Elcoteq - Company Announcement

Elcoteq Streamlines Organization and Begins Personnel Negotiations in Finland

Elcoteq SE
Stock Exchange Release
August 27, 2009, at 09.00 am (EET)

Elcoteq has decided to combine two current Business Areas, Home
Communications and Personal Communications, under a new Strategic
Business Unit (SBU), Consumer Electronics. Communications Networks
continues as an independent SBU, now named as System Solutions. Two
new members have been appointed to the Management Team; Mr. Sándor
Hajnal being responsible for Human Resources and Mr. Tomi Saario
being responsible for New Sales and Business Development. The
personnel reductions related to the organizational changes are
affecting globally approximately 150 persons. The personnel
negotiations in Finland have started today.

Since the beginning of 2008, Elcoteq has had three Business Areas:
Personal Communications, Home Communications and Communications
Networks. They have been reported as separate segments. Personal
Communications and Home Communications Business Areas will now be
combined, and in the future the company shall only have two Strategic
Business Units (SBU): Consumer Electronics and System Solutions. Both
SBUs are responsible for managing and developing their existing
customer relationships and applicable service offerings, while Group
Operations and Sourcing is responsible for supply chain and
production. Consumer Electronics represents approximately 75% of the
company's net sales and System Solutions represents approximately
25%.

Consumer Electronics will cover products such as mobile and wireless
phones, their parts and accessories, set-top boxes, flat panel TVs
and other consumer products. System Solutions will cover wireless and
wireline infrastructure systems and modules, enterprise network
products and various other industrial segment products.

By combining the Home Communications and Personal Communications
segments under the Consumer Electronics SBU, the Company can better
utilize the synergies between these businesses. Company aims also at
further cost reductions by streamlining and simplifying the
organization by removing organizational layers and overlapping roles.

More emphasis is also put on new sales activities which are now under
a separate global function, New Sales and Business Development.  It
focuses on identifying new business opportunities, acquiring new
customers and exploring new product segments for the company.

Two new members have been invited to Elcoteq's Management Team from
within Elcoteq. Mr. Hajnal has been responsible for Elcoteq's global
HR for the past year, and Mr. Saario has been responsible for
Elcoteq's Group Strategy and Mergers and Acquisitions.

The new Management Team consists of the following persons:
Mr. Jouni Hartikainen, President and CEO
Mr. Sándor Hajnal, Senior Vice President, Human Resources
Mr. Vesa Keränen, Senior Vice President, Consumer Electronics
Mr. Markus Kivimäki, Senior Vice President, Legal Affairs
Mr. Tommi Pettersson, Senior Vice President, System Solutions
Mr. Mikko Puolakka, CFO
Mr. Tomi Saario, Senior Vice President, New Sales and Business
Development
Mr. Roger Taylor, Senior Vice President, Group Operations and
Sourcing

As a result of streamlining the organization, the company is planning
some personnel reductions in its group and former Business Area
functions. These reductions will affect globally approximately 150
employees. Personnel negotiations have been started today with the
personnel representatives in Finland.

The change in financial segment reporting will become effective as of
October 1, 2009. The appointments will take effect immediately.


ELCOTEQ SE

Minna Aila
Director, Communications and Corporate Responsibility

Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Mikko Puolakka, CFO, tel. +358 10 413 1287
Minna Aila, Director, Communications and Corporate Responsibility,
tel. +358 10 413 1908

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.