Ericsson signs $330 million agreement with Vodafone to provide "total business mobility" in the vodafone network.

STOCKHOLM, Sweden--(BUSINESS WIRE)--Nov. 25, 1996-- Ericsson today announced a three-year agreement with Vodafone in the UK to supply equipment worth more than $330 million as part of the operator's strategy to provide innovative services to corporate customers.

The Managing Director of Ericsson's Cellular Systems and Terminals Division in the UK, Dave Colbeck, says that the agreement is a significant step toward meeting Vodafone's strategy for its business customers. "Outdoor mobility came with the arrival of mobile phones, now Ericsson is providing indoor mobility, or total business mobility," says Mr Colbeck. "Vodafone has been forward thinking in choosing Ericsson to integrate GSM 900 and DCS 1800 technologies. Ericsson is the world leader in this field."

Ericsson's DCS 1800 system, including the new RBS 2301 micro radio base station, is a key component in activating Vodafone's system for the office environment. For people who are regularly on the move around the office or factory premises, the DCS 1800 system will effectively replicate the functionality of private branch exchanges.

Ericsson's business mobile solution is a complete package of products which include virtual private networks, high-speed data services, messaging and indoor radio coverage. The RBS 2301 is the world's smallest two-transceiver radio base station. It is very light, easy to install quickly and discreetly and it is simple to use and maintain.

Ericsson has supplied GSM systems to 49 countries and is the leading supplier of GSM equipment worldwide.

Commenting on the announcement, Managing Director of Vodafone Group plc, Chris Gent, says: "We expect to run pilot studies in conjunction with Ericsson by June of next year and be in a position to launch these services in Spring 1998. By that time there will be plenty of dual mode handsets and the very small base stations."

Looking further into the future potential of the system, Dave Colbeck says that there could be many different devices with built-in mobile facilities. "Some will be multi-purpose communications devices, capable of sending and receiving graphic images and video," he continues.

Ericsson's 90,000 employees are active in more than 130 countries. Their combined expertise in switching, radio and networking makes Ericsson the world leading supplier in telecommunications.

CONTACT: Ericsson

Kathy Egan or Lars Jonsteg, 212-685-4030