Eltel wins two major power transmission contracts in Poland at a value of approximately EUR 26 million

Eltel Networks Energetyka S.A., a Polish subsidiary of Eltel AB, has signed a
power transmission contract for an overhead transmission line project with the
Polish transmission grid operator, PSE S.A.. In addition, Eltel has won a
turnkey contract for a substation upgrade at Czerwonak for the same customer.
The total value of these contracts is approximately EUR 46 million of which
Eltel’s share is approximately EUR 26 million.
The contract for the overhead transmission line is a turnkey project is to build
a double circuit 400 kV line from the Pasikurowice substation to Czarna
substation. The total length of the line is approximately 60 kilometres. In
addition to the construction of the new line, the contract includes dismantling
of an existing overhead line and modernization of the optical fibre truck
between Pasikurowice and Czarna substations. Eltel is the leader of the
consortium with Elfeko Gdynia Co as its partner. The total value of this
contract is EUR 40 million of which Eltel’s share is approximately EUR 20
million. The project is expected to start in the first quarter of 2016 and is
estimated to be delivered in the second quarter of 2021. The new line will
secure power supplies to consumers in the south-western part of Poland.

The second contract is a turnkey project at Czerwonak for a reconstruction and
upgrading of an existing 220/110 kV substation to a 400 kV level. The value of
this contract is approximately EUR 6 million. The project is estimated to be
completed in March 2017.

Axel Hjärne, CEO of Eltel comments:
“Winning of these contracts further strengthens Eltel’s position in the Polish
power transmission market, both in overhead lines and substations. We are happy
to continue the development of the Polish transmission system in collaboration
with PSE S.A.”.

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

Hannu Tynkkynen
SVP - Group Communications
Tel: +358 40 311 4503, hannu.tynkkynen@eltelnetworks.com

About Eltel
Eltel is a leading European provider of technical services for critical
infrastructure networks – Infranets – in the segments of Power, Communication
and Transport & Security, with operations throughout the Nordic and Baltic
regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad
and integrated range of services, spanning from maintenance and upgrade services
to project deliveries. Eltel has a diverse contract portfolio and a loyal and
growing customer base of large network owners. The current number of employees
is approximately 9 300. In 2014 Eltel’s net sales amounted to EUR 1 242 million.
Since February 2015, Eltel AB is listed on Nasdaq Stockholm.