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ETISALAT TO EXPAND GSM SYSTEM

STOCKHOLM-Ericsson Inc. said it signed a $65 million contract with Etisalat of the United
Arab Emirates for a microcell expansion of Etisalat’s Global System for Mobile communication system.

The project
will further expand the network in the areas of Dubai and Al Ain, as well as expand the existing GSM microcell
network with Ericsson’s radio base station, RBS 2302, which can accommodate up to six radio transceivers, giving it 15
times more capacity than a single-transceiver micro base station.

Plans call for the expanded system to be
operational by mid-year, said Ericsson.

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