Eltel AB issues new class C shares at quota value

The Board of Directors of Eltel AB (publ.) has decided to issue 537,000 class C
shares and exercise its repurchase authorisation to secure Eltel’s obligations
under its Long Term Incentive Programme 2015 (“LTIP 2015”).
The Annual General Meeting 2015 of Eltel (AGM) decided, with the aim to ensure
that Eltel can fulfil its obligations under LTIP 2015, to authorise the Board of
Directors to decide on a directed issue of redeemable and convertible class C
shares. Furthermore, the AGM 2015 decided to authorise the Board to decide on
the repurchase of all issued class C shares via a directed acquisition offer to
all holders of class C shares.

The Board has decided to exercise these authorisations by issuing 537,000 class
C shares to a financial institution, and immediately repurchase all these
shares. The issue was carried out at the shares’ quota value, and the shares
were repurchased at the same price. The time for subscription and repurchasing
of the class C shares was on 5 April 2016.

Eltel currently holds no treasury or C shares. Following the repurchase of class
C shares as outlined above, the number of class C shares held by Eltel thus
totals 537,000. The class C shares do not entitle to any dividend and carry 1/10
voting rights. However, Eltel will not exercise any voting rights regarding
these shares as long as held by Eltel.

The total number of shares in Eltel AB after the share issue is 62,624,238
ordinary shares (unchanged) and 537,000 C shares.

In connection with delivery of shares to employees in 2018, the intention is to
convert repurchased class C shares into ordinary shares, in accordance with the
terms of LTIP 2015.

The information above has been published pursuant to the Swedish Securities
Markets Act (Sw: Lag om värdepappersmarknaden) and the Swedish Financial
Instruments Trading Act (Sw: Lagen om handel med finansiella instrument).

For further information:
Ingela Ulfves
VP - IR and Group Communications
Tel: +358 40 311 3009, ingela.ulfves@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 9,600. In 2015 Eltel’s net sales amounted to EUR 1,255 million.
Since February 2015, Eltel AB is listed on Nasdaq Stockholm.