Ericsson Receives $54 Million Order For D-AMPS Wireless System From VimpelCom In Moscow

Business Wire, May 21, 1997

STOCKHOLM, Sweden--(BUSINESS WIRE)--May 21, 1997--Ericsson received a D-AMPS order valued at $54 million from the Moscow wireless communications operator, Vimpelcom. This is the largest order ever for any D-AMPS/AMPS cellular system in Russia, and is the seventh expansion of the network. VimpelCom, selling its services under the Bee-Line trademark, is the biggest cellular operator in Russia and CIS, with more than 65,000 subscribers in their Moscow network. VimpelCom is the first, and so far the only, Russian company listed on the New York Stock Exchange.

The order is for the supply and installation of additional RBS 884 Radio Base Stations and additional mobile switch (AXE 10).

First deliveries are scheduled for August 1997. As a result of this expansion VimpelCom and Bee-Line will be able to increase the capacity of their network and provide wider coverage in the Moscow region and several adjacent regions.

Ericsson and VimpelCom have been working together since January 1994, when VimpelCom first contracted with Ericsson for the supply and installation of their first wireless network, a sophisticated D-AMPS network covering the central Moscow area.

Ericsson's presence in the Russian market goes back to 1881, when the company received its first order for the supply of telephones in St. Petersburg. Since then Ericsson has always been present in the Russian Federation. In November 1994, Ericsson opened a local company, Ericsson Corporatia AO, with its head office in Moscow. In spring 1996, an additional office was opened in St. Petersburg. Ericsson equipment has been put into operation or is being installed in more than 50 regions of Russia.

Currently there are over 74 million subscribers using D-AMPS/AMPS networks worldwide. Over 5 million of these subscribers are already using D-AMPS and all analog AMPS systems have the potential of migrating to digital D-AMPS in the future. Ericsson's networks support almost 25 million of these D-AMPS/AMPS subscribers worldwide. Ericsson's 90,000 employees are active in more than 130 countries. Their combined expertise in fixed and mobile networks, mobile phones and infocom systems makes Ericsson the world leading supplier in telecommunications.

CONTACT: Ericsson

KATHY EGAN, LARS JONSTEG, 212/685-4030