Report By the Board of Directors

Environmental Factors

Bittiumīs business operations focus mostly on the design, assembly provided by the manufacturing partners and marketing of products. This represents only a minor part of the environmental impacts over the entire life cycle of the products. Products manufactured by the Company have only minor general environmental impacts.

Bittium Corporation has its environmental management system certified according to ISO 14001.2004 standard. The environmental management system has been renewed to cover the requirements of the ISO14001.2015 standard. Company is monitoring globally the environmental requirements for products and derived national regulations to the extent that they are related to the company operations. Bittium has also observed and applied the requirements of the ROHS (use of hazardous substances) and WEEE (recycling of electrical and electronic equipment) directives in design since 2002.

Since 2009, the applied environmental standards and regulations in company operations have been consolidated as uniform Bittium substance list, applicable also to Bittiumīs significant suppliers. The substance list includes, in addition to the so called ROHS2 and REACH standards, the substance requirements applicable in different market areas against which identification of materials is made if needed. In addition materials declaration list observes certain customer specific requirements.

Company has further updated the requirements on a biannual basis and applied the proper environmental requirements to the products or solutions, in which Bittium has partial or total responsibility depending on the application scope. The imposed requirements will be observed in business operations on a country- specific basis.

During 2015 Bittium has also further developed company environmental reporting, based on which the environmental objectives have been followed. In addition, company has also started the implementation of energy efficiency system according to ETJ+ - standard to be added into certified ISO14001 – system. The implementation of the Energy Efficiency system will be finalized during 2016.