Ericsson Sells Technology Center for Printed Circuit Boards in Kumla to Multek Inc

Business Wire, Oct 9, 2000

Business Editors/High-Tech Writers

STOCKHOLM, Sweden--(BUSINESS WIRE)--Oct. 9, 2000

Ericsson (NASDAQ:ERICY) has signed a letter of intent regarding the sale of its Technology Center for printed circuit boards in Kumla to the US company Multek Inc. The divested operation employs approximately 300 persons dedicated to the development of technology and production.

The sale is a part of Ericsson's continued focusing on core operations. All affected employees are being offered new jobs with the purchasing company. Multek is a subsidiary of Flextronics International Inc.

"The sale of the printed circuit boards unit in Kumla is part of the continuous review of our businesses currently in progress within Ericsson," says Bjorn Bostrom, manager for Corporate Supply & IT at Ericsson. "As an owner, Multek will focus on development and production of printed circuit boards, thus creating opportunities for continued development of operations in Kumla."

Multek Inc. is a global manufacturer of advanced printed circuit boards. In this field, the company is a leader with respect to production and production-related engineering services. The facility in Kumla is the company's first in the Nordic region.

"With the plant in Kumla, we will further strengthen our position as a leading supplier of printed circuit boards to the data and telecom industry," says Steve Schlepp, president of Multek Inc., who notes that overall market demand for the company's services is very strong.

Multek's owner Flextronics already has a well-established relationship with Ericsson. Since 1997, Flextronics has acquired a number of Ericsson production units in Sweden and around the world. The total numbers of Flextronics employees in Sweden are 5,300 and 60,000 worldwide.

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.

Read more at http://www.ericsson.com/pressroom