Eltel closes acquisitions with U-SERV and EVB in the German platform for smart metering business

Eltel has completed the previously announced acquisitions of U-SERV GmbH and the
metering related field operations of EVB Billing und Services GmbH. By the
acquisition of U-SERV Eltel becomes the 100% owner of the company. By the deal
with EVB, the customer base in metering related field services and personnel of
the company are transferred to Eltel. Both transactions have entered into force
on May 1, 2016.
Eltel announced the signing of the contract to acquire U-SERV GmbH, a company
operating in the electricity and gas metering sector in Germany on April 22,
2016. At the same time Eltel announced the contract to acquire metering related
field service assets of EVB Billing und Services GmbH. The deal with EVB
comprises the transfers of EVB’s customer base as well as approximately 80
employees to Eltel.

Eltel will also continue a business development agreement with EVB. Through this
agreement, EVB and Eltel will collaborate to expand the business for metering
services in Germany. The German market is opening for rollout investments in
accordance with the new legislation during 2017 to 2032. There are altogether 43
million electricity meters to be changed. Likewise, another five million gas
meters need to be changed.

Eltel has a strong market position in the smart metering sector of the Nordics
with reference of more than five million meter installations including new order
backlog of 1.6 million installations. This acquisition is now expanding Eltel’s
footprint to cover also the German market. U-SERV’s strong and rapidly growing
local presence in combination with Eltel’s vast international competence in
smart meter rollouts offers good potential for further growth.

Armin Pirkwieser will continue as the Managing Director of U-SERV GmbH.

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

Hannu Tynkkynen
Director – External Communications and Sustainability
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. In 2015 Eltel net sales amounted
to EUR 1,255 million. The current number of employees is approximately 9,600.
Since February 2015, Eltel AB is listed on Nasdaq Stockholm.