Elcoteq - Company Announcement

Elcoteq Chooses a New Strategic Partner in the Equity Process and Ends Negotiations with Kaifa

Elcoteq SE
Stock Exchange Release
September 30, 2009, at 8.30 am (EET)


Elcoteq SE announced on July 22 that it has signed a conditional
Letter of Intent with Chinese industrial company Shenzhen Kaifa
Technology Company Limited. After mutual re-assessment, the parties
have concluded that the sufficient prerequisites for entering into a
definitive agreement will not be met and negotiations concerning an
equity investment have ended.

Instead, Elcoteq has signed a non-binding Letter of Intent with
another Asian strategic investor. This transaction aims at
strengthening Elcoteq's financial position and it also offers clear
business synergies.

The Board of Directors has given authorization to proceed with the
due diligence and final contract negotiations with the new investor
and the parties are aiming at a rapid process to conclude the
negotiations. The company will disclose further details, including
the anticipated transaction timetable and the name of the new
investor, within one week.

Elcoteq and the new investor proceed with the negotiations regarding
the debt restructuring as previously announced. Successful senior and
subordinate debt restructuring is also a precondition for concluding
the definitive agreement with the new investor.


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.