STOCKHOLM, Sweden, June 12, 2002 (PRIMEZONE) -- Ericsson (Nasdaq:ERICY) has today signed an agreement to sell its microelectronics operation Ericsson Microelectronics to Infineon Technologies AG (NYSE:IFX). The deal is expected to be closed during this summer and the value of the deal is approximately EUR 400 million (SEK 3600 million) in a sharebased deal. By this action, Ericsson and Infineon form a long-term strategic partnership. The discussions between Ericsson and Infineon confirmed on Friday, June 7, has resulted in this deal, which is in line with the ongoing process at Ericsson to focus towards its core business of providing systems and services for telecom operators. The agreement creates a strong supplier and partner to Ericsson in a wide range of products to secure the supply of important components to Ericsson's systems and mobile applications.
"Ericsson is the leading infrastructure technology provider and we have found Infineon to be the ideal supplier and partner for our endtoend solutions in mobile and broadband Internet," said Kurt Hellstrom, CEO and President of Ericsson. "We view this as a significant step in further focusing on our core business."
The purchase includes Ericsson Microelectronics AB in Sweden and related global activities. Infineon Technologies takes over approximately 700 employees, also products, research & development, and manufacturing including production equipment. However, at the two manufacturing facilities in Stockholm 600 manufacturing staff will remain Ericsson employees.
Approval by the responsible antitrust authorities is pending, and closing is expected during summer 2002.
"This strategic partnership will significantly strengthen our communications business," said Dr. Ulrich Schumacher, CEO and President of Infineon Technologies. "In addition to building on our wireless design expertise, Infineon will team up with Ericsson as a leader in the wireless world and become a strategic partner."
Ericsson is shaping the future of Mobile and Broadband Internet communication 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/press
FOR FURTHER INFORMATION, PLEASE CONTACT:
Ericsson
Media:
Ase Lindskog, Director Media Relations
Corporate Communications,
Phone: 46 730 24 4872
Email: ase.lindskog@lme.ericsson.se
Investors:
Maria Bernstrom, Director Investor Relations
Corporate Communications
Phone: 46 8 719 5340
Email: maria.bernstrom@lme.ericsson.se
About Infineon
Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, as well as memory products. With a global presence, Infineon operates in the U.S. from San Jose, CA, in the AsiaPacific region from Singapore and in Japan from Tokyo. In the fiscal year 2001 (ending September), the company achieved sales of Euro 5.67 billion with about 33,800 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX).
Further information on Infineon is available at www.infineon.com.