Elcoteq SE Stock Exchange Release March 31, 2010 at 08:45 am (EET) After a mutual re-assessment, Elcoteq and Videocon have decided to terminate the negotiations aiming at Videocon becoming a major shareholder in Elcoteq. In September 2009, Elcoteq announced that it had signed a non-binding Letter of Intent with Videocon Industries Limited (Videocon) regarding a major equity investment which would have made Videocon a major single shareholder in Elcoteq. After mutual re-assessment, the parties decided to terminate the negotiations in March 2010. In January 2010, Elcoteq issued hybrid securities in an amount of EUR 29 million and used the proceeds directly to repay outstanding debenture bonds having an aggregate nominal amount of EUR 105 million. This major transaction improved significantly Company's indebtedness and solidity. If the debenture and hybrid transaction had taken place in 2009, as at December 31, 2009, the company's gearing would have been 0.7, solvency 24% and net debt EUR 82 million. By improving the equity structure of the Company, the transaction altered the original investment structure planned by Videocon, and finally led to the mutual decision of both parties to terminate the negotiations. Elcoteq continues to seek alternative ways to further strengthen its financing structure through equity and long-term financing arrangements. ELCOTEQ SE Satu Jaatinen Communications Manager Further information: Jouni Hartikainen, President and CEO, +358 10 413 11 Mikko Puolakka, CFO, tel. +358 10 413 1287 About Elcoteq Elcoteq SE is the global Life Cycle Service Partner for high-tech product and service companies. Engineering, Manufacturing, Fulfillment and After Market Services are the cornerstones of Elcoteq's extensive service offering. Elcoteq has a proven track record in electronics manufacturing services (EMS) and a global factory network coupled with modern manufacturing equipment and consistent systems and processes. Products include Consumer Electronics devices such as mobile phones and their accessories, set-top boxes, flat panel TVs as well as System Solutions products such as infrastructure systems, modules and other industrial segment products. The Group's consolidated net sales for 2008 totaled 3.4 billion euros and it employs approximately 11,000 persons. Elcoteq SE is listed on the Nasdaq OMX Helsinki Ltd. For more information visit the Elcoteq website at www.elcoteq.com. [HUG#1399553]
Negotiations with Videocon terminated
| Source: Elcoteq