Elektrobit Oyj - Company Announcement

EB, ELEKTROBIT CORPORATION, LAUNCHES ADDITIONAL COST SAVING MEASURES RESULTING TO A MAXIMUM OF 5 MEUR NON-RECURRING RESTRUCTURING COSTS FOR THE SECOND HALF OF 2008

STOCK EXCHANGE RELEASE
Available for publication on November 20th 2008 at 9 am. (CET+1)

EB, ELEKTROBIT CORPORATION, LAUNCHES ADDITIONAL COST SAVING MEASURES
RESULTING TO A MAXIMUM OF 5 MEUR NON-RECURRING RESTRUCTURING COSTS
FOR THE SECOND HALF OF 2008

EB launches  additional measures  targeting to  approximately EUR  10
million annual cost savings  in addition to the  EUR 30 million  cost
savings announced in October 2008. With these additional measures  EB
will further adjust its cost  structure and improve profitability  in
the current rapidly changing and turbulent business environment.  The
target of  the above  mentioned cost  saving measures  is to  achieve
approximately EUR 40 million annual cost savings in comparison to the
cost level of the first half of 2008.

The above mentioned additional measures are estimated to result to  a
maximum  EUR  5   million  non-recurring   restructuring  costs   and
write-offs for  the second  half of  2008. Due  to the  non-recurring
costs the operating loss  for the second half  of 2008 will be  worse
than the operating loss for the first half of 2008. Without the above
mentioned non-recurring  items EB  expects,  in accordance  with  its
guidance given on October 21st 2008, the operating loss from business
operations for the  second half  of 2008  (without the  non-recurring
items) to be approximately  at the level of  the operating loss  from
the first half of 2008  (EUR -15.1 million without the  non-recurring
costs). Respectively EB expects, according  to the guidance given  on
October 21st, 2008, the net sales for  the second half of 2008 to  be
lower than in the first half of 2008 (EUR 88.3 million).

In order to achieve the additional  EUR 10 million savings, EB  plans
to make a reduction  of approximately 170  employees globally by  the
end of the  first half  of 2009. EB  will start  these reductions  by
initiating personnel  negotiations in  wireless business  in  Finland
with the goal of reducing 80  people due to financial and  production
related  reasons.   Additionally  EB   will  continue   pruning   its
project-portfolio,  reducing  high-cost  subcontracting  and  further
sharpening its business portfolio.

Earlier announced cost  saving actions  of EUR 30  million are  being
implemented and will  gain their  full impact from  the beginning  of
2009. The key measures targeting to achieve EUR 30 million euro  cost
savings include adjustment of  R&D investments (including the  change
of EB's business model in Mobile WiMAX), streamlining of the  support
functions, improvements  of  resource utilization  and  reduction  of
subcontracting.

November 20, 2008
Elektrobit Corporation
Board of Directors

Further information:

Pertti Korhonen
CEO
Tel. +358 40 344 5466

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

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd.
Main 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 2007 totaled  EUR
144.3  million.  Elektrobit  Corporation  is  listed  on  NASDAQ  OMX
Helsinki Ltd. www.elektrobit.com