Platinum Equity Restructures Elcoteq Debt

Platinum Equity, the Los Angeles-based private equity firm, struck a deal to provide debt funding and additional equity to Elcoteq. Specifics on the transaction were not publicized. Elcoteq and Platinum are also negotiating about further debt financing amounting to up to 80 million euros. Elcoteq’s electronic manufacturing segment provides engineering, manufacturing and demand & supply services.

PRESS RELEASE:

Elcoteq has signed a conditional, non-binding Term Sheet with Platinum Equity, a Los Angeles, California based private equity firm (Platinum), with the aim of restructuring the Company’s debt and stabilizing the Company’s balance sheet by providing additional equity and debt funding. The intended transaction, if consummated, would significantly strengthen Elcoteq’s financial position.

Elcoteq and Platinum have signed a Term Sheet concerning a major equity and debt investment. As an equity investment Platinum would subscribe new shares and warrants to be issued by Elcoteq. Elcoteq and Platinum are also negotiating about further debt financing amounting to up to 80 million euros.

Platinum’s investment is dependent on, among other things, Elcoteq’s current revolving credit facility lenders and the Company’s other main lenders agreeing on restructuring of current debt. The number of shares to be issued to Platinum will be determined after the negotiations with the Company’s current lenders have been completed, aiming at Platinum becoming the biggest single shareholder of Elcoteq with a minimum ownership below the mandatory bid threshold under the laws of Luxembourg (33 1/3 percent). If Platinum were to later subscribe for shares with the warrants it is expected that the fully diluted ownership of Platinum would be substantially higher.

The signing of the definitive agreement is subject to, among other things, successful debt restructuring and completion of a due diligence process intended to be completed within approximately 30 days. The closing of the transaction will be subject to all the requisite and applicable regulatory, statutory and corporate approvals of both Platinum and Elcoteq.

About Platinum

Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 120 acquisitions and is currently investing out of a $2.75 billion fund.

ELCOTEQ SE

Jouni Hartikainen

President and CEO

Further information:

Jouni Hartikainen, President and CEO, +358 10 413 11

About Elcoteq Elcoteq SE is the global Life Cycle Service Partner for high-tech product and service companies. Elcoteq has a proven track record in electronics manufacturing and after market services and a global service network close to its customers coupled with modern manufacturing and testing equipment and consistent systems and processes.

Elcoteq’s Electronics Manufacturing Services (EMS) Business Segment provides its customers globally with engineering, manufacturing and demand & supply services. EMS products include mobile phones and their accessories, set-top boxes, LED lighting products, flat panel TVs, infrastructure systems and other industrial segment products.

Elcoteq’s After Market Services (AMS) Business Segment is providing its customers in the communications and consumer electronics industries with global reverse logistics, depot repair, refurbishment, recycling and salvage services but also AMS specific engineering and customer support services.