Electrobit laying off 30

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.