LCC International, Inc.'s Product Divisions to be Acquired by Ericsson for Approximately $22 Million - Company Business and Marketing

Cambridge Telcom Report, Sept 6, 1999

LCC International, Inc., one of the world's largest suppliers of integrated end to end infrastructure consulting services to the wireless telecommunications industry, has announced that Ericsson will acquire the assets of the Company's Product divisions for approximately $22 million USD, subject to adjustments based on a closing net asset valuation.

Closing will occur following receipt of required regulatory approvals and third party consents and is expected to be on or about September 30, 1999.

The cash deal calls for Ericsson to assume the rights to all of LCC's Field Measurement Systems and Network Planning Software, any related technologies, and all patents and trademarks associated with the Company's product businesses. Popular brands such as RSAT-2000, Benchmarker, CellAD, CellCAD and CellSIGHT will all become part of the Ericsson TEMS-Total product line and will continue to be marketed and sold. LCC's products employees will continue in their respective roles and will continue to develop, manufacture and support the current product lines from Northern Virginia and Olso, Norway areas.

Christer Edmark, General Manager, Ericsson Quality Improvement Solutions said, "The LCC products business provides a technological and geographical strategic complement to Ericsson's current TEMS portfolio. In addition to this, the expertise and broader product portfolio we are gaining are especially important as we move to third generation wireless systems, where planning, measurement and performance management are even more critical than in today's mobile networks. This acquisition will further strengthen Ericsson's leadership in the network design, quality assurance and optimization marketplace."

In support of LCC's expanding services line, the two companies have agreed to a 3 year Product Supply Agreement in which Ericsson will provide licenses to LCC for ANET and CellCAD, network planning software, for use in association with its RF engineering services. The Agreement will also enable LCC to continue to rely on the products that have contributed to industry leading services such as Benchmarking, autonomous network monitoring and sophisticated network design and optimization.

C. Thomas Faulders III, LCC's Chairman and Chief Executive Officer said, "We have not only been able to achieve our goal for a successful divestiture but have created a strategic relationship as well. Our product groups will now be in an ideal environment to grow and flourish as Ericsson has a culture of successful product development, manufacturing and support expertise and processes. In addition, having Ericsson as a preferred supplier will not only enhance our ability to perform quality and technically advanced services for our customers but will give us a platform to have input into future product platforms to support the needs of our wireless technical professionals."

The Company expects to realize between zero and $3 million of pre tax income after deducting discontinued operations costs, debt associated with the Products division and other adjustments. The pre tax cash benefit from the sale is expected to be between $10 and $12 million.

Statements included in this news release which are not historical in nature are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the ability to obtain financing, the hiring of new personnel, the Company's ability to secure new business, and those factors highlighted in LCC International, Inc.'s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which could cause the Company's actual results to materially differ from forward-looking statements made by the Company.

LCC International, Inc. (http://www.lcc.com) is one of the world's largest suppliers of integrated end to end infrastructure services to the wireless telecommunications industry. A leader in the industry since 1983, LCC has performed technical services for the largest wireless operators in North and South America, Europe, The Middle East, Africa and Asia. The Company has worked with all major access technologies and has participated in the design, deployment, optimization and maintenance of some of the largest and most sophisticated wireless systems in the world. By combining technical consulting and tower ownership and management LCC is unique in its ability to provide comprehensive turn-key services to wireless operators around the world.

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers.