Elcoteq writes down expectations about 2008

Elcoteq is revising its full-year net sales and operating income forecast. The company expects the full-year net sales to be at lower level than in 2007 and the operating income to reach the level of 1% towards the end of the year. According to the previous estimate, Elcoteq SE's full-year net sales will be on the year 2007 level and the operating income will reach the level of 2% towards the end of the year. The main reasons for the change in the forecast are the weaker than expected development in manufacturing volumes in the Personal Communications Business Area and a temporary decrease in volumes during the third quarter due to the changing customer structure. The quarter four sales is expected to increase from quarter three and will be on the level of the second quarter of 2008. Elcoteq's second quarter net sales totaled 904.8 million euros (968.3 million euros in April-June 2007). The second quarter operating income turned positive as expected, and totaled 0.6 million euros (-19.0). Despite the net sales being lower than in the first quarter of 2008, the operating income could be clearly improved (-9.5 million euros in January-March 2008). All Business Areas were able to reach a positive operating income in the second quarter.