Trading Statement

RNS Number:3046A
Ericsson(L.M.)(Telefonaktiebolaget)
12 March 2001



Ericsson's first quarter sales and income will be lower than forecasted

In  our fourth quarter release, we expected sales for the first quarter to
increase  by  around 15 percent over last year for comparable units,  with
continued  strong  growth for systems but lower sales for  phones.  Income
before  tax  was  expected to be around zero, due to continued  losses  in
phones and increased 3G investments.

In  our outlook we emphasized the general economic uncertainties, and  the
development  so  far during 2001 has confirmed this picture.  The  current
economic slow-down, in particular in the US, has increased the uncertainty
about the growth rate in the entire information technology sector. As  now
announced by a number of important industry players, this uncertainty  has
had  a  great  impact on current investment levels in the whole  industry,
also in some markets outside the US. This has also affected Ericsson.

The slower growth is affecting all of our operations. Customers in the  US
in  particular are postponing their capital expenditures. Also in  Western
Europe,  in markets with already high penetration, operators are  delaying
investments.

For mobile phones, the normal seasonality with low first-quarter sales  is
accentuated  by  low replacement demand, reduced operator subsidies,  high
inventory  levels in the distribution chain and continued  price  pressure
due  to  excess  vendor  capacity.  We  expect  sales  of  phones  to   be
considerably lower than first quarter last year.

We  now  foresee total sales for the quarter to be flat or somewhat  lower
compared to first quarter last year, rather than the earlier expected  net
increase of 15 percent.

As  a consequence of lower sales than forecasted, continued investments in
R&D,  supply and implementation for 3G, and the price pressure  on  mobile
phones, we now estimate income before tax to be in the range of -4  to  -5
billion SEK.

In addition to the ongoing comprehensive restructuring program in Consumer
Products  and a hiring freeze in our largest division Mobile  Systems,  we
will  rapidly review further measures to reduce costs and improve  capital
efficiency.

In  our  First  Quarter report on April 20, we plan to  give  our  revised
outlook  for the second quarter and the full year in accordance  with  our
guiding  policy.  The  current  economic uncertainty,  however,  makes  it
increasingly difficult to make forecasts with reasonable reliability.

A  conference  call will be held today, starting at 4 p.m.  CET.  Call  in
numbers are:

Europe: [phone], or [phone]
North America: [phone]

A  replay of the conference call will be available on hour after the  call
until 6 a.m., Thursday March 15.

Europe: [phone], or [phone], Client ID no: 551, passcode
136#
North America: [phone], or [phone], Reservation no 18274958

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.

Read more at http://www.ericsson.com/press

FOR FURTHER INFORMATION, PLEASE CONTACT

Media:
Roland Klein, Senior Vice President, Corporate Communications
Phone: [phone], E-mail: [e-mail]

Pia Gideon, Vice President, External Relations
Phone: [phone], E-mail: [e-mail]

Kathy Egan, Vice President, Communications, Ericsson Inc.
Phone: [phone], E-mail: [e-mail]

Investor relations:
Lars Jacobsson, Vice President, Financial Reporting & Analysis
Phone: [phone], E-mail: [e-mail]

Maria Bernstrom, Director, Investor Relations
Phone: [phone], E-mail: [e-mail]

Lotta Wiklund, Manager, Investor Relations
Phone: [phone], E-mail: [e-mail]