Interim Report January–March 2006

Strategic changes with focus on mobile

Key figures 2006 Jan-Mar 2005 Jan-Mar Change Net sales, SEK M 803 758 6% Operating earnings (EBIT), SEK M 21 38 -45% Earnings for the period, SEK M 9 28 -68% Earnings per share, SEK 0,14 0,44 -68% · Net sales increased 6% to SEK 803 million (758). Organic growth for the first quarter 2006 was 6%. · From 1 April Teleca is organised as three divisions: Teleca Mobile, Teleca Systems and Benima. Teleca intends to find new long-term ownership solutions outside Teleca for Teleca Systems and Benima, thereby enabling Teleca to concentrate solely on the delivery of products and services for the mobile phone sector. · Teleca Mobile’s operating margin was –5% (3) in the first quarter and operating earnings (EBIT) –SEK 18 million (10). Operating earnings (EBIT) were SEK 26 million for consulting activities and –SEK 44 million for Products. The weak earnings are partly the result of delayed Popwire project deliveries and costs associated with the completion of a new product release. · Teleca System’s operating margin was 7% (7) in the first quarter and operating earnings (EBIT) SEK 26 million (24). · Benima’s operating margin was 13% (12) in the first quarter and operating earnings (EBIT) SEK 17 million (16). · Cash flow from current activities was –SEK 85 million (23). · Teleca has acquired the Russian consulting company Telma, which has a workforce of about 825. The acquisition brings Teleca significant low- cost production and earnings. · René Svendsen-Tune as been appointed new president and CEO from 1 June 2006. · Full-year group forecast for 2006 remains unchanged: increased net sales and operating profits. For more information please contact: · Dag Sundström, President and CEO, Teleca AB, +46-857911601, mobile +46-705116458 · Christian Luiga, CFO, Teleca AB, +46-857911604, mobile +46-703751604 · Johannes Rudbeck, Investor Relations Manager, Teleca AB, +46- 857911616, mobile +46-705825656