ELCOTEQ'S ACTION PLAN FOR 2007: OPERATIONS TO BE STREAMLINED IN EUROPE AND AMERICAS

Elcoteq SE     Stock Exchange Release     February 7, 2007 at 8.50 am
(EET)

ELCOTEQ'S ACTION PLAN FOR 2007: OPERATIONS TO BE STREAMLINED IN EUROPE AND
AMERICAS

Elcoteq announced in December 2006 that it would initiate an action plan aimed at
accelerating the implementation of strategic action to improve the company's
competitiveness, profitability and cost-efficiency. The target set was to achieve
annual savings in the amount of 20 million euros. These savings will require
structural changes such as the reorganization and streamlining of operations,
processes and personnel resources, especially in Europe and the Americas. Elcoteq
is evaluating the various alternatives for implementing the changes.


The company is preparing for one-time costs of roughly 20 million euros from the
action plan in 2007, most of which are likely to be recognized during the first
quarter of the year. The savings gained by the program will start to become
visible in Elcoteq's result in the second half of 2007.

Elcoteq Begins Personnel Negotiations in Finland

Elcoteq has today convened a meeting of the employee representatives of its
companies in Finland for statutory personnel negotiations to address the possible
restructuring of operations in the units, the termination of certain operations
or units, and the possibility on production or financial grounds of redundancies,
semi-retirement or the termination of employee contracts resulting from this
action. One alternative under discussion in the negotiations will be the closure
of the Lohja manufacturing plant. In the negotiations the company will assess the
means by which it will ensure the Group's long-term profitability and
competitiveness.

The company estimates that the need for possible personnel reductions could apply
to at most about 500 people in Finland in all employee categories. Elcoteq has
roughly 23,000 employees worldwide, approximately 700 of whom work in Finland.

Other Action
In addition to the action plan intended to achieve savings of around 20 million
euros, Elcoteq is also undertaking several other measures designed to raise its
profitability and competitiveness. The company will continue its global program
of production efficiency enhancing measures that applies to all its manufacturing
plants in Europe, Asia-Pacific and the Americas. A central objective of this
program is to achieve more efficient and flexible use of fixed assets. The
program will also help to ensure that the resources of the manufacturing plants
match current demand.
Furthermore, the company will adopt a new contract and invoicing model in Europe
from May 1, 2007, after which most of the European customer and supplier
agreements and invoicing will be handled in the name of the Group's international
office in Zug, Switzerland. The new invoicing model is expected to reduce the
company's effective tax rate.

In the absence of precedents in this matter and based on an preliminary ruling
issued by the Finnish tax authorities, Elcoteq and external tax experts do not
consider the Finnish tax risk related to this matter to be significant.

Last December Elcoteq's Board of Directors announced that it would propose to the
forthcoming Annual General Meeting that Elcoteq's domicile and registered office
be transferred to Luxembourg. The aim of the transfer is to support the company's
globalization strategy and European identity, and to create a structural base for
improving the company's competitiveness. The Board's proposal is part of the
action plan initiated to improve Elcoteq's competitiveness.

"Streamlining our operations and raising efficiency is essential to improving the
company's profitability and competitiveness. We must respond to the changes in
our markets and demand even though at times this can mean difficult decisions. I
believe that through this action plan we will be able to improve our
profitability this year already," says President and CEO Jouni Hartikainen.


ELCOTEQ SE

Jouni Hartikainen
President and CEO


Further information:
Jouni Hartikainen, President and CEO, tel. +358 10 41 311
Jukka Jäämaa, COO, tel. +358 50 526 7665
Teo Ottola, CFO, tel. +358 10 413 1240
Reeta Kaukiainen, Director, Communications and IR, tel. +358 10 413 1742


About Elcoteq:

Elcoteq SE is a leading electronics manufacturing services (EMS) company with
original design manufacturing (ODM) capabilities in the communications technology
field. Elcoteq provides global end-to-end solutions consisting of design, NPI,
manufacturing, supply chain management, and after-sales services for the whole
lifecycle of its customers' products. These products include terminal products
such as mobile phones and set-top boxes as well as communications network
equipment such as base-stations, tower-top amplifiers, and microwave systems. The
company operates in 16 countries on four continents and employs some 23,000
people. Elcoteq's consolidated net sales for 2005 totaled 4.2 billion euros.
Elcoteq SE is listed on the Helsinki Stock Exchange. For more information visit
the Elcoteq website at www.elcoteq.com.