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EB (Elektrobit) Delivers TerreStar Satellite-Terrestrial Smartphones


Elektrobit Inc., a subsidiary of Elektrobit Corporation (EB), and TerreStar Corporation (TerreStar) have signed a frame supply agreement regarding the delivery of satellite-terrestrial smartphones for TerreStar. According to the agreement EB will be responsible for delivering complete products to TerreStar based on the EB-designed satellite-terrestrial reference device, which includes manufacturing, forward and reverse logistics, and after market services support.

Through this agreement, EB Wireless Solutions introduces, in addition to its current R&D services and customized solutions offering, a product delivery business model, where it provides complete products to its customers by subcontracting the production of EB-designed devices from selected Electronic Manufacturing Services (EMS) companies. This business model both strengthens EB’s strategic position as turnkey solution provider for its customers and enables EB’s Wireless Solutions business to address new business opportunities.

TerreStar has announced that it plans to launch its commercial service with its satellite-terrestrial smartphones next year, and EB has the readiness to start the product delivery accordingly. Actual delivery volumes for the satellite-terrestrial smartphones will depend upon market demand, and thus reliable delivery forecasts can not be provided at this stage.

Product delivery business model and the execution of the frame supply agreement between EB and TerreStar, include typical risks related to any product delivery business model, such as high dependency on actual product volumes, development of the cost of materials and production yields, warranties, product and contractual liabilities, which may manifest themselves as higher cost of product delivery, and ultimately, as lower profit.

The product delivery business model and the execution of the frame supply agreement do not have a material impact on EB’s balance sheet, net sales and result for the second half of 2009, and thereby guidance given for the said period remains unchanged.

EB and TerreStar began their cooperation in September 2007 when EB started to develop advanced handset technologies and reference devices for TerreStar’s upcoming satellite-terrestrial all-IP mobile network.

EB, Elektrobit Corporation
EB develops advanced technology and transforms it into enriching end user experiences. EB specializes in demanding embedded software and hardware solutions for the automotive industry and wireless technologies. The company’s net sales for the year 2008 totaled EUR 172.3 million. Elektrobit Corporation is listed on the NASDAQ OMX Helsinki.

TerreStar Corporation
TerreStar Corporation is the controlling shareholder of TerreStar Networks Inc. and TerreStar Global Ltd. For additional information on TerreStar Corporation, please visit the company’s website at .

TerreStar Networks Inc.
TerreStar Networks ( ), a majority owned subsidiary of TerreStar Corporation (NASDAQ: TSTR), plans to offer a reliable, secure and resilient satellite terrestrial mobile broadband network that will provide voice, data and video services dedicated to helping solve the critical communication and business continuity challenges faced by government, emergency responders, enterprise businesses and rural communities. TerreStar expects to offer next generation mobile communications through a network of partners and service providers to users who need “anywhere” coverage throughout the United States.


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