A number of telecom equipment suppliers have recently reported lower than expected sales and orders for the third quarter. This is consistent with our view that the market remains uncertain with few signs of stabilizing in the near term. However, we are firmly optimistic about the demand for mobile systems in the longer perspective.

Our competitive position remains strong, however for the third quarter we expect sales and especially orders to decline from the second quarter. This is a consequence of reduced investments by many of our customers and is in line with the industry trend.

We continue with full force to reduce our cost base and improve working capital efficiency to establish a SEK 120 billion breakeven point. Ericsson remains among the most liquid and well-capitalized companies in the industry. We believe we have sufficient resources to fund our restructuring actions and cover our losses until we can return to profit sometime during 2003.