Ericsson wins $110 million GSM 900/1800 network expansion contract in China.

STOCKHOLM, Sweden--(BUSINESS WIRE)--July 2, 1997--Ericsson has signed a major GSM expansion contract with the Heilongjiang Posts and Telecommunications Administration(HLJPTA), Heilongjiang Province, China.

The contract, valued at $110 million, is the second expansion of the GSM network in the province. As a result of this expansion, the GSM network will achieve a capacity of 800,000 subscribers.

Under this contract, Ericsson will introduce microradio base stations which enable rapid and smooth deployment of high capacity network. In addition base stations for GSM 1800 to the existing GSM 900 network, will pave way for future introduction of Personal Communication.

Ericsson and the HLJPTA have entered into a long-term cooperation agreement and Ericsson is in the process of setting up a technical service center in the province.

"HLJPTA is a valued Ericsson customer. We are committed to providing not only the leading-edge infrastructure system and equipment but also second-to-none support and services,"said Mr.Zhang Xingsheng, Executive Vice President of Ericsson China.

Cooperation between the HLJPTA and Ericsson began in 1993 when the province brought in Ericsson's TACS system for its analogue cellular network. The province had its first GSM system installed in 1995.

Ericsson is the world-leader in GSM and China is now Ericsson's second largest market globally. Ericsson in China has 3,000 employees, 19 offices and 9 joint ventures.

Ericsson's 90,000 employees are active in more than 130 countries. Their combined expertise in fixed and mobile networks, mobile phones and infocom systems makes Ericsson the world-leading supplier in telecommunications.

CONTACT: KATHY EGAN 

LARS JONSTEG

212 685-4030