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Ericsson awarded first 3G WCDMA contract in Serbia by Telekom Srbija

October 25, 2006, Ericsson (NASDAQ:ERIC), the world s leading telecommunications supplier, and the leading Serbian operator, Telekom Srbija, have signed the first contract on the Serbian market for supply and implementation of a 3G network with HSPA functionality and associated services. This 3G network will be connected to Telekom Srbija s existing core network, also supplied by Ericsson

The contract is the result of a successful Ericsson 3G network trial in Serbia and deliveries will commence immediately. With this contract, Telekom Srbija will be the first to implement a commercial 3G network in Serbia and will be able to offer advanced multimedia and mobile broadband services in the market.

Vladimir Lucic, Director Mobile Division, Telekom Srbija, said: "Ericsson and Telekom Srbija are long-term partners and this contract is a further recognition of our successful cooperation. We are very proud to be the first in the market to offer commercial 3G services."

Bo Andersson, President, Ericsson Serbia, said: "Ericsson is honored to have been selected by Telekom Srbija for the supply of the first commercial 3G network in the Serbian market. With this contract, Ericsson further strengthens its good partnership with Telekom Srbija. With our solutions, Telekom Srbija will be able to offer its customers state-of-the-art commercial 3G services."

As of October 2006, Ericsson is powering 30 commercially launched HSPA networks around the world. Of the 109 commercial WCDMA networks worldwide, Ericsson is a supplier to 60.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

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

About Telekom Srbija:

Under the GSM license agreement of June 9, 1997, the Government of the Republic of Serbia authorized the Joint Stock Telecommunications Company Telekom Srbija a.d., as a license holder, to establish, manage and provide the services of the public digital cellular mobile telephony in the entire territory of the Republic of Serbia, according to GSM standards. On August 9, 1997, the Federal Ministry of Telecommunications assigned to Telekom Srbija a.d. for the period of validity of license, frequencies in 900 MHz spectrum for introducing GSM system.

The Telekom Srbija has a market share of over 59% and covers 87.84% of the territory excluding Kosovo or 84.32% with Kosovo. Population coverage without Kosovo is 95.50%, and with Kosovo is 90.09%. Roaming services are provided in over 100 countries, in more than 220 networks of foreign mobile operators.

For more information please check: http://www.telekom.yu

Ericsson Media Relations

Ericsson

+46 8 719 69 92

press.relations@ericsson.com

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