Elektrobit Oyj - Company Announcement

EB, ELEKTROBIT CORPORATION LOWERS ITS OPERATING RESULT GUIDANCE FOR THE FIRST HALF OF 2012 AND GIVES MORE PRECISE OPERATING RESULT GUIDANCE FOR THE WHOLE YEAR OF 2012

STOCK EXCHANGE RELEASE
Free for publication on June 21, 2012 at 5.00 p.m. (CEST+1)
EB,  ELEKTROBIT CORPORATION LOWERS  ITS OPERATING RESULT  GUIDANCE FOR THE FIRST
HALF OF 2012 AND GIVES MORE PRECISE OPERATING RESULT GUIDANCE FOR THE WHOLE YEAR
OF 2012

EB,  Elektrobit Corporation lowers  its operating result  guidance for the first
half  of 2012 and gives more  precise guidance for the  whole year 2012 based on
the more specific outlook available. The reason for the changed operating result
outlook is, that the company will book a provision of EUR 0.8 million due to the
estimated  costs related to collecting the receivables from TerreStar Companies,
and  in  addition,  it  has  become  obvious,  that the operating profit in both
Automotive and Wireless Business Segments during the second quarter of 2012 will
remain  somewhat  lower  than  planned  mainly  due to the higher than estimated
project costs. Regarding the company's net sales, the outlook has not changed.

Considering  the above  mentioned provision  and more  precise outlooks for both
Business  Segments, based on the information currently available, EB expects the
operating  result of the second  quarter of 2012 to stay  below the level of the
first  quarter 2012 (EUR 0.9 million, 1Q 2012). EB expects for the first half of
2012 that  net sales will grow clearly  from the previous year (EUR 76.1 million
in  1H 2011), and the  operating result  will be  close to  zero level (EUR -4.4
million,  1H 2011). Due to  the lowered  operating result  outlook for the first
half  of 2012 also the outlook for the  whole year 2012 has lowered. However, EB
expects  for the year 2012 further, that the net sales and operating result will
grow  clearly  from  the  previous  year  (net  sales  of EUR 162.2 million, and
operating loss of EUR -4.0 million in 2011).

Previously,  EB expected  for the  year 2012, that  the net  sales and operating
result will clearly grow from the previous year (net sales of EUR 162.2 million,
and  operating loss  of EUR  -4.0 million  in 2011), and  for the  first half of
2012, EB  expected that  the net  sales will  clearly grow  (EUR 76.1 million in
1H 2011) and  the  operating  result  will  be  positive  (EUR  -4.4  million in
1H 2011).

EB  has decided to make the above mentioned booking of the provision of EUR 0.8
million  primarily  due  to  the  restructuring process of TerreStar Corporation
continuing  longer than  expected. EB's  operating result  in the  first half of
2012 will  include approximately EUR 1.2 million costs related to collecting the
receivables from TerreStar companies. During 2011 EB's operating result included
EUR  0.9 million  costs  related  to  collecting  the receivables from TerreStar
companies.  EB has currently significant  receivables amounting to approximately
USD  25.8 million from TerreStar Networks Inc.  and its parent company TerreStar
Corporation.  EB  has  claimed  its  receivables  as  well  as  additional costs
resulting  mainly  from  the  ramp  down  of the business operations between the
parties  totaling to USD 27.9 million in  the Chapter 11 cases of both TerreStar
Networks and TerreStar Corporation.

The  profit outlook for the year 2012 is based on the assumption that there will
be no further bookings of impairments of EB's accounts receivable from TerreStar
Networks  Inc. and TerreStar Corporation. There  is no certainty that the booked
provision  of EUR 0.8 million is enough to cover all costs related to collecting
the  receivables during the  whole collection period,  especially if the process
will  continue during  2013.  It is  possible that,  based on  later information
related to reorganizations of TerreStar Networks Inc. and TerreStar Corporation,
this  view may need to be reconsidered.  Due to the uncertainties related to the
outcome  of reorganization  processes of  TerreStar Networks  Inc. and TerreStar
Corporation, the credit risk may still grow during 2012. Uncertainties regarding
reorganization  of TerreStar Networks Inc. and TerreStar Corporation, the amount
of the receivables and collecting the receivables as well as other uncertainties
regarding  the outlook are presented in  the Company's interim report, published
on April 26, 2012, under "Risks and Uncertainties" section.

Information  on TerreStar Networks'  and TerreStar Corporation's reorganizations
are  presented  in  the  October  20 and 25, November 20 and December 30, 2010,
February  17, 2011, and November 18, 2011 stock exchange  releases as well as in
EB's interim reports and financial statement at www.elektrobit.com.


Oulu, June 21, 2012

EB, Elektrobit Corporation
Jukka Harju
CEO

Further information:

Jukka Harju
CEO
Tel. + 358 40 344 5466

Distribution:

NASDAQ OMX Helsinki
Principal media

EB, Elektrobit Corporation

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

[HUG#1621306]