Elcoteq - Company Announcement

Elcoteq Issues EUR 29 Million Hybrid Securities to Repay Outstanding Subordinated Debt Having a Nominal Value of EUR 105 Million

Elcoteq SE
Stock Exchange Release
January 27, 2010 at 08:30 am (EET)

As part of its previously announced balance sheet restructuring, Elcoteq SE has
today decided to issue EUR 29 million hybrid securities in a private placement.
The proceeds from the hybrid securities issue will be used directly to repay EUR
105 million nominal amount of Elcoteq's existing outstanding debenture bonds.
The announced restructuring will significantly decrease the Company's
indebtedness.

The repayment of EUR 105 million debenture bonds is related to the Company's
previous announcement on October 21, 2009 to collect irrevocable selling
commitments from the holders of its subordinated debenture bonds. The Company
will now proceed to exercise these irrevocable commitments. As a result of this
transaction, the company estimates that it will recognize a one-time gain of
approximately EUR 75 million in the first quarter of 2010.

The gain from debenture repayment and the classification of hybrid securities as
equity result to an increase in the Company's consolidated shareholders' equity
of approximately EUR 105 million. As a consequence, the company's indebtedness
and solidity are expected to improve significantly."We are very satisfied that we have been successful in this effort to
restructure a significant part of outstanding debts of Elcoteq. This arrangement
is a major step in the process to provide further confidence to Elcoteq's
customers and other stakeholders", says Jouni Hartikainen, President and CEO of
Elcoteq.

A hybrid security is an unsecured equity instrument which is subordinated to the
company's debt obligations and treated as equity in IFRS financial statements.
Hybrid securities do not confer to their holders the right to vote at
shareholder meetings and do not dilute the holdings of the current shareholders.
The hybrid securities issued by Elcoteq have a coupon rate of 10.0% per annum.
The hybrid securities have no maturity but the company can redeem it after four
years from issuance at its consideration. The manager of the hybrid securities
issue is Pohjola Corporate Finance.

ELCOTEQ SE

Satu Jaatinen
Communications Manager

Further information:
Mikko Puolakka, CFO, tel. +358 10 413 1287

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 corner
stones 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.


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