Ericsson Awarded GSM Expansion Frame Agreement in China.

Business Editors/High-Tech Writers

STOCKHOLM, Sweden--(BUSINESS WIRE)--June 15, 2004

Ericsson (NASDAQ:ERICY) has signed a frame agreement with Guangxi Mobile Communications Company Limited (Guangxi Mobile) for the expansion of their GSM network in the Guangxi Zhuang Autonomous Region, Southwestern China. The total value of the agreement is estimated to USD 109 million.

In addition to the expansion of the existing network, Ericsson will deploy the advanced AXE810 platform and RBS2206 radio base stations. The implementation of the agreement will be completed by the end of 2004.

"The expansion project will strengthen Guangxi Mobile's leading position by providing subscribers with more functions and wider network coverage," says Chen De Xing, General Manager of Guangxi Mobile. "After this expansion supported by Ericsson, our network capacity will reach around 8 million users."

"We are very honored to once again be chosen by Guangxi Mobile for its GSM expansion," says Mats H Olsson, President of Ericsson China. "Since year 2000, Ericsson has been providing advanced solutions and professional services to Guangxi Mobile's GSM network. We are committed to continue to provide first class technology and products to Guangxi Mobile, which will enable our customer to roll out more attractive applications and services to their customers."

Ericsson's presence in Guangxi dates back to 1991 when the company helped to deploy a TACS network. Ericsson continues to be the major provider of GSM/GPRS equipment for the region.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

Read more at http://www.ericsson.com/press

About Guangxi Mobile

Guangxi Mobile Communications Company Limited. (Guangxi Mobile) was established in July 1999 as a regional subsidiary of China Mobile Communications Corporation. After being acquired in 2000 by China Mobile HK Holdings, a company listed both on Hong Kong and New York Stock Exchanges, Guangxi Mobile became one of the 21 wholly owned branches of China Mobile HK Holdings. With over 4 million subscribers, Guangxi Mobile is the largest mobile communication services provider in Guangxi Zhuang Autonomous Region.