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3G UMTS Expansion Contract for Ericsson

30th April , 2004

Europe : Ericsson has been awarded a contract by mobilkom austria to supply radio base stations for the expansion of its UMTS network. The frame agreement lasts through 2007. Delivery of base stations will start immediately.

Inset is Dr. Boris Nemsic, CEO mobilkom austria quoted below.

The agreement includes a comprehensive customer support contract to ensure high-level vendor support. Ericsson will provide guaranteed service levels to secure network performance regarding hardware and software functionality. Ericsson will provide continuous access to the latest software releases through its software base subscription service.

"Ericsson is proud to be a UMTS supplier to mobilkom austria," says Kristian Teär, President of Market Unit Germany, Austria and Switzerland. "As the world leader in mobile networks we will provide
mobilkom austria's innovative UMTS strategies with first class support and the latest mobile network technology."

"As the leading Austrian mobile operator we are expected to provide top quality and reliability. This was the reason that mobilkom austria chose Ericsson, one of the top system suppliers for the new mobile network generation UMTS. The most important criteria in choosing a supplier was a strong commitment for UMTS. Already in April 2003, Ericsson made it possible for mobilkom austria to offer UMTS-based services to their customers for the first time in Austria," states Dr. Boris Nemsic, CEO mobilkom austria and COO
Wireless, Telekom Austria.

In June 2001, mobilkom austria signed one of Ericsson's first UMTS contracts. The first roll-out comprised a core network and radio base stations (UTRAN) and was deployed in September 2002. By the end of 2003 mobilkom austria achieved about 50% population coverage with a nationwide radio network in Austria.

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