Ericsson wins $300 million 3G UMTS contract with Telfort.

Business & High Tech Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--November 30, 2000

Ericsson (NASDAQ:ERICY) has been selected by Dutch operator Telfort for delivery and installation of a nationwide 3G UMTS network in the Netherlands.

Ericsson will deliver a complete WCDMA system, including professional services and terminals, as well as development of end-user services. The contract represents a value of $300 million.

"We expect to have strong synergy effects in both 2G, GPRS and 3G as we are having this long relationship with Ericsson," says Ton aan de Stegge, Telfort's CEO. "The UMTS services Telfort is planning to launch focus on M-office, unified messaging location based services and entertainment, enhanced by the multimedia capability UMTS offers. This will be a natural extension of the GPRS based services Telfort plans to launch before the UMTS network becomes operational."

Jef Keustermans, President of Ericsson in the Netherlands, emphasizes the importance of the contract. "UMTS is the future of telecommunications and Ericsson is in the lead. We are strengthening our resources with some 100 employees in the near future. Ericsson EuroLab Netherlands is focussing on UMTS together with the rest of Ericsson's vast resources in research and development."

Telfort was awarded a UMTS license in auctions held this summer in the Netherlands. This latest contract is a continuation of the successful partnership between Ericsson and Telfort, which began in 1997 with delivery of a fixed switching network. In 1998, Ericsson was awarded a contract from Telfort for a nationwide GSM 1800 network. The contract included delivery of Ericsson's latest AXE systems, Intelligent Network services, microwave radio MINI-LINK solutions, and Operation and Maintenance services.

In March 1999, Ericsson won a major contract with Telfort covering the next expansion phase of the GSM network and evolution of the infrastructure to Ericsson's GPRS system, including an IP-based core network. In signing the agreement, Telfort became the first Dutch operator to purchase General Packet Radio Services (GPRS).

This contract further enhances Ericsson's leading position in 3G globally. Ericsson has to date 20 commercial agreements for 3G-network equipment.

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.

Read more at http://www.ericsson.com/pressroom

About Telfort

Telfort is a wholly owned subsidiary of British Telecom. Telfort provides national and international telecommunications services for both the business and the consumer markets in the Netherlands. With 1 900 employees Telfort makes it possible for customers to exchange speech and data in new and innovative ways. This makes new interaction methods possible, resulting in new business models and an `e'-economy in which Telfort plays a prominent role. Telforts clients include multinationals such as the NS (National Railways), ABN-AMRO, Unilever, Akzo Nobel, KPMG and BP.

Please visit: http://www.telfort.nl