Ericsson (NASDAQ:ERIC) has been chosen by Finnish operator Elisa to deliver WCDMA/HSPA network equipment, taking the longstanding relationship between the two companies to a new level. The expansion will virtually double the coverage and capacity of Elisa's existing WCDMA/HSPA network.

Under the contract, Ericsson will more than double the number of radio base stations in the Elisa network over the coming year. By the end of the year, more than 120 towns and cities will have 3G coverage, strengthening Elisa's position as a leading Finnish 3G/HSPA network operator and service provider. Elisa chose Ericsson for the expansion project following a successful pilot that concluded earlier this year.

Ericsson's High-Speed Packet Access (HSPA) solution provides increased data speeds by introducing enhancements in the uplink and the downlink. The advanced technology boosts network capacity and cuts response times for interactive services, increasing the performance of mobile broadband.

The contract also covers support services, deployment, integration and educational services.

Veli-Matti Mattila, President and CEO at Elisa, says: "We have seen a dramatic increase in the demand for 3G services in Finland. According to recent surveys, internet, e-mail, maps and local services are soon to be found in every pocket. We must be able to offer 3G solutions that are easy to use and help day-to-day living. Our decision to provide flat-rate mobile services reinforces our commitment to Elisa and Saunalahti customers. Ericsson's technology will help us achieve that goal."

Janne Laitala, President, Ericsson Finland, says: "We are proud to be selected by Elisa to expand its HSPA radio network, and in this way contribute to bringing faster mobile broadband to a greater number of Finnish consumers. This contract further emphasizes Ericsson's leadership in broadband."

The expansion reflects the rapid growth in interest over the past year among Finns for 3G services. Since March 2006, Finland has increased its proportion of 3G technology usage faster than any other European country.

Elisa is the largest Finnish operator, and the country's leading broadband supplier.

Notes to editors:

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.

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About Elisa Corporation
Elisa Oyj is a leading Finnish communications service company. Elisa offers its private, corporate and institutional customers voice and telecommunication services, customised communications services solutions and network operator services.  Elisa is the broadband market leader in Finland. It has over 1.3 million fixed line subscriptions, of which broadband subscriptions comprise over 513,000. Elisa is a forerunner in providing new mobile and content services, and it has over 2.2 million mobile phone subscribers. Elisa is listed on the Helsinki Exchanges, its revenue for 2006 amounted to EUR 1.52 billion and it has 3,300 employees.

Elisa offers services through the Elisa, Saunalahti and Kolumbus trademarks, and internationally in association with its partners Vodafone and Telenor. Read more at www.elisa.com.