ERICSSON: Interim Report Six months ended June 30,1997.

STOCKHOLM, Sweden--(BUSINESS WIRE)--July 24, 1997--

-- Orders booked, net sales and income are continuing to increase

substantially. -- Very strong development in mobile phones.

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Order bookings SEK 87,764 m. + 39 percent Net sales SEK 72,210 m. + 44

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Ericsson's order bookings during the first six months of 1997 increased by 39 percent, amounting to SEK 87,764 m., (SEK 63,345 m. in 1996). Orders booked by comparable units (including the consolidation of Ericsson Telecomunicacoes S.A. in Brazil) increased by 34 percent.

Net sales rose by 44 percent compared with the first six months of 1996 and amounted to SEK 72,210 m. (SEK 50,030 m.). Net sales by comparable units increased by 41 percent.

Income before taxes amounted to SEK 6,095 m. (SEK 4,224 m.), an increase of SEK 1,871 m., or 44 percent, compared with 1996. Excluding net capital gains, income before taxes was 60 percent higher. The consolidation of Ericsson Telecomunicacoes S.A. did not affect pre-tax income. As a result of the weaker Swedish krona, income in the 1997 period includes approximately SEK 500 m. in positive currency effects compared with the first half of 1996.

Income per share, after current and deferred taxes for the period, and after full conversion, increased 38 percent, to SEK 4.23 (3.06).

The United States is Ericsson's largest market, followed by China, United Kingdom, Sweden, Italy and Spain. All market regions reported good growth.

As of June 30, 1997, Ericsson had 96,520 employees, an increase of 2,571 since December 1996.

Ericsson's cash flow before financial activities was essentially neutral. Commitments related to customer financing are increasing, while refinancing agreements have been arranged in several cases.

The equity ratio was 37.7 percent (39.1 percent in December 1996).

Ericsson's investments in property, plant and equipment amounted to SEK 2,891 m. (SEK 3,356 m.), of which SEK 1,551 m. in Sweden (SEK 1,788 m.).

BUSINESS AREAS

MOBILE SYSTEMS continues to show good growth. Orders booked increased by 18 percent and net sales were 25 percent higher for comparable units.