Ericsson reports operating profit of SEK35.8bn for 2006

Nordic Business Report, Feb 2, 2007

NORDIC BUSINESS REPORT-2 February 2007-Ericsson reports operating profit of SEK35.8bn for 2006(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com

Swedish telecomms solutions provider Ericsson (Nasdaq: ERIC) reported on Friday (2 February) an operating profit of SEK35.8bn on net sales of SEK177.8m for the financial year 2006.

Both operating profit and net sales for the 12-month period increased, respectively from SEK33.1bn and SEK151.8bn, as compared to 2005.

Operating profit for the fourth quarter of 2006 amounted to SEK12.2bn on net sales of SEK53.7bn.

Earnings per share (EPS) in the fourth quarter amounted to SEK0.61, while the full-year EPS increased to SEK1.65 from SEK1.53 in 2005.

The board of directors has proposed SEK0.50 per share as dividend for 2006.

The traffic growth in the world's mobile networks is expected to continue as a result of both new services and new subscribers. For 2007 Ericsson believes that the GSM/WCDMA track within the global mobile systems market, measured in US dollars, will continue to show mid-single digit growth.

Ericsson is headquartered in Stockholm, Sweden. Its equipment is used in more than 1,000 networks in 140 countries, and 40% of the world's mobile calls are made through Ericsson systems. The company is listed on the Nordic Exchange in Stockholm, and its shares are also traded on the London Stock Exchange and on Nasdaq.

One British pound (GBP) is worth approximately 13.38 Swedish kronor (SEK).

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