PLANO, Texas -- Ericsson (NASDAQ: ERICY) is expanding its offering of mission-critical networking and telecommunications solutions and services to the U.S. government with the addition of Marconi Communications Federal Inc. The new unit, which combines Marconi Communications Federal's long history as a trusted partner to federal agencies with Ericsson's leadership in mobile innovation and systems integration, will change its name to Ericsson Federal Inc.

With headquarters in Columbia, Md., and offices in Vienna, Va., Chambersburg, Pa., and San Diego, Ericsson Federal Inc. will be a wholly owned subsidiary of Ericsson.

"Ericsson's acquisition of Marconi Communications Federal provides the experience, the skills and the resources necessary to support the evolving needs of the U.S. government for secure, reliable high-speed networks and solutions," said Angel Ruiz, head of Ericsson North America. "We look forward to building on the strong heritage and reputation built by Marconi Communications Federal over the years to deliver the most advanced, reliable and secure networking technologies to the classified and unclassified government markets."

Ericsson Federal Inc. will be led by Ralph Havens, who formerly was president of Marconi Communications Federal. Doug Smith will continue as Vice President and General Manager of Ericsson's existing Government Solutions unit. Mr. Smith also has also been appointed to Ericsson Federal's new Board of Directors.

Ericsson has been active in the United States since 1904. Today Ericsson has more than 4,000 employees in North America who continue to deliver the industry's most advanced products, technologies and services for government agencies, telecom and mobile operators and enterprises.

Ericsson AB (Nasdaq: ERIC)