DOWNSIZING OF DIGIA'S MOBILE SOLUTIONS SEGMENT TO CONTINUE

Digia Plc STOCK EXCHANGE RELEASE 13 May 2011, 9.00 a.m.

DOWNSIZING OF DIGIA'S MOBILE SOLUTIONS SEGMENT TO CONTINUE

Digia continues adapting its Mobile Solutions business to match the declining turnover and profitability of the segment and initiates today cooperation negotiations aimed at reducing staff.

As previously announced by Digia Plc this is due to the change of strategy by company’s major customer, Nokia Corporation, which has resulted to lower service demand and further to overcapacity in Digia’s personnel resources.

The negotiations concern employees working in the Mobile Solutions segment and based in Helsinki, Jyväskylä, Oulu and Tampere, as well as all employees at the company's Lappeenranta site. In addition, the negotiations concern employees in certain administrative and support functions. In total, approximately 530 Digia employees are included. Digia estimates that the downsizing need affects a maximum of 190 employees, to whom the company is unable to assign work. In the end of March, the Group employed a total of 1,586 persons.

Staff cuts do not concern the Enterprise Solutions segment, which is thus excluded from the negotiations and which generated almost 60 % of the Group’s turnover in 2010 and in Q1 2011. The company has estimated that the net sales of Enterprise Solutions are expected to grow organically during the rest of the year, at least matching the moderate rate predicted for the IT market.

Demand for Enterprise Solutions' strong focus areas – development of ERP solutions as well as e-commerce and multi-channel customer experience management – is considered healthy by Digia. When necessary, the company aims to reinforce the operations of the Enterprise Solutions segment through targeted recruitment.

Digia Plc

Board of Directors

Further information
Juha Varelius, President and CEO
Tel. +358 400 855849, E-mail: juha.varelius@digia.com

Distribution
NASDAQ OMX Helsinki
Key media