Elcoteq unable to repay on its maturity

However, the Company is confident that the planned transaction with Platinum Equity will provide an acceptable solution to all involved stakeholders. Platinum Equity has requested the Revolving Credit Facility lenders not to accelerate the facility to secure enough time to complete the planned transactions. Elcoteq previously announced that it expected to complete the five-year export financing revolving credit facility to be granted by Magyar Export-Import Bank Zrt. to the company's Hungarian subsidiary by 30 June 2011. The parties have not been able to complete the export financing within the expected time frame. The export financing would have formed an essential part of the overall re-financing of Elcoteq group aiming, among others, at the repayment of the current revolving credit facility. The negotiations with Magyar Export-Import Bank Zrt. will now continue under the framework of the planned transactions with Platinum Equity.