STOCKHOLM, SWEDEN — (Marketwired) — 04/24/13 —

First quarter highlights

* Sales in the quarter were SEK 52.0 b. For comparable units and adjusted
for
FX and hedging, sales increased 7% YoY and declined -19% QoQ.

* Operating income incl. JV was SEK 2.1 b. with an operating margin of
4.0%.
Excluding the restructuring charges related to the reduction of
operations
in Sweden of SEK 1.4 b. the margin amounted to 6.7%. Last year-s margin
of
17.8% was positively impacted by a gain of SEK 7.7 b. from the
divestment of
Sony Ericsson.

* Net income was SEK 1.2 (8.8) b.

* EPS diluted was SEK 0.37 (2.76). EPS Non-IFRS was SEK 0.99 (3.14).

* Cash flow from operating activities was SEK -3.0 b. primarily driven by
higher working capital.

* Net cash decreased by SEK -6.3 b. QoQ to SEK 32.2 b. mainly due to
negative
operating cash flow and reclassification of Swedish special payroll
taxes of
SEK 1.8 b. from Other current liabilities to Pension liabilities.

COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO

“Sales showed positive development in the quarter with a growth of 2% YoY,
despite currency headwind. Sales for comparable units, adjusted for FX and
hedging, grew 7%,” said Hans Vestberg, President and CEO of Ericsson
(NASDAQ: ERIC).

“The sales increase was primarily driven by Networks and rollout services,
following high project activities primarily in Europe and North America.
North
America remained the strongest region and showed a growth of 23% despite
the
decline in CDMA. North East Asia had a challenging quarter with lower sales
in
South Korea, which remains one of the most advanced LTE markets but without
parallel 3G deployments as in Q112, continued structural decline in GSM
investments in China and FX effects in Japan.

Looking at the areas of portfolio momentum, we see continued good
development in
Managed Services with 21 new contracts signed during the quarter. Within
the
Mobile Broadband area, the vendor selection processes for 4G/LTE in Russia
and
China have been initiated. We also see continued momentum for our SSR
routing
platform with 12 new contracts in the quarter. Within OSS and BSS demand
continued to be strong.

At the Mobile World Congress (MWC) in Barcelona the trends in focus verify
our
belief that the Networked Society is coming to life. The growth in data
traffic
and video in the networks drives demand for mobile broadband and OSS and
BSS.
Other key topics at the MWC were software defined networks, cloud and
machine-
to-machine communications that will all be part of shaping the industry for
the
coming years.

Profitability improved YoY, adjusted for the restructuring charges related
to
the reduction of operations in Sweden concluded in Q1 and last year-s gain
from
the divestment of Sony Ericsson. The improvement is mainly due to higher
sales
in Networks and a continued reduction in operating expenses, offset by
negative
operating income in Network Rollout and negative FX effects.

The underlying business mix, with a higher share of coverage projects than
capacity projects, continued as anticipated during the quarter. With
present
visibility of customer demand, and current global economic development, we
continue to believe that the underlying business mix will start to
gradually
shift towards more capacity projects during the second half of 2013.

We continue to execute on our strategy. During the quarter we announced the
way
forward for our JV ST-Ericsson and in April 2013 we announced our intention
to
acquire Microsoft-s Mediaroom to strengthen our media position.

While macroeconomic and political uncertainty continues in certain regions,
the
long-term fundamentals in the industry remain attractive and we are well
positioned to continue to support our customers in a transforming ICT
market,”
concludes Vestberg.

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

or go
to:

NOTES TO EDITORS

Ericsson invites media, investors and analysts to a press conference at the
Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),
April 24, 2013. 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
April 24, 2013.

Ericsson first quarter report 2013:

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#1695632]

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