Elcoteq - Company Announcement

Elcoteq and Philips Lighting Agree on Global Cooperation - Elcoteq Expands its Business into a New Fast Growing Market Segment

Elcoteq SE
Stock Exchange Release
March 15, 2010 at 9.00 am (EET)


In line with its strategy of leveraging its capabilities into new product
segments with growth potential, Elcoteq has successfully started serving
customers in selected lighting segments. Philips Lighting, a leading provider of
solutions and applications for both professional and consumer markets, has
chosen Elcoteq for a global growth partner of its Solid-State Lighting business.
Under the agreement, Elcoteq will provide Philips Lighting with global
manufacturing services and related sourcing and supply chain management as well
as product development services.

Solid-State Lighting (SSL) is type of energy-efficient lighting<http://en.wikipedia.org/wiki/Lighting> that uses semiconductor light-emitting
diodes <http://en.wikipedia.org/wiki/Light-emitting_diode> (LEDs), organic
light-emitting diodes<http://en.wikipedia.org/wiki/Organic_light-emitting_diode> (OLED), or polymer
light-emitting diodes<http://en.wikipedia.org/wiki/Polymer_light-emitting_diode#Polymer_light-emittin
g_diodes> (PLED) as sources of illumination. With worldwide electrical lighting
using 19 per cent of all electricity, the use of energy-efficient lighting will
significantly reduce energy consumption around the world and thereby cut harmful
CO2 emissions."We are very pleased to expand our partnership with Philips and to commence the
cooperation with Philips Lighting. This deal marks our entrance into a new fast
growing market segment - Solid-State Lighting - that fits into our capabilities
and our manufacturing network extremely well. We are looking forward to building
a global cooperation with Philips also in this new market segment", says Vesa
Keränen, President of Elcoteq's Consumer Electronics Business Unit.
Elcoteq has already started the production of SSL products in its factory in
Dongguan, China. Production will expand to other Elcoteq locations including
Mexico and Hungary still during the year 2010.

The lighting business will be undergoing significant transition when new
LED-based lighting products replace conventional light sources. These new
lighting product applications provide significant growth opportunities for EMS
companies. The value of LED-based lighting products is estimated to reach 80
billion euros by the year 2020. These trends create a solid basis for developing
Elcoteq's Consumer Electronics business toward serving a wider and more balanced
business and customer portfolio.

ELCOTEQ SE

Elina Kokko
Communications Manager

Further information:
Jouni Hartikainen, President and CEO, tel. +358 10 41 311
Vesa Keränen, President, Consumer Electronics Business Unit<http://www.elcoteq.com/en/Investors/Corporate_governance/Management/keranen.htm>, tel. +1 469 212 6294

About Elcoteq

Elcoteq SE is the global Life Cycle Service Partner for high-tech product and
service companies.

Engineering, Manufacturing, Fulfillment and After Market Services are the
cornerstones of Elcoteq's extensive service offering. Elcoteq has a proven track
record in electronics manufacturing services (EMS) and a global factory network
coupled with modern manufacturing equipment and consistent systems and
processes.

Products include Consumer Electronics devices such as mobile phones and their
accessories, set-top boxes, flat panel TVs as well as System Solutions products
such as infrastructure systems, modules and other industrial segment products.

The Group's consolidated net sales for 2008 totaled 3.4 billion euros and it
employs approximately 11,000 persons. Elcoteq SE is listed on the Nasdaq OMX
Helsinki Ltd.  For more information visit the Elcoteq website at
www.elcoteq.com.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a
diversified Health and Well-being company, focused on improving people's lives
through timely innovations. As a world leader in healthcare, lifestyle and
lighting, Philips integrates technologies and design into people-centric
solutions, based on fundamental customer insights and the brand promise of"sense and simplicity".

Headquartered in the Netherlands, Philips employs more than 116,000 employees in
more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the
company is a market leader in cardiac care, acute care and home healthcare,
energy efficient lighting solutions and new lighting applications, as well as
lifestyle products for personal well-being and pleasure with strong leadership
positions in flat TV, male shaving and grooming, portable entertainment and oral
healthcare. News from Philips is located at www.philips.com/newscenter.


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