Elektrobit Oyj - Company Announcement

ELEKTROBIT CORPORATION (EB) TARGETS EUR 2 MILLION ANNUAL COST SAVINGS IN ITS WIRELESS BUSINESS SEGMENT

STOCK EXCHANGE RELEASE
Free for publication on February 19, 2013, at 8.00 am (CET+1)
ELEKTROBIT  CORPORATION (EB)  TARGETS EUR  2 MILLION ANNUAL  COST SAVINGS IN ITS
WIRELESS BUSINESS SEGMENT

Elektrobit  Corporation (EB)  starts measures  to improve  its cost structure in
Wireless  Business Segment.  These actions  target at  EUR 2 million annual cost
savings  in  order  to  better  align  the  operations with the current business
requirements. The actions are expected to cause approximately EUR 1 million non-
recurring costs in the first quarter of 2013.

As  part of the measures  to improve the cost  structure, EB plans to reduce its
personnel  in the Wireless Business Segment globally by approximately 30 persons
in  total. Hence,  EB will  start personnel  negotiations in  Finland to dismiss
maximum  of  9 persons.  Employees  working  full  time in customer projects are
excluded from these personnel negotiations. EB will also concentrate some of its
Wireless  Business Segment operations to  Finland and move the  centre of its US
operations  from  west  coast  to  east  coast,  where many of the public sector
customers  are located. On February  15, 2013 Wireless Business Segment employed
575 persons in total.

Earlier,  EB  booked  non-recurring  items  of  approximately EUR 4 million thus
weakening the fourth quarter 2012 results, due to the financial challenges faced
by  one  of  its  customers  in  the  USA. Based on the current information, the
planned   sale  of  EB's  products  and  services  to  this  customer  will  not
materialise.  In addition, part of the common cost base of the Wireless Business
Segment,  previously allocated to the Test  Tools product business that was sold
on January 31, 2013, was not included in the Transaction.

The  estimated cost savings of the actions and the estimated non-recurring costs
are  included  in  the  2013 outlook  given  today  in  the  Company's Financial
Statement  Bulletin. The complete  Financial Statement Bulletin  is available on
the Company's website at www.elektrobit.com.

Oulu, February 19, 2013

Elektrobit Corporation
Jukka Harju
CEO

Further information:
Jukka Harju
CEO
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 from continuing operations in
2012 totaled   MEUR  185.4. Elektrobit  Corporation  is  listed  on  NASDAQ  OMX
Helsinki. www.elektrobit.com


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