The Ericsson Board proposes a Long-Term Variable Remuneration Program and a directed issue and buy-back of C-shares

Ericsson's (NASDAQ: ERIC) Long-Term Variable Remuneration Program is
an integral part of the company's remuneration strategy and the Board
of Directors has therefore decided to propose that the Annual General
Meeting on April 22, 2009, resolves on a continued Long-Term Variable
Remuneration Program 2009 (LTV 2009) which is in all material
respects similar to the previous programs.The program comprises in
total 27 million B-shares.

The Program is divided into three plans: (1) a Stock Purchase Plan
embracing all employees, designed to award employees one Ericsson
share for each share invested in under the plan, (2) a plan for up to
ten percent of the employees selected as key contributors to receive
a second matching share, and (3) a plan embracing the CEO and other
senior managers, up to 0.5 percent of employees who at a maximum can
earn a further four, six or eight matching shares in addition to the
ordinary matching share under the Stock Purchase Plan, provided that
certain financial goals are met.

Matching under the program presupposes that the employee invests part
of the salary (up to 7.5 percent, the CEO: 9 percent, of the gross
fixed salary) in Ericsson shares, retain the shares and remains in
employment at the time of the matching, three years after the
investment.

Financing of the LTV 2009

The proposal gives the shareholders the opportunity to vote for each
of the respective plan, including its financing. The Board of
Directors has considered different financing methods for transfer of
the shares to employees under the LTV 2009, such as transfer of
treasury stock and an equity swap agreement with a third party.

The Board of Directors considers the transfer of treasury stock as
the most cost efficient and flexible method to transfer shares under
the LTV 2009 and has therefore decided to propose that the Annual
General Meeting resolve as follows.

Transfer of treasury stock: No more than 22.4 million B-shares shall
be transferred to employees covered by the terms of the three plans
under the LTV 2009. The company shall also have the right to, before
the Annual General Meeting in 2010, transfer no more than 4.6 million
B-shares in the Company on an exchange to cover certain expenses,
mainly social security payments.

Directed share issue: Ericsson's share capital shall be increased by
SEK 135 million by an issue of 27 million C-shares. The new shares
shall - with deviation from the shareholders' preferential right to
subscribe for shares - be subscribed for by AB Industrivärden and/ or
Investor AB, or subsidiaries of these companies, at a subscriptions
price corresponding to the ratio value of the share, i.e. SEK 5.

Authorization to decide on an offer to acquire own shares: The Board
of Directors shall be authorized to, before the Annual General
Meeting in 2010, resolve on an offer to acquire shares directed to
all holders of C-shares in Ericsson. Acquisition of 27 million
C-shares at a price per share of no less than SEK 5 and no more than
SEK 5.10 shall be allowed under the authorization.

Following the acquisition of C-shares, the Board of Directors will
decide on conversion of all C-shares to B-shares, which thereafter
can be transferred to employees and over an exchange.

Dilution and costs

The Company has approximately 3.2 billion shares in issue. As per
December 31, 2008, the Company held 61 million shares in treasury.
The 27 million shares required to implement the LTV 2009 correspond
to approximately 0.85 percent of the total number of outstanding
shares.

The total effect on the income statement of the LTV 2009, including
funding costs, is estimated to range between SEK 1,017 million and
SEK 1,919 million unevenly distributed over the years 2009 - 2013.
The costs can be compared with Ericsson's total remuneration costs
2008, including social security fees, amounting to SEK 51 billion.

The complete proposal of the Board of Directors will be available on
Ericsson's website, www.ericsson.com, as from the publication of the
Notice of the Annual General Meeting.

Ericsson is the world's leading provider of technology and services
to telecom operators. The market leader in 2G and 3G mobile
technologies, Ericsson supplies communications services and manages
networks that serve more than 250 million subscribers. The company's
portfolio comprises mobile and fixed network infrastructure, and
broadband and multimedia solutions for operators, enterprises and
developers. The Sony Ericsson joint venture provides consumers with
feature-rich personal mobile devices.

Ericsson is advancing its vision of 'communication for all' through
innovation, technology, and sustainable business solutions. Working
in 175 countries, more than 70,000 employees generated revenue of
USD 27 billion (SEK 209 billion) in 2008. Founded in 1876 and
headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic
Exchange Stockholm and NASDAQ.

For more information, visit www.ericsson.com or www.ericsson.mobi.

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: press.relations@ericsson.com

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com

Ericsson discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act.
The information was submitted for publication on March 12 at 11.30am
CET.