Ericsson announces prices for its Bond Exchange Offer

Telefonaktiebolaget LM Ericsson today set the prices for its recently announced Bond Exchange Offer.
Press release
Nov 21, 2003 14:12 (GMT +00:00)
Under the terms of the Exchange Offer, as defined in the Exchange Offer Memorandum dated November 4, 2003, holders of the 6.375% Euro Medium Term Notes maturing May 31, 2006 (the "Notes") will be offered the opportunity to exchange up to EUR 0.5 billion of existing Notes for new Ericsson Exchange Securities.

At 12:00 noon (London time) today, the yield of the DBR 6.25% maturing April 26, 2006 was 2.853%.  Based on a previously-announced Exchange Spread of 230 bps, the Exchange Price for the Notes will be 108.488.

At 12:00 noon (London time) today, the yield of the DBR 5.25% maturing January 4, 2011 was 4.024%.  Based on a previously-announced New Issue Spread of 285 bps, the New Issue yield would be 6.874% on an annual basis, which equates to 6.760% on a semi-annual basis.  This implies a coupon of 6¾% (paid semi-annually) and a New Issue Price of 99.946 for the Ericsson Exchange Securities.

Based on the prices above, investors will be able to exchange their holdings in the Notes for new Ericsson Exchange Securities at an Exchange Ratio of 1:1.0855, as set out in the Exchange Offer Memorandum.

Holders of the existing Notes are asked to submit acceptances via Electronic Acceptance Instruction to the relevant Clearing System no later than 5:00 pm (London time) on November 25, 2003.  The settlement date for the Ericsson Exchange Securities is November 28, 2003.  Contact details for the Exchange Agent and Dealer Manager appear below.
This press release is not for publication or distribution in whole or in part, directly or indirectly, in or into the United States. This notice is intended to be communicated only to creditors of Ericsson and relates only to the Ericsson Securities and the Ericsson Exchange Securities.
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.
Ericsson Investor Relations
Lotta Lundin
Phone: +46 8 719 6553, +46 730 371 100

Ericsson Media Relations
Peter Olofsson,
Phone: +46 8 719 1880, +46 8 719 69 92

Dealer Manager: J.P. Morgan Securities Ltd.
Paul Hawker - Liability Management Desk
Phone: +4420 7777 4185

Jonathan Brown - Syndicate Desk
Phone: +4420 7777 1986

Exchange Agent: JPMorgan Chase Bank
Philip Runciman
Phone: +4420 7777 2742
The communication of this document is not being made and the document has not been approved by an authorised person for the purposes of S21 of the Financial Services Act 2000.  The Exchange Offer is open only to those persons falling within the definition of Investment Professionals (as defined in article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2001 (the "Order"), and those persons who also fall within Article 43 of the Order.

This press release is not being issued in the United States of America, Australia, Canada or Japan and should not be distributed to US persons or publications with a general circulation in the United States.  This document does not constitute an offer or invitation to subscribe for or purchase any of the securities referred to herein.  In addition, the securities referred to herein have not been registered under the United States Securities Act of 1933, as amended and may not be offered, sold or delivered within the United States or to or for the account or benefit of US persons absent registration under, or an applicable exemption from, the registration requirements of the United States Securities Act.