ERICSSON WINS $40 MILLION CONTRACT IN PORTUGAL FOR EXPANSION OF GSM DIGITAL CELLULAR NETWORK.

STOCKHOLM, Sweden--(BUSINESS WIRE)--Feb. 7, 1995--Ericsson has received an order from Telecel for the expansion of the GSM digital cellular network in Portugal. The contract is valued at $40 million and includes new switches for the mainland and for Madeira, as well as radio equipment to increase coverage and capacity.

Expansion of the network will take place during 1995 and 1996. The contract also includes further collaboration in the fields of technical support and the deployment of new advanced features.

Through this order, the Telecel network will be expanded to handle the rapid increase of subscribers (more than 100,000 before mid-1995). All the network nodes of the Telecel infrastructure have been supplied by Ericsson. Ericsson has also supplied a substantial number of the GSM cellular phones in Portugal.

The cellular penetration in Portugal reached almost 2 percent at the end 1994 and 80 percent of that was digital (GSM). Telecel holds a leading position as a GSM operator. The main owners of Telecel are the Portuguese groups Espirito Santo and Amorim, and the international operator AirTouch.

Ericsson's 75,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications.

CONTACT: Ericsson

KATHY EGAN or LARS JONSTEG

212/685-4030