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Ericsson Awarded USD 500 Million Contract to Expand T-Mobile USA's Wireless Network URL(s): www.ericsson.com STOCKHOLM, Sweden--July 15, 2003--Ericsson (NASDAQ: ERICY) and T-Mobile USA Inc., a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE:DT), today announced an agreement to expand and upgrade the operator's wireless network to support customer growth and demand for GPRS and higher-speed EDGE data networks. The contract extension is valued at USD 500 million. Ericsson will deploy GSM (Global System for Mobile Communications), GPRS (General Packet Radio Service) and EDGE (Enhanced Data Rates for GSM Evolution) 1900 MHz network radio access equipment and associated services in two new markets: Western Virginia and certain uncovered areas of New England, where T-Mobile's footprint is expanding. Additionally, Ericsson will upgrade and expand T-Mobile USA's core network infrastructure, radio access equipment and associated services in 18 markets in which Ericsson equipment is already installed. Those markets include Atlanta, Boston, Miami, New Jersey, Philadelphia and Washington D.C. EDGE upgrades will enhance T-Mobile's capabilities to support new personalized GET MORE(R) services like two-way text messaging, web browsing and t-zones(SM) data offers for picture taking, music making and game playing. Additionally, the agreement calls for Ericsson to deploy Adaptive Multi Rate (AMR) technology for increased radio access capacity and improved quality across the Ericsson footprint. Deliveries under the agreement will begin immediately. "The deployments will enable T-Mobile USA to leverage and augment Ericsson's presence across our national footprint to provide greater capacity in a very cost-effective manner," said Tim Wong, Executive Vice President and CTO, T-Mobile USA. "In addition to positioning us to support our growing subscriber base, Ericsson is helping deliver personalized service offerings that allow us to deliver on our Get More(R) promise to our customers and ensure they have a consistent, reliable, quality experience." "Ericsson is proud of its long-standing support of T-Mobile USA, from early GSM deployment and nationwide digital network buildout to the launch and support of the first multimedia messaging service (MMS) service in the Americas," said Angel Ruiz, President and Chief Executive Officer, Ericsson, Inc. "Ericsson looks forward to continuing its successful partnership as T-Mobile USA continues its industry-leading growth while building and maintaining a high quality network for its customers." 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.