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Ericsson continues to win major mobile expansions in China.

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

(NASDAQ:ERICY) Ericsson has signed an expansion contract with Shandong Mobile Communications Corporation (Shandong MCC) in China. Within the contract, valued $102 million, Ericsson will supply solutions for the build-out of the operator's GSM network.

Ericsson also concluded a Memorandum of Understanding 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 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, 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) 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 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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Publication:Business Wire
Date:Oct 8, 1999
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