Ericsson Sells Defense Unit

Ericsson agrees to sell its defense business to Saab

June 12, 2006

1 Min Read

STOCKHOLM -- Ericsson Microwave Systems (EMW) is a leading provider of radar, command and control systems for defense applications. In the product portfolio are e.g. the weapon locating system Arthur, the air surveillance system Giraffe and the operational airborne surveillance system Erieye.

The Ericsson defense business, that Saab is acquiring, had sales of approximately SEK 2 b. in 2005 with good profitability. In addition to the National Security and Public Safety business, Ericsson will retain parts of the Power Systems business. The retained units employ around 300 individuals.

Saab is one of the world's leading high-tech companies, with its main operations in defense, aviation, space and civil security. In 2005, total annual sales amou nted to SEK 19 b.

Carl-Henric Svanberg, President and CEO, Ericsson, says: "We are very pleased with this agreement since it gives EMW and its employees good possibilities to expand growth through Saab's strong market presence. Also, the EMW employees will now belong to a company with this area as a core business."

Ericsson AB (Nasdaq: ERIC)

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