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Ericsson starts negotiations on ownership of ST-Ericsson as STMicroelectronics announces its intention to exit JV

Ericsson Seeks New ST-Ericsson Partner

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12/10/2012
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STOCKHOLM -- Ericsson (NASDAQ:ERIC) today announced that it will continue to work together with STMicroelectronics (NYSE:STM) to find a suitable strategic solution for the two companies Joint Venture ST-Ericsson. STMicroelectronics has today announced its intention to exit as a shareholder in ST-Ericsson.

ST-Ericsson announced its strategic plan in April 2012 and is in the middle of executing on company transformation aiming at lowering its break-even point and introducing new technologies. Ericsson continues to believe that the modem technology, which it originally contributed to the Joint Venture, has a strategic value for the wireless industry. For Ericsson, a key priority in this process is a successful market introduction of the new LTE modems that it is certain will be very competitive and needed in the market.

During the process Ericsson will not speculate on the possible outcomes, timelines, and future ownership structures of ST-Ericsson.

Ericsson AB (Nasdaq: ERIC)

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