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ERICSSON AIMS FOR HANDSETS WITH MORE GLOBAL MOBILITY

NEW YORK-L.M. Ericsson announced several endeavors that will provide handsets with increasing
degrees of global utility.

The Swedish-based manufacturer said it is forming a “groundbreaking
initiative” with four companies to create the “geostationary mobile satellite standard,” or
GMSS.

Participating with Ericsson in developing GMSS are United States-based Lockheed Martin Global
Telecommunications, United Kingdom-based Matra Marconi Space and two mobile satellite service providers, Asia
Cellular Satellite and Euro-African Satellite Telecommunications. GMSS will be of particular benefit to regional MSS
carriers like ACeS and EAST, Ericsson said.

GMSS, a satellite air-interface standard, will be derived from the
Global System for Mobile communications terrestrial cellular and personal communications services technologies. The
companies involved in its development will promote GMSS as an open standard available to all satellite systems
operators and manufacturers of satellites, satellite systems and satellite end-user terminals.

“GMSS will
enable mobile phone users to communicate in all parts of the world where the standard is operating,” Ericsson
said.

“[It] will ensure a more rapid market penetration and allow service providers to attract new subscribers
while increasing and developing their service.”

Earlier this month, Ericsson also announced it began selling in
Europe its new I888 World Phone, a dual-band handset that works on the 1900 MHz GSM standard in the Americas
and the 900 MHz GSM standard elsewhere. The triple-eight handset, which has a suggested retail price of about $300,
is scheduled to be for sale in this country in early February.

It weighs 6.3 ounces and is 5.2 inches long, 1.9 inches
wide and less than an inch thick.

The I888 features a built-in infrared modem, allowing users to send or receive e-
mail and faxes or download information from the Internet using a compatible laptop or palmtop computer or personal
digital assistant.

Among its other features, the I888 allows alternate line service. This enables two numbers, like one
for personal use and one for business calls, to be assigned to the same handset.

Ericsson also plans to offer
commercially late this year an enhanced version of the World Phone that will work in several different standards:
GSM 900 MHz and 1800 MHz; digital Advanced Mobile Phone Service 800 MHz and 1900 MHz; and AMPS
800 MHz. These standards have more than 175 million subscribers worldwide, or more than 80 percent of the wireless
telephony market, the company said.

“Ericsson’s World Phone will help bring down the wireless
telecommunications barriers that often exist between countries,” said Bjorn Krylander, vice president and general
manager of Ericsson Mobile Phones and Terminals American Standards Business Group.

This version of the
Ericsson World Phone will incorporate the subscriber identity module, or SIM card, used with GSM handsets, along
with the serial number used for D-AMPS phones.

“Combining D-AMPS/GSM technology into one phone
enables industry convergence towards the common third-generation, high-speed data and multimedia services,”
Ericsson said.

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