Eltel wins two major power transmission contracts in Poland at a value of approximately EUR 25 million

Eltel has signed two power transmission contracts for reconstruction of high
voltage substations with the Polish transmission grid operator, PSE S.A.. The
projects are in the Jasiniec and Joachimow regions and have a total value of
 approximately EUR 25 million.
The contract in Jasiniec is for a turnkey project to reconstruct a 220/110 kV
substation including a new 400 kV switchgear. The scope of services spans from
design, permitting, civil works, technology building, and a new 400 kV
switchgear to complete substation systems. The contract in Joachimow is a
turnkey project from design to start-up and testing, measurements and handover
to the customer. Both projects will be started during 2016. The Jasiniec project
will be completed by the end of 2019 and Joachimow project by early 2019.

The projects awarded to Eltel are part of a major investment programme for PSE
to build 1,770 kilometres of new 400 kV and 220 kV overhead lines and upgrade
200 kilometres of 400 kV and 1220 kilometres of 220 kV existing lines. The
investment programme is expanding the national power system in terms of power
output and connection of new generation sources. In November, Eltel announced a
project award by PSE for an overhead transmission line and an upgrade of a
substation at a total value of approximately EUR 26 million. These projects are
also part of the abovementioned PSE investment programme.

Fredrik Menander, President - Power Transmission at Eltel AB comments:
“The recent awards of these overhead line as well as the previously announced
substation projects by PSE to Eltel are proof of our competitiveness in the
Polish market. Eltel is in a position to offer a complete package of services
from design to successful start-up, which is based on our long experience and
solid platform of specialised power transmission resources and know-how in
Poland. The new contracts are a nice add to our overall order backlog and
contribute to the stable development of our business in the coming years”.

For further information:
Ingela Ulfves
VP - Investor Relations and Group Communications
Tel: +358 40 311 3009, ingela.ulfves@eltelnetworks.com

Hannu Tynkkynen
SVP - Group Communications
Tel: +358 40 311 4503, hannu.tynkkynen@eltelnetworks.com

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.