Ericsson and Turkcell Sign $850 Million Mobile Network Contract.

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--Feb. 1, 2000

Ericsson (NASDAQ:ERICY) is chosen as the leading supplier for enhancing Turkcell's GSM network in Turkey. The contract, valued at $850 million, further strengthens Ericsson's position as the undisputed leader of mobile systems.

The contract encompasses GSM system infrastructure to meet a rapidly increasing user base for Turkcell. The expansions will enable Turkcell to serve more geographic areas and offer increased capacity in high-density areas. Turkcell will increase its network capacity considerably, from today's 7.7 million users, which corresponds to a market share of some 70 percent.

By enhancing its network Turkcell can gain a competitive edge as user demands increase for more sophisticated wireless datacom services.

With this new agreement Turkcell will be able to purchase several of Ericsson's latest GSM innovations, like its open GPRS system, GSM on the Net, and its GSM Pro.

Ericsson's GPRS system (General Packet Radio Services) efficiently introduces packet data to mobile networks. GSM on the Net integrates IP networks with GSM mobility and technology, for example giving corporate users `one-number, one-phone' benefits. GSM Pro enables organizations to have two-way radio functionality and other Private Mobile Radio services over the public GSM network, rather than building private radio networks.

Turkcell's focus never diverts from the need of fast build-out and provision of state-of-the-art services. In August 1999, Turkcell was the first operator to invest in Ericsson's WISE High-Speed Internet solution, which blends carrier-class products from Ericsson's wireless and datacom portfolios. Together with this previous investment, this latest move will enable Turkcell to offer higher levels of service quality to its subscribers. WISE is a portfolio of Wireless Internet Solutions from Ericsson, designed to integrate GSM and Internet technologies.

In February 1999 Turkcell and Ericsson announced a $520 million contract, followed in August by another $550 million contract.

GSM is the world's most widely deployed wireless communications standard. Ericsson is the global market leader in GSM, with close to half of the world's 250 million GSM subscribers connected by Ericsson systems. More than 140 operators in more than 70 countries around the world rely on GSM systems from Ericsson.

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over.

Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom

Company Information

Turkcell is the leading GSM operator in Turkey and one of the largest operators in Europe. With close to 6 million postpaid and prepaid customers, Turkcell provides high-quality wireless telephone services throughout Turkey. Turkcell is awarded with ISO 9001 certificate for its quality management concept and service quality. Being the first ISO 9001 licensed GSM operators in Turkey, Turkcell also became the 9th(a) among 400 GSM operators around the world to receive such a certificate. The company also has joint ventures in Azerbaijan, Georgia, Kazakhstan, Moldovia and Northern Cyprus.

For more information: http://www.turcell.com.tr

(a) GSM Association Sources.