Ericsson chosen as supplier to Airtel for the second GSM network in Spain.

STOCKHOLM, Sweden--(BUSINESS WIRE)--March 16, 1995--Ericsson has received a letter of intent from Airtel, the second GSM network operator in Spain, for the supply of GSM cellular network infrastructure for Airtel's network.

Under the terms of the agreement, Ericsson will supply switching equipment and radio base stations for the build-up of Airtel's GSM network during 1995. Airtel plans to have GSM services in operation in the provinces of Madrid, Barcelona, Vizcaya, Sevilla, Valencia, Malaga and Zaragoza by October this year.

Commenting on the order, Raimo Lindgren, president of Ericsson S.A., said: "We are very honored that Airtel has chosen Ericsson as supplier of their GSM network. This agreement is proof of our technological solutions as well as our ability to deliver a new network in record time. The order further strengthens Ericsson's industrial commitment in Spain and will enable us to have the critical mass required in our domestic and international markets."

Airtel won the second GSM operator's license in December 1994. The company is jointly owned by several companies; Airtouch (15,78%), Banco Central Hispano (13,71%), Banco Santander (13,71%), Ineuropa (10,51%), Union Fenosa (7,89%), Fecsa (7,89%), BT (6,31%), Inversiones Fersango (4,73%), BBK (4,58%), Caja Asturias (4,58%), Caja Guipuzcoa (3,86%), Corporacion Alba (2,63%), Caixa Catalunya (2,1%), Unicaja (2,10%).

Ericsson is the world's leading supplier of cellular network infrastructure with a world market share of approximately 40 percent. Ericsson has GSM contracts in 34 countries.

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, LARS JONSTEG, 212/685-4030