Elcoteq SE has signed a term sheet with Platinum Equity on equity investment and plans to restructure debt

Elcoteq SE
Stock Exchange Release
June 30, 2011 at 11.15 (EET)

Elcoteq has signed a conditional, non-binding Term Sheet with Platinum Equity, a
Los Angeles, California based private equity firm (Platinum), with the aim of
restructuring the Company's debt and stabilizing the Company's balance sheet by
providing additional equity and debt funding. The intended transaction, if
consummated, would significantly strengthen Elcoteq's financial position.

Elcoteq and Platinum have signed a Term Sheet concerning a major equity and debt
investment. As an equity investment Platinum would subscribe new shares and
warrants to be issued by Elcoteq. Elcoteq and Platinum are also negotiating
about further debt financing amounting to up to 80 million euros.

Platinum's investment is dependent on, among other things, Elcoteq's current
revolving credit facility lenders and the Company's other main lenders agreeing
on restructuring of current debt. The number of shares to be issued to Platinum
will be determined after the negotiations with the Company's current lenders
have been completed, aiming at Platinum becoming the biggest single shareholder
of Elcoteq with a minimum ownership below the mandatory bid threshold under the
laws of Luxembourg (33 1/3 percent). If Platinum were to later subscribe for
shares with the warrants it is expected that the fully diluted ownership of
Platinum would be substantially higher.

The signing of the definitive agreement is subject to, among other things,
successful debt restructuring and completion of a due diligence process intended
to be completed within approximately 30 days. The closing of the transaction
will be subject to all the requisite and applicable regulatory, statutory and
corporate approvals of both Platinum and Elcoteq.

About Platinum
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in
the merger, acquisition and operation of companies that provide services and
solutions to customers in a broad range of business markets, including
information technology, telecommunications, logistics, metals services,
manufacturing and distribution. Since its founding in 1995 by Tom Gores,
Platinum Equity has completed more than 120 acquisitions and is currently
investing out of a $2.75 billion fund.

ELCOTEQ SE

Jouni Hartikainen
President and CEO


Further information:
Jouni Hartikainen, President and CEO, +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 demand & supply 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 atwww.elcoteq.com

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