Elcoteq SE

Stock Exchange Release

May 31, 2011 at 16.00 (EET)

Elcoteq is revising its second-quarter net sales and full-year operating income estimate. The company expects the second-quarter net sales to be lower than in the first quarter of 2011 and the full-year operating income to be at the same level as in 2010.

Elcoteq's previous estimate: "Second-quarter net sales are expected to reach the same level as the first quarter of 2011. Operating income for the second quarter is expected to remain negative while the second half of the year is expected to be profitable thanks to expected higher sales volumes. Due to the lower than expected start to the year and supply chain uncertainties caused by the situation in Japan, operating income for the whole year may not be positive. On the other hand additional business from new customers may have positive impact on the outlook for the second half of the year."

The main reason for the change in the outlook is the weaker development in sales due to the delay in securing the long term financing of the company. The result is further heavily burdened by the exceptionally high costs of the current financing. The finalization of the five-year export financing revolving credit facility to be granted by Magyar Export-Import Bank Zrt. to the company's Hungarian subsidiary has been delayed, but is expected to be completed by 30 June 2011. The company is also continuing negotiations with other credit institutions and investors, including the company's current lenders, for refinancing its existing Revolving Credit Facility and for securing new long-term credit facilities as well as new equity or equivalent investments.

ELCOTEQ SE

Jouni Hartikainen

President and CEO

Further information:

Jouni Hartikainen, President and CEO, +358 10 413 11

Olli-Pekka Vanhanen, Senior Vice President, Business Control and Accounting, + 358 10 413 11

About Elcoteq

Elcoteq SE is the global Life Cycle Service Partner for high-tech product and service companies. Elcoteq has a proven track record in electronics manufacturing and after market services and a global service network close to its customers coupled with modern manufacturing and testing equipment and consistent systems and processes.

Elcoteq's Electronics Manufacturing Services (EMS) Business Segment provides its customers globally with engineering, manufacturing and fulfillment services. EMS products include mobile phones and their accessories, set-top boxes, LED lighting products, flat panel TVs, infrastructure systems and other industrial segment products.

Elcoteq's After Market Services (AMS) Business Segment is providing its customers in the communications and consumer electronics industries with global reverse logistics, depot repair, refurbishment, recycling and salvage services but also AMS specific engineering and customer support services.

Elcoteq SE is listed on the NASDAQ OMX Helsinki Ltd. For more information visit the Elcoteq website at