Ericsson signs additional USD 200 million contract for Pan- Latin America

Ericsson signs additional USD 200 million contract for Pan-Latin America broadband wireless network Ericsson has signed an additional contract with Diginet Americas Inc., valued at USD 200 million (SEK 1,680 million) to further build out Diginet's fixed wireless broadband network throughout Latin America. The agreement expands Ericsson's previous agreement with Diginet from USD 100 million to USD 300 million. Through this agreement, Ericsson will continue to provide its multi- service solution for Diginet Americas, including Ericsson's MINI-LINK wireless systems, optimized for IP-based services. Ericsson's highly scaleable AXD 301 ATM switch is providing the core for Diginet's multi- service networks, which supports a full range of high quality data, Internet, voice and video services. Since Ericsson and Diginet Americas signed their initial contract in June 1999, Diginet has secured additional spectrum and operating licenses in Brazil and Panama, launched commercial services in São Paulo, Brazil and has been awarded licenses to offer local and long distance voice telephony services in Argentina. Diginet's fixed wireless broadband multi-service platforms went into commercial service in São Paulo, Brazil and Bogota, Colombia in September of this year. The network, which is one of the first of its kind in Latin America, began serving customers with the Ericsson next generation network in September - just three months after announcement of the initial contract. "This expanded agreement with Ericsson confirms the synergy between our companies as we worked together over the last six months to enhance the build-out of our networks," said Dave Schmieg, President and CEO of Washington, DC-based Diginet Americas, Inc.. "Looking forward, the future is bright as we accelerate our efforts to expand our service offerings and introduce new data and Internet based products into additional markets in Latin America. Ericsson is helping Diveo evolve into the premier telecommunications solution for businesses in Latin America." "Diginet's recent successes in their acquisition of licenses and network deployment is a clear indication of their capability to excel in the fixed wireless broadband market," said Bengt Forssberg, Executive Vice President, Ericsson Latin America. "The growing partnership between Ericsson and Diginet allows Diveo to concentrate on delivering the highest quality of data and IP based solutions to corporate customers, ISPs and telecom carriers throughout the region." 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 Antoinette Torell, Ericsson Corporate Communications Phone: +1 917 679 3635, +46 70 519 3699 E-mail: antoinette.torell@lme.ericsson.se Kathy Egan, Vice President, Ericsson Inc. Phone: +1 212 685 4030 About Diginet Americas, Inc. Diginet Americas, Inc. (branded as Diveo throughout Latin America) is a facilities-based telecom provider offering services through its own fixed wireless broadband networks. Currently, Diginet Americas has licenses and telecommunications operating permits to build and operate communications services in Argentina, Brazil, Colombia, Panama and Peru. SM Through its Diveo family of Digital Dedicated Access and IP SM Business services, Diginet Americas currently provides its customers in Argentina, Brazil and Colombia with high capacity, broadband communications for corporate Internet and data network connectivity. Diveo's networks in Buenos Aires, Argentina, Bogota, Colombia and São Paulo, Brazil are already operational, serving customers such as Citibank, EDS, Embratel (MCI), IBM and StarMedia with its family of Digital Dedicated Access and IP business services. The Company is planning 2,000 launches in the major urban markets in Brazil, Panama and Peru to address the growing demand for broadband Internet access and data connectivity in these metropolitan markets. Diveo's solutions embrace rapid deployment, high capacity, scalability and superior quality unique in Latin America. Learn more about Diginet Americas, Inc.'s mission, business proposition and Diveo service offerings by accessing the web site at www.diginetamericas.com.