FIN-FSA ISSUES A PUBLIC REPRIMAND TO ELEKTROBIT FOR BREACH OF DISCLOSURE OBLIGATION

FINANCIAL SUPERVISION AUTHORITY 	STOCK EXCHANGE RELEASE 21 SEPT 2007, 9.15 A.M.
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FIN-FSA ISSUES A PUBLIC REPRIMAND TO ELEKTROBIT FOR BREACH OF DISCLOSURE
OBLIGATION 

On 21 September 2007, the Financial Supervision Authority (FIN-FSA) issued
Elektrobit Corporation a public reprimand for breach of the disclosure
obligation under Section 7, Chapter 2 of the Securities Markets Act. The
company failed to disclose without undue delay its decision to withdraw from
the business model of partnered manufacture of 3G smart phones, which was one
of the strategy implementation models used by the company's Cellular Mobile
Terminal business area. 

In the FIN-FSA's view, the decision on withdrawal constituted information with
a material effect on the value of the security. The FIN-FSA considers that a
disclosure obligation arose at the latest on 30 November when the CEO informed
the Board of Directors of the company of the decision to withdraw. However, the
company only published the information in its financial statement bulletin on 7
February 2007. 

According to the FIN-FSA's view, the company's previous consistent
communication with stock exchange and press releases on the manufacture of
smart phones with the partnered manufacturing business model, and on contracts
related to the project, indicates that the company itself has also considered
the matter to be material. Materialness is also supported by market reactions.
The decision on withdrawal should have been published in a separate stock
exchange release on 30 November 2006. Elektrobit has therefore failed to comply
with the regulations and its practices have, in the view of the FIN-FSA, been
negligent at the very least. However, the matter on the whole does not give
grounds for more severe measures than a public reprimand. 

Elektrobit has submitted on 29 March 2007 and 15 August 2007 the statements
requested by the FIN-FSA. 

According to the justifications to Chapter 2, Section 7 of the Securities
Markets Act, the issuer itself must assess the impacts various decisions and
circumstances may have on the value of its security. The assessment must begin
from whether a rational investor operating in the markets could be assumed to
consider that piece of information upon making an investment decision. When
considering a decision on disclosure, attention must also be paid to the
overall consistency of communication. Hence, another consideration in whether a
piece of information is material is what the issuer has previously disclosed in
public. Any change in material matters must be communicated to the public in a
manner corresponding to how the original information was published. 

The Financial Supervision Authority may issue a public reprimand to an entity
operating in the financial markets that wilfully or negligently violates the
provisions governing financial markets or regulations issued under such
provisions where the matter as a whole does not give cause for more severe
measures. 

The public reprimand does not yet have legal force. Elektrobit has 30 days from
receipt of the decision on 21 September 2007 to lodge an appeal with the Market
Court. 

FINANCIAL SUPERVISION AUTHORITY

Sari Helminen
Head of Division

Terhi Lambert-Karjalainen
Head of Communications

For further information, please contact: Sari Helminen, Head of Division, tel
+358 10 831 5264. 

DISTRIBUTION: OMX Nordic Exchanges Helsinki, principal media