CDMA2000 1X Wireless Contract in Panama

Ericsson has signed a turnkey, sole supplier contract with BellSouth's affiliate in Panama to supply an end-to-end CDMA2000 1X overlay of the operator's existing nationwide TDMA network in that
country, including network equipment, services and Sony Ericsson handsets.

"Ericsson and BellSouth have a long-standing history and we are very happy to have been selected to provide our leading CDMA2000 1X
solution in Panama," said Åke Persson, president of Ericsson Mobile Systems CDMA.

Ericsson's CDMA2000 solution will enable BellSouth Panama to reduce
costs through decreased space requirements, deployment flexibility,
simplified site acquisition and leasing, decreased construction costs
and lower power consumption. Ericsson's CDMA2000 solution will also
allow BellSouth Panama to reuse existing TDMA network components,
ensuring a smooth migration to 3G. The compact design and high
performance characteristics of Ericsson's CDMA2000 1X solution offers
significant savings in both capital and operating expenses for
BellSouth Panama.

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Deployment will begin immediately. Ericsson will deploy itsindustry-leading total CDMA2000 solution including: the radio base station (RBS) 1127; base station controller (BSC) 1120; AXE810 Mobile Switching Center (MSC); Packet Core Network (PCN); Home Location
Register (HLR); TEMS(TM) CellSight performance management system; andthe Sony Ericsson T206 CDMA2000 handset, as well as network rollout.

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.