Elcoteq has filed an investigation request concerning the revolving credit facility lenders

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.  For more information visit
the Elcoteq website atwww.elcoteq.com

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