STOCKHOLM -- Ericsson (NASDAQ: ERIC) today announced the completion of the sale of 100 percent of the shares in Ericsson Federal Inc. (EFI) to Tailwind Capital, a private equity firm focused on growing companies. As the division of Ericsson focused on the U.S. federal government market, EFI is renamed Oceus Networks and is a wholly owned U.S. business. Ericsson has no ownership stake in the company. The sale was completed on December 31, 2010.

Under the terms of the new structure, Oceus Networks will have the exclusive right to offer the full slate of Ericsson's industry leading standards-based, off-the-shelf technology and support services to this customer base. Ericsson Federal Inc.'s employees have joined Oceus Networks, which is based in Reston, Virginia.

Douglas Smith will continue as President and CEO of the company. For more than 50 years, Ericsson has been a trusted partner to the U.S. public sector. Now Oceus Networks can leverage Ericsson's leading technology portfolio and investment in research and development to design and deliver standards-based government solutions to meet the emerging and future communications needs of the federal government.

Ericsson AB (Nasdaq: ERIC)