Stock exchange release

Free for publication on November 23, 2018 at 4.40pm (CET +1)

Bittium Corporation’s tactical backbone network as part of the new Austrian defense forces’ tactical communication system

Bittium’s cooperation partner in Austria Kapsch BusinessCom AG was informed today that it should be selected as the provider of the new tactical communication system for the Austrian defense forces.

Oulu, Finland, November 23, 2018 – Bittium’s cooperation partner, Austrian information technology company Kapsch BusinessCom AG, was informed by the Austrian defense administration (Bundesministerium für Landesverteidigung, BMLV) today that it should be selected as the provider of the new IP-based tactical communication system for the Austrian defense forces. Bittium’s products for tactical communications are a significant part of Kapsch BusinessCom’s bid, including the Software Defined Radio based Bittium Tactical Wireless IP Network™ (TAC WIN) system, which will be the core of the new communication system, as well as Bittium Tough Comnode™ and Bittium Tough VoIP™ products.

After the decision given today by the Austrian defense administration, a 10-day appeal period starts, during which, the losing parties of the competitive bidding can make a complaint of the ministry’s decision to the court. This is a typical process in such public competitive bidding. Bittium will follow up the situation and issue a stock exchange release without delay as more information is available.

If materialized, Bittium’s share of the total value of the winning bid will be around EUR 30 million (excl. VAT). The product deliveries are expected to take place during the years 2019-2021 and the majority of the net sales is estimated realize during the years 2020 and 2021. This will not change Bittium's financial outlook for the year 2018, published on August 8, 2018 in the company’s half year interim report.

The bid was made for a large-scale, internationally tendered programme called the Future Tactical Communications Network (FTCN). In the programme the tactical communications of the Austrian defense forces will be renewed with a complete IP-based (Internet Protocol) system. The core of the system will be the Software Defined Radio based Bittium Tactical Wireless IP Network™ (TAC WIN) system. Kapsch BusinessCom will integrate and deliver the complete system to the Austrian defense forces, including also their own and third-party solutions.

Oulu November 23, 2018

Hannu Huttunen
CEO
Bittium Corporation

Further information:

Hannu Huttunen
CEO
Tel. +358 40 344 3507
Email: defense(a)bittium.com

Distribution:

Main media
Nasdaq Helsinki Ltd

Bittium

Bittium specializes in the development of reliable, secure communications and connectivity solutions leveraging its 30 year legacy of expertise in advanced radio communication technologies. Bittium provides innovative products and services, customized solutions based on its product platforms and R&D services. Complementing its communications and connectivity solutions, Bittium offers proven information security solutions for mobile devices and portable computers. Bittium also provides healthcare technology products and services for biosignal measuring in the areas of cardiology, neurology, rehabilitation, occupational health and sports medicine. Net sales in 2017 were EUR 51.6 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com

Bittium Tactical Wireless IP Network™

Bittium Tactical Wireless IP Network (TAC WIN) is a Software Defined Radio based wireless broadband network system intended for military and public safety use. With the system MANET (mobile ad hoc network), link, and connection networks can be formed into one logical IP network quickly, no matter what the location is. Bittium TAC WIN is compatible with existing fixed and wireless network infrastructures. The core of the system is a tactical router that enables users to freely form both wired and wireless broadband data transfer IP connections. Tactical router enables also connections to different types of terminals and other communication systems connecting them into a one communication network. In addition to the router the system comprises three types of radio heads, and each radio head covers its own frequency band area and can be used for flexible formation of optimized network topologies for different communication needs. All the products of the system are designed for harsh conditions, and thanks to the system's automated functions the implementation of the system can be done quickly. Due to the software-based functionality of the Bittium TAC WIN system, it can be easily updated with additional performance cost-efficiently during the whole lifespan of the system.

More information on the Bittium TAC WIN system and the related products: https://www.bittium.com/products_services/defense/bittium_tactical_wireless_ip_network.

Bittium Tough VoIP™ product family

Bittium Tough VoIP product family’s products enable tactical IP calls and broadband data transfer even in the most demanding conditions. Products can also be easily integrated with an existing IP infrastructure. Bittium Tough VoIP Service™ software product connects both fixed data network users and wireless tactical data network users to the same voice service network. This significantly improves the capability to lead troops and maintain situational awareness in the quickly changing conditions of the battlefield.

More information on Bittium Tough VoIP products: https://www.bittium.com/products_services/defense/bittium_tough_voip.

Bittium Tough Comnode™

Bittium Tough Comnode fulfills the data transfer needs of mobile troops by functioning for example as a VoIP phone (Voice over IP), an IP router (Internet Protocol), and an SHDSL repeater (Symmetrical High-speed Digital Subscriber Line). Additionally, Bittium Tough Comnode also provides SIP (Session Initiation Protocol) server functionalities of the tactical voice network for commercial VoIP terminals and enables using also legacy Combat Net Radios (CNR) as part of the IP-based tactical communication system (Radio over IP, RoIP).

More information on Bittium Tough Comnode terminal: www.bittium.com/BittiumToughComnode.

Files
Release (wkr0006.pdf)