STOCKHOLM, SWEDEN — (Marketwire) — 10/26/12 —

* Sales decreased -2% YoY and -1% QoQ.

* Networks decreased YoY due to weaker sales in parts of Europe, China,
Korea
and Russia as well as continued decline in CDMA equipment sales. This
was
partly offset by strong development in North America. Operating margin
was
stable QoQ.

* Global Services increased sales 19% YoY. Operating margin increased
QoQ.

* The underlying business mix, with higher share of coverage projects
than
capacity projects, is expected to prevail short-term.

* Operating margin decreased YoY due to higher share of coverage projects
and
modernization projects in Europe. QoQ operating margin increased due to
lower opex.

* Cash flow from operations SEK 7.0 b. and cash conversion YTD at 52%.

* Net income SEK 2.2 b., down from SEK 3.8 b. YoY, impacted by lower
profitability in Networks.

* EPS diluted SEK 0.67 (1.18). EPS Non-IFRS SEK 1.04 (1.52).

Comments from Hans Vestberg, President and CEO

“Demand for Global Services and Support Solutions continued to be good,
while
Networks showed a decline in sales YoY. In North America Networks sales
developed favorably, despite the expected decline in CDMA sales, while
parts of
Europe, China, Korea and Russia continued to be slow,” says Hans Vestberg,
President and CEO of Ericsson (NASDAQ: ERIC). “The growing Global Services
business contributes not only with topline but also with stable operating
profitability and, together with Support Solutions, represented more than
50% of
Group sales.

We believe that the fundamentals for longer-term positive development for
the
industry remain solid. There are now one billion smartphones in the world
and
the number is expected to reach three billion in 2017. The introduction of
new
devices and applications put higher consumer demands on network performance
and
quality. This drives demand for our technology, software and services
capabilities. However, at the same time, we see a continued macroeconomic
slow
down and political unrest in parts of the world, which has led to more
cautious
operator spending in some parts of the world.

Our joint venture ST-Ericsson is still in a challenging situation although
performance improved in the quarter. Ericsson, together with
STMicroelectronics,
is continuously reviewing the strategy and business case. We remain
confident
that ST-Ericsson has a strategic position in the industry to enable the
device
ecosystem.

We have a strong portfolio, position and capabilities in place. However,
our
profitability is not satisfactory. Operating expenses for comparable units
have
declined -7% YoY and we also see steady improvements in execution of
projects.
These improvements are encouraging, but not enough and we will continue to
proactively identify and execute additional efficiency gains and cost
reductions,” concludes Vestberg.

You find the complete report with tables in the attached PDF or by
following
this link:

Editor-s note

To read the complete report with tables, please go to:

Ericsson invites media, investors and analysts to a press conference at the
Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),
October 26, 2012.
An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as
supporting
slides will be available at and

Video material will be published during the day on

Ericsson discloses the information provided herein pursuant to the
Securities
Markets Act. The information was submitted for publication at 07.30 CET, on
October 26, 2012.

Third quarter report 2012:

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#1652649]

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