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Elektrobit Group Oyj - Parrot S.A. has initiated legal proceeding against e.solutions GmbH, a jointly owned company of Elektrobit Corporation (EB) and AUDI, seeking to collect damages

April 04, 2014

Parrot S.A. has initiated legal proceeding against e.solutions GmbH, a jointly owned company of Elektrobit Corporation (EB) and AUDI, seeking to collect damages

Stock exchange release

Free for publication on April 4, 2014 at 4.30 p.m. (CEST+1)

Parrot S.A. has initiated legal proceeding against e.solutions GmbH, a jointly owned company of Elektrobit Corporation (EB) and AUDI, seeking to collect damages

Elektrobit Corporation (EB) has received information that a supplier of e.solutions GmbH, Parrot S.A, has filed a lawsuit against e.solutions in the Tribunal de Commerce de Paris (Commercial Court Paris) seeking to collect damages in the amount of approximately EUR 18.4 million for loss of profit and reputational damage.

Based on the e.solutions' initial legal analysis the claim is without merit both in terms of the grounds and the amount of the claim. Further, based on the agreement between the parties, the Tribunal de Commerce de Paris is not a competent forum to process the dispute. e.solutions will give its response to the claim to the court in due course.

The claim is based on Parrot's allegation that e.solutions terminated the agreement entered into between e.solutions and Parrot abruptly and fraudulently, when e.solutions decided not to use Parrot's software on a certain project. This, Parrot argues, constitutes an unjustified termination of the contract according to the French law and entitles Parrot for loss of profit on the basis of tort.

Based on the current estimate, the legal proceedings will not cause any such financial obligation to e.solutions or to EB that would affect EB's profit outlook and financial position. It is possible that, based on later information, this view may need to be reconsidered. At the worst, Parrot's claim could result significant negative impact on e.solutions' and EB's profit, cash flow and financial position.

e.solutions GmbH is a jointly owned company of EB's subsidiary, Elektrobit Automotive GmbH, and Audi's subsidiary, Audi Electronics Venture GmbH (AEV), and is currently developing infotainment software and provides systems engineering and systems integration services for Volkswagen Group car models. EB owns 51% of e.solutions GmbH and AEV 49%.

Oulu, April 4, 2014

Elektrobit Corporation
Jukka Harju
CEO

Further information:

Jukka Harju
CEO
Tel. + 358 40 344 5466

Päivi Timonen
Chief Legal Officer
Tel. + 358 40 344 2794

Distribution:

NASDAQ OMX Helsinki
Principal media

Elektrobit Corporation (EB)

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 from continuing operations in 2013 totaled EUR 199.3 million and operating profit was EUR 8.1 million. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com