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Ericsson Wins KPN Deal

STOCKHOLM -- Ericsson (NASDAQ:ERIC) has signed a five-year managed services contract with KPN in the Netherlands for access network field maintenance. Under the contract, Ericsson will assume responsibility for all field maintenance activities and specific employees of KPN's multi-vendor mobile access, Traxys and Semafonie networks across the Netherlands. More than 40 KPN employees will be transferred to Ericsson. The contract, effective June 1, 2007, will allow KPN to focus more strongly on the evolving telecommunications market. KPN has chosen Ericsson to manage its access network activities, including its GSM/DCS access, UMTS access, Traxys and Semafonie networks. Hans Vestberg, Executive Vice President and Head of Business Unit Global Services at Ericsson, says: "We are honored that KPN has chosen us as managed service partner for its access network. This announcement means a lot to us because Ericsson has had a relationship with KPN and its predecessors from the start. This contract demonstrates the long-term trust KPN has in Ericsson and in our competence to provide high-quality network services as well as attractive employment conditions for transferred employees." Jaap Postma, General Manager, Network Operations, at KPN, says: "The Netherlands, KPN's most important market, remains one of the most competitive in Europe. KPN has managed to keep its leading position in all the main segments. We see the transformation of the sector from traditional to new services as a challenge, and will take the lead in developing new customer services as well as maintaining and improving our leading position in the traditional market. This contract enables us to focus on our strategy, while Ericsson guarantees the quality of our access network. At the same time, our highly skilled staff will have jobs within Ericsson." Ericsson AB (Nasdaq: ERIC)

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