Vitelcom selects Elcoteq as strategic manufacturing partner for Latin America; Elcoteq to manufacture Vitelcom's mobile phones in Manaus, Brazil

October 14, 2004--Elcoteq Network Corporation, global provider of electronics manufacturing services (EMS) for the Communications Technology Industry, has signed an agreement with Vitelcom Mobile Technology to manufacture CDMA mobile phones on a turnkey, assemble to order (ATO) basis, ready for distribution to end-users. Manufacturing will begin in Manaus, Brazil, in late October 2004.

Elcoteq da Amazonia, Ltda., Elcoteq's Brazilian subsidiary, will manufacture two CDMA handsets, an entry-level phone with black and white display and another with a color display. Elcoteq will initially provide logistics, manufacturing, testing, and packaging services.

Vitelcom Mobile Technology, part of the Vitelcom Group, was founded in 2001 to focus on the telecom market. The company manufactures GSM, GPRS, and UMTS mobile phones and is the first European-based i-mode supplier. The handsets, which Elcoteq will manufacture, are for support of a nationwide distribution plan that Vitelcom developed for Brazilian customers.

"This agreement is significant for Vitelcom," said Carlos Gauch, President, Vitelcom Latin America, "as it represents our first major outsourcing program. Having surveyed many EMS providers in the region, Elcoteq was selected based on its wireless technology experience, particularly its world-class manufacturing track record in producing mobile phones, and capabilities to provide the necessary engineering expertise, repair services, and logistics support."

"Elcoteq is extremely pleased to have Vitelcom as its first customer in Manaus and, as such, reinforces our rationale for developing a manufacturing presence in Brazil," said Doug Brenner, President of Elcoteq Americas. "We intend to leverage both Elcoteq's global manufacturing experience and our Americas expertise in Monterrey to provide local support for a rapid ramp-up of product for Vitelcom in Manaus. Elcoteq da Amazonia is committed to providing the same level of world class execution and quality as demonstrated throughout the Elcoteq Group worldwide."

Elcoteq's worldwide communications technology customers include both global tier one and regional OEMs specializing in infrastructure products, mobile phones, and other communications technology products. Previously, Elcoteq has announced its commitments to the emerging markets of Brazil, India, Russia, and China.

About Elcoteq

Elcoteq Network Corporation is a global electronics manufacturing services (EMS) company that focuses on Communications Technology products. Elcoteq ranks among the world's leading EMS providers and is the largest European company in its field. Elcoteq provides end-to-end solutions consisting of design, NPI (new product introduction), manufacturing, supply chain management, and post-sales services for the whole lifecycle of its customers' products. The company operates in 12 countries, on four continents, and employs over 16,000 people. Elcoteq's annual net sales in 2003 totaled over 2.8 billion USD. Elcoteq Network Corporation is listed on the Helsinki Exchange. Elcoteq Americas headquarters is located in Irving, Texas. For more information contact Charles Hong, Director of Business Development, Latin America at 972-401-9995, e-mail charles.hong@elcoteq.com, or visit the Elcoteq website at www.elcoteq.com.

About Vitelcom Mobile Technology SA

Vitelcom Mobile Technology (VMT), established in 2001, is a manufacturer of GSM, GPRS and UMTS mobile phones operating from Spain, France and Germany with plants in Spain, two in Mexico, and Brazil. VTM belongs to the privately owned European Vitelcom Group and is a strategic partner of Telefonica Movistar worldwide. The Vitelcom group employs more than 1,500 people worldwide and shipped 10 million units in 2004. For more information please contact cebit@vitelcom.es or visit the Vitelcom website at www.vitelcom.es.