Ericsson and Huawei Technologies Sign Patent License Agreement On Mobile Technology

Business Wire, August 22, 2002

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--Aug. 22, 2002

Ericsson, (NASDAQ:ERICY) the world leader and pioneer in 2G, 2.5G and 3G mobile technology, has concluded a worldwide patent license agreement with Huawei Technologies, the leading Chinese vendor for communications equipment and network solutions for telecom carriers in fixed, mobile and data communications networks.

Under the terms of the worldwide, royalty-bearing agreement, Ericsson has granted Huawei Technologies a non-exclusive, non-transferable license under Ericsson's patent portfolio for the WCDMA/UMTS mobile telephony standard. This allows Huawei Technologies to develop, manufacture and sell infrastructure as well as subscriber equipment using the leading mobile technology from Ericsson. In return, Huawei Technologies provides running royalty payments, as well as a reciprocal license to Ericsson.

The execution of yet another WCDMA patent license agreement confirms Ericsson's leadership with respect to its WCDMA patent portfolio in standards essential and implementation patents. Ericsson's intellectual property rights portfolio is exceptionally strong and is required by any company developing 3G products. Ericsson has the industry's strongest R&D commitment with well over 10,000 granted patents worldwide in the telecom field.

"This agreement further demonstrates Ericsson's commitment to fully support, and co-operate with local Chinese vendors in order to accelerate the development of 3G Mobile telephony and facilitate the market growth in China. This will create new opportunities for both the local Chinese industry and Ericsson, and further leverages on Ericsson's technology leadership and patent portfolio. Ericsson is promoting 3G in China and is showing the way to the rest of the industry by granting a license under terms to encourage competitive accumulated royalty rate for WCDMA," says Torbjorn Nilsson, Senior Vice President, Marketing and Strategic Business Development.

Ericsson is shaping the future of Mobile and Broadband Internet communication through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication in the world.

Read more at www.ericsson.com/press

About Huawei Technologies

Established in 1988, Huawei Technologies is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solutions for telecom carriers in optical, fixed, mobile and data communications networks. Huawei's customers include China Telecom, China Mobile, China Unicom, China Netcom as well as Thai AIS, South Korea Telecom, SingTel, Hutchison Global Crossing, PCCW, Telemar (Brazil), etc.

For further information visit www.huawei.com