January 29, 1997

Jill Lawrence
Virginia Economic Development Partnership
(804) 371-0049
Jill Lawrence
(804) 371-0049
Ericsson Inc. Receives $33 Million Korean Contract
-- Deal Follows Governor Allen's Visit to Korea --

Lynchburg - Governor George Allen today announced that telecommunications leader Ericsson Inc. has signed a radio dispatch equipment order worth $33 million with Samsung International. The order names the Lynchburg manufacturer as the primary supplier of advanced digital dispatch radio equipment to Samsung of Korea. Governor Allen met with Samsung officials during his 1996 trade mission to the Far East.

"Ericsson truly is a dynamic powerhouse and a world leader in the thriving technology industry. They are also a valued member of Virginia's large, diverse and expanding high-technology business community," said Governor Allen. "This decision by Samsung of Korea is a solid vote of confidence in the ability and workmanship of Virginia's most prized asset -- our people."

The unprecedented order was purchased by Samsung to integrate a new public safety radio system for the South Korean National Police. The system is the first public safety implementation in the world of Ericsson's Time Division Multiple Access (TDMA) technology. The new technology can support twice the capacity and four times the capabilities of traditional police radio systems.

Ericsson currently employs over 2,800 workers at the company's worldwide headquarters for private radio systems in Lynchburg. The company expects its international business to grow by 40 percent this year.

"This order is not only good for Ericsson, it is good for Virginia," said Bo Hedfors, President and Chief Executive Officer of Ericsson Inc. "Samsung wanted to find the best technical solution for the job, and I'm certain they will be pleased with our cutting-edge technology. Lynchburg's enthusiastic and diligent work force has helped this opportunity become a reality for us."

Ericsson will begin production of the TDMA equipment immediately. Samsung plans to have the system activated for the South Korean National Police by January 1999.

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