Iceland Telecom Among World's First Operators to Implement Ericsson's Communications Portal, iPulse.

STOCKHOLM, Sweden--(BUSINESS WIRE)--Dec. 1, 1999--

(NASDAQ: ERICY) Iceland Telecom (Siminn) is among the world's first operators to run a commercial field trial of Ericsson's communications portal iPulse - an intelligent, IP-based application, simplifying and making communications more convenient for users.

With iPulse(TM) which is jointly developed with OZ.COM, Iceland Telecom will be able to offer its subscribers an application that instantly and easily connects users to each other by mobile phone, pager, Personal Digital Assistant (PDA), home phone or computer using a simple point-and-click contact menu. With a click of an icon, users can create profiles that indicate when, by whom and how, they want to be reached so they have the most efficient communication methods across multiple networks and multiple devices.

"Siminn looks to iPulse to maintain its leadership in superior services and building added value to maintain subscriber loyalty," says Gudmann Bragi Birgisson, head of Siminn Internet. "iPulse opens new means for us to brand and differentiate our many communications services including the basic Internet connection," added Birgisson.

"We have experienced a significant interest in iPulse from operators around the world," says Harry Hakansson, general manager Internet Communications, Ericsson. "Ericsson is committed to providing solutions that combine voice and data and make Internet communications as easy to use as a standard telephone. iPulse is a cutting-edge application that combines instant messaging with voice services in a secure environment and lets users communicate across multiple networks and multiple devices."

"It is our job at Siminn Internet to track and follow the new things that are developed world-wide and choose those that best suit the Icelandic Internet community to help our customers communicate conveniently and efficiently. For this reason, we have decided to test iPulse for our customers. The solution opens new means of communication for one-to-one and many-to-many communication and we see iPulse as a clear asset in our Internet Service," says Gudmann Bragi Birgisson.

"We at OZ.COM are very pleased that Siminn Internet will be among the first operators in the world to deploy iPulse. It certainly demonstrates their commitment to lead in the new communications era in a country that prides itself for having over 80 percent of its population online and mobile," says Skuli Valberg Olafsson, COO of OZ.COM. "We look forward to working closely with Siminn Internet in making iPulse a showcase of how users can experience greater mobility and personalization in the fast developing era of wireless communications."

iPulse was developed and designed to allow for easy localization. Operators can customize iPulse and appropriate services according to the needs of their respective local markets. For Siminn, OZ.COM will provide a localized Icelandic version of iPulse by early December this year. As part of this commercial trial, Siminn Internet will also bundle iPulse with add-on services like voice-over-IP using Ericsson's IP Telephony solution.

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over.

Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom

About Iceland Telecom

Iceland Telecom (Siminn) is Iceland's leading telecommunications operator and has built an extensive and highly developed telecom network in Iceland, as well as securing good international connections via submarine cables and satellite. Siminn, with over 1,300 employees, makes use of all the latest innovations in the world of telecommunications and information technology to provide its customers with fast, convenient and reliable communications around the world. Please visit Iceland Telecom Ltd. at: http://www.simi.is/.

About OZ.COM

OZ.COM is a pioneer in the advancement and development of scalable, interactive real-time communications products and solutions. The company's mission is to put people above networks and develop technology that integrates the Internet, traditional wireline and wireless communications services. With corporate headquarters in Boston and European offices in Reykjavik, Iceland, and Stockholm, Sweden, OZ.COM has over 80 employees and can be found on the World Wide Web at http://www.oz.com/.

About iPulse

Jointly developed by Ericsson and OZ.COM, iPulse provides a secure, operator-centric communications framework. iPulse's modular, standards-based architecture makes it possible for operators to easily deploy billable IP-based value-added services, such as IP telephony or short message routing. With its ability to route calls and messages on wireless, wireline and Internet networks, iPulse allows multi-service operators to offer true communications convergence.

One activated, iPulse connects the user to an Internet framework. All users who are interested and have proper permission can observe the on-line status of a given user. Additionally, each user can create virtual communities by allowing groups of users to participate in Web collaboration and text conferences.

These communication services can be customized by users and service providers, using industry standards and open Application Programming Interfaces (APIs) for easy creation of new enhancements. iPulse provides a complete application service provider solution, providing Voice over IP telephony (VoIP telephony), intelligent routing and a built-in SSH (Secure SHell) authentication process that provides security via encryption.