Elcoteq SE Stock Exchange Release May 9, 2008 at 12 pm (EET) Elcoteq has decided to initiate procedures with its Tallinn-based personnel regarding compulsory holiday with partial pay and personnel reductions. Some 330 persons will be affected, of whom the majority will be laid off with partial pay. The exact number of persons involved will be settled after consultation with Labor Inspectorate officials. Efficiency in Elcoteq's Tallinn operations will increase As manufacturing volumes fluctuate significantly, Elcoteq's policy has been to maintain extensive flexibility in its workforce. As part of the February 2007 Action Plan to improve the company's competitiveness, profitability and cost-efficiency, and because of delays in some customer projects, the company has now decided that the extent of this flexibility should be reduced. Actions already taken to improve operational efficiency also mean that reductions in personnel numbers are now possible. Using the option of compulsory holiday with partial pay maintains the capability of upgrading volumes at short notice while at the same time reducing costs. The service offering and capabilities of Elcoteq's operations in Tallinn will not be affected by the measures outlined above. ELCOTEQ SE Minna Aila Director, Investor Relations and Corporate Responsibility Further information: Petteri Laaksomo, Senior Vice President, Operations and Sourcing, tel. +358 10 413 1954 About Elcoteq Elcoteq SE is a leading electronics manufacturing services (EMS) company in the communications technology field. Elcoteq's global service offering covers the entire lifecycle of products, from product development to after-market services. By further combining mechanics expertise into its service offering, Elcoteq's vision is to be a leading integrated electronics manufacturing services (IEMS) company. Elcoteq provides global end-to-end solutions consisting of product development services, supply chain management, NPI, manufacturing, and after-market services for the whole lifecycle of its customers' products. These products include Personal Communications products such as mobile phones and their parts, Home Communications products such as set-top boxes and electronics for flat screen TVs as well as Communications Networks products such as base-stations, tower-top amplifiers, and microwave systems. Elcoteq operates in 15 countries on four continents and employs some 24,000 people. The Group's consolidated net sales for 2007 totaled 4.0 billion euros. Elcoteq SE is listed on the OMX Nordic Exchange Helsinki. For more information visit the Elcoteq website at www.elcoteq.com.
ELCOTEQ INITIATES PROCEDURES REGARDING COMPULSORY HOLIDAY WITH PARTIAL PAY AND PERSONNEL REDUCTIONS IN ESTONIA
| Source: Elcoteq