ELCOTEQ SE'S FINANCIAL STATEMENTS BULLETIN, JANUARY 1 - DECEMBER 31, 2007


Elcoteq SE Stock Exchange Release	February 6, 2008 at 9.00 am (EET)             

ELCOTEQ SE'S FINANCIAL STATEMENTS BULLETIN, JANUARY 1 - DECEMBER 31, 2007       

Elcoteq SE's net sales in 2007 declined about 6% on the previous year and       
amounted to 4,042.9 million euros (4,284.3 million euros in 2006). Operating    
income was -96.3 million euros (43.9); excluding restructuring                  
expenses, it was -46.1 million euros. Full-year cash flow after investing       
activities was -11.1 million euros                                              
(-20.8).                                                                        

Financial Year 2007                                                             

- Net sales declined by about 6% to 4,042.9 million euros (4,284.3)             
- Operating income was -96.3 million euros (43.9). Operating income includes    
restructuring expenses amounting to 50.2 million euros, excluding which         
operating income was -46.1 million euros                                        
- Income before taxes was -122.8 million euros (19.2)                           
- Earnings per share (EPS) were to -3.37 euros (0.38)                           
- Rolling 12-month return on capital employed was -19.6% (9.1%)                 
- Cash flow after investing activities was -11.1 million euros (-20.8)          
- Interest-bearing net debt amounted to 144.5 million euros (128.0)             
- The Board of Directors proposes that no dividend will be paid for 2007        

Fourth Quarter of 2007                                                          

- Net sales were 1,062.4 million euros (1,104.6 in the fourth quarter of 2006   
and 1,059.7 in the third quarter of 2007)                                       
- Operating income was -24.9 million euros (6.9). Operating income includes     
restructuring costs amounting to 15.3 million euros, excluding which operating  
income was -9.6 million euros                                                   
- Income before taxes was -31.2 million euros (-0.8)                            
- Earnings per share were -1.06 euros (-0.01)                                   
- Cash flow after investing activities was 21.9 million euros (41.2)            

Elcoteq SE's consolidated financial statements for 2007 have been prepared using
IFRS recognition and measurement principles. The comparative figures presented  
in the bulletin are the figures for the corre-sponding period of the previous   
year, unless stated otherwise.                                                  

Market Review                                                                   

Assembly value in the global electronics market amounted to roughly 1,000       
billion US dollars in 2007. Communications technology represented some 230      
billion US dollars of this total. Market research institutes report that the    
electronics manufacturing services (EMS) and original design manufacturing (ODM)
market grew approximately 15% in 2007. Global sales of mobile phones amounted to
about 1,140 million units, up around 15% on previous year. In home              
communications, sales growth was particularly strong in flat screen TVs. The    
value of the market for communications network equipment rose by about 8%       
compared with the previous year.                                                

In 2007, the consolidation trend made itself felt among EMS players as well. In 
terms of market share, El-coteq was the world's third largest EMS provider to   
communications technology companies and the leading European player in the      
business. The company held a market share of around 7%.                         

Financial Year 2007                                                             

Elcoteq's 2007 net sales declined slightly on the previous year and amounted to 
4,042.9 million euros (4,284.3). Operating income was -96.3 million euros       
(43.9), representing -2.4% of net sales. Income before taxes was -122.8 million 
euros (19.2) and net profit was -108.4 million euros (12.1) after the           
recognition of deferred tax assets. Earnings per share (EPS) amounted to -3.37  
euros (0.38). Earnings include 50.2 million euros in restructuring expenses.    

The decline in the Group's net sales was due to an unanticipated change in the  
ordering procedures of the biggest customer, as a result of which incoming      
orders fell significantly short of the customer's forecasts during the review   
year. Sales to other customers grew by almost 30% on the previous year.         

Operating income for 2007 was a loss. The company's profitability was burdened  
especially by the afore-mentioned significantly lower-than-expected volumes,    
pricing based on expected volume growth as well as surplus capacity that had    
been reserved on the basis of customer's forecasts. Furthermore, production     
vol-umes at Elcoteq's German plant fell in the second half of 2007 due to       
mergers and acquisitions that took place in the communications networks market  
in 2006, driving the plant's operations into unprofitability. Capacity          
utilization at the St. Petersburg plant was low. In addition, earnings were     
weakened by production problems, particularly in Mexico.                        

The company launched two action plans during the review year with a view to     
ensuring cost-effectiveness and improving profitability and competitiveness     
globally.                                                                       

The Group's net financial expenses amounted to 26.1 million euros (23.7). The   
rise in the interest level was the major reason behind the growth in financial  
expenses.                                                                       

Fourth-quarter Net Sales and Earnings                                           

Fourth-quarter net sales in 2007 grew only slightly on the third quarter and    
amounted to 1,062.4 million eu-ros (1,104.6 in the fourth quarter of 2006 and   
1,059.7 in the third quarter of 2007). The primary reason under-lying the modest
quarter-on-quarter development of net sales was that demand in Communications   
Net-works underperformed expectations.                                          

Operating income in the fourth quarter was -24.9 million euros (6.9 in the      
fourth quarter of 2006 and -0.1 in the third quarter of 2007) and income before 
taxes was -31.2 million euros (-0.8). Operating income exclusive of             
restructuring expenses was also negative in the fourth quarter at -9.6 million  
euros. This was primarily due to the significant weakening of the profitability 
of Communications Networks on the heels of a strong decline in production       
volumes compared with the previous quarter, particularly in Europe, and the     
produc-tion problems in Mexico.                                                 

Financing and Cash Flow                                                         

Liquidity was good throughout the review period. At the end of December 2007,   
Elcoteq had unused but immediately available credit limits totaling 296.5       
million euros (296.1 million euros in the third quarter of 2007 and 293.8       
million euros at the end of 2006). Of this total, the 230 million euro          
syndicated loan is a committed credit limit from a bank syndicate. Commercial   
papers issued by the company from its 200 mil-lion euro commercial paper program
had a total par value of 24.0 million euros on December 31, 2007.               
                                                                                
At the end of December, the Group's interest-bearing net debt amounted to 144.5 
million euros (128.0) and gearing was 0.7 (0.4). The solvency ratio was 18.1%   
(26.1%). Cash flow from sold accounts receivable amounted to 226.5 million euros
(187.7 at the end of 2006 and 207.4 at the end of the third quarter of 2007).   
Return on capital employed (ROCE) was -19.6% (9.1%).                            
                                                                                
Cash flow after investing activities in 2007 was -11.1 million euros (-20.8),   
while it was 21.9 million euros positive in the fourth quarter (41.2). In spite 
of good working capital management and lower than usual in-vestments, cash flow 
in 2007 remained negative due to the unsatisfactory earnings trend.             

Capital Expenditures                                                            

The Group's gross capital expenditures on fixed assets in 2007 amounted to 67.2 
million euros (116.9), or 1.7% of net sales. Depreciation was 79.8 million euros
(82.7), representing 2.0% of net sales. Investments were primarily earmarked for
production machinery. In the fourth quarter, investments amounted to 27.8       
million euros (32.3). In addition, operating leases of machinery totaled about  
3.4 million euros (26.8) in 2007.                                               

Personnel                                                                       

At the end of December, the Group employed 24,222 (23,298) people: 260 (705) in 
Finland and 23,962 (22,593) elsewhere. The geographical distribution of the     
workforce was as follows: Europe 10,936 (11,682), Asia-Pacific 7,598 (7,409) and
the Americas 5,688 (4,207). The average number of Elcoteq employees on the      
company's direct payroll in 2007 was 19,131 (16,651). The expansion of the      
service offering to more labor-intensive box build and after-market services in 
Hungary and Mexico contributed to the rise in the person-nel count. Box build   
means that products are delivered directly into the customer's distribution     
channel in consumer packages.                                                   

Wages, salaries and other personnel expenses in 2007 amounted to 206.2 million  
euros (205.9).                                                                  

Environment                                                                     

Elcoteq's environmental management system corresponds with the requirements of  
the ISO 14001:2004 standard. All Elcoteq units operate within a multisite       
certificate for quality and environmental management. The company intends to    
link its plant in Romania to the certificate in 2008. The key environmental     
devel-opment projects having a bearing on the company's business operations in  
2007 concerned meeting the re-quirements of the European Union's REACH          
Regulation and developing the environmental competence of experts in the supply 
chain. Further details on Elcoteq's environmental issues will be presented in   
the elec-tronic corporate responsibility report that will be published in the   
summer of 2008.                                                                 

Research and Development                                                        

Elcoteq's research and development costs in 2007 totaled approximately 4.6      
million euros (6.8), or 0.1% of net sales. In addition, the company had some 8  
million euros of other development costs. The company's R&D activities and      
expenditures cover, among other things, equipment and process development for   
pro-duction and production testing needs, research and development related to   
the platforms, software, elec-tronics, mechanics and testing and verification   
environments for mobile phones, and the development of radio modules and        
technologies for mobile phones.                                                 

Trends of the Business Areas                                                    

Elcoteq's reporting on 2007 covers two business areas: Terminal Products and    
Communications Networks. In 2007, Terminal Products contributed 79% (82%) and   
Communications Networks 21% (18%) of the Group's net sales.                     

Elcoteq has continued to balance its customer portfolio in line with its key    
strategic focus. In 2007, Elcoteq's largest customers (in alphabetical order)   
were Ericsson, Nokia Mobile Phones, Nokia Siemens Networks, Philips, Research in
Motion (RIM), Sony Ericsson and Thomson. No single customer accounted for over  
40% of consolidated net sales.                                                  

Terminal Products                                                               

Net sales of the Terminal Products business area in 2007 were down about 8.5% on
the previous year and amounted to 3,212.0 million euros (3,512.1). The segment's
operating income was -41.0 million euros (68.4); excluding restructuring        
expenses, it was -5.1 million euros. Fourth-quarter net sales came in at 849.9  
million euros (898.6) and the segment's operating income was 1.3 million euros  
(13.2).                                                                         

Most of the customers of the Terminal Products business area posted substantial 
net sales growth compared with the previous year. Elcoteq continued to balance  
its customer base in 2007. Business with RIM and Phil-ips in particular saw     
growth.                                                                         

Box build deliveries saw growth in 2007 and sales of after-market services also 
increased.                                                                      

In October 2007, the company announced its plan to launch a new, more           
customer-centric organization. The new organization was adopted on January 1,   
2008. As from the beginning of 2008, Terminal Products will be reported on as   
two separate business areas: Personal Communications (including mobile phones   
and their components) and Home Communications (including set-top boxes and      
electronics for flatscreen TVs).                                                

Communications Networks                                                         

Net sales of Communications Networks in 2007 rose by about 7.6% on the previous 
year and amounted to 831.0 million euros (772.3). The segment's operating income
was -17.3 million euros (22.4); excluding re-structuring expenses, it was -3.3  
million euros. Fourth-quarter net sales in 2007 amounted to 212.5 million euros 
(206.0) and the segment's operating income to -17.2 million euros (5.7).        

The business operations of Communications Networks have seen strong growth in   
Asia. Elcoteq has also expanded its service portfolio to box build, logistics   
and supply chain management services, as customers are expecting their          
manufacturing partners to provide broader service packages.                     

During the review year, Elcoteq announced two new customer accounts in the      
manufacture of WiMAX products. In March, Elcoteq and Redline Communications Inc.
signed a cooperation agreement focusing on the Americas, and in October, an     
agreement was made with Telsima Corporation for the box build manu-facture of   
products at the Bangalore plant in India.                                       

Following the organizational change that came into effect as from the beginning 
of 2008, the Communica-tions Networks business area will still be reported on   
separately.                                                                     

Geographical Areas                                                              

Elcoteq has three geographical areas: Europe, Asia-Pacific and the Americas.    
Elcoteq's net sales in 2007 were derived from these areas as follows: Europe 52%
(57%), Asia-Pacific 27% (25%) and the Americas 21% (18%).                       

Europe                                                                          

Europe's net sales amounted to 2,076.3 million euros (2,425.4). Of Elcoteq's    
plant floor space, 54% is located in Europe (about 114,700 square meters). The  
largest volume plants are located in Pecs, Hungary, and in Tallinn, Estonia.    

Personnel negotiations were held in the spring of 2007 in Finland. These        
negotiations resulted in 326 redun-dancies on financial and production grounds  
at the Lohja plant, the NPI organization in Finland, the Group's office in      
Espoo, Finland and the product development organization in Salo, Finland. As    
part of the global streamlining of operations, production at the Lohja plant    
ceased at the end of June. The Lohja manu-facturing facility was sold to Sponda 
Kiinteistörahasto in October.                                                   

As part of the drive to streamline operations for higher cost-effectiveness, the
company agreed on the sale of its subsidiary in Offenburg, Germany, in December 
2007. The German competition authorities approved the deal in January 2008. In  
addition, the company has announced that it seeks to scale down or divest its   
St. Petersburg unit in Russia.                                                  

Elcoteq reduced its holding in Imbera Electronics Oy to 15%. Imbera Electronics 
Oy is a joint venture estab-lished by Elcoteq and the Aspocomp Group in 2002 on 
a 50-50 basis.                                                                  

Asia-Pacific                                                                    

Asia-Pacific's net sales amounted to 1,110.9 million euros (1,094.1). Of        
Elcoteq's plant floor space, 34% is lo-cated in Asia (about 70,800 square       
meters). The largest volume plants are located in Beijing, Dongguan and Shenzhen
in China as well as Bangalore, India.                                           

The Chinese plants generated higher sales for Communications Networks in 2007.  
Efficiency-boosting measures have been initiated at the Chinese plants as part  
of the global action plan.                                                      

Americas                                                                        

Net sales in the Americas amounted to 855.7 million euros (764.8). Of Elcoteq's 
plant floor space, 12% is lo-cated in the Americas (about 25,800 square meters).
The largest volume plant is located in Monterrey, Mex-ico.                      

As part of the drive to boost capacity utilization, a decision was made to close
down production at the Juarez plant in Mexico and move operations primarily to  
the company's plants in China and the Monterrey plant in Mexico. Production at  
the Juarez plant ceased at the end of the third quarter. Production problems    
continued at the Monterrey plant during the review period due to the rapid      
expansion of operations. Spe-cific measures have been implemented to rectify the
problems.                                                                       

Decisions of the Annual General Meeting                                         

The Annual General Meeting of Elcoteq SE, held on March 22, 2007, elected seven 
members to the Board of Directors. The composition of the Board remained        
unchanged. The following persons were re-elected: President Martti Ahtisaari;   
Mr. Heikki Horstia, Vice President, Treasurer, Wärtsilä Corporation; Dr. Eero   
Kasanen, Rector of the Helsinki School of Economics; Mr. Antti Piippo, principal
owner and founder-shareholder of Elcoteq SE; Mr. Henry Sjöman,                  
founder-shareholder of Elcoteq SE; Mr. Juha Toivola, Master of Arts, and Mr.    
Jorma Vanhanen, founder-shareholder of Elcoteq SE. The terms of office of the   
Board mem-bers extend until the end of the following Annual General Meeting.    
Ahtisaari, Horstia, Kasanen and Toivola are independent Board members, and they 
represent more than half of the Board's members.                                

Convening after the Annual General Meeting, the Board of Directors elected Mr.  
Piippo as its chairman and Mr. Toivola as the deputy chairman. Mr. Piippo was   
elected chairman of the Nomination Committee and Working Committee and Mr.      
Sjöman, Mr. Toivola and Mr. Vanhanen as the other members of these com-mittees. 
Mr. Toivola was elected chairman of the Compensation Committee and Audit        
Committee and Mr. Ahtisaari, Mr. Horstia and Mr. Kasanen as the other members of
these committees.                                                               

The Meeting appointed the firm of authorized public accountants KPMG Oy Ab under
the supervision of principal auditor Mr. Mauri Palvi (APA) as Elcoteq SE's      
auditor and after January 1, 2008 the auditor will be KPMG Audit S.a.r.l.       

The Meeting approved the transfer of the company's domicile from the city of    
Lohja in Finland to the Grand Duchy of Luxembourg.                              

The Annual General Meeting authorized the Board of Directors to issue, in one or
several installments, Se-ries A shares and/or to issue specific rights entitling
to shares pursuant to Chapter 10 §1 of the Finnish Companies Act, in the total  
amount of 15,527,573 Series A shares. Based on the authorization to issue       
shares, the Board may issue either new shares or those in the company's         
possession.                                                                     

Furthermore, the Meeting authorized the Board of Directors to purchase at most  
1,576,994 of the company's own Series A shares in public trading in order to    
develop the company's capital structure, to use as consid-eration in corporate  
acquisitions or when the company acquires assets related to its business, and as
part of the company's personnel incentive scheme, in the manner and scope       
determined by the Board, and other-wise to dispose of or nullify these shares.  
The purchase price of the shares to be purchased shall be based on the share    
price in public trading such that the subscription price corresponds to the fair
value of the shares formed in public trading at the time of purchase. The       
holders of the company's Series K shares have given their approval to the effect
that the decision will not be used to purchase the Series K shares in their     
posses-sion. The purchase of own shares will reduce the company's distributable 
funds.                                                                          

The authorizations were not exercised and they became void when the company was 
redomiciled, on Janu-ary 1, 2008.                                               

Shares and Shareholders                                                         

At the end of 2007, the company's share capital totaled 13,041,167.60 euros and 
there were altogether 32,602,919 shares comprising 22,025,919 Series A shares   
and 10,577,000 Series K shares. All the K shares are held by the company's three
principal owners. During 2007, altogether 1,063,592 new A shares were           
sub-scribed under the 2001 stock options scheme.                                

Elcoteq had 10,098 registered shareholders on December 31, 2007. There were     
7,697,179 nominee-registered and foreign-registered shares, which represented   
about 23.6% of the total number of shares and 6.0% of the votes outstanding.    

When the company was redomiciled on January 1, 2008, the Series K shares were   
converted to K founders' Shares. The number of K founders' Shares is tenfold    
that of the former Series K shares, but their par value is one-tenth of the     
Series A shares. According to the new Articles of Association, Elcoteq shares   
confer finan-cial rights in proportion to their par value. The differences in   
the voting and financial rights conferred by the different share series thus    
remain unchanged after the transfer of domicile.                                

Actions to Improve Cost-effectiveness, Profitability and Competitiveness        

One-time restructuring expenses under the action plan announced in December 2006
amounted to about 35 million euros, which were for the most part recognized in  
the first-quarter result for 2007. In addition to previously estimated expenses,
which were primarily related to the product development organization and the    
closure of the Lohja and Juarez plants, the company wrote down its              
design-related Cellon holding. Of the expenses, about 8 million euros affected  
cash flow. The measures taken are described in the Geographi-cal Areas section  
above.                                                                          

In October, Elcoteq announced that it will continue the action plan that was    
started at the beginning of 2007 by launching further actions. The new          
streamlining plan had three major focuses: downsizing unprofitable operations,  
achieving additional operational savings, especially through stepping up        
efficiency in materials management, and adopting a new customer-centric         
organization model. Elcoteq announced in December that it will divest its       
subsidiary in Offenburg, Germany, and seek to scale down or divest its St.      
Petersburg unit. The company estimates that this new streamlining program,      
combined with measures to boost produc-tion efficiency, will result in one-time 
expenses of about 15 million euros. The expenses were recognized in the         
fourth-quarter result of 2007. The one-time expenses do not have a significant  
cash-out effect.                                                                

The company expects these action plans to yield annual savings totaling about   
90-100 million euros. The measures that have already been implemented - such as 
closing down production at the Lohja plant in Finland at the end of June 2007   
and at the Juarez plant in Mexico at the end of the third quarter of 2007 as    
well as the agreement to sell the Offenburg subsidiary in Germany in December   
2007 - result in savings that will have a full effect on the Group's result     
after the end of the first quarter of 2008. Savings from other measures - such  
as the scaling down or divestment of the St. Petersburg plant as well as        
measures to boost operational efficiency - will come into effect on a gradual   
basis during 2008.                                                              

The actions are carried out in areas that will not limit the company's service  
offering or its possibilities for growth. In addition, the company will continue
to boost operational efficiency, especially in materials man-agement and the use
of production machinery.                                                        

The new organization model came into effect on January 1, 2008. Elcoteq will    
from now on report on three separate business areas: Personal Communications,   
Home Communications and Communications Net-works. Group functions will support  
the business areas by focusing on improving company-level profitabil-ity,       
bolstering synergy benefits and business development.                           

New Incentive Scheme                                                            

In October, Elcoteq's Board of Directors decided on a share subscription plan   
for the motivation and com-mitment of the Group's key personnel. Rewards from   
the plan are based on reaching the targets set by the Board of Directors for the
consolidated income before taxes for the full year 2008. Based on the achieved  
targets the company would issue a maximum of 1,500,000 new Series A shares, of  
which 50% would be is-sued in March 2009 and the remaining 50% in November 2009.
The shares have not as yet been allocated.                                      

Events after the end of the Review Period - Change of Domicile                  

Elcoteq SE was redomiciled to the city of Luxembourg in the Grand Duchy of      
Luxembourg on January 1, 2008, in accordance with the decision of the Annual    
General Meeting on March 22, 2007. The company's domicile until December 31,    
2007 was Lohja, Finland.                                                        

Now that the company has been redomiciled, Elcoteq's new Articles of Association
have entered into force. Annual General Meetings will be held on March 23 in the
city of Luxembourg. If said date is a national holiday or bank holiday in       
Luxembourg or Finland, the Annual General Meeting will be held on the next day. 
Shareholders can participate in the meeting via a remote access at an event held
in Helsinki. The 2008 Annual General Meeting will be held on Tuesday, March 25, 
2008.                                                                           
                                                                                
The transfer of domicile will not affect trading in the company's Series A      
shares, which will continue as usual on the Helsinki Stock Exchange.            

Expanding the IEMS Offering                                                     

Elcoteq fine-tuned its service offering in 2007 in response to the rapidly      
changing outsourcing needs of its customers. The company seeks to be able to    
cater to selected customer segments in all major market areas, initially with a 
key focus on Personal Communications.                                           

Elcoteq aims to become the leading provider of integrated electronics           
manufacturing services (IEMS). As an IEMS company, Elcoteq's main concept is to 
refine its electronics manufacturing and product development services,          
especially by adding technical expertise in mechanics into the mix.             

Negotiations on IEMS implementation have been ongoing with different parties.   
The company's aim is to carry out the necessary measures to expand the service  
offering by the end of 2008.                                                    

Short-term Risks and Uncertainties                                              

The most important short-term challenges for Elcoteq's business operations      
concern the company's ability to further improve its cost structure and         
profitability. To rise to these challenges, the company must develop its service
offering in line with the changing needs of customers and improve its agility in
reacting to changes in customer demand.                                         

Prospects                                                                       

Market research agencies estimate annual growth of over 10% in the EMS and ODM  
markets in the future as well. Research agencies estimate that unit sales of    
mobile phones will see growth of about 11% in 2008, but that net sales growth in
the market will remain at 7% due to the decline in average handset prices.      
Growth of about 9% is forecast for the EMS market in the Home Communications    
business area. Key segments in this business - such as the market for flatscreen
TVs - are forecast to see annual growth of about 20%. The communications network
equipment market is expected to grow by about 7% in 2008.                       

Elcoteq aims to become the leading provider of integrated electronics           
manufacturing services (IEMS) cater-ing to selected customer segments in all    
major market areas. The company has three main strategic themes: expand service 
offering, focused growth and operational excellence.                            

The company seeks to improve its operating income substantially in 2008. The    
company believes that the cost-savings and higher operational efficiency from   
the action plans will enable it to reach an operating in-come level of about two
percent in 2008.                                                                

The main objective of the Personal Communications business area for 2008 is to  
ensure profitability by step-ping up the efficiency of its operating procedures.
Personal Communications is not expected to increase its net sales, although     
profitable growth is foreseen with numerous customers.                          

The focuses of the Home Communications business area in 2008 are to improve     
profitability and enlarge the customer base. Elcoteq expects growth in the net  
sales of Home Communications in 2008 to outpace that of the business area's EMS 
market.                                                                         

Elcoteq anticipates that the Communications Networks business area will post net
sales growth and bolster its market position in 2008. Elcoteq seeks to improve  
the profitability of Communications Networks.                                   

Board's Dividend Proposal                                                       

The Board of Directors proposes to the Annual General Meeting to be held on     
March 25, 2008, that no divi-dend will be paid for the 2007 financial year.     

Annual General Meeting 2008                                                     

Elcoteq's Annual General Meeting will be held in Luxembourg on March 25, 2008.  
Shareholders can partici-pate in the meeting via a remote access at an event    
held in Helsinki.                                                               

The Board's Nomination Committee proposes to the Annual General Meeting that the
Board's current members be re-elected. All have given their consent to          
re-election.                                                                    


Luxembourg, February 5, 2008                                                    

Board of Directors                                                              

Further information:                                                            
Jouni Hartikainen, President and CEO, tel. +358 10 413 11                       
Mikko Puolakka, CFO, tel. +358 10 413 11, mobile +41 79 618 0302                
Tuula Hatakka, SVP, Treasury and Investor Relations, tel. +358 10 413 1808,     
mobile +358 50 340 5478                                                         


Press Conference and Webcast                                                    

Elcoteq will hold a combined press conference, conference call and webcast in   
English at 2.30 pm (EET) on Wednesday, February 6, 2008, in the Mansku Cabinet  
of Hotel Simonkenttä (Simonkatu 9, Helsinki, Finland).                          

To participate by phone, please call 5 - 10 minutes before the start of the     
press conference on +44 20 7162                                                 
0125 (Europe) or +1 334 323 6201 (the USA). The password is Elcoteq.            
                                                                                
The press conference can also be followed as a live webcast or later as a       
recording via Elcoteq's website                                                 
www.elcoteq.com.                                                                
                                                                                
The presentation material (pdf file) shown at the conference will be available  
on the company's website, www.elcoteq.com, from about 11.00 am (EET) on February
6.                                                                              

Elcoteq will publish its interim report for the first quarter of 2008 at 9.00 am
(EET) on April 23. The com-pany's Annual Report will be published during the    
week beginning on March 3.                                                      


ENCLOSURES                                                                      

1 Consolidated income statement                                                 
2 Consolidated balance sheet                                                    
3 Consolidated cash flow statement                                              
4 Calculation of changes in shareholders' equity                                
5 Segment reporting                                                             
6 Personnel                                                                     
7 Formulas for the calculation of key figures                                   
8 Five years in key figures                                                     
9 Restructuring expenses                                                        
10 Assets and liabilities classified as held for sale                           
11 Assets pledged and contingent liabilities                                    
12 Quarterly figures                                                            

APPENDIX 1                                                                      

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT    | Jan. 1 -             | Jan. 1  -          |
| (IFRS), EUR 1,000                | Dec. 31, 2007        | Dec. 31, 2006      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES                        | 4,042,932            | 4,284,333          |
--------------------------------------------------------------------------------
| Change in work in progress       |                      |                    |
--------------------------------------------------------------------------------
| and finished goods               | 18,499               | 17,339             |
--------------------------------------------------------------------------------
| Other operating income           | 8,176                | 6,970              |
--------------------------------------------------------------------------------
| Production materials and         | -3,635,868           | -3,787,467         |
| services                         |                      |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel expenses               | -206,230             | -205,871           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation                     | -78,699              | -82,701            |
--------------------------------------------------------------------------------
| Writedowns                       | -1,093               | -                  |
--------------------------------------------------------------------------------
| Depreciation and writedowns,     | -79,792              | -82,701            |
| total                            |                      |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring expenses           | -50,231              | -                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating expenses         | -193,830             | -188,700           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING INCOME                 | -96,344              | 43,902             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income, total          | 3,601                | 3,165              |
--------------------------------------------------------------------------------
| Financial expenses, total        | -29,658              | -26,847            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of the losses of           | -432                 | -985               |
| associated companies             |                      |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME BEFORE TAXES              | -122,833             | 19,237             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes                     | 16,322               | -4,651             |
--------------------------------------------------------------------------------
| NET INCOME                       | -106,511             | 14,586             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUTABLE TO:                 |                      |                    |
--------------------------------------------------------------------------------
| Equity holders of the parent     | -108,381             | 12,065             |
| company *                        |                      |                    |
--------------------------------------------------------------------------------
| Minority interests               | 1,870                | 2,521              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                  | -106,511             | 14,586             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated on profit attributable to equity holders of    |
| the parent company:                                                          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR    | -3.37                | 0.38               |
--------------------------------------------------------------------------------
| Earnings per share (EPS)         | -3.37                | 0.37               |
| diluted, EUR                     |                      |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * Net profit reported by the     |                      |                    |
| company                          |                      |                    |
--------------------------------------------------------------------------------


APPENDIX 2                                                                      

--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET (IFRS),    |                 |                    |
| EUR 1,000                             |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                       | Dec. 31, 2007   | Dec. 31, 2006      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                                |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets                    |                 |                    |
--------------------------------------------------------------------------------
| Intangible assets                     |                 |                    |
--------------------------------------------------------------------------------
|   Intangible rights                   | 5,407           | 7,625              |
--------------------------------------------------------------------------------
|   Product development costs           | 206             | 4,199              |
--------------------------------------------------------------------------------
|   ADP Software                        | 4,136           | 7,182              |
--------------------------------------------------------------------------------
| Advance payments and construction in  | 1,178           | 682                |
| progress                              |                 |                    |
--------------------------------------------------------------------------------
|   Goodwill                            | 6,648           | 10,578             |
--------------------------------------------------------------------------------
|   Goodwill on consolidation           | 15,098          | 15,098             |
--------------------------------------------------------------------------------
|                                       | 32,672          | 45,365             |
--------------------------------------------------------------------------------
| Tangible assets                       |                 |                    |
--------------------------------------------------------------------------------
|   Land and water areas                | 2,252           | 2,611              |
--------------------------------------------------------------------------------
|   Investment properties               | -               | 1,846              |
--------------------------------------------------------------------------------
|   Buildings                           | 59,715          | 71,252             |
--------------------------------------------------------------------------------
|   Machinery and equipment             | 135,862         | 164,307            |
--------------------------------------------------------------------------------
|   Advance payments and                |                 |                    |
--------------------------------------------------------------------------------
|   construction in progress            | 2,225           | 5,005              |
--------------------------------------------------------------------------------
|                                       | 200,054         | 245,021            |
--------------------------------------------------------------------------------
| Investments                           |                 |                    |
--------------------------------------------------------------------------------
|   Shares and equity interests in      | 1,656           | 2,261              |
|   associated companies                |                 |                    |
--------------------------------------------------------------------------------
| Receivables from associated companies | 87              | 87                 |
--------------------------------------------------------------------------------
|   Available-for-sale financial assets | 502             | 11,379             |
--------------------------------------------------------------------------------
|                                       | 2,246           | 13,728             |
--------------------------------------------------------------------------------
| Long-term receivables                 |                 |                    |
--------------------------------------------------------------------------------
|   Deferred tax assets                 | 33,530          | 15,218             |
--------------------------------------------------------------------------------
|   Other loans receivable              | 271             | 99                 |
--------------------------------------------------------------------------------
|                                       | 33,800          | 15,317             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets, total             | 268,773         | 319,431            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                        |                 |                    |
--------------------------------------------------------------------------------
| Inventories                           |                 |                    |
--------------------------------------------------------------------------------
|   Raw materials                       | 274,045         | 286,646            |
--------------------------------------------------------------------------------
|   Work in progress                    | 22,329          | 32,727             |
--------------------------------------------------------------------------------
|   Finished goods                      | 59,377          | 39,031             |
--------------------------------------------------------------------------------
|   Advance payments                    | 5               | 620                |
--------------------------------------------------------------------------------
|                                       | 355,756         | 359,025            |
--------------------------------------------------------------------------------
| Current receivables                   |                 |                    |
--------------------------------------------------------------------------------
|   Accounts receivable                 | 297,594         | 348,305            |
--------------------------------------------------------------------------------
|   Loans receivable                    | -               | 2,188              |
--------------------------------------------------------------------------------
|   Other receivable                    | 22,585          | 26,242             |
--------------------------------------------------------------------------------
|   Prepaid expenses and accruals       | 15,313          | 18,784             |
--------------------------------------------------------------------------------
|   Tax assets based on taxable         | 86              | 7,346              |
|   income in year                      |                 |                    |
--------------------------------------------------------------------------------
|                                       | 335,578         | 402,865            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents                  | 92,691          | 82,298             |
--------------------------------------------------------------------------------
| Current assets, total                 | 784,025         | 844,187            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets classified as held for sale    | 39,453          | -                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS, TOTAL                         | 1,092,251       | 1,163,618          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY                  |                 |                    |
--------------------------------------------------------------------------------
| AND LIABILITIES                       |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity holders |                 |                    |
| of the parent company                 |                 |                    |
--------------------------------------------------------------------------------
|   Share capital                       | 13,041          | 12,616             |
--------------------------------------------------------------------------------
|   Additional paid-in capital          | 225,011         | 218,704            |
--------------------------------------------------------------------------------
|   Other reserves                      | 7,323           | 8,369              |
--------------------------------------------------------------------------------
|   Translation differences             | -7              | -1,864             |
--------------------------------------------------------------------------------
|   Retained earnings                   | 49,597          | 43,767             |
--------------------------------------------------------------------------------
|   Net income for the year             | -108,381        | 12,065             |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 186,584         | 293,656            |
| of the parent company, total          |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interests                    | 11,307          | 9,647              |
--------------------------------------------------------------------------------
| Total equity                          | 197,891         | 303,303            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities                           |                 |                    |
--------------------------------------------------------------------------------
| Long-term liabilities                 |                 |                    |
--------------------------------------------------------------------------------
|   Subordinated notes                  | 139,297         | 139,087            |
--------------------------------------------------------------------------------
|   Medium-term notes                   | 39,973          | 39,966             |
--------------------------------------------------------------------------------
|   Loans from pension plans            | 631             | 1,213              |
--------------------------------------------------------------------------------
|   Other debt                          | 406             | 64                 |
--------------------------------------------------------------------------------
|   Deferred tax liability              | 4,479           | 5,111              |
--------------------------------------------------------------------------------
|                                       | 184,785         | 185,440            |
--------------------------------------------------------------------------------
|   Payments due within one year        | -20,581         | -605               |
--------------------------------------------------------------------------------
| Long-term liabilities, total          | 164,204         | 184,835            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities                   |                 |                    |
--------------------------------------------------------------------------------
|   Medium-term notes                   | 19,991          | -                  |
--------------------------------------------------------------------------------
|   Loans from financial institutions   | 33,139          | 30,096             |
--------------------------------------------------------------------------------
|   Commercial paper program            | 23,951          |  -                 |
--------------------------------------------------------------------------------
|   Loans from pension plans            | 420             | 462                |
--------------------------------------------------------------------------------
|   Advances received                   | 1,053           | 518                |
--------------------------------------------------------------------------------
|   Accounts payable                    | 565,231         | 578,774            |
--------------------------------------------------------------------------------
|   Other current liabilities           | 15,583          | 12,444             |
--------------------------------------------------------------------------------
|   Accrued expenses                    | 43,106          | 49,193             |
--------------------------------------------------------------------------------
| Tax liabilities based on taxable      | 633             | 2,179              |
| income in year                        |                 |                    |
--------------------------------------------------------------------------------
|   Provisions                          | 6,521           | 1,816              |
--------------------------------------------------------------------------------
| Current liabilities, total            | 709,630         | 675,480            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities classified as held for    | 20,526          | -                  |
| sale                                  |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities, total                    | 894,360         | 860,315            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY                  |                 |                    |
--------------------------------------------------------------------------------
| AND LIABILITIES, TOTAL                | 1,092,251       | 1,163,618          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

APPENDIX 3                                                                      

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT      | Jan. 1 -        | Jan. 1 -           |
| (IFRS), EUR 1,000                     | Dec. 31, 2007   | Dec. 31, 2006      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING ACTIVITIES   |                 |                    |
--------------------------------------------------------------------------------
|  Income before taxes                  | -122,833        | 19,237             |
--------------------------------------------------------------------------------
|  Adjustments:                         |                 |                    |
--------------------------------------------------------------------------------
|   Scheduled depreciation and          | 79,792          | 82,701             |
|   amortization                        |                 |                    |
--------------------------------------------------------------------------------
|   Unrealized foreign exchange         | -12,405         | -11,427            |
|   gains and losses                    |                 |                    |
--------------------------------------------------------------------------------
|   Other non-payment-related income    | 141             | 1,275              |
|   and expenses                        |                 |                    |
--------------------------------------------------------------------------------
|   Financial income and expenses       | 28,352          | 26,703             |
--------------------------------------------------------------------------------
|   Other adjustments                   | 38,646          | -4,266             |
--------------------------------------------------------------------------------
| Cash flow before change in working    | 11,693          | 114,223            |
| capital                               |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  Change in working capital: *         |                 |                    |
--------------------------------------------------------------------------------
|   Change in non-interest bearing      | 37,782          | 3,807              |
|   current receivables                 |                 |                    |
--------------------------------------------------------------------------------
|   Change in inventories               | -26,870         | -39,558            |
--------------------------------------------------------------------------------
|   Change in non-interest bearing      | 32,287          | 19,690             |
|   current liabilities                 |                 |                    |
--------------------------------------------------------------------------------
|  Cash flow from operating activities  | 54,891          | 98,162             |
|  before financial items and taxes     |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest and other financial expenses | -24,385         | -21,443            |
--------------------------------------------------------------------------------
|  Operations-related interest income   | 1,699           | 2,055              |
--------------------------------------------------------------------------------
|  Income taxes paid                    | 3,026           | -13,813            |
--------------------------------------------------------------------------------
| Cash flow from operating activities   | 35,232          | 64,961             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING ACTIVITIES   |                 |                    |
--------------------------------------------------------------------------------
|  Purchases of tangible and            | -67,114         | -101,279           |
|  intangible assets                    |                 |                    |
--------------------------------------------------------------------------------
|  Proceeds from disposal of            | 18,503          | 17,173             |
|  tangible and intangible assets       |                 |                    |
--------------------------------------------------------------------------------
|  Acquisitions                         | -               | -7,619             |
--------------------------------------------------------------------------------
|  Disposals                            | 2,306           | 6,001              |
--------------------------------------------------------------------------------
|  Repayment of loans receivable        | 5               | 1                  |
--------------------------------------------------------------------------------
| Cash flow from investing activities   | -46,300         | -85,724            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING ACTIVITIES   |                 |                    |
--------------------------------------------------------------------------------
|  Proceeds from share issues           | 6,733           | 2,890              |
--------------------------------------------------------------------------------
|  Redemption of parent company shares  | -51             | -                  |
--------------------------------------------------------------------------------
|  Change in current debt               | 30,358          | -7,459             |
--------------------------------------------------------------------------------
|  Issuance of long-term debt           | -               | 29,839             |
--------------------------------------------------------------------------------
|  Repayment of long-term debt          | -582            | -466               |
--------------------------------------------------------------------------------
|  Dividends paid                       | -8,902          | -20,573            |
--------------------------------------------------------------------------------
| Cash flow from financing activities   | 27,558          | 4,231              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN CASH AND EQUIVALENTS        | 16,490          | -16,532            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents on January 1     | 82,298          | 101,351            |
--------------------------------------------------------------------------------
| Cash and equivalents classified       | -3,154          | -                  |
| as held for sale                      |                 |                    |
--------------------------------------------------------------------------------
| Effect of exchange rate changes       | -2,942          | -2,521             |
| on cash held                          |                 |                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents on December 31   | 92,691          | 82,298             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The change in working capital includes the change in sold accounts        |
| receivable. The impact of this change is to improve cash flow by 38.8        |
| million euros during the reporting period 1-12/2007 and by 38.9 million      |
| euros during 1-12/2006.                                                      |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| APPENDIX 4   |        |            |           |      |                      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY,       |                      |
| (IFRS) EUR 1,000                                      |                      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|        |         | Attributable to equity holders of  |     Minority | Total |
|        |         | the parent                         |          int | equi  |
|        |         |                                    |       erests | ty    |
--------------------------------------------------------------------------------
|        | Share   | Addition | Othe | Trans | Retained | Total |      |       |
|        | capi-ta | al       | r    | latio | earnings |       |      |       |
|        | l       | paid-in  | rese | n     |          |       |      |       |
|        |         | capi-tal | rves | dif-f |          |       |      |       |
|        |         |          |      | er-re |          |       |      |       |
|        |         |          |      | nces  |          |       |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balanc | 12,616  | 218,704  | 8,36 | -1,86 | 55,831   | 293,6 | 9,64 | 303,3 |
| e at   |         |          | 9    | 4     |          | 56    | 7    | 03    |
| Jan.   |         |          |      |       |          |       |      |       |
| 1,     |         |          |      |       |          |       |      |       |
| 2007   |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Issue  | 425     | 6,308    |      |       |          | 6,733 | 2,82 | 9,555 |
| of     |         |          |      |       |          |       | 2    |       |
| share  |         |          |      |       |          |       |      |       |
| capita |         |          |      |       |          |       |      |       |
| l      |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Equity |         |          |      | 2,256 |          | 2,256 |      | 2,256 |
| hedge  |         |          |      |       |          |       |      |       |
| of     |         |          |      |       |          |       |      |       |
| subsi- |         |          |      |       |          |       |      |       |
| diarie |         |          |      |       |          |       |      |       |
| s      |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Cash   |         |          | -1,0 |       |          | -1,04 |      | -1,04 |
| flow   |         |          | 47   |       |          | 7     |      | 7     |
| hedge  |         |          |      |       |          |       |      |       |
| *      |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Trans- |         |          |      | -399  |          | -399  | -528 | -927  |
| lation |         |          |      |       |          |       |      |       |
| differ |         |          |      |       |          |       |      |       |
| -rence |         |          |      |       |          |       |      |       |
| s      |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Share- |         |          |      |       | 141      | 141   |      | 141   |
| based  |         |          |      |       |          |       |      |       |
| paymen |         |          |      |       |          |       |      |       |
| ts     |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Redemp |         |          |      |       | -68      | -68   |      | -68   |
| -tion  |         |          |      |       |          |       |      |       |
| of     |         |          |      |       |          |       |      |       |
| parent |         |          |      |       |          |       |      |       |
| compan |         |          |      |       |          |       |      |       |
| y      |         |          |      |       |          |       |      |       |
| shares |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Divide |         |          |      |       | -6,308   | -6,30 | -2,5 | -8,81 |
| nds    |         |          |      |       |          | 8     | 04   | 2     |
--------------------------------------------------------------------------------
| Net    |         |          |      |       | -108,381 | -108, | 1,87 | -106, |
| income |         |          |      |       |          | 381   | 0    | 511   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balanc | 13,041  | 225,011  | 7,32 | -7    | -58,784  | 186,5 | 11,3 | 197,8 |
| e at   |         |          | 3    |       |          | 84    | 07   | 91    |
| Dec.   |         |          |      |       |          |       |      |       |
| 31,    |         |          |      |       |          |       |      |       |
| 2007   |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balanc | 12,441  | 215,988  | 8,36 | -2,88 | 63,065   | 296,9 | 6,88 | 303,8 |
| e at   |         |          | 9    | 3     |          | 80    | 5    | 65    |
| Jan.   |         |          |      |       |          |       |      |       |
| 1,     |         |          |      |       |          |       |      |       |
| 2006   |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Issue  | 174     | 2,716    |      |       |          | 2,890 |      | 2,890 |
| of     |         |          |      |       |          |       |      |       |
| share  |         |          |      |       |          |       |      |       |
| capita |         |          |      |       |          |       |      |       |
| l      |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Equity |         |          |      | 1,935 |          | 1,935 |      | 1,935 |
| hedge  |         |          |      |       |          |       |      |       |
| of     |         |          |      |       |          |       |      |       |
| subsi- |         |          |      |       |          |       |      |       |
| diarie |         |          |      |       |          |       |      |       |
| s      |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Transl |         |          |      | -915  |          | -915  | 240  | -675  |
| ation  |         |          |      |       |          |       |      |       |
| differ |         |          |      |       |          |       |      |       |
| ences  |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Share- |         |          |      |       | 1,275    | 1,275 |      | 1,275 |
| based  |         |          |      |       |          |       |      |       |
| paymen |         |          |      |       |          |       |      |       |
| ts     |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
| Divide |         |          |      |       | -20,573  | -20,5 |      | -20,5 |
| nds    |         |          |      |       |          | 73    |      | 73    |
--------------------------------------------------------------------------------
| Net    |         |          |      |       | 12,065   | 12,06 | 2,52 | 14,58 |
| income |         |          |      |       |          | 5     | 1    | 6     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balanc | 12,616  | 218,704  | 8,36 | -1,86 | 55,831   | 293,6 | 9,64 | 303,3 |
| e at   |         |          | 9    | 4     |          | 56    | 7    | 03    |
| Dec.   |         |          |      |       |          |       |      |       |
| 31,    |         |          |      |       |          |       |      |       |
| 2006   |         |          |      |       |          |       |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The Group has applied hedge accounting to derivative instruments related  |
| to purchases from June 30, 2007.                                             |
--------------------------------------------------------------------------------


APPENDIX 5                                                                      

--------------------------------------------------------------------------------
| SEGMENT       |                                                              |
| REPORTING     |                                                              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elcoteq has organized its business operations into two business areas:       |
| Terminal Products and Communications Networks. Elcoteq reports these as its  |
| primary segments applying the principles defined in IAS 14 (Segment          |
| Reporting).                                                                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| As its secondary segments Elcoteq reports its three geographical areas:      |
| Europe, Asia-Pacific and Americas.                                           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment reporting is based on the company's internal reporting system.       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accounting Principles                                                        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| There are no intersegment sales between the primary segments.                |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The net sales of the secondary segments are based on where the segment's     |
| assets are located. Net sales according to customer location are shown under |
| “Breakdown of net sales by market”.                                          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The items shown for the segments are those that are either directly          |
| attributable to the segments or that can be reasonably allocated to them.    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The segment's assets comprise intangible and tangible rights, investments in |
| associated companies, inventories, accounts receivable and allocatable       |
| prepaid expenses and accruals.                                               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The segment's liabilities are its accounts payable and allocatable accrued   |
| expenses.                                                                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-Allocated Items                                                          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-allocated expenses in the income statement consist of the expenses of    |
| the Group office.                                                            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-allocated assets consist mainly of cash and bank receivables as well as  |
| prepaid expenses and accruals not allocated to the segments.                 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-allocated liabilities are mainly interest-bearing liabilities, deferred  |
| tax liabilities and accrued expenses not allocated to the segments.          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments in associated companies that cannot be allocated to the segments |
| are entered under non-allocated assets.                                      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business Areas                                                               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Terminal Products business area designs and manufactures terminal        |
| devices based on the most advanced wireless communications technology. Its   |
| products include mobile phones and their accessories, cordless phones and    |
| set-top boxes.                                                               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Communications Networks  business area serves customers operating in the     |
| areas of mobile phone networks, wireless local area networks, and broadband  |
| networks. The business area's products include base station equipment such   |
| as plug-in units and routers for mobile phone networks, and broadband        |
| network products.                                                            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS AREAS IN 2007, | Terminal | Communi-ca | Non-        | Total        |
| MEUR                    | Products | tions      | Allo-cated  |              |
|                         |          | Networks   |             |              |
--------------------------------------------------------------------------------
| Net sales               | 3,212.0  | 831.0      | -           | 4,042.9      |
--------------------------------------------------------------------------------
| Depreciation            | 55.8     | 19.9       | 4.2         | 79.8         |
--------------------------------------------------------------------------------
| Operating income        | -41.0    | -17.3      | -38.0       | -96.3        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring           | -35.9    | -14.0      | -0.3        | 50.2         |
| expenses**              |          |            |             |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of associated     | -        | -0.1       | -0.3        | -0.4         |
| companies' results      |          |            |             |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets***               | 610.2    | 335.0      | 147.0       | 1,092.3      |
--------------------------------------------------------------------------------
| Investments in          | -        | 1.6        | 0.0         | 1.7          |
| associated              |          |            |             |              |
| companies               |          |            |             |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities             | 467.1    | 162.2      | 265.1       | 894.4        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditures    | 41.3     | 21.9       | 4.1         | 67.2         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold accounts           | 161.7    | 64.8       | -           | 226.5        |
| receivable*             |          |            |             |              |
--------------------------------------------------------------------------------
| * not included in the   |          |            |             |              |
| segment's assets        |          |            |             |              |
--------------------------------------------------------------------------------
| ** A total of 31.5 million euros in restructuring expenses with no cash flow |
| effect on non-current assets have been recognized, of which 18.5 million     |
| euros are included in restructuring expenses of Terminal Products business   |
| area and 13.0 million euros are included in the restructuring expenses of    |
| the Communications Networks business area.                                   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *** The assets of the segments include a total of 39.5 million euros in      |
| available-for-sale assets, of which 3.2 million are allocated to the         |
| Terminal Products business area, 34.5 million to the Communications Networks |
| business area and 1.7 million to non-allocated assets.                       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS AREAS IN 2006, | Terminal | Communi-ca | Non-Allocat | Total        |
| MEUR                    | Products | tions      | ed          |              |
|                         |          | Networks   |             |              |
--------------------------------------------------------------------------------
| Net sales               | 3,512.1  | 772.3      | -           | 4,284.3      |
--------------------------------------------------------------------------------
| Depreciation            | 56.0     | 22.1       | 4.6         | 82.7         |
--------------------------------------------------------------------------------
| Operating income        | 68.4     | 22.4       | -46.8       | 43.9         |
--------------------------------------------------------------------------------
| Share of associated     | 0.0      | 0.0        | -1.0        | -1.0         |
| companies' results      |          |            |             |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets                  | 710.8    | 322.3      | 130.5       | 1,163.6      |
--------------------------------------------------------------------------------
| Investments in          | 0.2      | 1.7        | 0.3         | 2.3          |
| associated              |          |            |             |              |
| companies               |          |            |             |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities             | 470.6    | 145.4      | 244.3       | 860.3        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditures    | 85.4     | 23.5       | 7.9         | 116.9        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold accounts           | 131.7    | 56.0       | -           | 187.7        |
| receivable*             |          |            |             |              |
--------------------------------------------------------------------------------
| * not included in the   |          |            |             |              |
| segment's assets        |          |            |             |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Geographical Areas      |          |            |             |              |
--------------------------------------------------------------------------------
| Elcoteq's geographical areas are Europe, Asia-Pacific and Americas.          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPHICAL AREAS | Europe   | Asia-Pac | Americas   | Non-       | Total   |
| IN 2007, MEUR      |          | ific     |            | Allo-cated |         |
--------------------------------------------------------------------------------
| Net sales          | 2,076.3  | 1,110.9  | 855.7      | -          | 4,042.9 |
--------------------------------------------------------------------------------
| Assets             | 489.3    | 291.8    | 172.5      | 138.7      | 1,092.3 |
--------------------------------------------------------------------------------
| Capital            | 24.7     | 20.7     | 17.7       | 4.1        | 67.2    |
| expenditures       |          |          |            |            |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold accounts      | 178.9    | 47.7     | -          | -          | 226.5   |
| receivable*        |          |          |            |            |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPHICAL AREAS | Europe   | Asia-Pac | Americas   | Non-       | Total   |
| IN 2006, MEUR      |          | ific     |            | Allo-cated |         |
--------------------------------------------------------------------------------
| Net sales          | 2,425.4  | 1,094.1  | 764.8      | -          | 4,284.3 |
--------------------------------------------------------------------------------
| Assets             | 618.3    | 263.1    | 164.0      | 118.1      | 1,163.6 |
--------------------------------------------------------------------------------
| Capital            | 49.4     | 40.5     | 19.0       | 7.9        | 116.9   |
| expenditures       |          |          |            |            |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sold accounts      | 152.7    | 29.3     | 5.7        | -          | 187.7   |
| receivable*        |          |          |            |            |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * Not included in  |          |          |            |            |         |
| the segment's      |          |          |            |            |         |
| assets             |          |          |            |            |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BREAKDOWN OF NET   | 2007     | 2006     |            |            |         |
| SALES BY MARKET,   |          |          |            |            |         |
| MEUR               |          |          |            |            |         |
--------------------------------------------------------------------------------
| Europe             | 2,030.2  | 2,342.5  |            |            |         |
--------------------------------------------------------------------------------
| Americas           | 999.2    | 905.7    |            |            |         |
--------------------------------------------------------------------------------
| Asia-Pacific       | 1,013.5  | 1,036.2  |            |            |         |
--------------------------------------------------------------------------------
|                    | 4,042.9  | 4,284.3  |            |            |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

APPENDIX 6                                                                      

--------------------------------------------------------------------------------
| PERSONNEL          |                                                         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Group had on average 19,131 (16,651) employees during the year.          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                    | At Dec. 31    | At Jan. 1   | Change   | Average        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finland            | 252           | 668         | -416     | 473            |
--------------------------------------------------------------------------------
| Brazil             | 361           | 176         | 185      | 314            |
--------------------------------------------------------------------------------
| Hong Kong          | 57            | 60          | -3       | 58             |
--------------------------------------------------------------------------------
| India              | 1,144         | 777         | 367      | 1,018          |
--------------------------------------------------------------------------------
| Japan              | 3             | 4           | -1       | 3              |
--------------------------------------------------------------------------------
| China              | 6,392         | 5,323       | 1,069    | 6,639          |
--------------------------------------------------------------------------------
| Luxembourg         | 4             | 1           | 3        | 3              |
--------------------------------------------------------------------------------
| Mexico             | 2,999         | 3,138       | -139     | 3,413          |
--------------------------------------------------------------------------------
| Romania            | 327           | 201         | 126      | 252            |
--------------------------------------------------------------------------------
| Sweden             | 8             | 7           | 1        | 8              |
--------------------------------------------------------------------------------
| Germany            | 410           | 453         | -43      | 456            |
--------------------------------------------------------------------------------
| Switzerland        | 7             | 9           | -2       | 8              |
--------------------------------------------------------------------------------
| Hungary            | 2,937         | 3,311       | -374     | 3,170          |
--------------------------------------------------------------------------------
| USA                | 163           | 157         | 6        | 160            |
--------------------------------------------------------------------------------
| Russia             | 576           | 483         | 93       | 554            |
--------------------------------------------------------------------------------
| Estonia            | 2,352         | 2,937       | -585     | 2,602          |
--------------------------------------------------------------------------------
| Total              | 17,992        | 17,705      | 287      | 19,131         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On December 31, 2007 the Group employed 24,222 people, of whom 17,992 were   |
| on Elcoteq's payroll.                                                        |
--------------------------------------------------------------------------------


APPENDIX 7                                                                      

--------------------------------------------------------------------------------
| FORMULAS FOR THE CALCULATION OF KEY FIGURES                                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity (ROE) = | Net income x 100 / Total equity, average of       |
|                          | opening and closing balances                      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investments    | (Income before taxes + interest and other         |
| (ROI/ROCE) =             | financial expenses + income from discontinued     |
|                          | operations before taxes and financial expenses) x |
|                          | 100 / Total assets - non-interest bearing         |
|                          | liabilities, average of opening and closing       |
|                          | balances                                          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment     | (Income before taxes + interest and other         |
| (ROI/ROCE)               | financial expenses + income from discontinued     |
| for trailing 12 months = | operations                                        |
|                          | before taxes and financial expenses) x 100 /      |
|                          | Total assets - non-interest-bearing liabilities,  |
|                          | average of opening and closing balances           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio =          | Current assets + assets classified as held for    |
|                          | sale / Current liabilities + liabilities          |
|                          | classified as held for sale                       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Solvency =               | Total equity x 100 / Total assets - advance       |
|                          | payments received                                 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing =                | Interest-bearing liabilities - cash and           |
|                          | equivalents / Total equity                        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS) | Net income attributable to equity holders of the  |
| =                        | parent / Adjusted average number of shares        |
|                          | outstanding during the period                     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share,      | Net income attributable to equity holders of the  |
| diluted (EPS) =          | parent / Adjusted average number of shares        |
|                          | outstanding during the period + effect of         |
|                          | dilution on the number of shares                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend per share =     | Dividends paid for the fiscal year / Adjusted     |
|                          | number of shares outstanding at the end of the    |
|                          | period                                            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Payout ratio =           | Dividend per share x 100 + Earnings per share     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend yield =         | Dividend per share x 100 + Average share price at |
|                          | the end of the period                             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P/E-ratio =              | Average share price at the end of the period /    |
|                          | Earnings per share (EPS)                          |
--------------------------------------------------------------------------------

APPENDIX 8                                                                      

--------------------------------------------------------------------------------
| FIVE YEARS IN |           |           |           |            |             |
| KEY FIGURES   |           |           |           |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|               | 2007      | 2006      | 2005      | 2004*      | 2003        |
--------------------------------------------------------------------------------
| OPERATIONS    |           |           |           |            |             |
--------------------------------------------------------------------------------
| Net sales,    | 4,042.9   | 4,284.3   | 4,169.0   | 2,921.8    | 2,235.7     |
| MEUR          |           |           |           |            |             |
--------------------------------------------------------------------------------
| of which      | 93.9      | 89.7      | 81.4      | 86.2       | 81.0        |
| outside       |           |           |           |            |             |
| Finland, %    |           |           |           |            |             |
--------------------------------------------------------------------------------
| Gross capital | 67.2      | 116.9     | 123.6     | 128.3      | 68.1        |
| expenditures  |           |           |           |            |             |
--------------------------------------------------------------------------------
| (does not     |           |           |           |            |             |
| include       |           |           |           |            |             |
| operating     |           |           |           |            |             |
| leases), MEUR |           |           |           |            |             |
--------------------------------------------------------------------------------
| Employees,    | 19,131    | 16,651    | 15,242    | 13,065     | 11,044      |
| average       |           |           |           |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PROFITABILITY |           |           |           |            |             |
--------------------------------------------------------------------------------
| Operating     |           |           |           |            |             |
| income before |           |           |           |            |             |
| depreciation  |           |           |           |            |             |
--------------------------------------------------------------------------------
| and           | -16.6     | 126.6     | 155.0     | 117.6      | 88.1        |
| amortization  |           |           |           |            |             |
| (EBITDA),     |           |           |           |            |             |
| MEUR          |           |           |           |            |             |
--------------------------------------------------------------------------------
| Operating     | -96.3     | 43.9      | 76.5      | 57.3       | 30.5        |
| income, MEUR  |           |           |           |            |             |
--------------------------------------------------------------------------------
| % of net      | -2.4      | 1.0       | 1.8       | 2.0        | 1.4         |
| sales         |           |           |           |            |             |
--------------------------------------------------------------------------------
| Income before | -122.8    | 19.2      | 59.3      | 44.9       | 22.5        |
| taxes, MEUR   |           |           |           |            |             |
--------------------------------------------------------------------------------
| % of net      | -3.0      | 0.4       | 1.4       | 1.5        | 1.0         |
| sales         |           |           |           |            |             |
--------------------------------------------------------------------------------
| Net income,   | -108.4    | 12.1      | 41.3      | 30.7       | 20.7        |
| MEUR ***      |           |           |           |            |             |
--------------------------------------------------------------------------------
| % of net      | -2.7      | 0.3       | 1.0       | 1.1        | 0.9         |
| sales         |           |           |           |            |             |
--------------------------------------------------------------------------------
| Return on     | -42.5     | 4.8       | 14.1      | 15.1       | 8.2         |
| equity (ROE), |           |           |           |            |             |
| %             |           |           |           |            |             |
--------------------------------------------------------------------------------
| Return on     | -19.6     | 9.1       | 17.6      | 19.5       | 10.2        |
| investment    |           |           |           |            |             |
| (ROCE/ROI), % |           |           |           |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCIAL     |           |           |           |            |             |
| RATIOS        |           |           |           |            |             |
--------------------------------------------------------------------------------
| Current ratio | 1.1       | 1.2       | 1.2       | 1.1        | 1.2         |
--------------------------------------------------------------------------------
| Solvency, %   | 18.1      | 26.1      | 26.0      | 30.5       | 32.6        |
--------------------------------------------------------------------------------
| Gearing       | 0.7       | 0.4       | 0.3       | 0.4        | -0.0        |
--------------------------------------------------------------------------------
| Interest-bear | 237.2     | 210.3     | 191.7     | 137.4      | 63.3        |
| ing           |           |           |           |            |             |
| liabilities,  |           |           |           |            |             |
| MEUR          |           |           |           |            |             |
--------------------------------------------------------------------------------
| Interest-bear | 144.5     | 128.0     | 90.3      | 98.2       | -0.4        |
| ing net debt, |           |           |           |            |             |
| MEUR          |           |           |           |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PER SHARE     |           |           |           |            |             |
| DATA          |           |           |           |            |             |
--------------------------------------------------------------------------------
| Earnings per  | -3.37     | 0.38      | 1.34      | 1.01       | 0.70        |
| share (EPS) , |           |           |           |            |             |
| EUR           |           |           |           |            |             |
--------------------------------------------------------------------------------
| Diluted       | -3.37     | 0.37      | 1.28      | 0.96       | 0.67        |
| earnings per  |           |           |           |            |             |
| share (EPS),  |           |           |           |            |             |
| EUR           |           |           |           |            |             |
--------------------------------------------------------------------------------
| Shareholders' | 5.72      | 9.31      | 9.55      | 8.82       | 8.46        |
| equity per    |           |           |           |            |             |
| share, EUR    |           |           |           |            |             |
| ***           |           |           |           |            |             |
--------------------------------------------------------------------------------
| Share price   | 4.06      | 9.78      | 20.15     | 17.89      | 15.98       |
| at the end of |           |           |           |            |             |
| the year, EUR |           |           |           |            |             |
--------------------------------------------------------------------------------
| Dividend per  | 0.00      | 0.20      | 0.66      | 0.65       | 0.90        |
| share, EUR ** |           |           |           |            |             |
--------------------------------------------------------------------------------
| Payout ratio, | 0.0       | 52.3      | 49.7      | 49.6       | 131.0       |
| % **          |           |           |           |            |             |
--------------------------------------------------------------------------------
| Dividend      | 0.0       | 2.0       | 3.3       | 3.6        | 5.6         |
| yield, % **   |           |           |           |            |             |
--------------------------------------------------------------------------------
| P/E ratio     | -1.2      | 25.7      | 15.0      | 14.1       | 22.9        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjusted      | 32,178,08 | 31,338,61 | 30,764,70 | 30,420,473 | 29,572,826  |
| weighted      | 1         | 1         | 5         |            |             |
| average       |           |           |           |            |             |
| number of     |           |           |           |            |             |
| shares in     |           |           |           |            |             |
| issue during  |           |           |           |            |             |
| the period    |           |           |           |            |             |
--------------------------------------------------------------------------------
| Adjusted      | 32,594,81 | 31,539,32 | 31,103,57 | 30,640,877 | 30,190,527  |
| number of     | 9         | 7         | 7         |            |             |
| shares in     |           |           |           |            |             |
| issue at the  |           |           |           |            |             |
| end of the    |           |           |           |            |             |
| period        |           |           |           |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * The key figures for the income statement and earnings per share are        |
| calculated on continuing operations. Other key figures include the impact of |
| the discontinued operation.                                                  |
--------------------------------------------------------------------------------
| ** The dividend in 2007 is the proposal of the Board of Directors to the     |
| Annual General Meeting.                                                      |
--------------------------------------------------------------------------------
| *** Amount attributable to equity holders of the parent company. The net     |
| income for 2004 does not include the income of the discontinued operation.   |
--------------------------------------------------------------------------------

APPENDIX 9                                                                      

--------------------------------------------------------------------------------
| RESTRUCTURING EXPENSES                                            |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| In December 2006, Elcoteq announced that it would initiate an action plan    |
| aimed at accelerating measures consistent with its strategy to improve its   |
| competitiveness, profitability and cost-effectiveness. The action plan       |
| concerned operations in Europe and the Americas in particular. As part of    |
| the action plan, Lohja Plant in Finland and Juarez Plant in Mexico were      |
| closed down. In addition, as set out in the action plan announced in October |
| 2007, Elcoteq agreed on the sale of its German subsidiary, the scaling down  |
| of the St. Petersburg unit and measures to boost operational efficiency at   |
| other units. The Group will report the one-time expenses of both action      |
| plans in 2007 as restructuring expenses.                                     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Group´s restructuring expenses, 50,231 thousand euros, comprise the      |
| following items:                                                             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000                       | 2007                                       |
--------------------------------------------------------------------------------
| Personnel expenses              | 6,486                                      |
--------------------------------------------------------------------------------
| Impairments of non-current      | 24,607                                     |
| assets                          |                                            |
--------------------------------------------------------------------------------
| Other operating expenses        | 19,138                                     |
--------------------------------------------------------------------------------
| Restructuring expenses, total   | 50,231                                     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairments of non-current      |                                            |
| assets:                         |                                            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000                       | 2007                                       |
--------------------------------------------------------------------------------
| Intangible rights               | 757                                        |
--------------------------------------------------------------------------------
| Goodwill                        | 3,852                                      |
--------------------------------------------------------------------------------
| Buildings                       | 3,560                                      |
--------------------------------------------------------------------------------
| Machinery and equipment         | 7,359                                      |
--------------------------------------------------------------------------------
| ADP software                    | 121                                        |
--------------------------------------------------------------------------------
| Other financial assets          | 10,949                                     |
--------------------------------------------------------------------------------
| Impairments, total              | 24,607                                     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairments of goodwill are related to impairment losses on design           |
| operations and German operations. For more information on goodwill           |
| impairment, see the section entitled Depreciation and Amortization in the    |
| notes.                                                                       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairments of buildings as well as machinery and equipment are primarily    |
| due to plant closures and the sale of machinery.                             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairments of other financial assets are connected with the write-off of    |
| holdings in Cellon.                                                          |
--------------------------------------------------------------------------------


APPENDIX 10                                                                     

--------------------------------------------------------------------------------
| ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR     |                          |
| SALE                                              |                          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets and liabilities classified as held for sale relate to real estates on |
| sale and to sale of Elcoteq                                                  |
--------------------------------------------------------------------------------
| Communications Technology GmbH to Bavaria Industriekapital AG on January     |
| 2008.                                                                        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets classifies as    |                                                    |
| held for sale:          |                                                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000               | 2007                                               |
--------------------------------------------------------------------------------
| Non-current assets      | 4,910                                              |
--------------------------------------------------------------------------------
| Current assets          | 34,543                                             |
--------------------------------------------------------------------------------
| Total                   | 39,453                                             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities classified as held for sale:                                     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR  1 000              | 2007                                               |
--------------------------------------------------------------------------------
| Long-term liabilities   | -                                                  |
--------------------------------------------------------------------------------
| Current liabilities     | 20,526                                             |
--------------------------------------------------------------------------------
| Total                   | 20,526                                             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets classified as held for sale include a 10,6 million euro write down,   |
| which is a part of restructuring expenses in the income statement.           |
--------------------------------------------------------------------------------

APPENDIX 11                                                                     

--------------------------------------------------------------------------------
| ASSETS PLEDGED AND CONTINGENT LIABILITIES, EUR 1,000 |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000                                            | 2007      | 2006      |
--------------------------------------------------------------------------------
| ON BEHALF OF OTHERS                                  |           |           |
--------------------------------------------------------------------------------
| Guarantees                                           | 8         | 8         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LEASING COMMITMENTS                                  |           |           |
--------------------------------------------------------------------------------
| Operating leases, production machinery (excl. VAT)   | 26,239    | 48,155    |
--------------------------------------------------------------------------------
| Rental commitments, real-estate (excl. VAT)          | 19,334    | 27,612    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVE CONTRACTS                                 |           |           |
--------------------------------------------------------------------------------
| Currency forward contracts, transaction risk,        |           |           |
--------------------------------------------------------------------------------
| hedge accounting not applied                         |           |           |
--------------------------------------------------------------------------------
|   Nominal value                                      | 223,305   | 275,444   |
--------------------------------------------------------------------------------
|   Fair value                                         | -7,069    | -5,101    |
--------------------------------------------------------------------------------
| Currency forward contracts, transaction risk,        |           |           |
--------------------------------------------------------------------------------
| hedge accounting applied                             |           |           |
--------------------------------------------------------------------------------
|   Nominal value                                      | 182,754   | -         |
--------------------------------------------------------------------------------
|   Fair value                                         | -1,047    | -         |
--------------------------------------------------------------------------------
| Currency forward contracts, translation risk         |           |           |
--------------------------------------------------------------------------------
|   Nominal value                                      | 40,541    | 35,533    |
--------------------------------------------------------------------------------
|   Fair value                                         | 1,102     | 285       |
--------------------------------------------------------------------------------
| Currency forward contracts, financial risk           |           |           |
--------------------------------------------------------------------------------
|   Nominal value                                      | 126,534   | 131,085   |
--------------------------------------------------------------------------------
|   Fair value                                         | 250       | -46       |
--------------------------------------------------------------------------------
| Interest rate and foreign exchange swap contracts                |           |
--------------------------------------------------------------------------------
|   Nominal value                                      | 4,000     | 4,000     |
--------------------------------------------------------------------------------
|   Fair value                                         | 18        | 117       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The derivative contracts have been valued using the market prices and the    |
| exchange reference rates of the European Central Bank on the balance sheet   |
| date.  The figures include also the closed positions.                        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER COMMITMENTS                                                            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| In calculating value-added tax for China in 2007, Elcoteq has applied a      |
| method that has so far not received the written approval of the tax          |
| authorities. Should this approval not be forthcoming, the effect would be to |
| reduce Elcoteq´s result substantially. During previous years Elcoteq has     |
| been granted the approval afterwards and therefore the company has estimated |
| the risk to be small and has made no provision.                              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
APPENDIX 12                                                                     

--------------------------------------------------------------------------------
| QUARTERL |                                                                   |
| Y        |                                                                   |
| FIGURES  |                                                                   |
| (UNAUDIT |                                                                   |
| ED)      |                                                                   |
--------------------------------------------------------------------------------
| INCOME   | Q4/   | Q3/   | Q2/  | Q1/    | Q4/    | Q3/    | Q2/    |  Q1/   |
| STATEMEN | 2007  | 2007  | 2007 | 2007   | 2006   | 2006   | 2006   | 2006   |
| T, MEUR  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| NET      | 1,062 | 1,059 | 968. | 952.5  | 1,104. | 1,169. | 1,029. | 981.1  |
| SALES    | .4    | .7    | 3    |        | 6      | 1      | 6      |        |
--------------------------------------------------------------------------------
| Change   |       |       |      |        |        |        |        |        |
| in work  |       |       |      |        |        |        |        |        |
| in       |       |       |      |        |        |        |        |        |
| progress |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| and      | -5.7  | 23.8  | -0.9 | 1.3    | -8.1   | 19.4   | -6.5   | 12.6   |
| finished |       |       |      |        |        |        |        |        |
| goods    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Other    | 4.0   | 2.1   | 1.0  | 1.0    | 3.2    | 1.0    | 1.1    | 1.7    |
| operatin |       |       |      |        |        |        |        |        |
| g income |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operatin | -1,05 | -1,06 | -964 | -957.0 | -1,070 | -1,151 | -991.9 | -968.2 |
| g        | 0.9   | 3.5   | .5   |        | .9     | .0     |        |        |
| expenses |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Restruct | -15.3 | -1.8  | -3.1 | -30.1  | -      | -      | -      | -      |
| u-ring   |       |       |      |        |        |        |        |        |
| expenses |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Deprecia | -19.4 | -20.4 | -19. | -20.1  | -22.0  | -21.8  | -20.1  | -18.9  |
| -tion    |       |       | 9    |        |        |        |        |        |
| and      |       |       |      |        |        |        |        |        |
| writedow |       |       |      |        |        |        |        |        |
| ns       |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATIN | -24.9 | -0.1  | -19. | -52.4  | 6.9    | 16.6   | 12.2   | 8.3    |
| G INCOME |       |       | 0    |        |        |        |        |        |
--------------------------------------------------------------------------------
| % of net | -2.3  | 0.0   | -2.0 | -5.5   | 0.6    | 1.4    | 1.2    | 0.8    |
| sales    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financia | -6.3  | -7.3  | -6.1 | -6.4   | -7.4   | -6.2   | -5.0   | -5.1   |
| l income |       |       |      |        |        |        |        |        |
| and      |       |       |      |        |        |        |        |        |
| expenses |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Share of | -0.1  | 0.0   | -0.1 | -0.3   | -0.3   | -0.2   | -0.2   | -0.3   |
| profits  |       |       |      |        |        |        |        |        |
| and      |       |       |      |        |        |        |        |        |
| losses   |       |       |      |        |        |        |        |        |
| of       |       |       |      |        |        |        |        |        |
| assosiat |       |       |      |        |        |        |        |        |
| es       |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| INCOME   | -31.2 | -7.5  | -25. | -59.0  | -0.8   | 10.1   | 7.0    | 2.9    |
| BEFORE   |       |       | 1    |        |        |        |        |        |
| TAXES    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income   | -2.9  | 1.6   | 5.3  | 12.4   | 1.6    | -3.4   | -2.0   | -0.8   |
| taxes    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET      | -34.2 | -5.9  | -19. | -46.6  | 0.8    | 6.7    | 5.0    | 2.1    |
| INCOME   |       |       | 8    |        |        |        |        |        |
| FOR THE  |       |       |      |        |        |        |        |        |
| PERIOD   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUT |       |       |      |        |        |        |        |        |
| ABLE TO: |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Equity   | -34.5 | -6.3  | -20. | -46.9  | -0.3   | 5.9    | 4.4    | 2.1    |
| holders  |       |       | 6    |        |        |        |        |        |
| of the   |       |       |      |        |        |        |        |        |
| parent   |       |       |      |        |        |        |        |        |
| company  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Minority | 0.4   | 0.4   | 0.7  | 0.3    | 1.1    | 0.8    | 0.6    | -0.0   |
| interest |       |       |      |        |        |        |        |        |
| s        |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|          | -34.2 | -5.9  | -19. | -46.6  | 0.8    | 6.7    | 5.0    | 2.1    |
|          |       |       | 8    |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE  | Q4/   | Q3/   | Q2/  | Q1/    | Q4/    | Q3/    | Q2/    |  Q1/   |
| SHEET,   | 2007  | 2007  | 2007 | 2007   | 2006   | 2006   | 2006   | 2006   |
| MEUR     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| ASSETS   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-curr |       |       |      |        |        |        |        |        |
| ent      |       |       |      |        |        |        |        |        |
| Assets   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Intangib | 32.7  | 35.0  | 36.9 | 38.8   | 45.4   | 47.8   | 49.4   | 48.2   |
| le       |       |       |      |        |        |        |        |        |
| assets   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Tangible | 200.1 | 210.5 | 220. | 227.3  | 245.0  | 263.6  | 242.1  | 238.2  |
| assets   |       |       | 4    |        |        |        |        |        |
--------------------------------------------------------------------------------
| Invest-m | 2.2   | 2.4   | 2.5  | 2.6    | 13.7   | 14.0   | 14.0   | 14.0   |
| ents     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Long-ter | 33.8  | 37.6  | 34.8 | 28.6   | 15.3   | 14.2   | 11.2   | 10.6   |
| m        |       |       |      |        |        |        |        |        |
| recei-   |       |       |      |        |        |        |        |        |
|   vables |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Non-curr | 268.8 | 285.5 | 294. | 297.4  | 319.4  | 339.6  | 316.7  | 311.0  |
| ent      |       |       | 7    |        |        |        |        |        |
| assets,  |       |       |      |        |        |        |        |        |
| total    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current  |       |       |      |        |        |        |        |        |
| assets   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Inven-to | 355.8 | 395.7 | 365. | 346.4  | 359.0  | 407.4  | 366.1  | 339.6  |
| ries     |       |       | 0    |        |        |        |        |        |
--------------------------------------------------------------------------------
|  Current | 335.6 | 435.3 | 420. | 390.1  | 402.9  | 518.1  | 447.9  | 425.7  |
|   recei- |       |       | 3    |        |        |        |        |        |
|   vables |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Cash and | 92.7  | 65.8  | 44.4 | 75.4   | 82.3   | 102.4  | 41.0   | 143.5  |
|  Equiva- |       |       |      |        |        |        |        |        |
|   lents  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
|   Assets | 39.5  | 7.9   | 7.6  | 6.7    |  -     |  -     |  -     |  -     |
|   classi |       |       |      |        |        |        |        |        |
|  fied as |       |       |      |        |        |        |        |        |
| held for |       |       |      |        |        |        |        |        |
|   sale   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Current  | 823.5 | 904.7 | 837. | 818.6  | 844.2  | 1      | 854.9  | 908.9  |
| assets,  |       |       | 3    |        |        | 028.0  |        |        |
| total    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS,  | 1,092 | 1,190 | 1,13 | 1,116. | 1,163. | 1,367. | 1,171. | 1,219. |
| TOTAL    | .3    | .2    | 2.0  | 0      | 6      | 6      | 7      | 9      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOL |       |       |      |        |        |        |        |        |
| -DERS'   |       |       |      |        |        |        |        |        |
| EQUITY   |       |       |      |        |        |        |        |        |
| AND      |       |       |      |        |        |        |        |        |
| LIABILIT |       |       |      |        |        |        |        |        |
| IES      |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  Equity  |       |       |      |        |        |        |        |        |
|  attri   |       |       |      |        |        |        |        |        |
| butable  |       |       |      |        |        |        |        |        |
| to       |       |       |      |        |        |        |        |        |
| equity   |       |       |      |        |        |        |        |        |
|  holders |       |       |      |        |        |        |        |        |
|  or the  |       |       |      |        |        |        |        |        |
|  parent  |       |       |      |        |        |        |        |        |
|  company |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
|   Share  | 13.0  | 13.0  | 13.0 | 12.6   | 12.6   | 12.6   | 12.6   | 12.5   |
|  capital |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
|   Other  | 173.5 | 206.1 | 213. | 228.5  | 281.0  | 279.9  | 272.9  | 267.1  |
|   share- |       |       | 5    |        |        |        |        |        |
| holders' |       |       |      |        |        |        |        |        |
|   equity |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Equity   | 186.6 | 219.2 | 226. | 241.1  | 293.7  | 292.5  | 285.4  | 279.5  |
| attribu- |       |       | 6    |        |        |        |        |        |
| table to |       |       |      |        |        |        |        |        |
| equity   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| holders  |       |       |      |        |        |        |        |        |
| of the   |       |       |      |        |        |        |        |        |
| parent   |       |       |      |        |        |        |        |        |
| company, |       |       |      |        |        |        |        |        |
| total    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Minority | 11.3  | 11.0  | 9.8  | 10.1   | 9.6    | 7.9    | 7.0    | 6.7    |
| interest |       |       |      |        |        |        |        |        |
| s        |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Total    | 197.9 | 230.2 | 236. | 251.2  | 303.3  | 300.4  | 292.5  | 286.3  |
| equity   |       |       | 4    |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-ter |       |       |      |        |        |        |        |        |
| m        |       |       |      |        |        |        |        |        |
| liabi-li |       |       |      |        |        |        |        |        |
| ties     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Long-ter | 159.3 | 179.6 | 179. | 179.6  | 179.7  | 179.9  | 179.9  | 180.0  |
| m        |       |       | 4    |        |        |        |        |        |
|  loans   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
|  Other   | 4.9   | 5.0   | 5.1  | 4.5    | 5.2    | 4.3    | 4.1    | 3.7    |
| long-ter |       |       |      |        |        |        |        |        |
| m        |       |       |      |        |        |        |        |        |
|  debt    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Long-ter | 164.2 | 184.6 | 184. | 184.1  | 184.8  | 184.3  | 184.0  | 183.7  |
| m        |       |       | 5    |        |        |        |        |        |
| liabi-li |       |       |      |        |        |        |        |        |
| ties,    |       |       |      |        |        |        |        |        |
| total    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current  |       |       |      |        |        |        |        |        |
| liabi    |       |       |      |        |        |        |        |        |
| lities   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
|  Current | 77.5  | 49.8  | 56.6 | 64.8   | 30.6   | 92.0   | 26.2   | 38.7   |
|  loans   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
|  Other   | 625.6 | 718.0 | 647. | 607.3  | 643.1  | 788.3  | 666.3  | 708.9  |
|  Current |       |       | 0    |        |        |        |        |        |
|  liabi-  |       |       |      |        |        |        |        |        |
|  lities  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Provisio | 6.5   | 7.5   | 7.5  | 8.5    | 1.8    | 2.5    | 2.7    | 2.5    |
| ns       |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
|  Liabi   | 20.5  | -     | -    | -      | -      | -      | -      | -      |
|  Lities  |       |       |      |        |        |        |        |        |
| classifi |       |       |      |        |        |        |        |        |
| ed as    |       |       |      |        |        |        |        |        |
| held for |       |       |      |        |        |        |        |        |
| sale     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Current  | 730.2 | 775.4 | 711. | 680.6  | 676.5  | 882.9  | 695.2  | 750.0  |
| liabi-li |       |       | 1    |        |        |        |        |        |
| ties,    |       |       |      |        |        |        |        |        |
| total    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE-HO |       |       |      |        |        |        |        |        |
| LDERS'   |       |       |      |        |        |        |        |        |
| EQUITY   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| AND      | 1,092 | 1,190 | 1,13 | 1,116. | 1,163. | 1,367. | 1,171. | 1,219. |
| LIABILIT | .3    | .2    | 2.0  | 0      | 6      | 6      | 7      | 9      |
| IES,     |       |       |      |        |        |        |        |        |
| TOTAL    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personne | 19,13 | 19,43 | 19,7 | 19,065 | 17,431 | 16,930 | 16,581 | 15,748 |
| l on     | 1     | 3     | 14   |        |        |        |        |        |
| average  |       |       |      |        |        |        |        |        |
| during   |       |       |      |        |        |        |        |        |
| the      |       |       |      |        |        |        |        |        |
| period   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Gross    | 27.8  | 14.8  | 13.4 | 11.2   | 32.3   | 38.5   | 30.1   | 16.0   |
| capital  |       |       |      |        |        |        |        |        |
| expendit |       |       |      |        |        |        |        |        |
| ure,     |       |       |      |        |        |        |        |        |
| MEUR     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ROI/ROCE | -19.6 | -12.0 | -9.4 | -2.9   | 9.1    | 12.1   | 15.7   | 16.0   |
| from 12  |       |       |      |        |        |        |        |        |
| precedin |       |       |      |        |        |        |        |        |
| g        |       |       |      |        |        |        |        |        |
| months,  |       |       |      |        |        |        |        |        |
| %        |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Earnings | -1.06 | -0.19 | -0.6 | -1.49  | -0.01  | 0.19   | 0.14   | 0.07   |
| per      |       |       | 4    |        |        |        |        |        |
| share    |       |       |      |        |        |        |        |        |
| (EPS),   |       |       |      |        |        |        |        |        |
| EUR      |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Solvency | 18.1  | 19.4  | 20.9 | 22.5   | 26.1   | 22.0   | 25.0   | 23.5   |
| , %      |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLI- | Q4/   | Q3/   | Q2/  | Q1/    | Q4/    | Q3/    | Q2/    |  Q1/   |
| DATED    | 2007  | 2007  | 2007 | 2007   | 2006   | 2006   | 2006   | 2006   |
| CASH     |       |       |      |        |        |        |        |        |
| FLOW     |       |       |      |        |        |        |        |        |
| STATEMEN |       |       |      |        |        |        |        |        |
| T, MEUR  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash     | 5.2   | 13.1  | -2.3 | -4.3   | 23.8   | 36.8   | 28.4   | 25.2   |
| flow     |       |       |      |        |        |        |        |        |
| before   |       |       |      |        |        |        |        |        |
| change   |       |       |      |        |        |        |        |        |
| in       |       |       |      |        |        |        |        |        |
| working  |       |       |      |        |        |        |        |        |
| capital  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Change   | 33.6  | 33.9  | -5.9 | -18.4  | 30.7   | 13.7   | -73.1  | 12.6   |
| in       |       |       |      |        |        |        |        |        |
| working  |       |       |      |        |        |        |        |        |
| capital  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Financia | -6.1  | -3.8  | -1.2 | -8.6   | -11.6  | -7.7   | -6.6   | -7.3   |
| l items  |       |       |      |        |        |        |        |        |
| and      |       |       |      |        |        |        |        |        |
| taxes    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Cash     | 32.7  | 43.2  | -9.5 | -31.2  | 43.1   | 42.6   | -51.3  | 30.6   |
| flow     |       |       |      |        |        |        |        |        |
| from     |       |       |      |        |        |        |        |        |
| operatin |       |       |      |        |        |        |        |        |
| g        |       |       |      |        |        |        |        |        |
| activiti |       |       |      |        |        |        |        |        |
| es       |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase | -26.2 | -18.0 | -12. | -10.4  | -18.2  | -48.8  | -24.5  | -17.4  |
| of       |       |       | 5    |        |        |        |        |        |
| non-curr |       |       |      |        |        |        |        |        |
| ent      |       |       |      |        |        |        |        |        |
| assets   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Disposal | 15.4  | 3.7   | 1.0  | 0.7    | 16.4   | 1.5    | 4.2    | 1.1    |
| s of     |       |       |      |        |        |        |        |        |
| non-curr |       |       |      |        |        |        |        |        |
| ent      |       |       |      |        |        |        |        |        |
| assets   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Cash     | 21.9  | 28.9  | -21. | -40.9  | 41.2   | -4.7   | -71.5  | 14.2   |
| flow     |       |       | 0    |        |        |        |        |        |
| before   |       |       |      |        |        |        |        |        |
| financin |       |       |      |        |        |        |        |        |
| g        |       |       |      |        |        |        |        |        |
| activiti |       |       |      |        |        |        |        |        |
| es       |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proceeds | -     | -     | 6.7  | -      | 0.5    | 0.5    | 1.4    | 0.5    |
| from     |       |       |      |        |        |        |        |        |
| share    |       |       |      |        |        |        |        |        |
| issue    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Redempti | -0.1  | -     | -    | -      | -      | -      | -      | -      |
| on of    |       |       |      |        |        |        |        |        |
| parent   |       |       |      |        |        |        |        |        |
| company  |       |       |      |        |        |        |        |        |
| shares   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Change   | 9.3   | -4.5  | -8.8 | 34.4   | -60.9  | 65.4   | -10.3  | -1.7   |
| in       |       |       |      |        |        |        |        |        |
| current  |       |       |      |        |        |        |        |        |
| debt     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Issuance |  -    |  -    |  -   | -      |  -     |  -     |  -     | 29.8   |
| of       |       |       |      |        |        |        |        |        |
| long-ter |       |       |      |        |        |        |        |        |
| m debt   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Repaymen | -0.2  |  -    | -0.2 | -0.2   | -0.2   | -0.1   | -0.2   | -      |
| t of     |       |       |      |        |        |        |        |        |
| long-ter |       |       |      |        |        |        |        |        |
| m debt   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Dividend |  -    | -1.5  | -7.4 |  -     |  -     |  -     | -20.6  | -      |
| s paid   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Cash     | 9.1   | -6.0  | -9.7 | 34.3   | -60.6  | 65.9   | -29.7  | 28.6   |
| flow     |       |       |      |        |        |        |        |        |
| from     |       |       |      |        |        |        |        |        |
| financin |       |       |      |        |        |        |        |        |
| g        |       |       |      |        |        |        |        |        |
| activiti |       |       |      |        |        |        |        |        |
| es       |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change   | 30.9  | 23.0  | -30. | -6.6   | -19.3  | 61.1   | -101.1 | 42.8   |
| in cash  |       |       | 8    |        |        |        |        |        |
| and      |       |       |      |        |        |        |        |        |
| equivale |       |       |      |        |        |        |        |        |
| nts      |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and | 65.8  | 44.4  | 75.4 | 82.3   | 102.4  | 41.0   | 143.5  | 101.4  |
| equivale |       |       |      |        |        |        |        |        |
| nts at   |       |       |      |        |        |        |        |        |
| the      |       |       |      |        |        |        |        |        |
| beginnin |       |       |      |        |        |        |        |        |
| g of the |       |       |      |        |        |        |        |        |
| period   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Cash and | -3.2  | -     | -    | -      | -      | -      | -      | -      |
| equivale |       |       |      |        |        |        |        |        |
| nts      |       |       |      |        |        |        |        |        |
| classifi |       |       |      |        |        |        |        |        |
| ed as    |       |       |      |        |        |        |        |        |
| held for |       |       |      |        |        |        |        |        |
| sale     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Effect   | -0.8  | -1.6  | -0.2 | -0.3   | -0.8   | 0.4    | -1.4   | -0.7   |
| of       |       |       |      |        |        |        |        |        |
| exchange |       |       |      |        |        |        |        |        |
| rate     |       |       |      |        |        |        |        |        |
| changes  |       |       |      |        |        |        |        |        |
| on cash  |       |       |      |        |        |        |        |        |
| held     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and | 92.7  | 65.8  | 44.4 | 75.4   | 82.3   | 102.4  | 41.0   | 143.5  |
| equivale |       |       |      |        |        |        |        |        |
| nts at   |       |       |      |        |        |        |        |        |
| the end  |       |       |      |        |        |        |        |        |
| of the   |       |       |      |        |        |        |        |        |
| period   |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS | Q4/   | Q3/   | Q2/  | Q1/    | Q4/    | Q3/    | Q2/    | Q1/    |
| AREAS,   | 2007  | 2007  | 2007 | 2007   | 2006   | 2006   | 2006   | 2006   |
| MEUR     |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Net      |       |       |      |        |        |        |        |        |
| sales    |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Terminal | 849.9 | 842.9 | 752. | 767.2  | 898.6  | 967.9  | 837.6  | 808.0  |
| Products |       |       | 0    |        |        |        |        |        |
--------------------------------------------------------------------------------
| Communic | 212.5 | 216.8 | 216. | 185.3  | 206.0  | 201.2  | 192.0  | 173.1  |
| ations   |       |       | 4    |        |        |        |        |        |
| Networks |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Total    | 1,062 | 1,059 | 968. | 952.5  | 1,104. | 1,169. | 1,029. | 981.1  |
|          | .4    | .7    | 3    |        | 6      | 1      | 6      |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment´ |       |       |      |        |        |        |        |        |
| s        |       |       |      |        |        |        |        |        |
| operatin |       |       |      |        |        |        |        |        |
| g income |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Terminal | 1.3   | 6.0   | -11. | -36.9  | 13.2   | 18.6   | 20.7   | 15.9   |
| Products |       |       | 4    |        |        |        |        |        |
--------------------------------------------------------------------------------
| Communic | -17.2 | 2.4   | 2.2  | -4.7   | 5.7    | 8.8    | 3.2    | 4.6    |
| ations   |       |       |      |        |        |        |        |        |
| Networks |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Group´s  | -9.0  | -8.5  | -9.8 | -10.8  | -12.1  | -10.8  | -11.6  | -12.3  |
| non-allo |       |       |      |        |        |        |        |        |
| cated    |       |       |      |        |        |        |        |        |
| expenses |       |       |      |        |        |        |        |        |
| /income  |       |       |      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Total    | -24.9 | -0.1  | -19. | -52.4  | 6.9    | 16.6   | 12.2   | 8.3    |
|          |       |       | 0    |        |        |        |        |        |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Restructuring expenses recognized in segment's operating income:             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|   Terminal  | -2.6     | -2.1     | -2.9    | -28.3    |                     |
|   Products  |          |          |         |          |                     |
--------------------------------------------------------------------------------
|   communi   | -12.6    | 0.3      | -0.3    | -1.4     |                     |
|   Cations   |          |          |         |          |                     |
|   Net-      |          |          |         |          |                     |
|   works     |          |          |         |          |                     |
--------------------------------------------------------------------------------
|   Group's   | 0.0      | 0.0      | 0.1     | -0.4     |                     |
|   non       |          |          |         |          |                     |
|   allo-     |          |          |         |          |                     |
|   cated     |          |          |         |          |                     |
|   expenses  |          |          |         |          |                     |
|   /income   |          |          |         |          |                     |
--------------------------------------------------------------------------------
| Total       | -15.3    | -1.8     | -3.1    | -30.1    |                     |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPH | Q4/   | Q3/    | Q2/   | Q1/   | Q4/    | Q3/    | Q2/    | Q1/   |
| ICAL     | 2007  | 2007   | 2007  | 2007  | 2006   | 2006   | 2006   | 2006  |
| AREAS,   |       |        |       |       |        |        |        |       |
| MEUR     |       |        |       |       |        |        |        |       |
--------------------------------------------------------------------------------
| Net      |       |        |       |       |        |        |        |       |
| Sales    |       |        |       |       |        |        |        |       |
--------------------------------------------------------------------------------
|   Europe | 557.5 | 530.2  | 481.0 | 507.6 | 635.8  | 659.4  | 599.7  | 530.5 |
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|    Asia- | 293.9 | 313.7  | 272.1 | 231.2 | 260.3  | 307.2  | 272.8  | 253.8 |
|  Pacific |       |        |       |       |        |        |        |       |
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| Americas | 211.1 | 215.7  | 215.2 | 213.6 | 208.5  | 202.4  | 157.1  | 196.8 |
--------------------------------------------------------------------------------
| Total    | 1,062 | 1,059. | 968.3 | 952.5 | 1,104. | 1,169. | 1,029. | 981.1 |
|          | .4    | 7      |       |       | 6      | 1      | 6      |       |
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Attachments

financial statement 2007.pdf