Annual General Meeting of Telefonaktiebolaget LM Ericsson

Annual General Meeting of Telefonaktiebolaget LM Ericsson The Annual General Meeting of Telefonaktiebolaget LM Ericsson was held in Stockholm on March 28, 2001. The Company's and the Group's income statements and balance sheets were adopted and the Board of Directors and the President were discharged from liability for the fiscal year 2000. The Meeting approved a dividend of SEK 0.50 per share. Shareholders who are recorded in the share register on the record date, April 2, 2001, are entitled to receive dividend, which is expected to be paid on April 5, 2001. Further, the Meeting decided i.e. 1.in accordance with the Board of Directors' proposal, to introduce a Global Stock Incentive Program consisting of a Stock Option Program and a Stock Purchase Program, which means i.e. a) that the Articles of Association are amended to the effect that a new class of shares called class C will be issued carrying a voting power of one thousand (1/1000) of a vote per share. C shares may be issued at a maximum number of 155,000,000 (§ 6). Customary provisions on primary and subsidiary pre-emptive rights shall equally apply to C shares (§ 7). The shares shall be redeemable and carry a limited preference right to a dividend in an amount corresponding to STIBOR 360 days from April 30, 2001 through April 30, 2002. C shares shall further be convertible to B shares at the request of the Board; b) a directed cash issue, i.e. an increase of Ericsson's share capital by SEK 155,000,000 through an issue of 155,000,000 shares Class C each share having a par value of SEK 1; c) that the Board is authorized to decide on a directed offer to acquire own stock of class C in accordance with decided terms; d) that own stock that has been acquired in accordance with the authorization above may be transferred on certain decided terms; 2 and to establish a nomination committee consisting of Bo Rydin, Industrivärden, Percy Barnevik, Investor, Anders Ek, Robur, Lars Otterbeck, Alecta, and Lars Ramqvist, Chairman of the Board. The Meeting resolved not to grant A and B shares equal voting right. All Directors of the Board were re-elected, i.e. Niall FitzGerald, Tom Hedelius, Göran Lindahl, Sverker Martin-Löf, Eckhard Pfeiffer, Lars Ramqvist, Clas Reuterskiöld, Peter Sutherland and Marcus Wallenberg. At the Statutory meeting of the Board of Directors subsequent to the Annual General Meeting, Lars Ramqvist was re-elected Chairman. Tom Hedelius and Marcus Wallenberg were re-elected Vice Chairmen. A summary of the speech will be found at http://www.ericsson.com/press Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With presence in 140 countries, Ericsson simplifies communications for customers all over the world. Read more at http://www.ericsson.com/press FOR FURTHER INFORMATION, PLEASE CONTACT Pia Gideon, Vice President, Corporate Communications Phone: +46 8 719 2864, +46 70 519 2864 E-mail: pia.gideon@lme.ericsson.se Mads Madsen, Director, Corporate Public Relations Phone: +46 8 719 0626, E-mail: mads.madsen@lme.ericsson.se