Streamlining Teleca Mobile – new name and board of directors for Teleca Systems

Leaner corporate organisation New organisation at Teleca Mobile Popwire restructuring New name and board of directors for Teleca Systems Total restructuring in the second quarter for about SEK 72 million

Teleca has a new focused strategy with the objective to focus the business towards the mobile devices industry. As a result the Benima division was sold with a capital gain of about SEK 285 million in May 2006, after which Teleca consists of the two divisions Teleca Mobile and Teleca Systems. The intention is to list Teleca Systems on the OMX Stockholm Stock Exchange by distributing it to Teleca’s shareholders. Leaner corporate organisation Teleca’s new structure allows for a simplified management structure and reduced head office functions, which will lower operational costs. From 1 July 2006 Teleca’s group management will include: René Svendsen-Tune – CEO and head of Teleca Mobile Christian Luiga – CFO Örjan Frid – head of Teleca Systems Stefan Fleron – head of Teleca Mobile Europe Executive vice president Thomas Pantzar and the head of the former Network Equipment Providers division, Mike Gibbons, will seek new opportunities outside Teleca. The head of the former Mobile Devices division, Konstantin Caliacmanis, will leave his operational role and continue as non-executive vice chairman of the board of Teleca. Teleca’s head office will be moved from Stockholm to Malmö before October 2006. Teleca will take a restructuring charge related to management changes of SEK 10 million and a charge related to office space in Stockholm of SEK 11 million. New organisation at Teleca Mobile On 1 July 2006 Teleca Mobile will implement a new global line organisation responding to the global needs of Teleca’s customers. This will facilitate better leverage of Teleca’s global expertise and skills and support an effective integration of the recently acquired affiliate, Telma. Further, the new way of operating will strengthen the leverage of Teleca’s sales force. Teleca Mobile has appointed a new multinational management team from the internal ranks of Teleca’s current organisation. Popwire restructuring The Popwire product family has generated substantial losses over the past 12 months. Along with the streamlining of Teleca Mobile, further restructuring of the Popwire business will take place. Teleca has decided to cancel a number of specific products. This will lead to redundancies of about 35 people in the Stockholm area. The remaining part, mainly the PC Connectivity product, will be integrated with the Obigo product suite. This generates non-recurring cost for staff redundancies of about SEK 13 million and related premises of about SEK 11 million – about SEK 24 million in total. The Popwire restructuring will result in an impairment loss of SEK 27 million related to capitalised development costs. As a result depreciation of capitalised development costs will decrease by SEK 11 million on an annual basis. New name and board of directors for Teleca Systems The process of preparing Teleca Systems to be an independent public company by distribution to Teleca’s shareholders is under way. Teleca Systems will take the name auSystems before the company is quoted on the stock exchange. The head office will be located in Stockholm Teleca has appointed a board of directors for auSystems to prepare for the listing of the new company. The board include the following members: Anders Torstensson (chairman) Former executive vice president of Ericsson Bengt L Andersson CEO, Tetra Pak Sweden Sigrun Hjelmquist Chairman and partner of Sight Executive Consulting Eva Östling Ollén MD, Swedish Association of Staff Agencies Dan Olofsson Chairman and main shareholder of Teleca René Svendsen-Tune CEO of Teleca Head of auSystems is Örjan Frid. Thord Norberg has been appointed CFO for auSystems. Örjan and Thord have previously worked together as CEO and CFO for Dimension AB. Thord will start in September. Restructuring summary In summary Teleca will take one-time charges in the second quarter 2006 at a level of SEK 72 million. Effect on future cash Directly related SEK Million P&L Impact flow annual savings Management changes 10 10 n/a Office space in 10 9 3 Stockholm Popwire restructuring 24 23 23 Popwire impairment 28 0 11 Total 72 42 37 For more information please contact: · René Svendsen-Tune, CEO, Teleca, mobile: +45-40540068 · Johannes Rudbeck, Investor Relations Manager, Teleca, mobile: +46- 705825656