Elcoteq - Company Announcement

Elcoteq Continues with Balance Sheet Restructuring

Elcoteq SE
Stock Exchange Release
October 21, 2009 at 11.30 am (EET)



Elcoteq stated in July 2009 that it is the company's intention, in
agreement with its relevant creditors, to restructure its interest
bearing debt as an integral part of the project to strengthen its
balance sheet. This planned restructuring will require, among other
things, measures to be taken with respect to the company's
outstanding debentures. The company held a meeting with its debenture
holders on September 3, 2009 to amend the terms and conditions of its
debentures. These amendments were made in order to be able to carry
out the needed actions.

Pohjola Corporate Finance as the advisor of Elcoteq will approach
debenture holders with a concrete proposal whereby the debenture
holders would be requested to make irrevocable commitment to sell the
holder's debentures at a price of 25% of the nominal value plus the
accrued interest. Elcoteq is planning a structure in which a
potential investor would buy the debentures and possibly subsequently
convert the debentures to shares in Elcoteq. According to the plan
Elcoteq shall retain the right to withdraw its proposal.


ELCOTEQ SE
Minna Aila, Director, Communications and Corporate Responsibility


Further information:
Mikko Puolakka, CFO, tel. +358 10 413 11

About Elcoteq
Elcoteq SE is a leading electronics manufacturing services (EMS)
company in the communications technology field. Elcoteq's global
service offering covers the entire lifecycle of products, from
product development to after-market services. By further combining
mechanics expertise into its service offering, Elcoteq's vision is to
be a leading integrated electronics manufacturing services (IEMS)
company.

Elcoteq provides global end-to-end solutions consisting of product
development services, supply chain management, NPI, manufacturing,
and after market services for the whole lifecycle of its customers'
products. These products include Consumer Electronics products such
as mobile and wireless phones, their parts and accessories, set-top
boxes, flat panel TVs and other consumer products as well as System
Solutions products such as wireless and wireline infrastructure
systems and modules, enterprise network products and other industrial
segment products.

The Group's consolidated net sales for 2008 totaled 3.4 billion euros
and it employs approximately 13,000 persons. Elcoteq SE is listed on
the Nasdaq OMX Helsinki Ltd.  For more information visit the Elcoteq
website at www.elcoteq.com.