ERICY: Ericsson seals major GSM expansion contracts in China with China Mobile Communications Corporation (China Mobile)

Ericsson (NASDAQ:ERICY) has finalized a number of major GSM expansion contracts with China Mobile Communications Corporation (China Mobile) during the first half of 2006. Collectively worth more than USD 550 million, the contracts cover expansion projects in 17 regions and further strengthen Ericsson's position as the leading mobile communications supplier in the Chinese market.

Under the contracts, Ericsson will provide China Mobile with core and radio networks, along with related technical support and services. Ericsson will also deploy its Mobile Softswitch Solution. The expansion projects will not only allow China Mobile to boost network capacity while enhancing operational efficiency and cutting costs, but also take an important step in realizing future network evolution.

Upon completion of the projects, the Ericsson-supplied network equipment will be able to support up to 200 million subscribers across the 17 regions. Deliveries of the contracts have already started.

Mats H Olsson, President, Ericsson Greater China, says: "We are very proud to be selected by China Mobile, once again, to expand its networks. China Mobile also recently named us 'Best Partner of China Mobile GSM Target Network Upgrade Project'. This is a clear recognition of not only our advanced technologies and solutions, but more importantly our efficient engagement with China Mobile. The expansion contracts are yet another demonstration of our commitment and capabilities in helping our customer achieve sustained business growth."

Ericsson's cooperation with China's mobile communications industry dates back to 1987, when Ericsson supported China in deploying the country's first analog mobile communications systems in Guangdong and Hebei provinces. Since then, as China Mobile's long-term strategic partner, Ericsson has been leveraging its leading technology and solutions, as well as global expertise, to work closely with China Mobile at all levels so it can provide advanced voice, data and multimedia services.

Ericsson's Mobile Softswitch Solution is the world's most widely deployed softswitch architecture solution. It powers around 50 percent of all mobile networks in full commercial service with softswitch architecture.