Eltel's Communication Business Announces the Renewal of Two Major Frame Agreements in Finland

Regulatory News:

Eltel (STO:ELTEL) has been awarded with the renewal of two frame agreements with a Finnish telecommunications operator covering the services in both mobile and fixed telecom networks in Finland. These significant agreements are a continuation of the contracted services currently being offered by Eltel to its large telecom customer. Both of the frame agreements are valid for two years.

The renewed frame agreements are based on a geographical model where Eltel’s communication business will be the provider of construction, installation and maintenance services for mobile and fixed networks in awarded regions in Finland. These agreements will provide employment for approximately 200 people during the two year contract period. In the mobile communication business the frame agreement covers the period starting from January 2016 until the end of December 2017 and the fixed communication agreement is valid from April 2016 until the end of March 2018.

Axel Hjärne, CEO and President, Eltel AB comments:

"The renewal of the existing contracts is good proof that Eltel constantly is improving its performance to correspond to the growing needs of our operator customer. The areas of improvement are mainly related to the quality and efficiency of our operations, resulting in better overall performance. The renewed agreements also enhance new development programs for Eltel to further add value to the operator's business".

About Eltel

Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. 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. The current number of employees is approximately 9 300. In 2014 Eltel’s net sales amounted to EUR 1 242 million. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.

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