Bittium Oyj - Company Announcement

Bittium Corporation is planning to distribute the net proceeds from the sale of its Automotive business, a maximum of EUR 595 million, to its shareholders in the first instance by repurchasing own ...

Stock Exchange Release

Free for publication on August 6, 2015 at 8.02 am

 Not for release, publication or distribution (in whole or in part) in, into or
  from the United States or any jurisdiction where to do so would constitute a
              violation of the relevant laws of such jurisdiction.

Bittium Corporation is planning to distribute the net proceeds from the sale of
its Automotive business, a maximum of EUR 595 million, to its shareholders in
the first instance by repurchasing own shares in a voluntary public tender offer
directed to all shareholders of the company

As  announced in the stock exchange release on July, 1 2015, Bittium Corporation
("Bittium  or the "Company) is planning to distribute a major part or all of the
net proceeds from the sale of its Automotive business to its shareholders and to
hold  an  Extraordinary  General  Meeting  in  September  2015 to  decide on the
contemplated distribution of funds.

The  Board of Directors of  Bittium has decided to  continue the preparations of
the  proposal to the Extraordinary General Meeting regarding the distribution of
funds,  in the first instance based on a repurchase of own shares in a voluntary
public  tender offer directed  to all shareholders  of the company in accordance
with  the Finnish Securities Markets Act.  The planned public tender offer would
be  carried out during year 2015 and the shares would be repurchased at a market
price  defined in  more detail  later on.  Based on  the current estimate of the
Board  of Directors, the  amount of funds  to be used  for the repurchase of own
shares  would be a maximum of  EUR 595 million. Technical analyses regarding the
execution of the possible public tender offer are being continued and also other
possible  ways to carry out  the distribution of funds  are also being evaluated
simultaneously,  and at the  moment there is  no certainty on which distribution
method the Board of Directors will propose to the Extraordinary General Meeting.
The  planned  distribution  of  funds  requires  preparation of separate interim
accounts,  after the completion of  which the Board of  Directors is expected to
decide  on  the  proposal  to  the  Extraordinary  General Meeting regarding the
distribution  method and the amount of funds to be distributed during the second
half of August 2015.

Bittium  has  received  a  preliminary  ruling  by the Finnish Central Tax Board
regarding  the tax treatment of a  shareholder participating in the tender offer
should  Bittium repurchase its own shares with the funds received in the sale of
the  Automotive  business  in  a  public  tender  offer  under certain terms and
conditions.  Pursuant to  the preliminary  ruling by  the Central Tax Board, the
provisions  in Section  29 of the  Finnish Act  on Taxation  Procedure regarding
hidden  distribution of dividend are not applied to the repurchase of own shares
and,  thus, the  taxation of  a shareholders  participating in  the tender offer
would   be  conducted  in  accordance  with  the  customary  capital  gains  tax
provisions.

The  Company first informed about the sale of the Automotive business in a stock
exchange release published on May 19, 2015, and thereafter about the resolutions
of  the Extraordinary  General Meeting  relating to  the transaction  in a stock
exchange  release of June 11, 2015. The closing of the transaction was announced
in a stock exchange release on 1, July 2015.



Oulu, August 6, 2015

Bittium Corporation

Board of Directors



Further Information:

Jukka Harju

CEO

Bittium Corporation

Tel. +358 40 344 5466



Distribution:

NASDAQ Helsinki

Main media



Bittium

Bittium  is  specialized  in  developing  reliable and secure communications and
connectivity solutions using the latest technologies and deep knowledge on radio
technology.  Bittium provides innovative products and customized solutions based
on  its product platforms, and R&D services for customers in various industries.
Bittium  also  offers  high  quality  information  security solutions for mobile
devices  and portable computers. Net sales  of continuing operations in 2014 was
EUR  52.7 million and operating profit was EUR 0.8 million. Bittium is listed on
Nasdaq Helsinki. www.bittium.com



Disclaimer

This announcement is neither an offer to purchase nor a solicitation of an offer
to  sell shares in Bittium Corporation (the "Shares") anywhere in the world. The
final  terms and  further provisions  of the  possible public  tender offer (the"Offer")  will be disclosed in  the offer document once  approved by the Finnish
Financial  Supervisory Authority. Holders of the Shares are strongly recommended
to read the offer document and all announcements in connection with the Offer as
they contain or will contain important information.

The Offer is not being made directly or indirectly, in or into the United States
or  any other jurisdiction  where to do  so would constitute  a violation of the
laws  of such jurisdiction. The Offer is not  being made by the use of the mails
or any other means or instruments of interstate or foreign commerce (inter alia,
transmission by fax, telephone or internet) in or into the United States, nor by
the  use of any facility of a national securities exchange in the United States.
Accordingly,  the sending or any other  distribution of this announcement or any
other  accompanying  document  in  or  into  the  United  States  or  any  other
jurisdiction,  where to do so  would constitute a violation  of the laws of such
jurisdiction, is prohibited


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