Ericsson reduces ownership in AU-System - remains as 25% minority owner

Ericsson reduces ownership in AU-System - remains as 25% minority owner Ericsson has reduced its shareholding in AU-System Invest from 41 per cent to 25 per cent by selling the balance of its shares to Schroder Ventures. "To continue the fast expansion and internationalization of AU-System's business, the company must be able to work with all telecom operators and suppliers. A financial investor like Schroder Ventures as majority owner secures an independent role for AU-System in the market place. A minority stake of 25 per cent is sufficient for Ericsson in order to maintain our strategic relationship to AU-System," says Kurt Hellström, Executive Vice President of Ericsson and member of the AU-System Board. AU-System, founded in 1974, is a professional services and software products supplier to the tele- and datacom industry. Ericsson believes the new ownership will provide the resources and focus required to enable AU-System to expand its operations both domestically and internationally. Ericsson feels that a strategic ownership level of 25 per cent is appropriate to participate in the future growth of AU-System. A final sale and purchase agreement and shareholders' agreement was signed on March 31, 1999. The transaction is expected to close in approximately five weeks. Ericsson was advised by Maizels, Westerberg & Co. as financial advisor on this transaction. Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its users - network operators, service providers, enterprises and consumers - the world over. Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom FOR FURTHER INFORMATION, PLEASE CONTACT Kurt Hellström, Executive Vice President, Telefonaktiebolaget LM Ericsson Phone +46 70 590 3063 Lars Östlund, Ericsson Corporate Communications Phone: +46 70 326 26 56; E-mail: lars.ostlund@lme.ericsson.se Company Information: AU-System is a software specialist in telecommunications with an annual growth of 40-50%. The revenues in 1998 were 54 MUSD. AU-System is a world leader in software based on SIM cards and in Internet security software for e-commerce. The company has installations in 40 countries with customers like France Telecom, Singapore Telecom, BellSouth. Schroder Ventures Ltd. is an international private equity investor with funds under management of over USD 3.5 billion, with 11 offices internationally. It has previously invested in one of AUS' subsidiary companies, iD2 Technologies, in October 1998.