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Eastern European Markets
NEWS RELEASE
May 3. 2006

Ericsson chosen by polish Netia for managed services contract

The Polish operator Netia and Ericsson (NASDAQ:ERICY) are entering into an exclusive five year managed services partnership. Under the contract, Ericsson will be responsible for the management of Netia wireline networks and service deliveries to Netia customers.

Ericsson will be responsible for operational activities currently performed by the Netia Network Operational Department and Network Inventory Department. Netia will remain owner of the network.

Under the scope of the managed services agreement 300 employees from the Netia Network Departments will be transferred to Ericsson.

Through the contract, Netia gains flexibility in developing the telecommunications network. The agreement enables the operator to expand geographically without the necessity to employ more technical staff.

"We have entered into this managed services partnership in order to strengthen our focus on the customers," said Paul Kearney, CTO of Netia. "I am convinced that the agreement will improve the competitiveness of Netia on the market. We chose Ericsson because of its global experience in managing complex outsourcing projects and its flexibility in elaborating a cooperation model" concluded Paul Kearney.

"This is the most important managed services contract we have signed in Poland. The contract will enable Netia to lower its operational expenses and it ensures that Netia customers will receive services of top quality" said Lars E. Svensson, President of Ericsson in Poland.

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.

About Ericsson's Managed Services Offering
Ericsson has the telecom industry's most comprehensive managed services offerings, ranging from designing, building, operating and managing day-to-day operations of a customer's network, to hosting service applications and enablers, as well as providing network coverage and capacity on demand. As the undisputed leader in managed services, Ericsson has officially announced more than 80 managed services contracts with operators worldwide since 2002. In all current managed services contracts, excluding hosting, Ericsson is managing networks that together serve more than 60 million subscribers worldwide.

For further information
Ericsson Media Relations
Phone: +46 8 719 6992

www.ericsson.com


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