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Ericsson continues to win major mobile expansions in China.

STOCKHOLM, Sweden--(BUSINESS WIRE)--October 8, 1999--

(NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
:ERICY) Ericsson has signed an expansion contract with Shandong Mobile Communications Corporation (Shandong MCC (The Microelectronics and Computer Technology Corporation, Austin, TX) The first high-tech research and development consortium in the U.S., created in 1982 by leading companies within the electronics industry. ) in China. Within the contract, valued $102 million, Ericsson will supply solutions for the build-out of the operator's GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992.  network.

Ericsson also concluded a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment.  with Shandong MCC for additional purchase of solutions for offering high speed mobile datacom services, and radio equipment providing an additional capacity of more than 500,000 users.

Installations within the contract will increase the capacity of Shandong MCC's GSM network in the province to 3.8 million subscribers when completed in April 2000. Beijing Ericsson Mobile Communications Company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D.  Ltd., one of Ericsson's joint ventures in China, will start deliveries in December.

The contract includes Ericsson's latest mobile switching platforms optimized for capacity enhancements and its Mobile Switching Center A switching center is a node in a telecommunications Circuit switching network which is connected to either another switching center and/or to end user devices. Switching centers are aware of other centers and possible routes between them such that on demand a center can establish , updated with the new R7 software, offering a range of new functionalities, especially well-suited for dual-band operation -- here for GSM 900 and GSM 1800. To date, Ericsson has won seven GSM expansion contracts in the Shandong province.

Ericsson's long-term relationship with Shandong Posts & Telecommunications Administration (Shandong PTA PTA or parent-teacher association: see parent education. ) began in 1995 when Ericsson launched the province's first GSM project. Shandong MCC was recently separated from Shandong PTA, following the Chinese government's restructuring of the industry's administration.

"Again, this contract demonstrates Ericsson's continuous dedication and commitment to the infrastructure build-up build·up also build-up  
n.
1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike.

2.
 and the services in the province," says Michael D. Ricks, President of Ericsson (China) Company Ltd. "It also highlights both parties' mutual understanding to and trust in each other. We are pleased to spare no efforts to offer our best service."

Ericsson China has more than 3,800 employees, 23 offices across the country and eight joint ventures that provide a full range of communications solutions and services.

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
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Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Oct 8, 1999
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