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Ericsson selected by Elion for the launch of new generation multimedia services in Estonia


May 22, 2006

Elion, the leading fixed-broadband provider in Estonia, is offering its customers a new range of real-time multimedia services. The service offering, is based on Ericsson’s (NASDAQ:ERICY) IP Multimedia Subsystem (IMS) and is aimed at both consumers and enterprises.

The Ericsson IMS solution enables Elion to introduce its customers to a new generation of multimedia services, which will initially embrace IP telephony, video telephony, instant messaging, and IP Centrex services.

In order to further develop functionality and usability of the Hotifon service, Elion is running a trial that will end in August, 2006. During the trial, calls are free between Hotifon users and Elion fixed-telephony subscribers. Hotifon users can be reached from all fixed or mobile phones, both domestic and international.

Ericsson IMS includes core nodes, as well as application servers, enabling real-time multimedia services that provide enriched experiences for end users. The Ericsson IMS system is an end-to-end solution enabling a wide range of new multimedia services in both fixed and mobile networks.

Valdur Laid, CEO of Elion, says: “We believe Ericsson’s extensive experience in the area of IMS enables us to utilize this state-of-art solution to its full potential. Ericsson IMS simplifies the creation and delivery of new services, allowing us to improve time-to-market of new, advanced offerings.”

Veiko Sepp, President of Ericsson Estonia, says: “Ericsson is proud to cooperate with such a highly innovative company as Elion and be a part of the creation of new-generation multimedia services for Estonian consumers and enterprises. This contract is more proof of our technology and architectural leadership. To date, Ericsson leads the market with 19 IMS system contracts for commercial launch and another 40 trials, distributed across the world.”

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

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About Elion
Elion is the largest telecommunications and IT provider in Estonia. It is owned by AS Eesti Telekom, listed on the Tallinn and London stock exchanges (OMX:ETLAT/LSE:EETD). In Estonia, Elion is the market leader in fixed-network calls, in internet subscriptions, and data communication solutions, and it has made a powerful entry into the IT and digital television market. In 2005, the consolidated revenue of Elion Group was EEK 2.588 billion (EUR 165.4 million), and the consolidated net profit was EEK 385 million (EUR 24.6 million). At the end of 2005, Elion Group employed 1673 staff.

About Ericsson IMS
Ericsson IMS can today provide fixed, mobile and enterprise users with a range of new services, such as IMS Push to Talk, IMS weShare (combinational services for sharing media while talking) and IMS Multimedia Telephony (including IP telephony and IP Centrex). Additional IMS services will continuously be developed - by Ericsson or other companies - making Ericsson IMS a future-proof and cost-effective selection for operators.

Ericsson IMS offers services over packet-based networks and is a cornerstone for an efficient IP-centric network environment. It complies with the 3GPP/3GPP2 IMS standard. Standards are critical for user adoption as they allow access to services that function seamlessly over networks provided by different suppliers.

Ericsson is the leader in the IMS area with 19 IMS system contracts for commercial launch and an additional 40 trials, distributed over the Americas, Europe, Asia and Africa.


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