Ericsson sells first digital wireless system to Orenburg, Russia.

STOCKHOLM, Sweden--(BUSINESS WIRE)--Jan. 22, 1996--Ericsson has been awarded a contract valued at approximately $2.5 million. The agreement, signed with Orensot, the operator in the region of Orenburg in the Russian Federation, is for a digital D-AMPS wireless communications system that will cover the two largest cities in the region, Orenburg and Orsk.

The order includes a Mobile Switching Center, Mini Link transmission equipment and a number of RBS 882 base stations. Initial delivery will take place during January and there are plans to expand the network, over the next three years, to cover seven additional cities.

"This order continues the spread of the D-AMPS standard to yet another area of Russia thus, enhancing the potential for roaming in the region and internationally," says Jan Wareby, Ericsson's Director, Sales & Market Operations for the Cellular Systems - American Standards business unit.

Ericsson has been involved in the Russian market since 1881 when it received its first order for telephones. In 1889 Ericsson built a manufacturing plant in St. Petersburg which was expropriated after the revolution but is still in use. In 1994, Ericsson opened a local company, Ericsson Corporatia, in Moscow.

Currently there are approximately 2 million subscribers using digital D-AMPS networks and over 40 million using analog AMPS networks worldwide, all with the potential of migrating to digital D-AMPS in the future. Ericsson's networks support over 16 million of these D-AMPS/AMPS subscribers worldwide.

Ericsson's 80,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications.

CONTACT: KATHY EGAN 

LARS JONSTEG

212-685-4030