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Ericsson to acquire Microsoft Mediaroom

STOCKHOLM, SWEDEN — (Marketwired) — 04/08/13 —

* Underlines Ericsson-s commitment to being partner of choice for Video
distribution across multiple networks and devices

* Places Ericsson in lead for TV Anywhere consumption

* Ericsson becomes leading player for innovative video distribution with
combined market share of more than 25%

Ericsson (NASDAQ: ERIC) has reached an agreement with Microsoft (NASDAQ: MSFT) to
acquire its TV solution Mediaroom business. This will make Ericsson the
leading
provider of IPTV and multi-screen solutions with a market share of over
25%.
Closing expected during the second half of 2013. Mediaroom is situated in
Mountain View, California and employs more than 400 people worldwide.

Per Borgklint, Senior Vice President and Head of Business Unit Support
Solutions
at Ericsson said: “Ericsson-s vision of the Networked Society foresees 50
billion devices to be connected via broadband, mobility and cloud. Future
video
distribution will have a similar impact on consumer behavior and
consumption as
mobile voice has had. This acquisition contributes to a leading position
for
Ericsson with more than 40 customers, serving over 11 million subscriber
households. In addition, Ericsson will be powered with senior competence
and
some of the most talented people within the field of IPTV distribution.”

The global IPTV market is estimated to reach 76 million subscribers in 2013
with
revenues of 32 BUSD, growing to 105 million subscribers and 45 BUSD in
2015.

“Mediaroom is the leading platform for video distribution deployed with the
world-s largest IPTV operators. This strategic acquisition positions
Ericsson as
an industry leader thanks to the skills and experiences of the talented
people
of Mediaroom combined with Ericsson-s end to end service capabilities”
Borgklint
concluded.

The total media solution portfolio of Ericsson in the TV and video space
combined with a further increased focus on consumer needs will be the
foundation
for providing services to end users. The importance of video distribution
capabilities for the customers and their consumers will be increasing as
more
and more LTE networks are deployed and filled with smartphone users.

“We are proud of the number one IPTV market position that we have achieved
with
Mediaroom. Ericsson-s complementary portfolio of TV and networking services
will
help drive the future growth and development of Mediaroom,” said Tom
Gibbons,
Corporate Vice President of Microsoft Corporation. “Ericsson is positioned
to be
a valuable strategic partner for operators and TV service providers around
the
world as the IPTV market evolves.”

Microsoft Mediaroom is the TV technology behind many of the world-s leading
television service providers like AT&T U-verse®, Entertain of Deutsche
Telekom, Telefonica, TELUS Optik TV and Swisscom. Mediaroom-powered TV
services are offered on more than 22 million set top boxes deployed
throughout
the Americas, EMEA and APAC.

Ericsson already sees that the ever-changing behaviors of TV consumers are
evolving faster than ever. Speed of innovation and intelligent solutions
drive
consumer propositions in TV anywhere. This development will continue to
fuel the
industry as convergence becomes reality. The development requires content
owners, broadcasters, TV service providers and operators to re-think their
propositions.

This move builds on Ericsson-s triple Emmy award-winning leadership in the
media
industry, providing its customers with a truly unique experience in TV
anywhere
spanning the entire media value chain from camera to consumer.

The agreement is subject to customary regulatory approvals and other
conditions.
Mediaroom will be incorporated into Business Unit Support Solutions.

NOTES TO EDITORS

Photo and bio of Per Borgklint

Ericsson has pioneered innovation within the TV and video area for over 20
years, enabling the entire media value chain from content acquisition
through to
delivery of premium content and enhanced TV experiences to the consumer.
Our multimedia content is available at the broadcast
room:

Download high-resolution photos and broadcast-quality video at

Ericsson is a world-leading provider of communications technology and
services.
We are enabling the Networked Society with efficient real-time solutions
that
allow us all to study, work and live our lives more freely, in sustainable
societies around the world.

Our offering comprises services, software and infrastructure within
Information
and Communications Technology for telecom operators and other industries.
Today
40 percent of the world-s mobile traffic goes through Ericsson networks and
we
support customers- networks servicing more than 2.5 billion subscriptions.

We are more than 110,000 people working with customers in more than 180
countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.
In
2012 the company-s net sales were SEK 227.8 billion (USD 33.8 billion).
Ericsson
is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

Acquire Microsoft Mediaroom press release PDF:

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Source: Ericsson via Thomson Reuters ONE

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