Decision by the AGM of Ericsson regarding a Global Stock Incentive Program

Decision by the Annual General Meeting of Shareholders 2001 of Ericsson regarding a Global Stock Incentive Program At today's Annual General Meeting of Shareholders (AGM) of Telefonaktiebolaget LM Ericsson, the following decisions were resolved in accordance with the Board of Directors' proposal regarding a Global Stock Incentive Program. The AGM resolved an amendment of the Articles of Association to the effect that redeemable limited preference shares of Class C can be issued and that a conversion clause is incorporated in the Articles of Association to the effect that C-shares can be converted to B-shares on request of the Board of Directors. Further, the AGM resolved that a directed cash issue of a total of 155,000,000 C-shares is offered to AB Industrivärden and/or Investor AB or subsidiaries of those companies. The subscription price shall equal the nominal amount of the share, SEK 1. The new shares shall be subscribed and paid for during the period April 23 up to and including April 30, 2001. The AGM authorized the Board of Directors to decide on a directed offer to acquire all 155,000,000 outstanding C-shares at a price in the interval SEK 1 to SEK 1.50 per share before the AGM 2002. The AGM resolved that a maximum of 155,000,000 B-shares, after conversion from C-shares, may be transferred to persons within the Ericsson Group covered by the Global Stock Incentive Program, comprising a Stock Option Plan and a Stock Purchase Plan. The right to acquire shares shall be exercised in accordance with the terms of the respective plan, i.e. with certain exceptions, during the period May 14, 2002 up to and including December 30, 2010. Employees covered by the Stock Option Plan shall for each share pay a price which, after round up if appropriate, corresponds to the most recent average price paid for B-shares in Ericsson at the OM Stockholm Exchange during a certain period prior to the date of grant, however in no event shall the price be less than the price paid on the last trading day during the period. Payment for each share shall be made within 10 banking days from the day the employee has exercised his or her right to acquire the share. Employees covered by the terms of the Stock Purchase Plan shall, subject to certain conditions, receive shares free of consideration. Further, companies within the Ericsson Group shall have the right to acquire shares free of consideration. These Companies shall be obliged to immediately sell, alternatively to transfer free of consideration, shares to employees covered by the terms of the respective Plans. Finally the AGM resolved to transfer, prior to the AGM 2002, not more than 31,000,000 B-shares out of the total holding of 155,000,000 B- shares in order to cover certain costs, mainly social security charges. Transfer of the shares shall be effected at the OM Stockholm Exchange at a price at each time within the registered price interval for the share. The purpose of the amendment of the Articles of Association, the directed cash issue and the authorization for the Board of Directors to decide on a directed offer to acquire own shares and the transfer of shares is to implement the Global Stock Incentive Program in a cost efficient and flexible manner and thereby offer employees and top management the possibility to become shareholders in Ericsson. The Global Stock Incentive Program requires totally 155,000,000 shares, equaling 1.96 percent of the total number of issued shares. Together with earlier decided incentive programs, the total number of shares in such programs amount to 3.67 percent of the total number of issued shares. At present, Ericsson holds 1,804,000 own shares, acquired in accordance with a resolution by the AGM 2000. The proposed issue and the offer to acquire shares is expected to be completed prior to the summer 2001. In connection therewith, the implementation of the Global Stock Incentive Program will commence. 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 Anna Surtevall, Corporate Legal Counsel, Incentive Programs Phone: +46 8 719 56 67, E-mail: anna.surtevall@lme.ericsson.se Pia Gideon, Vice President External Relations, Corporate Communications Phone: +46 8 719 2864, E-mail: pia.gideon@lme.ericsson.se