Elektrobit Oyj - Company Announcement

ELEKTROBIT (EB) STARTS PERSONNEL NEGOTIATIONS TO TEMPORARILY LAY OFF 150 EMPLOYEES AT THE MAXIMUM, TARGETING COST SAVINGS OF ABOUT EUR 1.5 MILLION IN WIRELESS BUSINESS SEGMENT

STOCK EXCHANGE RELEASE

Free for publication on August 8, 2013, at 8.00 am. (CEST+1)

ELEKTROBIT  (EB)  STARTS  PERSONNEL  NEGOTIATIONS  TO  TEMPORARILY  LAY OFF 150
EMPLOYEES  AT THE  MAXIMUM, TARGETING  COST SAVINGS  OF ABOUT EUR 1.5 MILLION IN
WIRELESS BUSINESS SEGMENT



Elektrobit  (EB) has today  started personnel negotiations  in Wireless Business
Segment  to adjust its cost level to  correspond the weakened demand outlook for
the  rest of the  year. With temporary  layoffs EB aims  at EUR 1.5 million cost
savings, which are expected to materialize mainly during the fourth quarter.



In  order to achieve the targeted cost  savings, EB plans to temporarily lay off
150 employees  at the  maximum, for  90 days at  the maximum, part-time or full-
time.   The  negotiations  concern  employees  working  in  Elektrobit  Wireless
Communications  Ltd. Currently  548 employees are  working in  Wireless Business
Segment.



The  underlying reasons for  the planned layoffs  are the decreased order volume
for  the second  half of  2013 from a  large customer  of EB, and delays in some
special terminal projects.



The  weakened  demand  outlook  for  the  rest  of the year and the planned cost
savings resulting from the temporary layoffs have been taken into account in the
outlook  for  2013 given  today  in  the  interim  report January-June 2013. The
interim  report  January-June  2013 is  available  in  the company's web page at
www.elektrobit.com.



Oulu, August 8, 2013



Elektrobit Corporation

Jukka Harju

CEO



Further information:



Hannu Huttunen

President of the Wireless Business Segment

Tel. +358 40 344 3507



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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