Ericsson inaugurates 9th JV in China; signs USD 90 million GSM expansion contract

Ericsson inaugurates ninth JV in China; signs USD 90 million GSM expansion contract Ericsson and Heilongjiang Mobile Communications Co. (HMCC) have established a new joint venture company in Heilongjiang province, China. The new company, Heilongjiang Ericsson Technology Company Ltd., is Ericsson's ninth joint venture in China. In addition to forming the new JV, Ericsson and HMCC clinched a GSM expansion contract for the province valued at USD 90 million. Heilongjiang Ericsson Technology Company Ltd. will engage in engineering design and implementation projects; after-sales service, software upgrades and technical support; and technical training and development as well as software design and testing in support of third generation (3G) networks. The company plans to participate in new product development and to expand its business to wider domestic and international markets. "The establishment of this new joint venture is a milestone in the long- term relationship between Ericsson and HMCC. Ericsson will bring its skills in leading edge technology to the fledgling joint venture and provide high quality service to operators to satisfy the rapidly growing market demands in the region," said Li Xiangping, Executive Vice President of Ericsson (China) Company Ltd. "We will further our in-depth cooperation through this joint venture and capitalize on the advantages both sides bring to the deal in technology and in the local market. The target for the new venture is to become a high-tech enterprise with a focus on innovation that will improve services and cater to the growing market demands," said Mr. XueYueQu, General Manager of HMCC. There are currently about 2 million mobile phone users in Heilongjiang province. With the completion of the fourth expansion project, HMCC's GSM network will reach a capacity of 3.3 million subscribers. Ericsson is currently sole supplier of GSM infrastructure to HMCC. The two companies began working together in 1993. Ericsson China has nearly 4,000 employees, 23 offices across the country and nine joint ventures that provide a full range of communications solutions and services. 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 more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world. Read more at http://www.ericsson.com/pressroom FOR FURTHER INFORMATION, PLEASE CONTACT Lars Östlund, Press Manager, Ericsson Corporate Communications Phone +46 70 326 26 56 Ms. Ivy Yin, Communications Manager, Region North & National Network Operators, Ericsson (China) Company Ltd. Phone: +86 10 6561 9988 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/17/20000517BIT01060/bit0001.doc http://www.bit.se/bitonline/2000/05/17/20000517BIT01060/bit0002.pdf