Extraordinary General Meeting of Shareholders in Ericsson decided on Long Term Variable Compensation Program 2007 for all employees

At the Ericsson (NASDAQ:ERIC) Extraordinary General Meeting of
Shareholders (EGM) held today, the EGM resolved to implement a Long
Term Variable Compensation Program 2007 ("LTV 2007"). The LTV 2007 is
based upon the same principles as the Long Term Incentive Plan 2006,
which covers all employees, key contributors and senior management.

The LTV 2007 comprises three parts:

1. The Stock Purchase Plan for all employees, under which
participants invest in Ericsson shares during a twelve months' period
and, after three years of holding, the shares are matched with one
share for each one purchased.

2. The Key Contributor Retention Plan for up to 6,300 key
contributors, under which specially selected participants in the
Stock Purchase Plan receive one extra matching share for each one
purchased, totally two matching shares.

3. The Executive Performance Stock Plan for up to 220 managers, under
which up to 170 selected managers can receive up to four extra
matching shares for each one purchased, up to 49 senior managers can
receive up to six extra matching shares and the CEO can receive up to
eight extra matching shares, totally up to five, seven or nine
matching shares respectively, depending on the outcome of a
performance target. Maximum matching shares will be allocated if the
average annual growth of Earnings Per Share (EPS) between July 1,
2006 and June 30, 2009 is at or above 15 percent. No allocation of
matching shares will occur if the average annual EPS growth is at or
below 5 percent.

Before the number of performance shares to be matched are finally
determined, the Board of Directors shall examine whether the
performance matching is reasonable considering the company's
financial results and position, conditions on the stock market and
other circumstances, and if not, as determined by the Board, reduce
the number of performance shares to be matched to the lower number of
shares deemed appropriate by the Board.

Transfer of own shares

In order to implement the LTV 2007 the Extraordinary General Meeting
of Shareholders also, in accordance with the proposals of the Board,
resolved on transfer of own shares in accordance with the following:

No more than totally 35,100,000 shares of series B may, during the
period from November 2007 up to and including November 2011, be
transferred, free of consideration, to employees covered by the terms
of the LTV 2007.

Further, the Company has the right to, prior to the Annual General
Meeting of Shareholders 2008, transfer no more than 7,300,000 shares
of series B, in order to cover certain payments, mainly social
security payments. Transfer of the shares shall be effected at the
Stockholm Stock Exchange (Stockholmsbörsen) at a price within the, at
each time, registered price interval for the share.

Dilution and costs

As per June 15, 2007, Ericsson held 242,932,703 own shares. In order
to implement the LTV 2007, a total of 42,400,000 shares are required,
corresponding to approximately 0.27 percent of the total number of
outstanding shares. The number of potential shares covered by
existing incentive programs, including shares to cover social
security payments, amounts to approximately 153 million shares,
corresponding to approximately 0.96 per cent of the number of
outstanding shares.

Out of the 42,400,000 shares of series B required for the LTV 2007, a
total of 35,000,000 shares may be transferred to employees free of
consideration, which could cause a dilutive effect of 0.22 percent on
earnings per share. The dilutive effect of the matching shares, 0.22
percent, is not affected by the price for the shares at the time of
matching since they are transferred free of consideration to the
employee. There will, however, be no dilutive effect on earnings per
share of the 7,300,000 shares, which may be transferred at
Stockholmsbörsen as the shares are sold at market value.

The LTV 2007 will generate administration costs, compensation costs
and social security costs in the range of SEK 857 million to SEK
1,287 million distributed over the years 2007 - 2011. The costs shall
be compared with Ericsson's total remuneration costs, which 2006
amounted to approximately SEK 43,000 million, including social
security fees.

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries, Ericsson
is helping to create the most powerful communication companies in the
world.

Read more at www.ericsson.com

FOR FURTHER INFORMATION, PLEASE CONTACT:

Media
Ericsson Media Relations
Phone: +46 8 719 6992
E-mail: press.relations@ericsson.com

Investors
Ericsson Investor Relations
Phone: +46 8 719 0000
E-mail: investor.relations@ericsson.com