Teleca sells subsidiary to Ericsson

Teleca has sold its Swedish subsidiary Teleca OSS, with a staff of about 40, to Ericsson. Teleca OSS has leading expertise in the area of support systems for telecommunications networks. The future role of the company is expected increasingly to be in complete undertakings within the telecom management area that lie outside Teleca’s strategic focus on development and consulting.

Teleca OSS’s staff will eventually be integrated with Ericsson’s Nordic and Baltic market units. Ericsson will continue to support existing Teleca OSS customers, most of which are to be found in all the Nordic countries. The transfer of ownership will take place on 1 July 2005. For more information please contact: - Örjan Frid, Division Manager Enterprises & Operators, Teleca AB, mobile: +46-705611615 - Johannes Rudbeck, Investor Relations Manager, Teleca AB, mobile: +46-705825656