The bonds were repurchased in order to reduce gross debt and annual interest expense.

"The transaction is further evidence of Ericsson's strategy to manage its balance sheet prudently when appropriate opportunities arise," says Vidar Mohammar, Group Treasurer. "We are very pleased to have been able to achieve a significant debt reduction in an efficient manner."

Remaining outstanding bonds due May 2006 amount to EUR 1 156 million (approximately SEK 10.7 billion).