High participation rate in Eltel’s long-term incentive programme 2016

The subscription period for Eltel’s long-term incentive programme 2016 (LTIP
2016), approved by the Group’s Extraordinary General Meeting held on 20 June
2016, took place in August 2016 and the interest in participating was high with
87% of the invited individuals participated.
The programme is directed towards 85 key individuals at Eltel including the new
CEO, members of the Group Management Team and other key employees at Eltel. The
total value subscribed for by the participants amounts to approximately one
million euro equivalent to approximately 85% of the maximum offered to these
individuals. On behalf of the participants, shares corresponding to the value
subscribed for will be purchased by a third party through public trading on
Stockholm Nasdaq before mid-October.

LTIP 2016 is a continuation of the LTIP 2015 and is based on the same basic
principles.

Participation in LTIP 2016 assumes that the participants acquire and lock Eltel
ordinary shares for a three-year period (“Savings Shares”). The LTIP 2016
qualify for allotment of Eltel “Matching Shares” and may also qualify for
additional Eltel “Performance Shares”. Allotment of “Matching Shares” and
“Performance Shares” within LTIP 2016 will be made during a limited period of
time following presentation of the first quarterly statement 2019. The period up
to this date is referred to as the qualification period (vesting period). A
condition for the participant to receive allotment of “Matching Shares” and
“Performance Shares” is that the participant remains an employee of the Eltel
group during the full qualification period up until allotment and that the
participant, during this period, has kept all “Savings Shares”.

The purpose of the LTIP 2016 is to increase and strengthen the potential for
recruiting, retaining and rewarding key individuals and also to use the LTIP
2016 to create individual long-term ownership of Eltel shares among
participants.

For more information please visit:
www.eltelgroup.com/remuneration

For further information:
Ingela Ulfves
VP - IR and Group Communications
Tel: +358 40 311 3009, ingela.ulfves@eltelnetworks.com

About Eltel
Eltel is a leading European provider of technical services for critical
infrastructure networks – Infranets – in the segments of Power, Communication
and Transport & Security, with operations throughout the Nordic and Baltic
regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad
and integrated range of services, spanning from maintenance and upgrade services
to project deliveries. Eltel has a diverse contract portfolio and a loyal and
growing customer base of large network owners. In 2015 Eltel net sales amounted
to EUR 1,255 million. The current number of employees is approximately 9,600.
Since February 2015, Eltel AB is listed on Nasdaq Stockholm.