Ericsson Mobile Phones Teams With Interpath To Re-Design And Host Ericsson's Newly Re-Launched Consumer eCommerce Site - Company Business and Marketing

Cambridge Telcom Report, March 20, 2000

Interpath, a full-service Application Service Provider (ASP), Wednesday announced it had signed an agreement to develop, host and manage Ericsson Mobile Phones' newly re-launched United States Consumer Product Web Presence and integrated shopping center. Also, Interpath teamed with Ericsson to redesign and launch the shopping center to sell cellular phones, accessories and service plans via the Internet.

The Ericsson relationship is one of several new ASP contracts valued at more than $6 million that Interpath has signed since the start of the year. These contracts will provide new revenue backlogs of approximately $4 million in 2000, $1.5 million in 2001 and $900,000 in 2002. A wholly-owned subsidiary of Carolina Power and Light (NYSE: CPL), Interpath had revenues totaling $78 million in 1999.

"After spending 1998 and 1999 developing and perfecting our broad portfolio of ASP services, we've turned our focus to aggressively growing ASP revenues by signing contracts with clients like Ericsson, Sagent Technology, Centura Bank and others that will be announced in the very near future," said Michael Fox, interim CEO of Interpath. "Our capabilities for mission-critical service delivery of eCommerce, ERP, and messaging applications are second to none in the industry, and our significant growth in ASP revenues and customers is demonstrating our continued leadership position in the rapidly emerging ASP marketplace."

Designed For Efficiency, Effectiveness and Expansion Ericsson's newly re-launched Consumer Web site will enable consumers anywhere in the U.S. to comparison shop on-line for mobile service options from available operators in the top-50 major markets (MSA's). In total, consumers will have access to thousands of service plans via Ericsson's alliance with Point.com. Shoppers can compare plans, view coverage maps for local providers and explore special promotions (run by operators and/or Ericsson) before purchasing. Once a provider is selected, consumers can then view and purchase products from the complete line of Ericsson phones and Ericsson original accessories. To enhance the user experience, the e-commerce section will also include a glossary of telecommunication terms and helpful articles on shopping for wireless products and services.

Built on a Microsoft's Site Server Commerce platform and hosted in Interpath's data center, Interpath's Custom eCommerce Solution provides a navigable, single-source shopping site for purchasing Ericsson products.

"Before we launched the new Ericsson Consumer Web site, potential customers had to drive to numerous stores to get a complete picture of the wireless offerings available to them in their local market," said Dave Korb, vice president sales, Ericsson Mobile Phones - Region Americas. "This powerful new site allows people to research, compare and purchase the latest Ericsson products, accessories and carrier service plans in a dynamic and engaging online environment that combines up-to-date product information with ease of use and navigation."

Initially the look and feel was designed for the European marketplace, the Ericsson Web team and the Interpath Consulting team worked together to integrate an eCommerce approach specifically tailored to better suit the US consumer market. The solution entailed redesigning the Ericsson Web presence to directly sell accessories and services to consumers. In addition, Interpath created a more engaging site by adding a sophisticated and exciting multimedia demonstration of new Ericsson products.

"Our joint goal with Ericsson was to use a custom eCommerce solution that not only made the site user-friendly, interactive and easy to navigate, but also one that scaled to meet Ericsson's aggressive global expansion plans," said Nanette Peddicord, Manager of Project Implementation for Interpath. "The single redesigned site not only added new features and functionality, but it is much more appealing to the US consumer market who demands a more engaging site."

Telefon AB L.M. Ericsson (NASDAQ: ERICY), the world's leading telecommunications supplier, is headquartered in Stockholm, Sweden, and produces advanced systems and products for fixed and wireless communications in public and private networks. Two out of five mobile calls are connected by Ericsson equipment. Ericsson has been active globally since 1876 and today employs more than 100,000 people in 140 countries. In the Americas, Ericsson Consumer Products has executive offices and research and development facilities in Research Triangle Park, North Carolina. Latin American operations are based in Miami, Florida. The company has mobile phone manufacturing plants in Lynchburg- VA, United States, and Sao Jose dos Campos - SP, Brazil. The U.S. Consumer Products Web site is at www.ericsson.com/phones. Additional information and customer service area available at 1-800-ERICSSON (1-800-374-2776), outside the U.S. and Canada, 1-919-472-7908.

Interpath is a full-service ASP offering a full range of managed application services, IP-based applications and Internet consulting to businesses. Interpath offers customers a comprehensive portfolio of mission critical services including eCommerce, ERP applications, data services and messaging applications. Interpath's applications combined with the Interpath Operations Center (IOC) offer speed to market advantages, lower implementation costs, reduced IT investment, 24x7 monitoring and one point of contact for network, system and application management. Interpath is a wholly owned subsidiary of Carolina Power & Light (NYSE: CPL).