Elcoteq SE

Stock Exchange Release

July 28, 2011 at 15:30 (EET)

Elcoteq SE and Elcoteq SE, Finnish Branch ("Elcoteq") have today filed an investigation request to the Finnish National Bureau of Investigation. In its investigation request Elcoteq requests to establish whether the revolving credit facility lenders or their representatives have committed gross usury or other criminal acts against Elcoteq in connection with the syndicated revolving credit facility agreement signed on November 23rd, 2009.

According to Elcoteq, it has been charged approximately 20 million Euros as expenses and fees in excess of what would have been customary in relation to a normal revolving credit facility. Additionally, Elcoteq has estimated that as a consequence of the revolving credit facility lenders' actions, it has suffered losses and damages amounting to several hundreds of millions of Euros.

The investigation request relates to the 100 million Euro revolving credit facility, which replaced the company's facility agreement entered into between the parties in 2004. In connection with the renewal of the facility, the revolving credit facility lenders demanded Elcoteq to commit to contractual terms, which are exceptional from the market practice and, according to the company's understanding, unreasonable.

In connection with the renewal of the facility in 2009, the lenders practically withheld all Elcoteq's collateral (approximately 350 million Euros) as security for the previously unsecured facility. This prevented the company from using alternative working capital funding options such as accounts receivable financing. Against granting permission for Elcoteq to sell the receivables of one of its customers, the lenders demanded a penalty interest amounting to 70 percent. Virtually all of Elcoteq's cash funds where transferred to the lenders as a consequence of the arrangements under the facility. Additionally, Elcoteq has suffered losses and damages amounting to several hundreds of millions of Euros and has been forced to terminate the employment of nearly 20,000 employees as a consequence of being compelled to restructure its business in connection with the revolving credit facility.

After the maturity of the principal amounts outstanding under the revolving credit facility (48.5 million Euros), the lenders have initiated aggressive enforcement actions against Elcoteq. These actions have caused and are causing significant damages and losses to the operations of Elcoteq and its customers. Elcoteq considers these actions unlawful and has notified the lenders that it will seek compensation for the significant losses and damages it has suffered.

According to Jorma Vanhanen, Chairman of the Board: "The terms dictated by the revolving credit facility lenders were absolutely unreasonable and under normal circumstances Elcoteq could not have agreed to such. At the time, in the end of 2009, the company had no other sources of financing available due to the financial crisis and the radical changes in the company's customer base, of which the lenders were fully aware of. We have handed over this matter to be investigated by the police for the sake of Elcoteq, its customers, employees and shareholders. The unreasonable terms of the facility and the execution thereof, totally neglecting the best interest of the company, have caused Elcoteq losses and damages of such magnitude that the existence of the company is severely endangered."

ELCOTEQ SE

Board of Directors

Further information:

Kai Kotiranta, attorney at law, Kotiranta & Co Attorney at Law Ltd, tel. +358 20 7280 831

About Elcoteq

Elcoteq SE is an experienced Life Cycle Service Partner in electronics with a global network of service centres. Elcoteq provides a wide range of services to original equipment manufacturers (OEM) and to service providers such as operators, retailers and insurance companies.

Elcoteq's Electronics Manufacturing Services (EMS) Business Segment provides global supply chain solutions such as Engineering and Manufacturing Services but also technology and component Sourcing, custom Configuration, Testing, Delivery and other product supply related Services. EMS products range from control and security, communications infrastructure and lighting solutions to special purpose mobile devices and home entertainment systems.

Elcoteq's After Market Services (AMS) Business Segment provides globally reverse supply chain solutions for its customers consisting of Reverse Logistics, Depot Repair, Refurbishment, Recycling and Salvaging Services as well as AMS specific Engineering and Customer Support Services. AMS products range from mobile phones, tablets, flat panel TV's and set-top boxes to personal navigation and gaming devices.

Elcoteq SE is listed on the NASDAQ OMX Helsinki Ltd.www.elcoteq.com