Ericsson Proposes Reverse Split

Ericsson's board of directors proposes a reverse split 1:5 of the company's shares

February 22, 2008

1 Min Read

STOCKHOLM -- Ericsson's (NASDAQ: ERIC) Board of Directors proposes that the Annual General Meeting April 9, 2008 resolves on a reverse split 1:5, implying that five A shares and five B shares respectively will be consolidated into one A share and one B share respectively.

As a result of the rights issue in 2002, the number of shares in the company increased from approximately 8 billion shares to more than 16 billion shares. Further, the ratio between the B share and an American Depositary Share (ADS), traded on NASDAQ, was changed from 1:1 to 10:1. In connection with the reverse split, the ratio will be changed back to 1:1.

These measures are intended to increase transparency as to the pricing of the Ericsson B share and ADS respectively, and will at the same time result in a number of shares more suitable for the company. The record date for the reverse split is proposed to be June 4, 2008. The last day of trading in the company's shares on the OMX Nordic Exchange Stockholm before the reverse split is estimated to be May 30, 2008. The first day of trading on OMX Nordic Exchange Stockholm with the consolidated shares is estimated to be June 2, 2008. The first day of trading on NASDAQ with ADSs with ratio 1:1 to the consolidated shares is estimated to be June 10, 2008.

For those shareholders who on the record date June 4, 2008 do not hold a number of A shares and B shares respectively equally divisible by five, the surplus shares will be sold at the company's expense and the proceeds of the sale will be distributed among those shareholders around 19 June 2008.

Ericsson AB (Nasdaq: ERIC)

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