Eltel — M&A Activity 2017

Jul 13, 2017

Press release: 13.7.2017 at 9.00 CET

Eltel's Power business signs a new multi-year building agreement with Ellevio in Sweden

Eltel has signed a new power distribution building agreement with Ellevio AB to build new local underground electric networks in Sweden. The scope is turnkey from design to commissioning and the entire project is expected to be completed by summer 2020. The contract is an important market breakthrough for Eltel in Sweden.

The new agreement consists of installing 800 kilometres of low and medium voltage cable, 470 kilometres of excavation and the installation of approximately 310 new net stations. In addition, the contract also comprises the dismantling of the existing overhead line network. In Finland, Eltel is the market leader in corresponding network investment projects.

The entire project is divided into three geographical areas being Norränge, Näsviken-Sörforsa and Strömsbruk in Gävleborg county. Starting date of the works is in August 2017 and these areas are expected to be completed during the time period October 2019 to June 2020.

Juha Luusua, President - Eltel Power comments:

"Our new agreement with Ellevio is an important breakthrough for Eltel in the Swedish power market. Since many years, Eltel has delivered similar projects in Finland where we are the market leader. We are already present within the Swedish power distribution network services but building new underground networks in Sweden is a new market penetration for us. The length of the new Ellevio agreement gives us a good platform to further develop our business presence in this market segment in Sweden."

For further information:

Ingela Ulfves VP – IR and Group Communications Tel: +358 40 311 3009, ingela.ulfves@eltelnetworks.com

For more information on Ellevio: www.ellevio.se

About Eltel

Eltel is a leading Northern European provider of technical services to the Infranet industry-critical infrastructure reported in the segments of Power, Communication and Other – with core business focusing on the Nordic, Poland and Germany. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. In 2016, Eltel net sales amounted to EUR 1.4 billion. The current number of employees is approximately 8,400. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.

Eltel AB POB 12 623, SE112 92 Stockholm, SWEDEN Adolfsbergsvägen 13, Bromma www.eltelnetworks.com Copyright © Eltel AB

Tel +46 8 585 376 00 VAT ID SE556728665201