Ericsson wins $90 million digital switching contract in Colombia; Continues Strong Push to Become Premier Provider of Telecom in Latin America.

STOCKHOLM, Sweden--(BUSINESS WIRE)--Jan. 16, 1996--Ericsson has signed a contract valued at $90 million with Colombian Empresa Nacional de Telecomunicaciones, Telecom, to install a local telecommunication's network in Bogota. The network is based on Ericsson's digital AXE system. Ericsson will take turn key responsibility for design and implementation of the network for 110,000 subscriber lines, as well as construction of the outside plant.

The contract includes Ericsson's digital AXE public switching system, SDH transmission equipment from the new generation of the Ericsson Transport Network Architecture (ETNA) product portfolio, and power supply systems.

The network includes optical fiber access solutions, linking the end-users to the network, and enables wireless access to the network through Ericsson's deliveries of approximately 10,000 DECT-based radio access lines (DRA 1900). Deliveries of the equipment will start in mid 1996 and the first subscribers will be connected to the network by the end of the year.

Empresa Nacional de Telecomunicaciones, Telecom, is a national network operator and service provider, running Colombia's long-distance, international, and--in certain areas--local telephone traffic.

Ericsson has been active on the Colombian market for exactly 100 years and is a major supplier of switching and transmission equipment for the public network, with more than 1.5 million digital AXE lines installed and on order. Furthermore, Ericsson has delivered close to 100,000 PBX lines in Colombia and D-AMPS cellular systems serving 70,000 subscribers.

Ericsson's 80,000 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