Elektrobit Oyj - Company Announcement

EB (ELEKTROBIT CORPORATION) WILL ADJUST THE BALANCE SHEET POSTING OF THE IMPAIRMENT RELATED TO ITS RECEIVABLES FROM ITS CUSTOMER TERRESTAR NETWORKS

STOCK EXCHANGE RELEASE

Free for publication on December 8, 2010, at 11:15 a.m. (CET+1)

EB (ELEKTROBIT CORPORATION) WILL ADJUST THE BALANCE SHEET POSTING OF THE
IMPAIRMENT RELATED TO ITS RECEIVABLES FROM ITS CUSTOMER TERRESTAR NETWORKS

EB  (Elektrobit Corporation)  informed on  October 25, 2010, of  its decision to
book  a statutory  provision in  the amount  of EUR  8.3 million related  to the
accounts  receivables owed  to its  subsidiary Elektrobit  Inc. by  its customer
TerreStar  Networks Inc.  that has  filed for  reorganization. Thereafter it has
become  evident that according to the  IFRS regulation, instead of the statutory
provision,   the   company   should  have  booked  impairment  of  the  accounts
receivables.  Therefore  EB  will  adjust  the  balance  sheet  in the Financial
Statement  2010 by replacing  the statutory  provision with  the impairment that
will  directly  reduce  the  bookkeeping  value  of  the abovementioned accounts
receivables.  The  balance  sheet  posting  chosen  earlier and presented in the
January-September  2010 Interim  Report  released  on  October 28, 2010, has not
resulted  incorrect  profit  impact  in  the  Interim  Report nor will the above
described  later adjustment affect the result or the company's outlook published
in the Interim Report.

If  the statutory provision of EUR 8.3 million, announced in EB's stock exchange
release   of  October  25, 2010, were  booked  as  impairment  of  the  accounts
receivables, it would have affected the figures in the January-September Interim
Report 2010 published on October 28, 2010, (later "reported") in accordance with
the Company's unaudited calculations as follows:

- Equity ratio 67.1 % (reported 62.7%)
- Provisions 0.8 MEUR (reported 9.1 MEUR)
- Current liabilities total 39.2 MEUR (reported 47.4 MEUR)
- Total liabilities 49.9 MEUR (reported 58.1 MEUR
- Total assets 127.2 MEUR (reported 135.5 MEUR)
- Trade and other liabilities 53.8 MEUR (reported 62.0 MEUR)
- Current assets total 87.5 MEUR (reported 95.8 MEUR)
EB  will release the Financial  Statement bulletin 2010 on February 17, 2011, at
8:00 a.m.

Oulu, December 8, 2010
EB, Elektrobit Corporation
Board of Directors

Further information:

Jukka Harju
Chief Executive Officer
Tel +358 40 344 5466

Distribution:

NASDAQ OMX Helsinki
Principal 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 2009 totaled EUR 153.8 million. Elektrobit Corporation is
listed on the NASDAQ OMX Helsinki.www.elektrobit.com



[HUG#1470185]