Elektrobit to lay of 170 staff globally

With these additional measures EB will further adjust its cost structure and improve profitability in the current rapidly changing and turbulent business environment. The target of the above mentioned cost saving measures is to achieve approximately €40 million annual cost savings in comparison to the cost level of the first half of 2008. The above mentioned additional measures are estimated to result to a maximum €5 million non-recurring restructuring costs and write-offs for the second half of 2008. Due to the non-recurring costs the operating loss for the second half of 2008 will be worse than the operating loss for the first half of 2008. Without the above mentioned non-recurring items EB expects, in accordance with its guidance given on October 21st 2008, the operating loss from business operations for the second half of 2008 (without the non-recurring items) to be approximately at the level of the operating loss from the first half of 2008 (€ -15.1 million without the non-recurring costs). Respectively EB expects, according to the guidance given on October 21st, 2008, the net sales for the second half of 2008 to be lower than in the first half of 2008 (€88.3 million). In order to achieve the additional €10 million savings, EB plans to make a reduction of approximately 170 employees globally by the end of the first half of 2009. EB will start these reductions by initiating personnel negotiations in wireless business in Finland with the goal of reducing 80 people due to financial and production related reasons. Additionally EB will continue pruning its project-portfolio, reducing high-cost subcontracting and further sharpening its business portfolio. Earlier announced cost saving actions of €30 million are being implemented and will gain their full impact from the beginning of 2009. The key measures targeting to achieve €30 million cost savings include adjustment of R&D investments (including the change of EB's business model in Mobile WiMAX), streamlining of the support functions, improvements of resource utilization and reduction of subcontracting.