Elcoteq, Nokia Networks to Expand Cooperation On Repair Center Operations.

Business Editors

HELSINKI, Finland--(BUSINESS WIRE)--Oct. 29, 2001

Elcoteq Inc. and Nokia Networks will further expand their cooperation to cover repair center operations. Elcoteq will be responsible for the maintenance and repair of Nokia Networks' communications network equipment including microwave radio links, modules for base station controllers and mobile switches, as well as broadband modems. A total of 23 communications network equipment experts in Nokia's Hardware Repair Centre in Espoo will join Elcoteq on November 16.

Elcoteq's services cover the entire lifecycle of telecom infrastructure products from prototype manufacturing to volume production and, now, after-sales services. Since equipment repair requires a high level of technical know-how, this transaction further strengthens Elcoteq's product knowledge. In addition, it will prove of value in the company's New Product Introduction (NPI) for Nokia.

"For many years, Nokia has worked closely with Elcoteq, which has wide-ranging expertise in communications network equipment," said Christian Kurten, vice president of professional services at Nokia Networks. "Elcoteq was therefore the natural choice for us when seeking to extend co-operation to include our communications network equipment repair operations in Espoo."

"We regard this agreement as proof of Nokia's confidence in working with Elcoteq. Cooperation is increasing in the maintenance and repair of communications network products, which further emphasizes the importance of product knowledge in all aspects of electronics manufacturing services," said Jouni Hartikainen, group vice president of communications network equipment at Elcoteq. "We will now get additional product know-how and skills, especially in mobile networks, and thus strengthen our ability to offer a complete range of services to Nokia and other customers."

Elcoteq Network Corporation is the largest European electronics manufacturing services company and one of the global leaders in its field. Elcoteq provides engineering and manufacturing services, supply chain management and after-sales services to international high-tech companies. The company has three business areas, which are terminal products, communications network equipment and industrial electronics. Elcoteq has manufacturing services plants in Finland, Estonia, Russia, Hungary, Poland, Germany, Switzerland, Mexico and China, as well as customer service centers in Sweden, Switzerland, the USA, Japan and Hong Kong. Elcoteq's consolidated net sales in 2000 totaled over 2,200 MEUR and the company has about 9,000 employees. Elcoteq Network Corporation was listed on the Helsinki Exchanges (ELQAV) in 1997. More information on the company at www.elcoteq.com.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.