Work of the Board of Directors in 2008

The work of the Board of Directors is continuously characterized by a high level of activity and 11 Board meetings were held in 2008. (For attendance at Board meetings see “Directors’ Attendance 2008”). Two meetings were held away from the Company headquarters, one in San José, California, focusing on the acquired operations in Silicon Valley, and one in Lund, Sweden, with a focus on Sony Ericsson and Ericsson Mobile Platform strategies.

Maintaining technology leadership and profitability in an increasingly competitive landscape have been key strategic areas of focus during the year. A leading position and effectiveness in research and development is key in the rapid technology evolution. An important part of the strategic work is to identify and assess various internal and external risk factors, a need that is intensified as a result of the financial turmoil that has characterized the year.

Apart from regular matters addressed in line with the annual Board work cycle, the Board addressed the future of Ericsson’s mobile platform business (EMP), where Ericsson and STMicroelectronics plan to merge EMP and ST-NXP Wireless into a joint venture, and the divestment of the Enterprise business to Aastra Technologies. The Board also addressed other long and short-term strategies with regard to operator and vendor consolidation, increased data traffic in telecom networks, the effects of migration of networks towards IP technology with increased focus on content and multimedia and the changing competitive landscape among telecom operators, cable TV providers and other data-network operators.

Organization Of The Board Work

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The Heads of the three business units have provided the Board with thorough presentations of their respective areas of responsibility to further enhance the Directors’ knowledge of business operations and the strategies of each of the three business units. The Board is also continuously reviewing the Management succession planning. In terms of remuneration, the Board put forward a proposal for a Long-Term Variable Compensation Program 2008 (LTV) to the Annual General Meeting of Shareholders 2008. For the purposes of financing the LTV, the Board also proposed a new directed issue and acquisition of C shares to be converted into B shares.

The Board is continuously working to improve its ways of working and procedures based on the Board evaluation along with discussions with the Chairman of the Board and the Committee Chairmen.