Ottawa - Ericsson today spoke in front of the House of Commons Standing Committee on Industry, Science and Technology explaining how the company's acquisition of Nortel assets will strengthen Ericsson's longstanding commitment to Canada and help keep Canadians at the forefront of global advanced wireless research and development.

Ericsson Canada began operating in 1953 and has grown to become one of Canada's top R&D investors. Over the past decade, Ericsson has invested more than $2 billion in Canada. This firm commitment to Canada has placed Ericsson in a leading role in the growth and development of the Canadian telecommunications industry.

"We have helped build much of Canada's vital telecommunications infrastructure and our employees have been integral to that success," said Mark Henderson, President and CEO, Ericsson Canada. "Our team has contributed over 330 patents to Ericsson in the past quarter century, and we have no doubt that with the addition of Nortel's competence in Ottawa as a result of this acquisition, this level of innovation will continue."

Ericsson is licensing - not purchasing - LTE patents from Nortel on a non-exclusive basis. Nortel will remain the owner of its LTE patents, and will be free to license or sell them to other companies should it choose to do so.

"Ericsson will employ approximately 800 Nortel employees in Canada who work in its CDMA and LTE businesses. These individuals will receive substantively the same pay and benefits, and will be based in the same locations," said Henderson. "Ericsson does not anticipate major changes in the day-to-day work of the employees."

In addition:

• The proposed investment affords an opportunity for Nortel's researchers to join Ericsson's global research force and to share knowledge and best practices
• The proposed investment will assist Ericsson to keep Canada at the forefront of technological development in next generation wireless technologies such as LTE
• Ericsson Canada has been a trusted supplier in this market for almost 60 years and will continue a high level of customer service to its existing and new customers
• Ericsson’s history in Canada demonstrates a sustained commitment to carrying out high-level R&D that contributes to Canada’s prosperity and productivity

Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 1 billion subscribers and has a leading position in managed services. The company's portfolio comprises of mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. 
 
Ericsson is advancing its vision of "to be the prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 75,000 employees generated revenue of SEK 209 billion (USD 32.2 billion) in 2008. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

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FOR FURTHER INFORMATION, PLEASE CONTACT

Patricia MacLean

Director of Communications

Ericsson Canada Inc.

Phone: +1 905-206-7928

E-mail: patricia.maclean@ericsson.com