Ericsson: Strong Commitment to Social and Environmental Issues

STOCKHOLM, SWEDEN - Ericsson (NASDAQ: ERIC) improved the energy efficiency of its 3G radio base stations by 35 percent during 2006 - one of the facts stated in Ericsson’s annual Corporate Responsibility Report titled Driving Change and Building Trust.

The report details Ericsson’s environmental, economic and social commitment and performance during 2006. Ericsson’s focus on tackling environmental problems, particularly climate change, is clear.

Ericsson’s new software upgrade introducing stand-by functionality for lower traffic periods can significantly decrease energy consumption and corresponding carbon-dioxide emissions. If the entire installed base of Ericsson GSM base stations was to apply this feature, CO2 emissions could be cut by 1 million tons per year - the equivalent to the emissions from 330,000 cars traveling 16,000km per year.

Ericsson’s continued energy efficiency improvements to 3G radio base stations will result in an overall energy efficiency improvement of 80 percent for the total product mix by the end 2008, when compared to 2001.

The report shows Ericsson’s engagement on social issues as well. In order to make communication more affordable and accessible for all, Ericsson undertook research in Africa on the socio-economic contribution of mobile communications to everyday life. It has also partnered with other industry leaders to establish pioneering bio-fuel projects in Nigeria and India to find locally produced, reliable and non-carbon intensive fuel sources that contribute to the local economy.

The report also includes performance details of Ericsson’s risk- based approach for monitoring compliance with the Supplier Code of Conduct, as well as Ericsson’s decision to address human rights issues and join the Business Leaders in Human Rights (BLIHR).

Carl-Henric Svanberg, Ericsson President and CEO, says: “Ericsson is committed to making positive contributions to the communities in which we work and the world in which we live. Our technology offers countless opportunities to create more sustainable societies and we will continue to build upon these initiatives.”