Elcoteq - Company Announcement

Elcoteq Has Signed a Letter of Intent with Videocon

Elcoteq SE
Stock Exchange Release
October 2, 2009, at 9.30 am (EET)

Elcoteq has signed a non-binding Letter of Intent with Videocon
Industries Limited (Videocon), granting the authority to negotiate
and finalize a potential Definitive Transaction Agreement
(Agreement).

Elcoteq's Board of Directors has given authorization to proceed with
the due diligence and contract negotiations with Videocon. The
parties are aiming at a rapid process to conclude the negotiations
and sign the Agreement. The transaction is expected to close by the
end of the year. The signing of the Agreement is subject to
successful senior and subordinate debt restructuring and complete due
diligence. The closing of the transaction will be subject to all the
requisite and applicable regulatory, statutory and corporate
approvals of both Videocon and Elcoteq.

Elcoteq and Videocon will proceed with the negotiations regarding the
debt restructuring as previously announced.

About Videocon

Videocon (www.videoconindustries.com) is a global industrial
conglomerate based in Mumbai, India. It is listed at Bombay Stock
Exchange (scrip code 511389). Videocon's key business areas are:
consumer electronics, home appliances & compressor manufacturing;
display industry and its components; colour picture tube glass and
oil & gas. The group has annual sales of over USD 4 Billion and it
employs approximately 25,000 persons worldwide.

ELCOTEQ SE

Minna Aila
Director, Communications and Corporate Responsibility

Further information:
Jouni Hartikainen, President and CEO, tel. +358 10 413 11
Mikko Puolakka, CFO, tel. +358 10 413 1287


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.