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Electronics Production | October 14, 2004

Elcoteq to produce<br>Vitelcom phones

Elcoteq Network Corporation has signed an agreement with Vitelcom Mobile Technology to manufacture CDMA phones on a turnkey, assemble to order (ATO) basis, ready for distribution to end-users. Manufacturing will begin in Manaus, Brazil in late October 2004.
Elcoteq da Amazonia, Ltda., Elcoteq's Brazilian subsidiary, will manufacture two CDMA handsets, an entry-level phone with black and white display and another with a color display. Elcoteq will initially provide logistics, manufacturing, testing and packaging services.

Vitelcom Mobile Technology, part of the Vitelcom Group, was founded in 2001 to focus on the telecom market. The company manufactures GSM, GPRS, and UMTS mobile phones and is the first European-based i-mode supplier. The handsets, which Elcoteq will manufacture, are for support of a nationwide distribution plan that Vitelcom developed for Brazilian customers.

"This agreement is significant for Vitelcom," said Carlos Gauch, President, Vitelcom Latin America, "as it represents our first major outsourcing program. Having surveyed many EMS providers in the region, Elcoteq was selected based on its wireless technology experience, particularly its world-class manufacturing track record in producing mobile phones, and capabilities to provide the necessary engineering expertise, repair services, and logistics support."

"Elcoteq is extremely pleased to have Vitelcom as its first customer in Manaus and, as such, reinforces our rationale for developing a manufacturing presence in Brazil," said Doug Brenner, President of Elcoteq Americas. "We intend to leverage both Elcoteq's global manufacturing experience and our Americas expertise in Monterrey to provide local support for a rapid ramp-up of product for Vitelcom in Manaus."

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