Elcoteq acquires Nokia's monitor manufacturing unit in Pécs, Hungary

As announced earlier, display manufacturing in Nokia's plant in Salo, Finland, will discontinue. The Nokia Display Products' manufacturing unit in Reynosa, Mexico will also be ramped down in phases. Elcoteq will continue to manufacture monitors for Nokia in Pécs.

Commenting on the changes Reijo Lantto, President of Nokia Display Products, said: "This development is a logical step in Nokia's continuous focus on its core competencies. Nokia has become the leader in mobile Internet technologies and the fast developments in this area offer us new opportunities to serve the emerging digital industry. Nokia's display sales will continue to supplement our wide product offering for corporate customers and the new Nokia Mobile Display Appliances unit will contribute to Nokia's strategy to combine the Internet and mobility by using devices with high-quality displays."

Tuomo Lähdesmäki, President of Elcoteq, said: "This acquisition will help Elcoteq meet its growing customer demand for electronics manufacturing services, including mobile phone customers. We recently announced that we will shortly initiate box build mobile phone manufacturing projects in our existing plant in Pécs. We welcome the addition of the highly skilled Nokia Display Products' employees in Pécs to join Elcoteq. This timely acquisition serves to strengthen our skills and increase manufacturing capacity. We are also happy to continue manufacturing Nokia displays as needed, and later on the plant will take on the production of other electronics products. We believe that this arrangement will have a positive impact on Elcoteq's profits in 2000."

With its 1400 employees and 30,000 square meters, the Nokia Display Products Pécs plant will substantially increase Elcoteq's ability to serve continental European markets and highlight Pécs' status as a key manufacturing location for Elcoteq. In 1998, Elcoteq built an 11,000 square meter plant in Pécs, which currently employs nearly 1000 people.

The newly formed Nokia Mobile Display Appliances unit focuses on the development of entirely new display devices. These devices will enable Internet-based, visually rich communications in the mobile environment. The unit aims to utilize Nokia's know-how in high performance displays, IP technologies and mobility to offer end users completely new communications solutions.

The Nokia Mobile Phones manufacturing unit in Salo has given rise to many new job opportunities for Nokia Display Products' employees since the beginning of 1999. Already some 230 employees have moved to work with Nokia Mobile Phones in Salo. The active search for new job opportunities for Nokia Display Products' personnel will continue both in Salo and Reynosa. The acquisition will cause no changes in the work contracts of Pecs' manufacturing unit personnel.

About Nokia:
Nokia is paving the way to the mobile information society with its innovative products and solutions. Nokia is the leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks including related services. It also supplies multimedia terminals and computer displays. In 1998, net sales totaled EUR 13.3 billion (USD 15.7 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 53 000 people. For more information, www.nokia.com

About Elcoteq:
Elcoteq Network Corporation is a leading European company providing electronics manufacturing services. Elcoteq has eleven manufacturing services plants. These are located in Finland, Estonia, Russia, Hungary, Poland, Germany, Mexico and China. Elcoteq manufactures electronic end-products and subassemblies for companies in telecommunications, industrial electronics, information technology and consumer electronics. Based in Finland, the Group has globally over 6,000 employees. Elcoteq's January - September net sales were nearly EUR 0.5 billion in 1999. Elcoteq's Series A shares are quoted on the Helsinki Exchange. For more information, www.elcoteq.com