Techstep ASA — M&A Activity 2015

Jan 2, 2015

Birdstep Technology ASA sells Birdstep Technology Oy (Secure Mobility) in order to focus fully on its core growth areas

Birdstep Technology ASA sells Birdstep Technology Oy (Secure Mobility) in order to focus fully on its core growth areas

Oslo, January 2, 2014:

Birdstep Technology ASA (OSE: BIRD) and Birdstep

Technology Oy (Secure Mobility), a wholly owned

subsidiary in Finland, announced today that they

have signed a share purchase agreement where Secure

Mobility is to be sold to Elektrobit Technologies

Ltd (EB).

"Birdstep Technology ASA will focus entirely on our

major area of growth, Smart Mobile Data services,

offering advanced solutions for Mobile Network

Operators, Cable Network Operators and device

manufacturers. With this transaction Birdstep is

provided greater opportunity and stronger position

in a rapidly growing market ", says Lonnie

Schilling, CEO of Birdstep Technology ASA.

Tom Nyman, Chairman of the Board, added "We're very

pleased that Birdstep has completed the sale of

Secure Mobility. Even though the company has strived

to find synergies for Secure Mobility and Smart

Mobile Data the strategic direction for the

different business areas has further diverged. With

this transaction Birdstep provides opportunity and

foundation for both to focus, grow and to create

stronger positions in the market"

EB develops advanced technology and transforms it

into enriching end user experiences. The company

specializes in demanding embedded software and

hardware solutions for the automotive industry and

wireless technologies. Secure Mobility will move

into an area of business within EB's Wireless

Business Segment that will allow them to focus and

grow through EB's presence in the market, their

customers, their economic position and a close

alignment with their strategic vision.

Summary of Transactions:

The purchase price for Secure Mobility business

segment is EUR 1.9 million in cash on the closing

date and before accounting for transaction costs.

The purchase price consist of Enterprise Value of

EUR 2 million less Net Debt of EUR 0.1 million. The

transaction was signed and closed on January 2nd,

2015. The purchase price is net of cash and cash

equivalents. Thirty days post-closing date, and once

the 2014 audited financials are available,

adjustments to the purchase price will be made by

considering any net working capital (NWC) or net

debts adjustments.

Birdstep Technology ASA will issue an Information

Document regarding this transaction, cf. the

Continuing Obligations section 3.5 of stock exchange

listed companies.

About 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

About Birdstep Technology

Birdstep Technology is a leading provider of Smart

Mobile Data and Secure Mobility for operators,

enterprises and governmental organizations. Drawing

on extensive experience of successful customer

projects and cooperation with operators, enterprise

customers and OEM partners around the world,

Birdstep delivers industry-leading solutions for

wireless connectivity and service management.

Birdstep is listed on Oslo Stock Exchange.

www.birdstep.com

For further information please contact:

Lonnie Schilling

Chief Executive Officer

+46 8 627 91 40

This information is subject to the disclosure

requirements according to §5-12 vphl (Norwegian

Securities Trading Act).