ELCOTEQ CLOSES ITS JUAREZ PLANT IN MEXICO - MANUFACTURING WILL BE TRANSFERRED TO CHINA AND MONTERREY, MEXICO

Elcoteq SE	Stock Exchange Release		April 26, 2007 at 8.50 am (EET)

As part of its action plan to restore the company's profitability and
competitiveness, Elcoteq has decided to rationalize its manufacturing capacity
in Mexico. The plan is to close down the manufacturing facility in Juarez,
Mexico and to move its production mainly to China and partly to Elcoteq's other
Mexican facility by the end of 2007. Production transfer will take place so
that all existing projects in Juarez will be completed as planned and new
projects will be ramped up in China and Monterrey, Mexico. The closure of the
plant will create one-time costs totaling 9 million euros. 

In addition to the rationalization activities in Mexico, geographical area
Americas will relocate its Irving, Texas office to the NPI center in Dallas. 

Elcoteq manufactures set-top boxes and communications networks products at its
Juarez plant. Elcoteq started operations in Juarez at the beginning of 2005
after signing a multi-year manufacturing agreement with Thomson at the end of
2004. The agreement also included the acquisition of the operations of
Thomson's Juarez plant. The size of the plant is 13,700 square meters. At the
end of March, the plant employed approximately 2,300 people. 

After the closure of the Juarez facility, Elcoteq will have two manufacturing
plants in the Americas: one in Monterrey, Mexico and another in Manaus, Brazil.
In addition to these locations, Elcoteq has its Americas' head office and an
NPI center in Dallas, USA. At the end of March, these units employed
approximately 5,000 people. 

”Elcoteq's consistent processes and global service network enable transfer of
production from one continent to another. Juarez is not just about transferring
production - we are talking about utilizing our global service network
efficiently to meet our customers' requirements and demand,” says COO Jukka
Jäämaa. ”Although we have recently put more emphasis on developing and
expanding our operations in Asia-Pacific, Americas continues to have a vital
role in our global footprint. Our Monterrey facility's long and extensive
experience of working with different customers and manufacturing a variety of
products complements customer demand in the Americas extremely well, and
therefore we want to consolidate our Mexican operations in Monterrey,”
continues Mr. Jäämaa. 


ELCOTEQ SE

Reeta Kaukiainen
Director, Communications and Investor Relations

For more information:
Mr. Jukka Jäämaa, COO, tel. +358 50 526 7665
Ms. Reeta Kaukiainen, Director, Communications and Investor Relations,
tel. +358 10 413 1742 or +358 50 522 0924


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 2006
totaled 4.3 billion euros. Elcoteq SE is listed on the Helsinki Stock Exchange.
 For more information visit the Elcoteq website at www.elcoteq.com.