EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2010 NET SALES GREW FROM LAST YEAR, STRONG GROWTH IN THE AUTOMOTIVE BUSINESS SEGMENT, STATUTORY PROVISION OF EUR 8.3 MILLION BOOKED DUE TO

STOCK EXCHANGE RELEASE
 
Free for publication on October 28, 2010 at 8.00 am (CEST+1)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2010
NET SALES GREW FROM LAST YEAR, STRONG GROWTH IN THE AUTOMOTIVE BUSINESS SEGMENT,
STATUTORY PROVISION OF EUR 8.3 MILLION BOOKED DUE TO RISK OF LOSING RECEIVABLES
 
SUMMARY JULY-SEPTEMBER 2010
 
- Net sales for the period amounted to EUR 33.7 million (EUR 33.5 million,
3Q 2009), representing an increase of 0.6% year-on-year.
- After the review period TerreStar Networks Inc., a customer to EB's subsidiary
Elektrobit Inc., filed voluntary petitions for reorganization under Chapter 11
of the United States Bankruptcy Code in order to strengthen its financial
position. EB has booked a statutory provision in the amount of EUR 8.3 million
related to the receivables owed by TerreStar Networks. More information is
available in the chapters titled Outlook for the second half of 2010, Risks and
uncertainties and Events after the review period.
- Operating loss excluding the statutory provision of EUR 8.3 million related to
TerreStar was EUR -3.2 million (EUR -0.8 million, 3Q 2009). The decline year-on-
year was due to weaker performance in the Wireless Business Segment. Operating
loss including the statutory provision was EUR -11.5 million.
- EBITDA was EUR -9.3 million (EUR 1.6 million, 3Q 2009).
- Operating cash flow was EUR 0.2 million (EUR 4.6 million, 3Q 2009). The net
cash flow was EUR -30.1 million (EUR 1.8 million, 3Q 2009). The decrease was
mainly attributable to the distribution of EUR 25.9 million from the share
premium fund in September 2, 2010.
- Cash and other liquid assets totaled EUR 29.8 million (EUR 62.2 million,
3Q 2009).
- Equity ratio including the impact of the statutory provision remained strong
at 62.7% (71.1%, 3Q 2009).
- Earnings per share including the statutory provision were EUR -0.08 (EUR
-0.00, 3Q 2009).
 
SUMMARY JANUARY-SEPTEMBER 2010
 
-  Net sales amounted to EUR  119.9 million (EUR 113.7 million, Jan-Sept 2009),
representing an increase of 5.5% year-on-year.
- Operating loss excluding the statutory provision of EUR 8.3 million related to
TerreStar was EUR -1.4 million (EUR -1.9 million, Jan-Sept 2009). Operating loss
including the statutory provision was EUR -9.7 million.
- EBITDA was EUR -3.2 million (EUR 5.6 million, Jan-Sept 2009).
-  Operating cash flow was EUR 6.3 million (EUR 0.9 million, Jan-Sept 2009). Net
cash  flow was EUR -29.2 million (EUR -6.4 million, Jan-Sept 2009). The decrease
was  mainly attributable to the distribution  of EUR 25.9 million from the share
premium fund in September 2, 2010.
-  Earnings  per  share  including  the  statutory provision were EUR -0.08 (EUR
-0.02, Jan-Sept 2009).
 
EB'S CEO JUKKA HARJU:
 
"During  the January-September period  EB's net sales  increased slightly. Sales
and  profit for the Automotive Business Segment increased considerably from last
year  as  well  as  sequentially  as  the  industry  recovered  from last year's
downturn.  The  Wireless  Business  Segment's  net  sales  and operating profit,
excluding  the statutory provision related to TerreStar, were weaker compared to
last  year  mostly  due  to  lower  sales  in the third quarter. Managing of our
financial  and  business  interests  with  TerreStar  during their restructuring
process  will require special attention. Our  main objective for the second half
of 2010 is to continue improving profitability."
 
OUTLOOK FOR THE SECOND HALF OF 2010
 
During  the second  half the  growth of  EB's sales  in the  Automotive Business
Segment  is expected  to continue.  Sales in  EB's Wireless  Business Segment is
expected  to be lower than  in the first half  of the year. More specific market
outlook  is  presented  under  the  "Business Segments' development during July-
September 2010 and market outlook" section.
 
The  continuing challenges  of TerreStar  Networks Inc.  (Terrestar Networks), a
significant  customer of EB's  subsidiary Elektrobit Inc.,  in obtaining funding
have  resulted in payment delays and increased  the risk of credit losses. While
Terrestar  Networks  and  certain  other  affiliates of TerreStar Corporation, a
parent  company to TerreStar Networks,  have on October 19, 2010 filed voluntary
petitions  for reorganization under  Chapter 11 of the  United States Bankruptcy
Code  in order to strengthen their financial position, this risk may grow during
the  second  half  of  2010. TerreStar  Networks'  court filings with the United
States Bankruptcy Court contain only limited information on how EB's receivables
will be treated in the reorganization. Further, the court filings do not contain
a  plan  of  reorganization,  which  EB  anticipates  will  be presented for the
approval  of creditors and  the Court later  in the bankruptcy  case. Due to its
customer's reorganization process, EB has lowered its Terrestar Networks related
net sales estimates for the last quarter of 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.
 
Uncertainties   regarding  the  outlook  are  presented  under  the  "Risks  and
uncertainties"   section.   Information   on  TerreStar  Networks's  filing  for
reorganization is also available in the "Events after the review period" and the
October 20 and 25, 2010 stock exchange releases at www.elektrobit.com.
 
INVITATION TO A PRESS CONFERENCE
 
EB  will  hold  a  press  conference  on  the  interim report 3Q 2010 for media,
analysts  and institutional  investors in  Finland, Espoo, Keilasatama 5, 2(nd)
floor  in meeting room Purje on Thursday, October 28, 2010 at 11.00 am (CEST+1).
The  conference will also be held as a conference call and the presentation will
be  shown simultaneously in  the Internet through  WebEx. The conference will be
held  in English. For  more information on  joining the conference  please go to
www.elektrobit.com/investors.
 
EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences.
EB  is specialized  in demanding  embedded software  and hardware  solutions for
wireless and automotive industries. The net sales for the year 2009 totaled MEUR
153.8. Elektrobit      Corporation      is      listed     on     NASDAQ     OMX
Helsinki.www.elektrobit.com
 
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2010
 
FINANCIAL PERFORMANCE DURING JANUARY-SEPTEMBER 2010
(Corresponding   figures   are   for   January-September  2009 unless  otherwise
indicated)
 
EB's  net sales during  January-September 2010 increased by  5.5 per cent to EUR
119.9 million  (EUR  113.7 million).  Operating  loss  excluding  the  statutory
provision of EUR 8.3 million related to TerreStar was EUR -1.4 million (EUR -1.9
million). Operating loss including the statutory provision was EUR -9.7 million.
 
The  Automotive  Business  Segment's  net  sales  during January-September 2010
amounted  to EUR 57.0 million (EUR 44.7 million), representing 27.7% growth. The
segment  posted  operating  profit  of  EUR  0.8 million (EUR -4.0 million). The
profitability  improvement year-on-year was mainly attributable to the increased
sales and solid overall market demand.
 
The Wireless Business Segment's net sales during January-September 2010 amounted
to EUR 62.3 million (EUR 68.6 million), representing a decline of -9.1% compared
to  January-September 2009. Operating loss excluding the statutory provision was
EUR  -2.2  million  (EUR  1.3 million).  The  decline was mostly attributable to
weaker  sales  in  the  third  quarter.  Operating  loss including the statutory
provision was EUR -10.4 million.
 
The  total R&D investments during the  reporting period grew to EUR 15.5 million
(EUR 10.5 million), equaling 12.9% of the net sales (9.2%).
 
+------------------------------------------------------------+--------+--------+
|CONSOLIDATED INCOME STATEMENT (MEUR)                        |1-9 2010|1-9 2009|
+------------------------------------------------------------+--------+--------+
|                                                            |9 months|9 months|
+------------------------------------------------------------+--------+--------+
|NET SALES                                                   |   119.9|   113.7|
+------------------------------------------------------------+--------+--------+
|OPERATING PROFIT (LOSS)                                     |    -9.7|    -1.9|
+------------------------------------------------------------+--------+--------+
|Financial income and expenses                               |    -0.9|    -0.3|
+------------------------------------------------------------+--------+--------+
|RESULT BEFORE TAX                                           |   -10.6|    -2.2|
+------------------------------------------------------------+--------+--------+
|RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS            |   -10.2|    -3.1|
+------------------------------------------------------------+--------+--------+
|Profit after tax for the year from discontinued operations  |        |     0.3|
+------------------------------------------------------------+--------+--------+
|RESULT FOR THE PERIOD                                       |   -10.2|    -2.8|
+------------------------------------------------------------+--------+--------+
|TOTAL COMPREHENSIVE INCOME FOR THE PERIOD                   |    -9.8|    -3.4|
+------------------------------------------------------------+--------+--------+
|                                                            |        |        |
+------------------------------------------------------------+--------+--------+
|Result for the period attributable to:                      |        |        |
+------------------------------------------------------------+--------+--------+
|  Equity holders of the parent                              |   -10.6|    -2.8|
+------------------------------------------------------------+--------+--------+
|  Minority interest                                         |     0.3|     0.0|
+------------------------------------------------------------+--------+--------+
|Total comprehensive income for the period attributable to:  |        |        |
+------------------------------------------------------------+--------+--------+
|  Equity holder of the parent                               |   -10.1|    -3.4|
+------------------------------------------------------------+--------+--------+
|  Minority interest                                         |     0.3|     0.0|
+------------------------------------------------------------+--------+--------+
|                                                            |        |        |
+------------------------------------------------------------+--------+--------+
|Earnings per share EUR continuing operations                |   -0.08|   -0.02|
+------------------------------------------------------------+--------+--------+
|Earnings per share EUR discontinued operations              |        |    0.00|
+------------------------------------------------------------+--------+--------+
|Earnings per share EUR continuing and discontinued          |   -0.08|   -0.02|
|operations                                                  |        |        |
+------------------------------------------------------------+--------+--------+
 
- Cash flow from business operations was EUR 6.3 million (EUR 0.9 million).
- Equity ratio was 62.7% (71.1%).
- Net gearing was -20.5% (-39.5%).
 
QUARTERLY FIGURES
 
The distribution of the Group's overall net sales and profit, MEUR:
+------------------------------------------------+-----+-----+-----+-----+-----+
|                                                |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Net sales                                       | 33.7| 44.7| 41.5| 40.1| 33.5|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss)                         |-11.5|  0.1|  1.7|  0.5| -0.8|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) without non-recurring   | -3.2|  0.1|  1.7|  0.8| -0.8|
|costs                                           |     |     |     |     |     |
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result before taxes                             |-10.6| -0.7|  0.7|  0.1| -0.6|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result for the period                           | -9.0| -0.9| -0.3| -0.3| -0.5|
+------------------------------------------------+-----+-----+-----+-----+-----+
 
The distribution of net sales by Business Segments, MEUR:
+-----------------+-----+-----+-----+-----+-----+
|                 |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+-----------------+-----+-----+-----+-----+-----+
|Automotive       | 19.9| 18.6| 18.5| 16.8| 14.8|
+-----------------+-----+-----+-----+-----+-----+
|Wireless         | 13.7| 25.9| 22.8| 23.0| 18.6|
+-----------------+-----+-----+-----+-----+-----+
|Corporation total| 33.7| 44.7| 41.5| 40.1| 33.5|
+-----------------+-----+-----+-----+-----+-----+
 
The distribution of net sales by market areas, MEUR and %:
+--------+-----+-----+-----+-----+-----+
|        |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+--------+-----+-----+-----+-----+-----+
|Asia    |  1.8|  2.6|  2.7|  4.4|  1.8|
|        | 5.4%| 5.9%| 6.5%|11.0%| 5.5%|
+--------+-----+-----+-----+-----+-----+
|Americas|  9.4| 17.4| 15.8| 13.7| 11.1|
|        |27.7%|39.0%|38.1%|34.2%|33.1%|
+--------+-----+-----+-----+-----+-----+
|Europe  | 22.5| 24.6| 23.0| 22.0| 20.6|
|        |66.8%|55.2%|55.4%|54.8%|61.4%|
+--------+-----+-----+-----+-----+-----+
 
Net  sales (external) and operating profit  development by Business Segments and
Other businesses, MEUR:
+-----------------------+-----+-----+-----+-----+-----+
|                       |3Q 10|2Q 10|1Q 10|4Q 09|3Q 09|
+-----------------------+-----+-----+-----+-----+-----+
|Automotive             |     |     |     |     |     |
|Net sales              | 19.9| 18.6| 18.5| 16.8| 14.8|
|Operating profit (loss)|  0.1| -0.2|  0.9|  0.3| -0.9|
+-----------------------+-----+-----+-----+-----+-----+
|Wireless               |     |     |     |     |     |
|Net sales              | 13.7| 25.9| 22.8| 23.0| 18.6|
|Operating profit (loss)|-11.7|  0.3|  0.9| -0.3| -0.1|
+-----------------------+-----+-----+-----+-----+-----+
|Other businesses       |     |     |     |     |     |
|Net sales              |  0.2|  0.2|  0.2|  0.2|  0.2|
|Operating profit (loss)|  0.1|  0.0| -0.1|  0.5|  0.2|
+-----------------------+-----+-----+-----+-----+-----+
|Total                  |     |     |     |     |     |
|Net sales              | 33.7| 44.7| 41.5| 40.1| 33.5|
|Operating profit (loss)|-11.5|  0.1|  1.7|  0.5| -0.8|
+-----------------------+-----+-----+-----+-----+-----+
 
BUSINESS SEGMENTS' DEVELOPMENT DURING JULY-SEPTEMBER 2010 AND MARKET OUTLOOK
 
EB's reporting is based on the Automotive and Wireless Business Segments.
 
AUTOMOTIVE
 
The Automotive Business Segment consists of in-car software products, navigation
software  for after market  devices and development  services for the automotive
industry   with   leading  car  manufacturers,  car  electronics  suppliers  and
automotive  chipset suppliers as  customers. By combining  its software products
and  R&D services EB is creating unique, customized solutions for its automotive
customers.
 
During  the third quarter of 2010, net  sales of the Automotive Business Segment
amounted  to EUR  19.9 million (EUR  14.8 million, 3Q 2009), representing strong
34.4% growth  year-on-year. The operating  profit was EUR  0.1 million (EUR -0.9
million,  3Q 2009). The profitability improvement year-on-year was mainly due to
increased sales and solid overall market demand.
 
In  accordance  with  its  value  proposal  as an infotainment software solution
partner EB announced that it provides both navigation software and speech dialog
software  for the  infotainment head  unit of  the new  Audi A1.  The navigation
software  is based on the navigation solution  EB street director and the speech
solution uses Speech Target Framework service that is included in EB GUIDE tools
for user interface design.
 
EB  has  developed  a  position  as  the  global AUTOSAR (automotive open system
architecture)  partner for  several car  electronics system  vendors. During the
quarter  the AUTOSAR market grew slightly  slower than expected and EB announced
extensions  to its EB  Tresos software tools  that are used  to develop embedded
automotive software for electronic control units.
 
EB  accelerated  its  efforts  to  expand  its  business  to  driver  assistance
applications.
 
Automotive Market Outlook
 
The majority of the innovation and differentiation in the automotive industry is
brought about by software and electronics. The share of electronics and software
in  cars has grown significantly during the  past years. It is expected that the
use  of  software  in  automotives  continues  to increase. The estimated annual
automotive software market long-term growth rate is some 15% (Frost & Sullivan).
The  underlying world automotive market is also expected to grow steadily with a
yearly rate of about 6% between 2010 and 2015 (CSM).
 
Expanding  capabilities and  more sophisticated  and networked features increase
the  complexity of automotive electronics. The growing complexity is driving the
industry  towards gradual separation of software and hardware in the electronics
solutions.  It  is  necessary  for  managing  the  architectural  software layer
appropriately  and for efficiency  in innovation and  implementation. The use of
standard  software solutions is expected to increase in the automotive industry.
This  enables faster innovation, improves quality and development efficiency and
reduces complexity related to deployment of software.
 
The  fundamental  industry  migration  and  consequent  growth of the automotive
software  market will  continue. Cost  pressures of  the automotive industry are
expected  to accelerate the need of productized, efficient software solutions EB
is offering.
 
EB's  net sales cumulating from the  automotive industry are currently primarily
driven  by the development  of new cars  and platforms. Dependency on production
volumes  of the car  industry is still  limited. However, over  the coming years
dependency  on the production volumes is expected to increase as a result of the
transition towards software product business models.
 
WIRELESS
 
The Wireless Business Segment comprises the following businesses:
- Wireless Solutions provides customized solutions and R&D services for wireless
industry and other industries utilizing wireless technologies.
-  Wireless Communications Tools provides test tools for measuring, modeling and
emulating radio channel environments.
 
Net sales for the Wireless Business Segment during the third quarter of 2010 was
EUR  13.7 million (EUR  18.6 million, 3Q 2009), representing  a fall  of 26.4%.
Operating  loss excluding the statutory provision  of EUR 8.3 million related to
TerreStar  was EUR -3.4 million (EUR -0.1 million, 3Q 2009). This was mostly due
to weaker sales in the satellite terminal and mobile infrastructure markets. The
temporary dismissals announced in June resulted in cost savings of approximately
EUR  0.4 million in  the third  quarter. Operating  loss including the statutory
provision was EUR -11.7 million.
 
During  the  third  quarter  the  EB-designed  TerreStar GENUS smartphone became
available in the USA and EB made good progress in the defense market. Demand for
services  and solutions in the device  domain remained stable. The strengthening
of  Open  Source  Software  capabilities  continued  through  the July-September
period.
 
EB  announced the availability of EB  Propsim F8 Aerospace and Satellite channel
emulation   Option  (ASO)  for  the  aerospace  and  defense  markets.  Wireless
Communications  Tools demand continued to be  driven by the advanced development
tools for 3GPP LTE technology.
 
The  global  mobile  device  market  volumes  have  continued  to  grow in 2010
especially  in the  area of  smart phones.  The value  share is expected to move
towards  higher-end due to  the increased demand  for new features and services.
The  global mobile infrastructure market is  expected to be flat during 2010 and
the   consolidation   of   the  industry  may  continue.  The  mobile  satellite
communication  service industry is introducing new data and mobile communication
services  with new operators  being formed and  traditional ones upgrading their
solutions and offerings.
 
The  wireless communication R&D services market  continues to be challenging and
the  continuing price  pressure drives  increasing off-shoring  in the industry.
However, OEMs are expected to increase their R&D flexibility that can create new
partnering  opportunities for EB. New  open software architectures and platforms
are  creating opportunities  for companies  such as  EB with  strong integration
capabilities.
 
LTE  standard  continued  gaining  strength  and  EB's business driven by LTE is
expected  to  increase.  Mastering  of  multi-radio  technologies and end-to-end
system  architectures covering both terminals and networks has gained importance
in  the  complex  wireless  technology  industry.  The satellite-terrestrial and
Mobile  Satellite Services (MSS) market demand  is expected to start moving from
the current reference design phase towards the launch of commercial products and
services. This can create new service and product related business opportunities
for  EB. However, EB has lowered  its Terrestar Networks related business volume
estimates  for the  last quarter  of 2010, due  to its customer's reorganization
process.  More  exact  implications  for  the parties' future business relations
cannot be currently evaluated.
 
Need for advanced development tools 3GPP LTE technology is expected to remain as
a  driver for the demand in the medium  and long term. EB provides world leading
channel  emulation tools  for the  development of  MIMO based 3GPP LTE and other
advanced radio technologies.
RESEARCH AND DEVELOPMENT
 
EB  continued its  investments in  R&D in  the automotive  software products and
tools,  in radio channel  emulation products and  in Wireless Solutions' product
platforms.
 
The  total R&D investments during the third quarter of 2010 were EUR 5.4 million
(EUR  3.5 million, 3Q 2009), equaling 16.0% of the  net sales (10.5%, 3Q 2009).
EUR 1.6 million of R&D investments were capitalized.
 
OUTLOOK FOR THE SECOND HALF OF 2010
 
During  the second  half the  growth of  EB's sales  in the  Automotive Business
Segment  is expected  to continue.  Sales in  EB's Wireless  Business Segment is
expected  to be lower than  in the first half  of the year. More specific market
outlook  is  presented  under  the  "Business Segments' development during July-
September 2010 and market outlook" section.
 
The  continuing challenges  of TerreStar  Networks Inc.  (Terrestar Networks), a
significant  customer of EB's  subsidiary Elektrobit Inc.,  in obtaining funding
have  resulted in payment delays and increased  the risk of credit losses. While
Terrestar  Networks  and  certain  other  affiliates of TerreStar Corporation, a
parent  company to TerreStar Networks,  have on October 19, 2010 filed voluntary
petitions  for reorganization under  Chapter 11 of the  United States Bankruptcy
Code  in order to strengthen their financial position, this risk may grow during
the  second  half  of  2010. TerreStar  Networks'  court filings with the United
States Bankruptcy Court contain only limited information on how EB's receivables
will be treated in the reorganization. Further, the court filings do not contain
a  plan  of  reorganization,  which  EB  anticipates  will  be presented for the
approval  of creditors and  the Court later  in the bankruptcy  case. Due to its
customer's reorganization process, EB has lowered its Terrestar Networks related
net sales estimates for the last quarter of 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.
 
Uncertainties   regarding  the  outlook  are  presented  under  the  "Risks  and
uncertainties"   section.   Information   on  TerreStar  Networks's  filing  for
reorganization is also available in the "Events after the review period" and the
October 20 and 25, 2010 stock exchange releases at www.elektrobit.com.
 
RISKS AND UNCERTAINTIES
 
EB  has identified a number of business, market and finance related factors that
can affect the level of sales and profits. Those of the greatest significance on
a  short term are  those affecting the  utilization and chargeability levels and
average  hourly  prices  of  R&D  services.  On the ongoing financial period the
global  economic uncertainty may affect the  demand for EB's services, solutions
and  products and  provide pressure  on e.g.  volumes and  pricing. It  may also
increase the risk for credit losses.
 
Challenges  in  obtaining  funding  have  also  resulted  in  payment  delays by
TerreStar  Networks, a significant customer  of EB's subsidiary Elektrobit Inc.,
and  increased the risk of credit  losses.  While Terrestar Networks and certain
other  affiliates of TerreStar have on  October 19, 2010, in order to strengthen
their  financial position,  filed voluntary  petitions for  reorganization under
Chapter  11 of the United States Bankruptcy Code,  this risk may grow during the
second  half of 2010. Challenges in obtaining funding have also resulted payment
delays  by  TerreStar  Networks,  a  significant  customer  of  EB's  subsidiary
Elektrobit  Inc.,  and  increased  the  risk  of credit losses.  While Terrestar
Networks  and certain other affiliates of TerreStar have on October 19, 2010, in
order  to  strengthen  their  financial  position, filed voluntary petitions for
reorganization  under Chapter 11 of the United States Bankruptcy Code, this risk
may  grow during the  second half of  2010. Chapter 11 establishes a process for
reorganizing  financially troubled companies. Under such reorganization process,
payment  by TerreStar  Networks of  amounts owed  to its  creditors will require
approval  by the United States Bankruptcy Court  and, if made pursuant to a plan
of  reorganization, an affirmative vote of  TerreStar Networks' creditors. It is
also possible that the payment of receivables will be done partly or wholly in a
form  of shares in  the reorganized company  or in the  form of other securities
entitling  creditors to obtain shares. The form or timing of any such payment of
EB's receivables cannot be predicted with any degree of certainty at this time.
 
On  October  26, 2010, EB's  receivables  from  TerreStar  Networks  amounted to
approximately USD 25.9 million (EUR 18.6 million), out of which USD 24.2 million
(EUR  17.4 million) are outstanding.. TerreStar Networks' court filings with the
United  States Bankruptcy  Court contain  only limited  information on  how EB's
receivables  will be treated in the reorganization. Further, TerreStar Networks'
court filings do not contain a plan of reorganization, which EB anticipates will
be presented for the approval of creditors and the Court later in the bankruptcy
case. Based on EB's current understanding, there is no reason to believe that EB
would  not be able to  collect in due course  at least that portion of TerreStar
Networks'  receivables that exceed the amount  of the statutory provision of EUR
8.3 million booked for Q3/2010. It is possible that, based on later information,
this  view may  need to  be reconsidered.   While EB  has lowered  its Terrestar
Networks  related net sales  estimates for the  last quarter of 2010, more exact
implications  of the customer's  reorganization process for  the parties' future
business  relations cannot be currently evaluated. At worst, TerreStar Networks'
reorganization  process  and  challenges  in  obtaining  funding  may  result in
significant  credit losses for  EB or even  termination of the business relation
should  TerreStar Networks,  in an  exercise of  its business  judgment and with
Court  approval,  determine  that  it  will  not  comply  with  its  contractual
obligations towards EB as provided by EB.
 
As  the EB's customer base consists mainly  of companies operating in the fields
of  automotive and telecommunications, the company  is exposed to market changes
in  these industries. EB  believes that expanding  the customer base will reduce
dependence  on individual companies and that  the company will thereby be mainly
affected  by the  general business  climate in  automotive and telecommunication
industries.  However, some parts of EB's business are more sensitive to customer
dependency than others. Respectively, this may translate as accumulation of risk
with  respect to outstanding  receivables and ultimately  with respect to credit
losses.  The  more  specific  market  outlook  is  presented under the "Business
Segments'  development  during  the  second  quarter  2010 and  market  outlook"
section.
 
EB's   operative   business   risks  are  mainly  related  to  following  items:
uncertainties  and  short  visibility  on  customers' product program decisions,
their  make or buy decisions and on the other hand, their decisions to continue,
downsize  or terminate  current product  programs, ramping  up and  down project
resources,  timing  and  on  the  other  hand successful utilization of the most
important  technologies  and  components,  competitive  situation  and potential
delays  in the markets,  timely closing of  customer and supplier contracts with
reasonable  commercial  terms,  delays  in  R&D  projects,  activations based on
customer  contracts, obsolescence of inventories and technology risks in product
development  causing  higher  than  planned  R&D  costs.   In addition there are
typical industry warranty and liability risks involved in selling EB's services,
solutions  and products. Product delivery business  model includes such risks as
high  dependency on actual product volumes, development of the cost of materials
and  production  yields.  The  abovementioned  risks  may manifest themselves as
higher  cost  of  product  delivery,  and  ultimately, as lower profit. Revenues
expected to come from new products for existing and new customers include normal
timing risks.
 
More information on the risks and uncertainties affecting EB can be found on the
Company's website at www.elektrobit.com
 
STATEMENT OF FINANCIAL POSITION AND FINANCING
 
The  figures  presented  in  the  statement  of  financial position of September
30, 2010, are  compared with the statement of the financial position of December
31, 2009 (MEUR).  The figures for the period  under review contain provisions of
EUR  9.7 million, including  the TerreStar  related statutory  provisions of EUR
8.3 million.
 
                                           9/2010 12/2009
 
Non-current assets                           39.7    39.4
 
Current assets                               95.8   120.8
 
Total assets                                135.5   160.2
 
Share capital                                12.9    12.9
 
Other equity                                 63.3    99.5
 
Minority interest                             1.2     0.4
 
Total shareholders' equity                   77.4   112.8
 
Non-current liabilities                      10.7    15.0
 
Current liabilities                          47.4    32.4
 
Total shareholders' equity and liabilities  135.5   160.2
 
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR  +6.7 million
 
+ decrease in net working capital                  EUR   +3.7 million
 
- interest, taxes and dividends                    EUR   -4.1 million
 
= cash generated from operations                   EUR   +6.3 million
 
- net cash used in investment activities           EUR  -5.0 million
 
- net cash used in financing                       EUR -30.6 million
 
= net change in cash and cash equivalents          EUR -29.2 million
 
The amount of accounts and other receivables, booked in current receivables, was
EUR  62.0 million (EUR  59.3 million on  December 31, 2009). Accounts  and other
payables,  booked in  interest-free current  liabilities, were 42.4 million (EUR
27.5 million  on December 31, 2009). The amount of non-depreciated consolidation
goodwill  at the end of the period  under review was EUR 18.5 million (EUR 18.5
million on December 31, 2009).
 
The  amount of gross investments in the period under review was EUR 7.0 million,
consisting  of replacement investments. Net investments for the reporting period
totaled  EUR 6.7 million.  The total  amount of  depreciation during  the period
under  review  was  EUR  6.4 million,  including EUR 1.6 million of depreciation
owing to business acquisitions.
 
The  amount of interest-bearing debt at the  end of the reporting period was EUR
14.0 million. The distribution of net financing expenses on the income statement
was as follows:
 
interest, dividend and other financial income  EUR  0.6 million
 
interest expenses and other financial expenses EUR -0.6 million
 
foreign exchange gains and losses              EUR -1.0 million
 
EB's equity ratio at the end of the period was 62.7% (71.5% at the end of 2009).
 
EB  follows a hedging strategy, the objective  of which is to ensure the margins
of  business  operations  in  changing  market  circumstances  by minimizing the
influence of exchange rates. In accordance with the hedging strategy, the agreed
customer  commitments net cash flow  of the currency in  question is hedged. The
net  cash flow is  determined on the  basis of sales  receivables, payables, the
order  book and the budgeted net currency cash flow. The hedged foreign currency
exposure at the end of the review period was equivalent to EUR 20.0 million.
 
PERSONNEL
 
EB  employed an average  of 1,559 people between  January and September 2010. At
the  end of  September, EB  had 1,584 employees  (1,528 at  the end  of 2009). A
significant part of EB's personnel are product development engineers.
 
On   August   28, 2010 Chief   Executive  Officer  Jukka  Harju  took  over  the
responsibility for EB's investor communications and investor relations.
 
FLAGGING NOTIFICATIONS
 
There  were no changes  in ownership during  the period under  review that would
have  caused  flagging  notifications  which  are  obligations for disclosure in
accordance with Chapter 2, section 9 of the Securities Market Act.
 
DISTRIBUTION AND DECREASE OF THE SHARE PREMIUM FUND
 
The  Annual General Meeting  of Elektrobit Corporation,  held on March 25, 2010
approved  the proposal of the Board  of Directors to distribute the shareholders
EUR 0.20 per share from the parent company's share premium fund. In addition, it
approved the Board's proposal to decrease the share premium fund by transferring
to  the company's invested  unrestricted equity fund  the funds remaining in the
share  premium fund after the above  distribution. The distribution and decrease
required  an  authorization  by  the  Finnish  National  Board  of  Patents  and
Registration. The resolutions were booked on the balance sheet in March 2010.
 
The  Finnish  National  Board  of  Patents  and Registration gave its consent on
August  12, 2010 for the distribution and decrease of the share premium fund. On
September 2, 2010, the shareholders were distributed EUR 0.20 per share from the
share  premium fund, EUR 25,882,538.00 in total, and EUR 38,696,853.50 remaining
in the share premium fund after the distribution was transferred to the invested
unrestricted equity fund of the company.
 
EVENTS AFTER THE REVIEW PERIOD
 
As   informed  by  EB  on  October  20, 2010, a  significant  customer  of  EB's
subsidiary,  Elektrobit Inc, TerreStar Networks  and certain other affiliates of
TerreStar  Corporation have  on October  19, 2010, in order  to strengthen their
financial  position, filed voluntary petitions  for reorganization under Chapter
11 of  the United States Bankruptcy Code. TerreStar Networks is a majority-owned
indirect subsidiary of TerreStar Corporation.
 
On  October 25, 2010 EB resolved to book a  statutory provision in the amount of
EUR  8.3 million related  to the  receivables owed  to its subsidiary Elektrobit
Inc.  by  TerreStar  Networks,  lower  its  Terrestar Networks related net sales
estimates  for the last  quarter of 2010 and  consequently lower its second half
profit   estimate.  TerreStar  Networks'  court  filings  contain  only  limited
information  on how  these receivables  will be  treated in  the reorganization.
Further,  the court filings  do not contain  a plan of  reorganization, which EB
anticipates  will  be  presented  for  the  approval of creditors and the United
States   Bankruptcy  Court  later  in  the  bankruptcy  case.  After  subsequent
discussions  on the matter, EB  resolved to make the  statutory provision due to
uncertainty as to how the receivables will be treated in the reorganization.
 
Information  about the  implications of  the TerreStar  Networks' reorganization
process  for  EB  is  available  in  the "Outlook" and "Risks and uncertainties"
sections  of  this  report.  EB's  stock exchange releases regarding TerreStar's
filing  for reorganization and  the consequent statutory  provision and adjusted
outlook,  published on  October 20 and  25, 2010 respectively, are  available at
www.elektrobit.com.
 
On  October 18, 2010 EB announced  that Hannu Huttunen  (M. Econ.), 44, has been
appointed  President of the  Wireless Business Segment  and Managing Director of
Elektrobit Technologies Ltd., effective November 1, 2010.
 
Oulu, October 28, 2010
 
EB, Elektrobit Corporation
The Board of Directors
 
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
 
Distribution:
NASDAQ OMX Helsinki
Principal media
 
EB, ELEKTROBIT CORPORATION, CONDENSED FINANCIAL STATEMENTS AND NOTES JANUARY-
SEPTEMBER 2010
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
 
CONSOLIDATED STATEMENT OF                  1-9/2010       1-9/2009     1-12/2009
COMPREHENSIVE INCOME (MEUR)
 
                                           9 months       9 months     12 months
 
NET SALES                                     119.9          113.7         153.8
 
Other operating income                          1.8            2.8           4.0
 
Change in work in progress and
finished goods                                  0.3           -0.8          -0.9
 
Work performed by the undertaking
for its own purpose
and capitalized                                 0.2            0.4           0.4
 
Raw materials                                  -9.3           -5.8          -8.3
 
Personnel expenses                            -71.6          -67.6         -90.9
 
Depreciation                                   -6.4           -7.5          -9.7
 
Other operating expenses                      -44.5          -37.1         -49.8
 
OPERATING PROFIT (LOSS)                        -9.7           -1.9          -1.4
 
Financial income and expenses                  -0.9           -0.3          -0.6
 
RESULT BEFORE TAXES                           -10.6           -2.2          -2.0
 
Income taxes                                    0.3           -0.9          -1.3
 
RESULT FOR THE PERIOD FROM
CONTINUING
OPERATIONS                                    -10.2           -3.1          -3.3
 
Result after taxes for the period
from discontinued
operations                                      0.0            0.3           1.3
 
RESULT FOR THE PERIOD                         -10.2           -2.8          -2.0
 
Other comprehensive income:
 
   Exchange differences on
translating foreign operations                  0.4           -0.6          -0.3
 
Other comprehensive income for the
period total                                    0.4           -0.6          -0.3
 
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD                                         -9.8           -3.4          -2.4
 
Result for the period attributable
to
 
  Equity holders of the parent                -10.6           -2.8          -2.2
 
  Minority interest                             0.3            0.0           0.2
 
Total comprehensive income
attributable to
 
  Equity holders of the parent                -10.1           -3.4          -2.5
 
  Minority interest                             0.3            0.0           0.2
 
Earnings per share EUR continuing
operations
 
  Basic earnings per share                    -0.08          -0.02         -0.03
 
  Diluted earnings per share                  -0.08          -0.02         -0.03
 
Earnings per share EUR discontinued
operations
 
  Basic earnings per share                                    0.00          0.01
 
  Diluted earnings per share                                  0.00          0.01
 
Earnings per share EUR continuing
and discontinued
Operations
 
  Basic earnings per share                    -0.08          -0.02         -0.02
 
  Diluted earnings per share                  -0.08          -0.02         -0.02
 
Average number of shares, 1000 pcs          129 413        129 413       129 413
 
Average number of shares, diluted,
1000 pcs                                    130 376        129 466       129 580
 
CONSOLIDATED STATEMENT OF FINANCIAL  Sept. 30, 2010 Sept. 30, 2009 Dec. 31, 2009
POSITION (MEUR)
 
ASSETS
 
Non-current assets
 
  Property, plant and equipment                10.6           12.2          11.4
 
  Goodwill                                     18.5           18.5          18.5
 
  Intangible assets                            10.0            8.8           8.7
 
  Other financial assets                        0.1            0.3           0.3
 
  Receivables                                   0.4            0.8           0.4
 
  Deferred tax assets                           0.1            0.0           0.1
 
Non-current assets total                       39.7           40.7          39.4
 
Current assets
 
  Inventories                                   2.9            2.6           2.4
 
  Trade and other receivables                  62.0           55.6          59.3
 
  Financial assets at fair value
through profit or loss                         15.8            0.3          40.2
 
  Cash and short term deposits                 15.0           62.2          18.8
 
Current assets total                           95.8          120.7         120.8
 
TOTAL ASSETS                                  135.5          161.4         160.2
 
EQUITY AND LIABILITIES
 
Equity attributable to equity
holders of the parent
 
  Share capital                                12.9           12.9          12.9
 
  Share premium                                               64.6          64.6
 
  Invested non-restricted equity
fund                                           38.7
 
  Translation difference                        0.3           -0.4          -0.1
 
  Retained earnings                            24.3           35.1          35.0
 
  Minority interest                             1.2            0.0           0.4
 
Total equity                                   77.4          112.2         112.8
 
Non-current liabilities
 
  Deferred tax liabilities                      1.2            2.2           2.3
 
  Provisions                                    0.6            1.3           0.9
 
  Interest-bearing liabilities                  8.9           12.5          11.8
 
  Other liabilities                                            0.1
 
Non-current liabilities total                  10.7           16.2          15.0
 
Current liabilities
 
  Trade and other payables                     32.1           24.5          24.4
 
  Financial liabilities at fair
value through profit or loss                                                 0.4
 
  Pension obligations                           1.2            1.2           1.2
 
  Provisions                                    9.1            1.9           1.5
 
  Interest-bearing loans and
borrowings                                      5.1            5.2           4.9
 
Current liabilities total                      47.4           32.9          32.4
 
Total liabilities                              58.1           49.1          47.3
 
TOTAL EQUITY AND LIABILITIES                  135.5          161.4         160.2
 
CONSOLIDATED STATEMENT OF CASH FLOWS  (MEUR)       1-9/2010 1-9/2009 1-12/2009
 
                                                   9 months 9 months 12 months
 
CASH FLOW FROM OPERATING ACTIVITIES
 
Result for the period                                 -10.2     -2.8      -2.0
 
Adjustment of accrual basis items                      17.0      6.6       7.7
 
Change in net working capital                           3.7     -1.6      -3.8
 
Interest paid on operating activities                  -2.9     -1.8      -2.0
 
Interest received from operating activities             0.6      1.4       1.6
 
Other financial income and expenses, net received       0.0      0.0       0.0
 
Income taxes paid                                      -1.9     -0.8      -1.1
 
NET CASH FROM OPERATING ACTIVITIES                      6.3      0.9       0.4
 
CASH FLOW FROM INVESTING ACTIVITIES
 
Acquisition of business unit, net of cash acquired     -0.3               -0.7
 
Disposal of business unit, net of cash acquired                 -0.6      -0.6
 
Purchase of property, plant and equipment              -1.2     -1.5      -1.2
 
Purchase of intangible assets                          -3.7     -0.9      -1.5
 
Purchase of other investments                          -0.0     -0.0      -0.1
 
Sale of property, plant and equipment                   0.1      0.1       0.3
 
Sale of intangible assets                               0.0      0.0       0.1
 
Proceeds from sale of investments                       0.2      0.1       0.2
 
NET CASH FROM INVESTING ACTIVITIES                     -5.0     -2.8      -3.4
 
CASH FLOW FROM FINANCING ACTIVITIES
 
Proceeds from borrowing                                          1.1       1.6
 
Repayment of borrowing                                 -2.1     -2.6      -3.9
 
Payment of finance liabilities                         -2.6     -3.0      -4.1
 
Distribution of funds from the share premium fund     -25.9
 
NET CASH FROM FINANCING ACTIVITIES                    -30.6     -4.6      -6.5
 
NET CHANGE IN CASH AND CASH EQUIVALENTS               -29.2     -6.4      -9.5
 
Cash and cash equivalents at beginning of period       59.1     68.6      68.6
 
Cash and cash equivalents at end of period             29.8     62.2      59.1
 
CONSOLIDATED STATEMENT OF
CHANGES IN  EQUITY  (MEUR)
 
A = Share capital
 
B = Share premium
 
C = Invested non-restricted equity fund
 
D = Retained earnings
E = Minority share
 
F = Total equity
 
                                               A     B    C     D   E     F
 
Equity on January 1, 2009                   12.9  64.6       37.6     115.1
 
  Share-related compensation                                  0.2       0.2
 
  Total comprehensive income for the period                  -3.4      -3.4
 
  Other items                                                 0.3 0.0   0.3
 
Equity on Sept. 30, 2009                    12.9  64.6       34.7 0.0 112.2
 
Equity on January 1, 2010                   12.9  64.6       34.9 0.4 112.8
 
  Distribution of funds from the share
 
  premium fund                                   -25.9                -25.9
 
  Transfer from the share premium fund           -38.7 38.7             0.0
 
  Share-related compensation                                  0.5       0.5
 
  Total comprehensive income for the period                 -10.1     -10.1
 
  Other items                                                -0.6 0.7   0.1
 
Equity on Sept. 30, 2010                    12.9   0.0 38.7  24.6 1.2  77.4
 
NOTES TO THE FINANCIAL STATEMENT BULLETIN
 
Accounting principles for the Interim Report:
The  same accounting  policies and  methods of  computation are  followed in the
interim report as compared with annual financial statements.
 
Explanatory  comments about the  seasonality or cyclicality  of reporting period
operations:
The   Company   operates  in  business  areas  which  are  subject  to  seasonal
fluctuations.
 
The  nature  and  amount  of  items  affecting  assets, liabilities, equity, net
income,  or  cash  flows  which  are  unusual  because  of their nature, size or
incidence:
 
Distribution of funds from the share premium fund:
The  General  Meeting  held  on  March  25, 2010 decided  in accordance with the
proposal of the Board of Directors that the shareholders will be distributed EUR
0.20 per  share from the  parent company's share  premium fund, corresponding at
the  date of the General Meeting an  aggregate amount of EUR 25,882,538 based on
the number of shares. The resolution was booked in group in March 2010.
 
Transfer of the funds from the share premium fund to the invested non-restricted
equity fund:
The General Meeting decided in accordance with the proposal of the Board of
Directors that the share premium fund in the parent company's balance sheet as
at 31 December 2009 will be decreased by transferring to the company's invested
non-restricted equity fund all the funds remaining in the share premium fund
after the distribution of the share premium fund The resolution was booked in
group in March 2010.
 
The  distribution and decrease required an authorization by the Finnish National
Board  of Patents  and Registration.  The Finnish  National Board of Patents and
Registration  gave its  consent on  August 12, 2010 for  the distribution of the
share  premium fund and the transfer of the funds from the share premium fund to
the  invested non-restricted equity fund. On September 2, 2010, the shareholders
were  distributed EUR  25,882,538.00 in total  from the  share premium fund, and
after  the distribution, EUR  38,696,853.50 remaining in the  share premium fund
was transferred to the invested unrestricted equity fund of the company.
 
The result of the reporting period comprises statutory provision EUR 8.3 million
related to the TerreStar Network receivables.
 
Payment of dividend:
The  General  Meeting  held  on  March  25, 2010 decided  in accordance with the
proposal of the Board of Directors that no dividend shall be distributed.
 
SEGMENT INFORMATION (MEUR)
 
OPERATING SEGMENTS                1-9/2010 1-9/2009 1-12/2009
 
                                  9 months 9 months 12 months
 
Automotive
 
  Net sales to external customers     57.0     44.7      61.5
 
  Net sales to other segments                   0.0       0.0
 
  Net sales total                     57.0     44.7      61.5
 
  Operating profit (loss)              0.8     -4.0      -3.8
 
Wireless
 
  Net sales to external customers     62.3     68.6      91.6
 
  Net sales to other segments          0.0      0.2       0.2
 
  Net sales total                     62.4     68.7      91.8
 
  Operating profit (loss)            -10.4      1.3       1.0
 
OTHER ITEMS
 
Other items
 
  Net sales to external customers      0.6      0.4       0.6
 
  Operating profit (loss)              0.0      0.9       1.3
 
Eliminations
 
  Net sales to other segments         -0.0     -0.2      -0.2
 
  Operating profit (loss)              0.0      0.0       0.0
 
Group total
 
  Net sales to external customers    119.9    113.7     153.8
 
  Operating profit (loss)             -9.7     -1.9      -1.4
 
Net sales of geographical areas (MEUR) 1-9/2010 1-9/2009 1-12/2009
 
                                       9 months 9 months 12 months
 
Net sales
 
  Europe                                   70.2     69.5      91.4
 
  Americas                                 42.6     35.5      49.2
 
  Asia                                      7.2      8.8      13.2
 
Net sales total                           119.9    113.7     153.8
 
Material events subsequent to the end of the interim period not reflected in the
financial statements for the interim period:
There are no such material events subsequent to the end of the interim report
period that have not been reflected in this report.
 
Related party transactions:                    1-9/2010 1-9/2009 1-12/2009
 
Employee benefits for key management and stock
option expenses total                               1.8      1.8       2.2
 
CONSOLIDATED STATEMENT OF             7-9/     4-6/      1-3/   10-12/      7-9/
 
COMPREHENSIVE INCOME                  2010     2010      2010     2009      2009
 
BY QUARTER (MEUR)                 3 months 3 months  3 months 3 months  3 months
 
NET SALES                             33.7     44.7      41.5     40.1      33.5
 
Other operating income                 0.4      0.8       0.6      1.2       0.9
 
Change in work in progress and
finished goods                         0.2     -0.1       0.1     -0.1       0.4
 
Work performed by the
undertaking
for its own purpose and
capitalized                            0.1      0.1       0.0      0.0       0.0
 
Raw materials                         -2.8     -3.2      -3.3     -2.5      -2.1
 
Personnel expenses                   -22.5    -24.9     -24.2    -23.3     -20.3
 
Depreciation                          -2.2     -2.2      -2.0     -2.2      -2.4
 
Other operating expenses             -18.4    -15.0     -11.1    -12.7     -10.8
 
OPERATING PROFIT (LOSS)              -11.5      0.1       1.7      0.5      -0.8
 
Financial income and expenses          0.9     -0.8      -1.0     -0.3       0.2
 
RESULT BEFORE TAXES                  -10.6     -0.7       0.7      0.1      -0.6
 
Income taxes                           1.6     -0.2      -1.1     -0.4       0.1
 
RESULT FOR THE PERIOD FROM
CONTINUING OPERATIONS                 -9.0     -0.9      -0.3     -0.3      -0.5
 
Result after taxes for the
period
 
from discontinued operations                                       1.0       0.3
 
RESULT FOR THE PERIOD                 -9.0     -0.9      -0.3      0.7      -0.1
 
Other comprehensive income
 
for the period total                  -1.4      1.2       0.7      0.3      -0.4
 
TOTAL COMPREHENSIVE
 
INCOME FOR THE PERIOD                -10.4      0.3       0.3      1.0      -0.5
 
Result for the period
attributable to:
 
  Equity holders of the parent        -9.0     -0.9      -0.6      0.6      -0.2
 
  Minority interest                    0.0      0.0       0.3      0.1       0.0
 
Total comprehensive income
 
for the period attributable to:
 
  Equity holders of the parent       -10.5      0.3       0.0      0.9      -0.6
 
  Minority interest                    0.0      0.0       0.3      0.1       0.0
 
CONSOLIDATED STATEMENT OF        Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
 
FINANCIAL POSITION (MEUR)             2010     2010      2010     2009      2009
 
ASSETS
 
Non-current assets
 
  Property, plant and equipment       10.6     10.8      10.4     11.4      12.2
 
  Goodwill                            18.5     18.5      18.5     18.5      18.5
 
  Intangible assets                   10.0      9.1       8.8      8.7       8.8
 
  Other financial assets               0.1      0.1       0.3      0.3       0.3
 
  Receivables                          0.4      0.4       0.4      0.4       0.8
 
  Deferred tax assets                  0.1      0.1       0.1      0.1       0.0
 
Non-current assets total              39.7     39.1      38.5     39.4      40.7
 
Current assets
 
  Inventories                          2.9      2.5       2.4      2.4       2.6
 
  Trade and other receivables         62.0     65.6      57.3     59.3      55.6
 
  Financial assets at fair
value
 
  through profit or loss              15.8     45.5      50.4     40.2       0.3
 
  Cash and short term deposits        15.0     14.4      16.7     18.8      62.2
 
Current assets total                  95.8    128.0     126.8    120.8     120.7
 
TOTAL ASSETS                         135.5    167.1     165.3    160.2     161.4
 
EQUITY AND LIABILITIES
 
Equity attributable to equity
holders
 
of the parent
 
  Share capital                       12.9     12.9      12.9     12.9      12.9
 
  Share premium                                                   64.6      64.6
 
  Invested non-restricted equity
fund                                  38.7     38.7      38.7
 
  Translation difference               0.3      1.7       0.5     -0.1      -0.4
 
  Retained earnings                   24.3     33.3      34.5     35.0      35.1
 
  Minority interest                    1.2      1.1       0.7      0.4       0.0
 
Total equity                          77.4     87.8      87.4    112.8     112.2
 
Non-current liabilities
 
  Deferred tax liabilities             1.2      1.7       2.3      2.3       2.2
 
  Provisions                           0.6      0.6       0.8      0.9       1.3
 
  Interest-bearing liabilities         8.9     10.5      10.4     11.8      12.5
 
  Other liabilities                                                0.0       0.1
 
Non-current liabilities total         10.7     12.8      13.5     15.0      16.2
 
Current liabilities
 
  Trade and other payables            32.1     59.3      56.9     24.4      24.5
 
  Financial liabilities at fair
value
 
  through profit or loss                        0.0       0.4      0.4
 
  Pension obligations                  1.2      1.1       1.2      1.2       1.2
 
  Provisions                           9.1      1.1       1.2      1.5       1.9
 
  Interest-bearing loans and
 
  Borrowings (non-current)             5.1      5.0       4.6      4.9       5.2
 
Current liabilities total             47.4     66.5      64.4     32.4      32.9
 
Total liabilities                     58.1     79.3      77.9     47.3      49.1
 
TOTAL EQUITY AND LIABILITIES         135.5    167.1     165.3    160.2     161.4
 
7-9/     4-6/     1-3/   10-12/     7-9/
CONSOLIDATED STATEMENT
 
OF CASH FLOWS BY QUARTER                2010     2010     2010     2009     2009
 
                                    3 months 3 months 3 months 3 months 3 months
 
  Net cash from operating
activities                               0.2     -4.5     10.6     -0.5      4.6
 
  Net cash from investing
activities                              -2.6     -1.4     -0.9     -0.7     -0.7
 
  Net cash from financing
activities                             -27.8     -1.1     -1.7     -1.9     -2.1
 
Net change in cash and cash
 
equivalents                            -30.1     -7.1      8.0     -3.1      1.8
 
FINANCIAL PERFORMANCE RELATED RATIOS                1-9/2010  1-9/2009 1-12/2009
 
                                                    9 months  9 months 12 months
 
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
 
Net sales                                              119.9     113.7     153.8
 
Operating profit (loss)                                 -9.7      -1.9      -1.4
 
    Operating profit (loss), % of net sales             -8.0      -1.7      -0.9
 
Result before taxes                                    -10.6      -2.2      -2.0
 
    Result before taxes, % of net sales                 -8.8      -1.9      -1.3
 
Result for the period                                  -10.2      -3.1      -3.3
 
PROFITABILITY AND OTHER KEY FIGURES
 
Interest-bearing net liabilities, (MEUR)               -15.9     -44.4     -42.4
 
Net gearing, -%                                        -20.5     -39.5     -37.6
 
Equity ratio, %                                         62.7      71.1      71.5
 
Gross investments, (MEUR)                                7.0       2.4       4.0
 
Average personnel during the period                     1559      1610      1589
 
Personnel at the period end                             1584      1556      1528
 
AMOUNT OF SHARE ISSUE ADJUSTMENT                   Sept. 30, Sept. 30,  Dec. 31,
 
(1,000 pcs)                                             2010      2009      2009
 
At the end of period                                 129 413   129 413   129 413
 
Average for the period                               129 413   129 413   129 413
 
Average for the period diluted with stock options    130 376   129 466   129 580
 
1-9/2010  1-9/2009 1-12/2009
STOCK-RELATED FINANCIAL RATIOS (EUR)
 
                                                    9 months  9 months 12 months
 
Basic earnings per share                               -0.08     -0.02     -0.03
 
Diluted earnings per share                             -0.08     -0.02     -0.03
 
Equity *) per share                                     0.59      0.87      0.87
 
  *) Equity attributable to equity holders of the
parent
 
MARKET VALUES OF SHARES (EUR)                  1-9/2010  1-9/2009 1-12/2009
 
Highest                                            1.25      0.80      1.40
 
Lowest                                             0.83      0.33      0.33
 
Average                                            1.05      0.52      0.62
 
At the end of period                               0.84      0.75      0.94
 
Market value of the stock, (MEUR)                 108.7      97.1     121.6
 
Trading value of shares, (MEUR)                    10.6       7.0      11.1
 
Number of shares traded, (1,000 pcs)             10 091    13 360    17 822
 
Related to average number of shares %               7.8      10.3      13.8
 
SECURITIES AND CONTINGENT LIABILITIES         Sept. 30, Sept. 30,  Dec. 31,
 
(MEUR)                                             2010      2009      2009
 
AGAINST OWN LIABILITIES
 
  Floating charges                                  3.1       3.3       3.1
 
  Pledges                                           2.4       0.9       1.0
 
Mortgages are pledged for liabilities totaled       6.5       8.8       8.6
 
AGAINST OTHER LIABILITIES
 
  Guarantees                                        4.5       2.8       3.8
 
  Other liabilities                                10.1
 
OTHER DIRECT AND CONTINGENT LIABILITIES
 
Rental liabilities
 
   Falling due in the next year                     5.6       5.1       5.9
 
   Falling due after one year                      17.2      15.1      17.9
 
Other contractual liabilities
 
   Falling due in the next year                     3.3       4.2       4.3
 
   Falling due after one year                       0.3       1.0       0.7
 
NOMINAL VALUE OF CURRENCY DERIVATIVES         Sept. 30, Sept. 30,  Dec. 31,
 
(MEUR)                                             2010      2009      2009
 
Foreign exchange forward contracts
 
   Market value                                     0.7       0.1      -0.3
 
   Nominal value                                   12.0       2.0      11.0
 
Purchased currency options
 
   Market value                                     0.8       0.4       0.1
 
   Nominal value                                    8.0       8.5      11.5
 
Sold currency options
 
   Market value                                    -0.5      -0.1      -0.1
 
   Nominal value                                   16.0      17.0      23.0
 
[HUG#1456341]
 
Interim Report 3Q 2010, Elektrobit Corporation: 
http://hugin.info/120213/R/1456341/396195.pdf
 
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     originality of the information contained therein. 
 
Source: Elektrobit Oyj via Thomson Reuters ONE