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Ericsson: Ericsson starts negotiations on ownership of ST-Ericsson

STOCKHOLM, SWEDEN -- (Marketwire) -- 12/10/12 -- Ericsson (NASDAQ: ERIC) today announced that it will continue to work together with STMicroelectronics (NYSE: STM) to find a suitable strategic solution for the two companies Joint Venture ST-Ericsson. STMicroelectronics has today announced its intention to exit as a shareholder in ST-Ericsson.

ST-Ericsson announced its strategic plan in April 2012 and is in the middle of executing on company transformation aiming at lowering its break-even point and introducing new technologies. Ericsson continues to believe that the modem technology, which it originally contributed to the Joint Venture, has a strategic value for the wireless industry. For Ericsson, a key priority in this process is a successful market introduction of the new LTE modems that it is certain will be very competitive and needed in the market.

During the process Ericsson will not speculate on the possible outcomes, timelines, and future ownership structures of ST-Ericsson.

Ericsson discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on December 10, 2012, at 07.50.

Ericsson starts negotiations on ownership of ST-ericsson: http://hugin.info/1061/R/1663538/539502.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1663538]

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: Email Contact

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: Email Contact

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