Restoring iPhone from iTunes. Error (0xE8000004).

Hi,
I have an iPhone 4. A couple of hours ago it froze and then displayed "iPhone cannot make or receive calls. Restore from iTunes". So I did. It reset to factory settings and language selection appeared. I selected language and then region. It asks to be connected to iTunes but once I connect the iPhone to my laptop iTunes displays " The iPhone "iPhone" could not be activated because an unknown error occurred (0xE8000004). Please try again later".
Please advice how I can solve this. Thank you.

Thanks @aHmAda1m33. I have installed and checked iTools - the previous successful backup is not listed but all others after reinitializing are listed. I've lost hope now :-(

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