Ericsson sells its Energy Systems business to Emerson Electric

Ericsson sells its Energy Systems business to Emerson Electric Ericsson announced today that it has agreed to sell its Energy Systems business to Emerson Electric Co., of St. Louis, Missouri, USA. Under the terms of the transaction, which is expected to close in the second quarter this year, Emerson will pay approximately USD 725 million in cash. This is in line with Ericsson's strategy to focus on mobility and Internet communications. The Energy Systems business, headquartered in Stockholm, employs about 2,200 people globally, with activities in some 20 countries, mainly in Europe, Latin America and Asia, and has products installed in more than 100 countries. The sale includes all Energy Systems activities except those regarding DC/DC power modules, which will join Ericsson Microelectronics. Expected 1999 revenues for Energy Systems are about $500 million. "Ericsson's sale of its Energy Systems operations is in line with the company's overall strategy, to focus on the convergence of mobility and Internet communications," said Kurt Hellström, president of Ericsson. "Energy Systems is a good profitable operation and has been an important provider of power to Ericsson's telecom equipment for more than 100 years and will continue as an even stronger energy systems partner with Ericsson the years to come." "Being a part of Emerson Electric, Energy Systems will be able to expand its product portfolio and reach new markets, thus strengthening its leadership in energy systems for telecom applications," said Sigrun Hjelmquist, president of Ericsson Components Group. "I am convinced that we have found the very best partner for Energy Systems. Together with Emerson's resources a new dominant player for energy systems to the New Telecoms World can be created." Energy Systems designs, manufactures and markets power supplies and power systems for radio base stations for mobile telephony, telecom switching equipment and other telecom facilities. In addition the company provides climate control and energy management solutions as well as site-monitoring services to maintain power at telecom sites. "We are very pleased to become a part of Emerson Electric," stated Rolf Pettersson, president of Ericsson Energy Systems. "Their leadership and focus will ensure the success of the business for our customers and our employees." Chairman and CEO of Emerson, Charles F. Knight said: "Today's acquisition accelerates our efforts to reposition Emerson in fast-growing markets, such as telecom equipment. With the addition of Ericsson Energy Systems, Emerson will be uniquely positioned to take full advantage of the enormous global demand. It expands our presence in key world markets, our role in wireless telecommunications power and our role as a solutions and service provider." 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 Bengt Callmer, Director of Communications, Ericsson Components Group, Phone + 46 8 757 4689, E-mail: bengt.callmer@ericsson.com Kathy Egan, Vice President Communications, Ericsson Inc. Phone: +1 212 685-4030, E-mail: kathy.egan@ericsson.com Mark Polzin, Emerson contact, Phone: +1 314 982 1700 About Emerson Emerson Electric Co. (NYSE: EMR) is a global manufacturer with market and technology leadership in five business segments: process control; industrial automation; electronics and telecommunications; heating, ventilation and air conditioning; and appliance and tools. With 128,000 employees the fiscal 1999 sales totaled $14.3 billion. As part of Emerson we have the ASTEC group, Advanced Power Systems (formerly Nortel) and a few others. Around 10% of the current revenues comes from products in the energy and power segment. Together with Ericsson Energy Systems, Emerson will be a world leader in the field of telecom energy. For further information about Ericsson Energy Systems and Emerson Electric, please visit: www.ericsson.se.components and www.emersonelectric.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/18/20000118BIT00010/bit0001.doc http://www.bit.se/bitonline/2000/01/18/20000118BIT00010/bit0002.pdf