The Elcoteq Russia transaction to be completed end of May

The closing of the transaction is expected to take place on May 31, 2010. The deal has already obtained competition authorities´ and other regulatory approvals. The transaction is a share deal, in which the purchaser acquires 100 percent of the shares in Elcoteq's subsidiary in St. Petersburg including the premises and the personnel of about 40 employees but excluding any customer agreements. The transaction reduces Elcoteq's total costs by approximately 2 million euros on annual basis and has a considerable positive impact on the second quarter cash flow. Elcoteq has now consolidated all European electronics manufacturing and after market service activities to its units in Pécs, Hungary and Tallinn, Estonia.