Sony Ericsson issues profit warning

Nordic Business Report, March 19, 2008

NORDIC BUSINESS REPORT-19 March 2008-Sony Ericsson issues profit warning(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Swedish telecomms solutions provider Ericsson (NASDAQ: ERIC) said on Wednesday (19 March) that its joint venture, the Swedish-Japanese mobile phone maker Sony Ericsson, has issued a profit warning.

Sony Ericsson announced that moderating sales growth of mobile phone units is expected to negatively impact net sales and net income before tax for the first quarter of 2008.

Also slowing market growth of mid-to-high end phones in markets where Sony Ericsson has a strong presence is affecting sales. In addition, certain component shortages for popular mid-priced phones have contributed to modest unit sales growth in the first quarter.

Sony Ericsson now plans to ship approximately 22 million phones during the first quarter of 2008. This is expected to generate net sales lower than the first quarter of 2007.

Sony Ericsson Mobile Communications AB is a joint venture of Ericsson and the Japanese electronics company Sony. It is headquartered in London in the UK and has some 7,000 employees worldwide.

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.

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