Elcoteq - Company Announcement

Elcoteq SE Concentrates Its European Manufacturing To Pécs, Hungary and Sells Tallinn Manufacturing Operations to Ericsson

Elcoteq SE
Stock Exchange Release
June 17, 2009, at 8.30 am (EET)

Elcoteq has signed an agreement with Ericsson to sell the majority of
its operations in Tallinn. The transaction includes machinery,
materials and the lease agreement of the plant building. The
transaction value is approximately 30 million euros. Most employees
will continue working with existing terms for Ericsson. Elcoteq will
retain specialized manufacturing capacity in Estonia to serve its
other customers. Deliveries to Ericsson continue from other Elcoteq
plants.

Elcoteq and Ericsson have concluded an agreement whereby Elcoteq
sells the majority of the machinery, equipment and materials of its
Tallinn manufacturing operations to Ericsson. The agreement also
includes transfer of the lease agreement concerning manufacturing
premises and employment agreements related to these operations. The
transaction value is approximately 30 million euros. The transaction
will not have an impact on profitability at annual level. The revenue
generated by the transferred business is less than 200 million euros
annually. The transaction is expected to close by the end of July
2009 and requires formal approval by the relevant anti-trust
authorities.

Elcoteq has reduced its manufacturing capacity through the
Restructuring Plan launched in January to adapt to the radical
changes in the market situation. A further step in this process has
now been taken since it was estimated that one major plant in Europe
is enough to match the current and short-term forecasted
manufacturing volumes. European high-volume manufacturing will be
concentrated in Elcoteq's plant in Pécs, Hungary. Deliveries to
Ericsson continue from other Elcoteq plants.

Elcoteq currently employs approximately 1,600 persons in Tallinn, of
which approximately 1,200 will be transferred to Ericsson and will
continue their employment based on existing terms and conditions.
Elcoteq will continue operations in Tallinn on a smaller scale in a
specialized plant.

ELCOTEQ SE

Minna Aila
Director, Investor Relations and Corporate Responsibility

Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Mikko Puolakka, CFO, tel. +358 10 413 1287
Tommi Pettersson, President, Communications Networks, tel. +358 10
413 1654

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 Personal Communications products
such as mobile phones and their parts, Home Communications products
such as set-top boxes and flat panel TVs as well as Communications
Networks products such as base-stations, tower-top amplifiers, and
microwave systems.

Elcoteq operates in 15 countries on four continents and employs some
15,000 people. The Group's consolidated net sales for 2008 totaled
3.4 billion euros. Elcoteq SE is listed on the Nasdaq OMX Helsinki
Ltd.  For more information visit the Elcoteq website at
www.elcoteq.com.