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Elcoteq's MFim 110 convertible capital notes
converted into shares
(Elcoteq Network 31.3.2000)
Elcoteq's Board of Directors decided in February 2000 to exercise the Company's right to redeem the FIM 110 million convertible capital notes ahead of schedule. The subscribers of the notes have decided to convert the notes into Series A shares for FIM 80.50 (EUR 13.54) per share, instead of taking repayment. The conversion of the capital notes will take place on March 31, 2000. The new shares will be registered in the book-entry system on March 31, 2000.
After the conversion the number of A shares will increase by 1 366 452 to 14 104 952 and the share capital will increase by FIM 2 732 904 to FIM 49 363 904. The number of new shares issued by this conversion will represent 5.5 % of the total share capital after conversion and 1.2 % of the voting power after conversion.
The new A shares will carry the same rights as existing A shares and will entitle their holders to a dividend for the first time in the financial period starting on January 1, 2000. The shares may be freely transferred immediately and may be traded on the Helsinki Exchanges from April 3, 2000.
The unanimous decision to float convertible capital notes in the amount of FIM 110 million was made by an extraordinary shareholders' meeting in December 1996. The Company's Board of Directors noted in its meeting on March 22, 2000 that all holders of the 1996 convertible capital notes had announced their decision to exercise their right to convert their notes into Elcoteq Network Corporation's A shares in conjunction with the Company's decision to redeem the shares.
On March 14, 2000 Elcoteq Network Corporation was exempted by the Financial Supervision Authority of Finland from publishing Listing Particulars concerning conversion of the capital notes into shares.
For more information contact:
ELCOTEQ NETWORK CORPORATION
Ulla Paajanen-Sainio Manager, Investor
Relations
Mr Jukka Forsström, Group Treasurer, tel. +358
10 413 1705
Ms Tuula Rainto, Legal Counsel, tel. +358 10 413
1670
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. In addition the group has customer centers in Denmark, Switzerland, U.S., Japan and Hong Kong. Corporate office is located in Helsinki, Finland and Lohja, Finland. The Group has globally over 9,000 employees. Elcoteq's net sales were MEUR 752.5 in 1999. Elcoteq's Series A shares are quoted on the Helsinki Exchanges. More information available at www.elcoteq.com