Ericsson (NASDAQ:ERIC)  is to  supply, build,  integrate operate  and
manage multiplay  communications  infrastructure for  Saudi  Arabia's
high-tech  flagship,  King  Abdullah  Economic  City.  The  five-year
sole-supplier partnership  agreement  with Emaar,  developer  of  the
smart-city project, is the first  for an end-to-end fixed network  in
Saudi Arabia.

This turnkey agreement  award breaks  new ground in  Saudi Arabia  as
Ericsson's first GPON- enabled IPTV  contract, the first fiber  optic
contract and  the first  fixed-network  IMS contract  where  Ericsson
provides  systems  integration  and  network  rollout  services.  The
contract brings together products from Ericsson's major  acquisitions
- Entrisphere, Marconi,  Redback and  TANDBERG Television  - and  the
company's telecom services portfolio.

The network  will provide  innovative services  - using  latest  GPON
fiber-to-the home technology,  enabling advanced multimedia  services
for  TV,   PC  and   telephones.  Services   such  as IP   telephony,
movies-on-demand, personalized  TV,  Super  fast  Internet  and  data
services are being provided at  competitive prices for King  Abdullah
Economic City's 2 million residents.

Fahd  Al-Rasheed,  CEO  of  Emaar  the  Economic  City,  says:  "This
partnership sets the foundation for King Abdullah Economic City to be
the world's first truly smart city."

Omar Al-Khudairi, Ethraa  Smart City Senior  Director, described  the
deal to  build  the  smart city's  infrastructure  in  alliance  with
Ericsson as a global benchmark from all perspectives.

Jan Kemvall, President, Ericsson Saudi  Arabia, says: "It is a  great
privilege to  be  a partner  with  Emaar in  building  King  Abdullah
Economic city. There are many  opportunities to add value because  we
will deliver and operate the communication infrastructure across  the
city."

Notes to editors:

For more information and images of King Abdulla Economic City, visit:
http://www.kingabdullahcity.com/en/
Ericsson's standard multimedia content is available at the broadcast
room: www.ericsson.com/broadcast_room

Ericsson is the world's leading provider of technology and services
to telecom operators. The market leader in 2G and 3G mobile
technologies, Ericsson supplies communications services and manages
networks that serve more than 195 million subscribers. The company's
portfolio comprises mobile and fixed network infrastructure and
broadband and multimedia solutions for operators, enterprises and
developers. The Sony Ericsson joint venture provides consumers with
feature-rich personal mobile devices.

Ericsson is advancing its vision of 'communication for all' through
innovation, technology, and sustainable business solutions. Working
in 175 countries, more than 70,000 employees generated revenue of
USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and
headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic
Exchange Stockholm and NASDAQ.

For more information, visit www.ericsson.com or www.ericsson.mobi.


FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Media Relations
Phone: +46 8 719 69 92
E-mail: press.relations@ericsson.com


About Emaar, The Economic City:
Emaar, The Economic City (Emaar.E.C), established in September  2006,
is a Saudi joint stock company managed by Emaar Properties PJSC,  one
of the  world's largest  property developers,  and a  number of  high
profile investors from Saudi Arabia. Emaar.E.C has a share capital of
SR8.5 billion consisting of 850 million shares of nominal value  SR10
each. Thirty  per  cent of  the  equity, worth  SR2.55  billion,  was
offered for public subscription.

Emaar.E.C leads  the  master-planning  and  development  of  the  168
million sq  m King  Abdullah Economic  City (KAEC),  a project  being
built on a pristine location off the Red Sea in the north of  Jeddah.
SAGIA  (Saudi  Arabian  General   Investment  Authority),  the   body
responsible for inward  investments into  the Kingdom,  is the  prime
facilitator for KAEC.

KAEC, a New Age City being  built today for tomorrow's generation  of
Saudi citizens, has six components  - sea port, industrial  district,
educational  zone,   central  business   district  with   commercial,
mixed-use,  retail  outlets   and  financial   island,  resorts   and
residential area.

The mega-project works closely with  the Kingdom's on-going drive  to
expand the economy, create employment opportunities for its  youthful
population and function as a catalyst to attract foreign  investment,
global trade, commerce and industry. Based on initial forecasts,  the
project and  its several  components will  create up  to one  million
employment   opportunities    in   the    various   industries    and
service-oriented companies that will  open in KAEC.  It will also  be
home to 2 million residents (3.2 in the greater area).





Copyright © Hugin AS 2008. All rights reserved.