Ericsson further expands WCDMA network and services for Far EasTone and Yuan-Ze in Taiwan.

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--Dec. 11, 2003

Taiwan operator Far EasTone Telecommunications and its subsidiary Yuen-Ze have selected Ericsson (NASDAQ:ERICY) to continue as sole supplier for its 3G network. In this 3G expansion contract, Ericsson is delivering a fully integrated GSM-GPRS-WCDMA solution that ensures all Far EasTone's customers a seamless evolution from 2G to 3G.

The 3G agreement with Far EasTone comprises a complete 3G system including WCDMA radio access network, core network and a wide portfolio of comprehensive professional services for Yuan-Ze Telecommunications, subsidiary of Far EasTone. Multi-vendor terminal verification services for 3G handsets are also included.

The expansion of the WCDMA system will start immediately and will be managed by Ericsson on a turnkey basis. Ericsson's super compact RBS 3104 and RBS 3203 base stations will be deployed. The small footprint and the minimal volume significantly reduce site costs for the operator.

"The partnership between Far EasTone and Ericsson was proven successful in the initial network rollout. Far EasTone was the first WCDMA operator to demonstrate a video call and the first to receive the 'Qualification Certificate' from the Director General Telecom," says Jan Nilsson, president of Far EasTone. "Therefore, it is a natural step to continue the partnership to ensure a cost efficient and smooth expansion. It is definitely a strength for Far EasTone only having to deal with one network vendor when integrating GSM, GPRS and WCDMA."

"After performance proven from earlier implementation, we are selected again as sole supplier for WCDMA," said Jan Signell, president of Ericsson Taiwan. "We are delighted to continue this partnership with Far EasTone and the chance to also extend our services to KGT subscribers after KGT's merger with Far EasTone. I am sure that Far EasTone with its strong focus on innovation and Ericsson with its technology leadership will be a winning combination in the advanced Taiwanese mobile multi-media market."

The WCDMA expansion contract with Far EasTone and Yuan-Ze Telecommunications further confirms Ericsson's position as the world's leading supplier of 3G mobile systems. Ericsson has been named as vendor in 45 out of 85 publicly announced WCDMA agreements to date and has a global market share of 40 per cent.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

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

About Far EasTone Telecommunications

Far EasTone is a leading mobile communication service provider in Taiwan. For the year 2002, its audited revenue has reached NT$ 34,478 million and its net income totaled NT$ 7,808 million. For up to third quarter of 2003, its audited total and service revenue were NT$ 27,150 million and NT$ 25,557 million. Far EasTone is devoted to providing services that enable customers to enjoy convenience using mobile services to get diversified and personalized information. We look forward to realizing our vision for the 21st century: "Anywhere, anytime, communications to enrich the lives of people."