Ericsson's Private Radio Systems business aquired by Com-Net Critical Comm.

Ericsson's Private Radio Systems business acquired by Com-Net Critical Communications Ericsson Inc. announced today that its Private Radio Systems operations will be acquired by Com-Net Critical Communications, a Pittsburgh, Pennsylvania-based provider of radio network solutions to the public safety and service market. The PRS business, headquartered in Lynchburg, Va., employs more than 700 people and operates through a worldwide network of dealers and distributors. Ericsson's sale of its PRS operations is aligned with the company's overall strategy, as announced in October 1998, to concentrate on the convergence of mobility and Internet communications. The business strategy requires intense focus on the wireless market. To increase its concentration on those markets and competencies essential to the company's strategy, Ericsson has acquired and divested various business components. The sale of the PRS division will bring an increased focus on the private radio market by the new company and allow Ericsson to concentrate its resources on the attainment of its short and long-term goals to achieve a market-defining role for the mobile Internet. "We are very pleased to have entered this new business relationship with Com-Net Critical Communications," stated Joe Hagan, chief financial officer for Ericsson Inc. "Their leadership and focus will ensure the success of the business for our customers and our employees." To provide continuity throughout the transition for both employees and customers, Ericsson will maintain an equity ownership in the new company. Com-Net Ericsson Critical Radio Systems, as the new company will be named, will assume Ericsson PRS customer commitments and long-term servicing of current customers who own and operate PRS two-way communications systems and products. The new company will continue to serve the global market with critical communications systems. "The acquisition of Ericsson's PRS operations manifests our strategy to become a vertically integrated provider of services to the wireless market," said Steve Savor, Com-Net's chief executive officer. "We now have the ability to offer our customers a complete range of alternatives and solutions." Private Radio Systems' state-of-the-art Enhanced Digital Access Communications System (EDACS®) serves more than 450 public safety, utility, industrial, commercial and government organizations worldwide, including the Kremlin in Russia, the French Naval Fleet, American Electric Power, the Denver International Airport, and Miami-Dade County, Fl., to name a few. 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 customers - 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 Kathy Egan, Vice President, Communications, Ericsson Inc. Phone: +1 212 685-4030, E-mail: kathy.egan@ericsson.com Gary Pinkham, Vice President, Investor Relations, Ericsson Inc. Phone: +1 212 685-4030, E-mail: gary.pinkham@ericsson.com Eric Österberg, Communications Director, Corporate Communications Phone: +46 8 757 2159, +46 70 5900599 E-mail: eric.osterberg@lme.ericsson.se Denise Woernle, Ericsson Private Radio Systems Phone: +1 804 592-7710 About Com-Net Com-Net's current business includes the construction and/or purchase of wireless networks and systems capable of providing secure and reliable two-way radio communications. With the addition of the PRS product portfolio, Com-Net will be in the position to offer total communications to the land mobile radio market. For further information on Com-Net Ericsson, please visit: www.com-netericsson.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/07/20000107BIT00050/bit0001.doc http://www.bit.se/bitonline/2000/01/07/20000107BIT00050/bit0002.pdf