -15.1 million).
Earlier, EB estimated the net sales of the second half to be roughly
at the level of and the operating result from business operations to
be significantly better compared to the first half of the 2008.

The net sales of the second half 2008 is anticipated to develop
slower than expected earlier in Wireless Business Segment especially
in USA. The net sales of the second half of Automotive Business
Segment is growing but slower that earlier expected.

EB launches additional actions in order to improve its profitability
and to adjust its cost structure. The target is to achieve annual
cost savings totaling approximately EUR 30 million in comparison to
the cost level of the first half of 2008.

In addition to  the actions  announced earlier, EB  has disclosed  on
October 1st, 2008, in a separate stock exchange release that it  will
change its  business  model in  the  mobile WiMAX  by  shifting  from
investing upfront in the R&D of radio base station module products to
the development  of  demanding,  customer-financed  WiMAX  solutions.
Furthermore, EB will  continue to adjust  its other R&D  investments,
streamline the  support  functions,  further  increase  the  resource
utilization and reduce subcontracting.

Due to financial and production related reasons, EB will start
personnel negotiations with personnel working in support functions
with the goal of reducing approximately 40 people."The objective of these actions is to ensure profitability of EB. The
change of the business model in the mobile WiMAX standard reduces
EB's R&D investments significantly, yet maintaining the possibility
to develop and deploy demanding mobile WiMAX solutions for customers.
In the Wireless Business Segment, we will focus on combining
customers', third parties' and EB's technology into integrated
customer-financed solutions," says Pertti Korhonen, CEO of EB.

October, 1st, 2008
Elektrobit Corporation
Board of Directors

Further information:

Pertti Korhonen
CEO
Tel. +358 40 344 5148

Outi Torniainen
Director, Communications and Marketing
Tel. +358 40 512 1375

DISTRIBUTION:
OMX Nordic Exchange Helsinki
Main media offices

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 2007 totaled  EUR
144.3 million. Elektrobit  Corporation is  listed on  the OMX  Nordic
Exchange Helsinki. www.elektrobit.com