Digia Oyj - Company Announcement

PROFIT WARNING: DIGIA WRITES DOWN GOODWILL RELATING TO ITS MOBILE SOLUTIONS BUSINESS

DIGIA PLC 	STOCK EXCHANGE RELEASE 	21 DECEMBER 2009 AT 9.00 A.M.


PROFIT WARNING: DIGIA WRITES DOWN GOODWILL RELATING TO ITS MOBILE SOLUTIONS
BUSINESS 

Digia's Board has in its meeting on 20 December 2009 decided on a goodwill
write-down amounting to EUR 23,8 million relating to company's Mobile Solutions
-business. 

Write-down is based on the company's view on increased risks relating to 
Mobile Solutions -business on a long term perspective, which the applicable
legislation requires to be used when testing the impairment of goodwill.
Increased risks are due to continuously increasing price competition in
contract engineering work and the shift of especially low-value-added work and
also customers' decision-making to low-cost countries. Company also estimates
that the current target market of the company's Mobile Solutions -business as a
whole will not grow from its current size in any noteworthy extent. Company
will in its Mobile Solutions business concentrate in technologies and services
where it can, despite everything, maintain at least satisfactory profitability
also in the future. 

As a result of the above factors the company considers it unlikely that its
Mobile Solutions business will meet the assumptions based on which the
impairment tests have so far been conducted. These assumptions have been as
follows: Annual growth of Net Sales: 3 %, EBIT: 10 % and discount rate: 8,28 %. 

Following the revised estimations the company has changed the assumptions used
in impairment testing of the Mobile Solutions business goodwill as follows:
Annual growth of Net Sales: 0 %, EBIT: 9 % in 2010 and 8 % thereafter, and
discount rate: 10,86 %.  After conducting a new impairment test using the
revised assumptions the company has ended up with the need to do the above
goodwill write-down relating to company's Mobile Solutions -business. 

The write-down is a one-off measure and will cause that the company's profit
and earning per share for the year 2009 end up being negative. By contrast,
said one-off measure have absolutely no effect on company's cash flow nor its
operative business, which both are, on a company-level, in a very good shape.
Company is also effecting measures to concentrate its network of business
locations, which is expected to facilitate even further efficiency and good
operative profitability also in the future. Company will continue measures to
develop also its Mobile Solutions business. 

Digia Plc
Board of Directors

Further information:
Juha Varelius, President and CEO
Tel. +358 400 855849, E-mail: juha.varelius@digia.com

Kjell Lindqvist, CFO
Tel. +358 40 8230733, E-mail: kjell.lindqvist@digia.com

Distribution:
NASDAQ OMX Helsinki
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