September, 30. 2005
Elcoteq converts into a European Company - the new company name is Elcoteq SE
Elcoteq's Extraordinary Shareholders' Meeting decided to convert Elcoteq Network Corporation into a European Company (SE, Societas Europaea). The new company form will be adopted on October 1 and the new name of the company will be Elcoteq SE. The names of Elcoteq's subsidiaries remain unchanged.
Elcoteq is the first bigger European industrial corporation that has converted into a European Company. The conversion is part of Elcoteq's internationalization strategy the main aim of which is to increase the company's global competitiveness.
The conversion will have no impact on the company's domicile, the location of its head office, the employment contracts of its personnel, or its tax status. Nor will it affect the position of the company's shareholders.
In the longer term Elcoteq 's aim as an SE is to increase efficiency and reduce administrative costs. An SE will be able to merge its subsidiaries throughout the 28 countries of the European Economic Area (EEA), generating savings in administrative costs and making decision-making processes faster and more efficient. The SE form of a company will also make it more flexible to implement cross-border mergers, acquisitions and divestments, and registration of the company in a new country. Elcoteq believes the SE form of a company will also have a positive effect on its image and will thus support its business operations.
The only change in the position of the company's personnel will apply to employee involvement, which in the future will be arranged at the European level.
Elcoteq Network Corporation is a leading electronics manufacturing services (EMS) company with original design manufacturing (ODM) capabilities in the communications technology field. Elcoteq provides globally end-to-end solutions consisting of design, NPI, manufacturing, supply chain management and after-sales services for the whole lifecycle of its customers' products. These products include terminal products such as mobile phones and set-top boxes as well as communications network equipment such as base-stations, tower-top amplifiers and microwave systems. The company operates on four continents in 15 countries and employs approximately 18,800 people. Elcoteq's consolidated net sales for 2004 totaled MEUR 2,921.8. Elcoteq Network Corporation is listed on the Helsinki Exchanges. More information on the company is available at www.elcoteq.com.
For further information:
Elcoteq Network Corporation
Director, Communications and Investor Relations
Tel. +356 10 413 1742 or +358 50 522 0924
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