Sitronics, Ericsson Team Up

MOSCOW -- JSC SITRONICS ("Sitronics" or "TheCompany") (LSE: SITR), a leading provider of telecommunications, IT andmicroelectronic solutions in Russia and the CIS, with a growing presence inother EEMEA emerging markets, today announced that it will supply 3Gequipment and services to Mobile TeleSystems ("MTS") networks in Russia andthe CIS in joint partnership with Ericsson, the leading telecommunicationsequipment vendor. Ericsson will act as a prime contractor to MTS andSITRONICS will serve as Ericsson's subcontractor.

In accordance with the partnership agreement, Ericsson and SITRONICSwill supply UMTS technology to MTS. Ericsson radio access, as well asswitching and network management systems jointly provided by SITRONICS andEricsson, will be used in the MTS networks. According to the terms of theagreement, both companies will be engaged in system integration, servicesupport and additional development of subscriber services. The project isexpected to be completed in the beginning of 2009.

Sergey Aslanyan, President and Chief Executive Officer of SITRONICS,commented: "We believe that the Russian telecommunications market is aboutto experience a drastic transformation as new technologies will change theway people communicate. Accuracy, high quality of service and user-orientedsolutions are prerequisites for the success of network operators. We expectour partnership with Ericsson, the leading vendor of telecommunicationssolutions, to give MTS a significant competitive advantage in its markets."

JSC Sitronics (London: SITR)

Ericsson AB (Nasdaq: ERIC)