ERICSSON: Ericsson to design, build and manage complete mobile network for Cable&Wireless

Ericsson (NASDAQ:ERIC) has been selected as sole supplier to supply and operate a complete GSM mobile network for Cable&Wireless EAUS (Europe, Asia and US) as it launches its new Fixed Mobile Convergence (FMC) services in the UK. As Cable&Wireless' exclusive managed services partner, Ericsson will also be responsible for running the network for five years.

Under the agreement, Ericsson will supply a complete core and radio-access network, based on small and low-power GSM base stations. The solution is designed to provide indoor fixed and mobile coverage for enterprise users, and allows for seamless roaming between the Cable&Wireless GSM solution and national roaming partners when moving outdoors. Network connectivity is provided by connecting the GSM base stations directly to existing enterprise data networks, using IP network solutions provided by Cable&Wireless. Ericsson will also supply a service-layer network with solutions for service provisioning, SMS and voicemail to enable Cable&Wireless to launch complete FMC services to its customers.

The contract will allow Cable&Wireless to deploy new services rapidly and cost-effectively whilst optimising its existing infrastructure. Cable&Wireless has announced Tesco as its first corporate customer for its new FMC service. FMC will enable Tesco staff to use one mobile handset for all calls, switching between mobile and fixed line calls seamlessly.

Because FMC is integrated with Cable&Wireless' fixed voice and data network, greater value can be offered through attractive commercial models that break the traditional boundaries between fixed and mobile.

In addition to operating and managing the GSM network for five years, Ericsson will provide Cable&Wireless with a wide range of professional services, including design and systems integration.

Jim Marsh, Chief Executive Officer, Cable&Wireless Europe, Asia and the US, says: "Ericsson's proven expertise in mobile technologies and network operations will provide us with a high-performance, quality solution to control costs and enable us to bring compelling services for our customers, such as FMC, to market."

Jacqueline Hey, President of Ericsson UK, says: "This agreement establishes an exciting position for Cable&Wireless and will provide its customers with innovative and attractive solutions. The deal also reflects the close strategic partnership between Cable&Wireless and Ericsson, and we are proud to be selected as the supplier for this network and managed services contract."

Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 195 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm and NASDAQ stock exchanges.

For more information, visit www.ericsson.com or www.ericsson.mobi.

Notes To Editors

Fixed Mobile Convergence

FMC allows customers to use just one handset for all calls, switching between mobile and fixed line calls seamlessly. Utilising picocell technology mobile handsets can be used in the workplace, accessing an internal data network (fixed line) to carry the call. The fixed line connection provides both better signal quality, and lower call rates. Once outside the office, the handset then roams to a mobile network.

Cable&Wireless is the first, and only, telecommunications group to market with an FMC proposition in the UK.

About Cable&Wireless

Cable&Wireless is one of the world's leading international communications companies. It operates through two standalone business units - Europe, Asia & US and International.

Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecoms services across the UK, US, continental Europe and Asia. With experience of delivering connectivity to 153 countries - and an intention to be the first customer-defined communications services business - the focus is on delivering customers a service experience that is second to none.

The International business unit operates integrated telecommunications companies in 39 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers, with principal operations in the Caribbean, Panama, Macau, Monaco and the Channel Islands.

CONTACT: Ericsson WWW: http://www.ericsson.com WWW: http://www.ericsson.mobi. Owen Waters, Nelson Bostock Communications Tel: +44 (0)207 792 7441 e-mail: owen.waters@nelsonbostock.com Nelson Bostock Communications Tel: +44 (0)207 229 4400 Fax: +44 (0)207 727 2025

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