Ericsson and Skanova sign ENGINE contract for fixed telephony net

Skanova, that operates and develops Sweden's largest network for telephony,
Internet and broadband services, has signed an agreement with Ericsson for the
migration of Telia's fixed network. This will enable Skanova to establish a
future proof, multi-service network for new multimedia services. The
implementation will start beginning of 2002.

With this deal, Ericsson and Skanova are paving the way for ENGINE to migrate
Telia's existing network from a proprietary circuit-switched to an open,
layered packet-based network. Ericsson will supply new software for the whole
fixed network and existing narrow-band access nodes will be replaced by ENGINE
Access Ramp.

In total, 600,000 new lines will be installed. Ericsson will add more of its
robust Telephony Servers to provide advanced telephony services and deliver a
new central network management system.

"Skanova is already implementing this technology in our transit network in
Sweden and will now take the next step," said Ove Alm, Marketing Director of
Skanova. "The modernization also means, that we will be able to integrate
traditional, fixed telephony with IP-based traffic in the same network."

With the new network Skanova can start the migration from many single service
networks to multiservice networks based on IP.

"This contract is yet another but very important confirmation of Ericsson's
leadership in the multi-service networks market," said Karl Thedeen, Key
Account Director at Ericsson. "The ENGINE solution represents a profitable
option for Skanova, rationalizing their fixed network and making full use of
existing infrastructure without compromising reliability, flexibility and security."

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.

FOR FURTHER INFORMATION, PLEASE CONTACT

Ole Selchau, Press Manager, Ericsson Nordic & Baltics
Phone: +45 33 88 32 49, +45 23 32 12 16
E-mail: ole.selchau@ericsson.dk

Peter Olofsson, Director Public Relations
Ericsson Corporate Communications (Sweden)
Phone: +46 8 719 1880, +46 70 267 3445
E-mail: peter.olofsson@lme.ericsson.se

Karl Thedeen, Key Account Director for Skanova
Ericsson Nordic & Baltics
Phone: + 46 70 519 5322
E-mail: karl.thedeen@ese.ericsson.se


About Skanova
Skanova is a wholesale network provider within the Telia Group of companies.
Skanova operates Sweden's largest network for telecom-, internet- and
broadbandservices, and offers its customers full network access, services and
support. The goal is to meet the growing need for top quality services. The
challenge lies in enhancing the competitiveness of the customers with
ground-breaking, sometimes unexpected, solutions. Number of employees amounts
to 2,700 employees, and a turnover of approx. SEK 21,8 billion.


About ENGINE
ENGINE is Ericsson's global multi-service network offering for operators of
fixed networks, designed for real-time services; a carrier-class network able
to carry large and growing volumes of IP-based traffic. The ENGINE concept
efficiently builds new and migrates operators' current circuit-switched
networks into a single next generation network, based on ATM and IP packet
switching technologies.

Ericsson's access portfolio comprises of end-to-end solutions and access
technologies like copper, fiber Ethernet and wireless technologies.

Until this date, Ericsson has received 64 contracts for ENGINE-type solutions
including Telefónica Spain, Diveo, BT, Telia Denmark and Telia Europe, KPN
and others. To learn more about Ericsson's suite of multi-service network
solutions, ENGINE, please visit: http://www.ericsson.com/engine