Ericsson signs $174 million digital GSM Mobile Network contract in South Africa.

STOCKHOLM, Sweden--(BUSINESS WIRE)--June 19, 1996--Ericsson and Mobile Telephone Networks (MTN) Ltd, have signed a contract for the further expansion of the MTN's GSM network in South Africa. The contract makes provision for the supply of Ericsson switching, radio base-station and mobile terminal equipment worth in excess of $174 million.

With these extensions, the continuing roll-out of the MTN network is ensured up to a capacity of more than 500,000 subscribers nation-wide.

"South Africa is still one of the fastest growing GSM markets in the world. It is competitively driven and as the foremost coverage, quality and customer service operator, we rely on leading-edge technology. By placing an order of this magnitude with Ericsson, we feel that MTN will retain its leadership as South Africa's cellular voice," says Robert G Chaphe, Chief Executive of MTN.

Announcing the deal in Johannesburg today, Managing Director of Ericsson South Africa, Mr Christer Hohenthal said: "The sustained confidence of an internationally competitive and progressive operator like MTN is most rewarding. It was the securing of the MTN business in the first place that allowed Ericsson to establish a solid platform in South Africa from which we are now ready not only to grow MTN still further, but also to address new opportunities in the communications field."

Ericsson South Africa has 270 employees, 170 of whom are engaged in local manufacturing of world class products.

Ericsson has supplied GSM systems to 44 countries and is the leading supplier of GSM equipment world-wide.

Ericsson's 85,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking has established Ericsson as a world leader in telecommunications.

CONTACT: Ericsson

Kathy Egan or Lars Jonsteg

212-685-4030