Ericsson and Turkcell sign $400 million mobile network contract.

Business & High Tech Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--January 30, 2001

Ericsson (NASDAQ:ERICY) today announced that it has signed a contract valued at $400 million with Turkcell, the leading provider of mobile communications services in Turkey, and one of the largest and fastest growing mobile communications operators in Europe.

The contract signed by the two companies will allow Turkcell to upgrade and develop its GSM system infrastructure to meet the demands of Turkcell's rapidly increasing user base, expand in additional geographic areas and offer increased capacity in high-density areas. Turkcell continues to rapidly grow its network and provide more sophisticated voice and data services to its subscribers.

In July 2000, Turkcell was one of the first mobile operators to purchase Ericsson's GPRS technology providing end-to-end solutions including core network elements, transmission backbone, interfaces, implementation and relevant end-user terminals and applications. In February 2000, Turkcell and Ericsson announced a record-breaking $850 million contract, which was one of the biggest single contracts in the history of Ericsson.

With the contract signed today, Turkcell will be able to purchase several of Ericsson's latest GSM innovations, such as MPS3.0 (Mobile Positioning System), WAP3.0 (Wireless Application Protocol) as well CNTS (Core Network Transport Solution).

GSM is the world's most widely deployed wireless communications standard, with over 400 million subscribers, worldwide. Ericsson is the global market leader in GSM. More than 140 operators in more than 70 countries around the world rely on GSM systems from Ericsson.

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.

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

Company information

Turkcell is the leading GSM operator in Turkey with approximately 10.1 million postpaid and prepaid customers as end of year 2000. Turkcell has revenues of $1,637 million and adjusted EBITDA of $551.5 million as of September 30, 2000. Turkcell provides high-quality wireless telephone services throughout Turkey and has coverage of 99.7% of the towns with more than 10,000 inhabitants. At the end of 1999, Turkcell became the first GSM operator in Turkey to be awarded the prestigious ISO 9001 certificate for the quality of its service. Turkcell has interests in international GSM operations in Azerbaijan, Georgia, Kazakhstan, Moldova and Northern Cyprus. All international GSM investments other than Turkcell's Northern Cyprus operations are held by Fintur Holdings B.V.