Stock Exchange & Press Releases 2015

January 09, 2015

Parrot SA has filed a request for arbitration against e.solutions GmbH, a jointly owned company of Elektrobit Corporation (EB) and Audi, seeking remuneration and/or damages in connection with a sup...

Stock exchange release

Parrot SA has filed a request for arbitration against e.solutions GmbH, a jointly owned company of Elektrobit Corporation (EB) and Audi, seeking remuneration and/or damages in connection with a supply contract

Elektrobit Corporation (EB) has received information that a supplier of e.solutions GmbH (e.solutions), Parrot SA (Parrot), has filed a request for arbitration against e.solutions at the International Court of Arbitration of the International Chamber of Commerce seeking remuneration and/or damages currently in an amount of approximately EUR 9.4 million in connection with an automotive supply contract. The place of arbitration is Munich, Germany.

Based on e.solutions' initial legal analysis the claim is without merit both in terms of the grounds and the amount of the claim.

The claim is based on Parrot's allegation that e.solutions breached a supply contract between e.solutions and Parrot by not ordering Parrot's products for e.solutions' new infotainment software system. Parrot, also, claims that e.solutions' new infotainment software system infringes its IP rights.

Based on the current analysis, the arbitral proceedings will not cause any 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 have significant negative impact on e.solutions' and EB's profit, cash flow and financial position.

Parrot has previously filed a lawsuit against e.solutions based on the same contract in the Tribunal de Commerce de Paris (Commercial Court Paris) as announced by EB on April 4, 2014 and has subsequently withdrawn the claim as announced by EB on September 22, 2014.

e.solutions GmbH is a jointly owned company of EB's subsidiary, Elektrobit Automotive GmbH, and Audi AG'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, January 9, 2015

Elektrobit Corporation
Jukka Harju
CEO

Further information:

Jukka Harju
CEO
Tel. + 358 40 344 5466

Kari Jokela
Chief Legal Officer
Tel. + 358 40 344 5258

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 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