New ownership structure to support Eltel’s future growth.

3i today announced that it has signed an agreement with the Industri Kapital 2000 Fund to purchase Eltel Networks, a leading provider of construction and maintenance services for telecommunications and electricity networks in Europe. The transaction is subject to competition authorities’ approvals.

In 2006, Eltel Networks’ turnover amounted to € 756 million. The Group, with its 8200 employees has operations across Europe, primarily in The Nordics, the Baltics and Poland, serving owners of telecommunications networks and electric utilities.

”Our goal with this acquisition is to continue Eltel’s strong performance and exciting growth strategy,” says Hannu Isohaaro Partner, Country Manager of 3i. 3i is a world leading private equity and venture capital company, “We invest in companies that have excellent fundamentals and significant upside potential. Eltel Networks business model of insourcing the non-core activities of network owners will be successful across a much broader geographic platform than it operates in today and we look forward to participating in this growth.”

Tuomo Rönkkö, President and CEO of Eltel Group Corporation, has been asked by 3i to remain in his position and is enthusiastic about continuing with the existing management team. “This change in ownership is a positive confirmation of Eltel’s operating decisions and growth potential,” Rönkkö says. “It is reassuring to know that 3i is committed to growing the business by continued implementation of the growth plans we are pursuing.”

“During Industri Kapital’s ownership, Eltel Networks has strengthened the efficiency of its field forces, increased market penetration in its home markets, and expanded into new geographies,” says Michael Rosenlew, Partner at Industri Kapital.

Information contacts:

Tuomo Rönkkö, President and CEO of Eltel Group Corporation
+358 40 311 3001

About Eltel Networks

Eltel Networks is the InfraNet Company™ in Europe, specializing in the construction, maintenance, and upgrading of electricity and telecommunications networks.

In 2006, Eltel Networks’ turnover amounted to € 756 million. The Group, with its 8200 employees has operations across Europe, primarily in The Nordics, the Baltics and Poland

About Industri Kapital

Since inception in 1989, Industri Kapital has, through its funds, acquired 64 companies in a range of industries. The IK 2000 Fund has € 2.1 billion fully invested and was closed on November 2000.

About 3i

3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital, Venture Capital, Infrastructure and Quoted Private Equity (“QPE”) and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.