Ericsson was chosen as main supplier to China Mobile because of its superior technical solution and demonstrated ability to provide strong local competence to support rapid rollout of the new GPRS network throughout China. Ericsson is also supporting rapid development of local third party applications for the Chinese mobile Internet market through its established Open Lab in Beijing and recently launched Mobile Internet Solutions Center in Shenzhen.

"This agreement will significantly promote the Monternet Plan (Mobile Internet Plan) and Internet business in the country, as well as the migration to 3G," said Mr. Li Yue, Vice President of China Mobile Communications Corporation.

"We are delighted with China Mobiles decision to select Ericsson as their main GPRS system supplier," said said Mr. Jan Malm, President of Ericsson (China) Company Ltd. "We consider this decision as a base for continued long-term agreement for mobile communications, wireless data and value-added services."

Jan Malm added, "With GPRS, China Mobile will enable its users to obtain packet-based services with benefits of always on-line connectivity to the mobile Internet. It will further simplify the way we communicate, and works as a key step in the smooth evolution of GSM networks to 3G capabilities."

Under the terms of the contract with China Mobile, Ericsson will provide infrastructure equipment and services, installation support and competence development for local operator staff in building the GPRS network. The agreement with China Mobile also will see Ericsson significantly expanding GSM networks throughout China, through the provision of system equipment, software upgrades, including GPRS technology, installation and back-up for competence development.

The GPRS network provided by Ericsson will be implemented during the first quarter of 2001. It will be concentrated in nine main cities throughout China, including Shijiangzhuang, Jinan, Qingdao, Shanghai, Guangzhou, Chongqing, Wuhan, Nanjing and Nanning.

China Mobile, the countrys largest mobile operator, is accelerating deployment of its nation-wide GPRS network to meet demand for quality mobile Internet services in the fast-growing Chinese mobile market.

According to recent industry forecasts, the number of mobile phone users in China is expected to reach 270 million by 2004, making it the single largest market in the world. China Mobile is expected to have one of the worlds largest GPRS networks with Ericsson as the main supplier.

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.