New business agreement with Telefónica and Indra

· Ericsson and Spanish IT company Indra in joint agreement with Telefónica

· Ericsson and Indra to take over Telefónica’s pre-paid billing solution, related operation support systems and about 500 employees from Telefónica I+D

· 7 year agreement to deliver pre-paid services to more than 20 of the Telefónica Group operations

· Pre-paid billing solution today serving some 100 million customers

Telefónica, one of the world’s largest telecom operators with operations in 25 countries and some 265 million customers, has entered an agreement with Ericsson (NASDAQ:ERIC) and Indra, a leading Spanish IT multinational.

The agreement includes transfer of Telefónica’s complete pre-paid billing assets, related operations support systems together with about 500 employees that develop, operate and maintain the solution that today serves about 100 million subscribers in the Telefónica Group. The assets will be transferred to Ericsson and Indra, effective October, 2010.

The agreement will strengthen Ericsson’s position within systems integration and within the areas of business support systems (BSS) and operation support systems (OSS). It is an important complement to Ericsson’s already strong billing and charging portfolio providing Ericsson with opportunities to further develop and expand capabilities for the BSS solution with possible commercialization to other customers.

Of the about 500 highly skilled employees joining Ericsson and Indra, approximately 400 come from Telefónica I+D in Spain and about 100 come from Telefónica I+D in Brazil..

Telefónica spokesperson said: “Pre-paid is an important component in our group’s offering and we are happy to have Ericsson and Indra managing our solution. The agreement offers a unique opportunity for the development and the operational efficiency of the billing solution, together with the Telefónica I+D organizations that the two companies are taking over.”

Magnus Mandersson, Head of Business Unit Global Services, Ericsson, said: “This is an exciting agreement, strengthening our relationship with Telefónica and spurring our work within innovation and new business models with our customers. The partnership with Indra will also open the door for new business opportunities, thanks to their leadership in IT solutions and IT systems integration.”

Notes to editors:

Photos Magnus Mandersson:

www.ericsson.com/ericsson/press/photos/magnus_mandersson.shtml

Bio of Magnus Mandersson:

www.ericsson.com/ericsson/corpinfo/management/magnus_mandersson.shtml

Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

www.ericsson.com
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About Telefónica

Telefónica is one of the largest telecommunications companies in the world in terms of market capitalization. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both. The company has a significant presence in 25 countries and a customer base that amounts close to 274 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy. Telefónica is a 100% listed company and its shares are traded on the main international stock markets.

www.telefonica.com

About Indra
Indra is the premier Information Technology company in Spain and a leading IT multinational in Europe and Latin America. It is ranked as the first European company in its sector according to investment in R&D and is the second Spanish company in absolute value investments in R&D. The company employs more than 29,000 professionals and has clients in more than 100 countries.

www.indracompany.com