Ericsson sells radio system to Moscow.

STOCKHOLM, Sweden--(BUSINESS WIRE)--September 17, 1996--The city of Moscow has agreed to buy an Ericsson EDACS private radio system to provide radio coverage for the city and surrounding area. Ericsson made the announcement during a visit from Dr. Lars Ramqvist, President of LM Ericsson AB, who was on hand as the final contract was signed between Ericsson and the Russian holding company, AO ROSIKO, who will deliver and install the private radio system for the city.

Installation of the system will begin mid-October with the first base stations expected to be in the first stage of operation by December 1997. The end users will be Moscow municipal services including transport, public utilities and fire service.

The AO ROSIKO holding company was established in 1995 as a system integrator for telecommunication projects including long distance communications, satellite system-based data transfer, mobile radio and telephone communications, electronic mail, audio and videotext. ROSIKO customers include Kemerovo railways and the Moscow Government Employment Department. The holding company's area of activity covers Moscow, St.Petersburg, the Leningrad region and Kaliningrad.

EDACS, the Ericsson system for private radio systems, is designed to meet the special communications requirements of law enforcement authorities, fire departments, rescue services, security organizations, airports and industrial companies. EDACS handles both voice and data communications on the same channel. The completely digital EDACS private radio system is characterized by very rapid connection time, plus reliable fault-tolerant channel selection.

The present contract with ROSIKO is not the first Ericsson EDACS contract in the Russian telecommunications market. The Russian Federation Federal Guard Service has been equipped with this system since 1994. In July 1996, Ericsson's EDACS system provided communications at the Cutty Sark international sailors regatta held in St.Petersburg.

Ericsson's presence in the Russian market goes back to 1881 when the company received its first order for the supply of telephones in St.Petersburg. In 1899, Ericsson started a telephone plant in St.Petersburg, now known as the Krasnaya Zarya plant. Since then Ericsson has always been present in the Russian Federation. In November 1994 Ericsson opened a local company, Ericsson Corporatia AO, with a head office in Moscow. In spring 1996, an office was opened in St.Petersburg. Ericsson equipment has been put into operation or is in installation in more than 50 regions of Russia.

Ericsson's 85,000 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