Elektrobit Oyj - Company Announcement

EB, ELEKTROBIT CORPORATION STARTS PERSONNEL NEGOTIATIONS IN FINLAND TO DISMISS OR TEMPORARILY DISMISS APPROXIMATELY 150 EMPLOYEES MAXIMUM

STOCK EXCHANGE RELEASE

Free for publication on October 28, 2010, at 08:30 am (CEST+1)

EB, ELEKTROBIT CORPORATION STARTS PERSONNEL NEGOTIATIONS IN FINLAND TO DISMISS
OR TEMPORARILY DISMISS APPROXIMATELY 150 EMPLOYEES MAXIMUM
In order to improve its profitability and to adjust the number of personnel to
the lower sales volumes EB, Elektrobit Corporation has today started personnel
negotiations based on financial and production related reasons. The negotiations
concern the whole personnel and all functions of EB's subsidiary Elektrobit
Wireless Communications Oy and Elektrobit Corporation (Oyj) in Finland,
altogether approximately 500 employees.

EB  proposes  to  dismiss  or  temporarily  dismiss  approximately 150 employees
maximum in Wireless Solutions business and EB corporate functions. Targeted cost
savings  resulting from these measures would be  EUR 4 million by the end of the
first  half of 2011. These measures are not  expected to have material effect on
the result for the second half of 2010.
EB's  outlook  for  the  second  half  of  2010 according to the announcement of
October 25, 2010:"Considering  the current  estimated implications  of TerreStar Networks' filing
for  reorganization for EB's profit and  financial position in the third quarter
of  2010, as well as on  the outlook for the  parties' business relations during
the  last quarter, EB expects that net sales for the second half of 2010 will be
higher  than in the second half  of 2009 (EUR 73.6 million) and operating profit
for the second half of 2010, without the statutory provision of EUR 8.3 million,
will be clearly lower than the operating profit for the second half of 2009 (0.0
million).  The  weakening  operating  profit  level  is  mainly  due  to lowered
TerreStar  Networks related net  sales estimates. It  is possible that, based on
later  information related  to TerreStar  Networks' reorganization, this outlook
may need to be reconsidered."
Oulu, October 28, 2010
Elektrobit Corporation
Jukka Harju
CEO
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


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