Ericsson extends service agreement with Compaq

12/20/2001 4:00 AM EST

Ericsson extends its current service agreement with Compaq. The
extension is in line with Ericsson's efforts to reduce its IT-costs.

The agreement, which runs over 5 years and has a total value of USD 200
million, is a natural extension of the current service agreement in
Sweden between Ericsson and Compaq. The extension consists of more sites
in Sweden as well as active asset management. The agreement will
increase Ericsson's flexibility regarding use of IT services and
equipment.

The agreement also includes the sale of hardware to Compaq, like Unix
servers, workstations, NT servers, desktop and notebook PC's.

The sales transaction, worth USD 140 million, will be effective before
year-end.

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership. Providing
innovative solutions in more than 140 countries, Ericsson is helping to
create the most powerful communication companies in the world.

Read more about Ericsson at http://www.ericsson.com/press

FOR FURTHER INFORMATION, PLEASE CONTACT
Åse Lindskog, Director, Media Relations
Ericsson Corporate Communications
Phone: +46 730 24 48 72; E-mail:  

Maria Bernström, Director, Investor Relations
Ericsson Corporate Communications
Phone: +46 705 33 47 50; E-mail: