Elektrobit Oyj - Company Announcement

ELEKTROBIT CORPORATION (EB) SELLS ITS TEST TOOLS PRODUCT BUSINESS TO ANITE PLC AND PROVIDES ADVANCE INFORMATION ON ITS FOURTH QUARTER AND FULL YEAR 2012 NET SALES AND OPERATING RESULTS

STOCK EXCHANGE RELEASE
Free for publication on January 28, 2013, at 9.00 am (CET+1)
ELEKTROBIT  CORPORATION (EB) SELLS ITS TEST  TOOLS PRODUCT BUSINESS TO ANITE PLC
AND  PROVIDES ADVANCE INFORMATION  ON ITS FOURTH  QUARTER AND FULL YEAR 2012 NET
SALES AND OPERATING RESULTS

SALE OF THE TEST TOOLS PRODUCT BUSINESS

Elektrobit  Corporation ("EB") and Anite plc  ("Anite") have signed an agreement
on 28 of January 2013, under the terms of which EB agrees to sell its Test Tools
product  business to  Anite ("the  Transaction"). The  Transaction comprises the
sale  of the shares  of EB's subsidiary  Elektrobit System Test  Ltd., a company
based  in Oulu, Finland, and certain related  other assets in the USA and China.
EB's  Test Tools  product business  provides radio  channel emulation  tools and
testing solutions for the development of the wireless technologies and is a part
of  the  EB's  Wireless  Business  Segment  employing  a  total of 54 persons in
Finland, USA and China.

The  cash consideration payable to EB by Anite as a result of the Transaction is
EUR  31.0 million on a  cash and debt  free basis, subject  to a post completion
adjustment  based upon the level of net working capital and cash and debt in the
Test  Tools product business on January 31, 2013. The closing of the Transaction
results  in a  non-recurring net  profit of  about EUR  23 million in  the first
quarter of 2013, and non-recurring net cash flow of about EUR 28 million, in the
first half of 2013. The net assets of the Test Tools product business in January
31, 2013 are expected to be approximately EUR 5 million.

In  2012 and 2011 the net sales  and operating profit of  the Test Tools product
business were as follows:

+-----------------------+----+----+
|(MEUR)                 |2011|2012|
+-----------------------+----+----+
|Net sales              |14.1|16.1|
+-----------------------+----+----+
|Operating profit (loss)| 1.5| 1.3|
+-----------------------+----+----+

Part  of  the  common  cost  base  of  the  Wireless Business Segment previously
allocated  for  the  Test  Tools  product  business  are  not be included in the
Transaction and will remain in the Wireless Business Segment for the time being.

Closing  of the Transaction has been agreed  to take place on January 31, 2013,
subject  to completion of customary closing events,  such as payment of the cash
consideration.

 "The  market for EB's Test Tool products,  radio channel emulators, is a global
niche  market  where  our  Propsim  products  have gained a strong position over
years.  However, as the  only test product  line of EB,  the Test Tools business
offered  only  limited  long  term  growth  opportunities  for EB.  For EB, this
transaction  gives good cash consideration for  the business, a significant non-
recurring  profit and cash  increase, and it  further strengthens EB's financial
position.  After this divestiture, our Wireless Business Segment is more focused
in the markets which offer EB larger long term growth potential. EB continues to
develop  and offer products and product platforms for the defense, public safety
and  industrial  markets,  and  R&D  services  and  customized solutions for the
wireless communications markets and other markets using wireless connectivity in
their devices. We believe Anite has the right capabilities and is very committed
to further developing the Test Tools product business as part of a broader range
of its testing solutions" said Jukka Harju, CEO of Elektrobit Corporation."The  increasing  market  demand  for  more  integrated wireless laboratory test
solutions  makes Anite a natural fit for Propsim. Anite's established market and
technology  leadership, and its substantial  global sales and support footprint,
combined  with the acknowledged  expertise and market  leading channel emulation
solutions  in  the  Propsim  brand,  creates  a  dedicated  supplier with a more
complete  product  offering.  The  product  line  we  are buying is an excellent
addition  and  a  good  fit  with  Anite's  Handset  Testing  business  and  the
acquisition  is expected to be enhancing to adjusted earnings", said Christopher
Humphrey, Anite's Chief Executive.

ADVANCE  INFORMATION ON  EB'S FOURTH  QUARTER AND  FULL YEAR  2012 NET SALES AND
OPERATING RESULTS

EB  will report its  2012 financial results, as  provided by the IFRS5 standard,
divided  between Continuing and Discontinuing Operations, and Test Tools product
business  is  classified  as  Discontinuing  Operations  in  the  2012 financial
statements.   Based  on  the  preliminary  information  on  annual  closing  the
following  table illustrates  net sales  and operating  result of Continuing and
Discontinuing operations in 2012:

+--------------------+---------------------+-----------------------+-----------+
|                    |                     |          Discontinuing|           |
| 2012               |Continuing operations|             operations|Group Total|
+--------------------+---------------------+-----------------------+-----------+
|Net sales           |                185.4|                   16.1|      201.5|
+--------------------+---------------------+-----------------------+-----------+
|Operating profit    |                     |                       |           |
|(loss)              |                  2.5|                    1.3|        3.7|
+--------------------+---------------------+-----------------------+-----------+
EB's  net sales  and operating  result of  Continuing operations (excluding Test
Tools product business) were as follows:

+-----------------------+-----+-----+-----+-----+-----+-----+
|Continuing operations  |1Q 12|2Q 12|3Q 12|4Q 12|2H 12| 2012|
+-----------------------+-----+-----+-----+-----+-----+-----+
|Net sales              | 45.0| 43.6| 44.3| 52.6| 96.8|185.4|
+-----------------------+-----+-----+-----+-----+-----+-----+
|Operating profit (loss)|  0.8| -0.7|  2.2|  0.2|  2.4|  2.5|
+-----------------------+-----+-----+-----+-----+-----+-----+

EB total, including Continuing and Discontinuing operations were as follows:

+-----------------------+-----+-----+-----+-----+-----+-----+
|EB total               |1Q 12|2Q 12|3Q 12|4Q 12|2H 12| 2012|
+-----------------------+-----+-----+-----+-----+-----+-----+
|Net sales              | 48.6| 48.0| 47.0| 57.9|104.9|201.5|
+-----------------------+-----+-----+-----+-----+-----+-----+
|Operating profit (loss)|  0.9| -0.4|  2.1|  1.2|  3.2|  3.7|
+-----------------------+-----+-----+-----+-----+-----+-----+

The  operating profit  for the  year 2012 presented  above include non-recurring
items  of approximately EUR 4 million in total,  booked in the fourth quarter of
2012, as result of the financial challenges faced by a US based customer of EB's
subsidiary,  Elektrobit Inc., as well as  non-recurring income and costs related
to the reorganization processes of TerreStar companies, booked earlier in 2012,
all as announced previously.

Earlier  in the stock exchange release published on January 10, 2013, before the
Transaction  and including the Test Tools product business, EB expected that the
operating  result of the fourth quarter  of 2012 to be approximately between EUR
-0.4  million  and  EUR  1.1 million  (EUR  3.5 million, 4Q 2011), the operating
result  of the second  half of 2012 to  be approximately between EUR 1.7 million
and  EUR 3.2 million (EUR 0.4 million, 2H 2011), and the operating result of the
whole  year 2012 to be approximately between EUR 2.2 million and EUR 3.7 million
(operating  loss of  EUR -4.0  million in  2011). The expected operating results
presented  above included non-recurring items related  to the above mentioned US
customer that caused the lowering of the fourth quarter profit guidance, as well
as  non-recurring income  and costs  related to  the reorganization processes of
TerreStar companies, booked earlier in 2012.

Further,  earlier EB expected the net sales  of the fourth quarter of 2012 to be
approximately EUR 57 million (EUR 49.0 million in 4Q 2011), the net sales of the
second  half of 2012 was expected to be approximately EUR 104 million (EUR 86.1
million  in 2H 2011) and the net sales of the whole year 2012 was expected to be
approximately EUR 200 million (EUR 162.2 million in 2011).

The  advance  information  is  unaudited  and  it  is  not  based on a financial
statement approved by the Board of Directors. Elektrobit Corporation's Financial
Statement  Bulletin for January - December  2012 will be published as previously
announced on Tuesday February 19, 2013.

Oulu, January 28, 2013

Elektrobit Corporation (EB)
Jukka Harju
CEO

Further information:
Jukka Harju
CEO, Elektrobit Corporation
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 for the year 2011 totaled MEUR
162.2. Elektrobit    Corporation    is    listed   on   NASDAQ   OMX   Helsinki.
www.elektrobit.com

Anite plc
Anite  plc, an  international software  and solutions  company, operates  in two
discrete  markets: we provide device and network testing systems to the wireless
market and reservation and e-commerce solutions to the leisure travel industry.
The  success of both  divisions is based  on our comprehensive  knowledge of the
sectors and on our proprietary software and hardware products.
Our  530 staff work with the world's leading wireless and travel companies, from
our  headquarters in the UK and  from offices in 15 countries throughout Europe,
the Americas, Asia and the Middle East. www.anite.com

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