Ericsson Nikola Tesla and Ipko are continuing a successful cooperation which started in 2007. Back then Ericsson Nikola Tesla delivered and fully integrated the entire GSM network for this Kosovo operator in a record time. The new contract is to provide software and hardware support services over a three-year period and is worth HRK 37 million.

Ericsson Nikola Tesla and BH Telecom, the biggest telecommunications operator in the neighbouring Bosnia and Herzegovina, signed contracts for implementation of 2G and 3G mobile network extension and upgrade of BH Telecom core network with the most recent release.

In the evaluation of the Company's performance Gordana Kovačević, the President of Ericsson Nikola Tesla, pointed out the following: „The environment in which Ericsson Nikola Tesla operated in the first-half of this year continued to be both demanding and complex. The underlying business performance however continues to be stable."

On Monday, July 19, Ericsson Nikola Tesla signed a contract with a long-term partner and customer Crnogorski Telekom (the member of Magyar Telecom and Deutsche Telekom group). The contract value amounts to almost HRK 22 million.

Ericsson Nikola Tesla made new business deals in Russian Federation, Belarus, Moldova, Georgia, and Kazakhstan. This new business relates to the modernization and extension of mobile and fixed networks and microwave solutions in broadband network, as well as IP oriented solutions for business users.

Mrs. Gordana Kovačević, President of Ericsson Nikola Tesla d.d. and Mr. Nedžad Rešidbegović, General Director of BH Telecom, the largest telecom operator in Bosnia and Herzegovina, signed in Sarajevo on June 29 the contract for expansion of BH Telecom’s 2G and 3G mobile networks. It is a turn-key contract worth HRK 60 million.

With specific reference to Customer Financing balances in Kazakhstan that totaled MHRK 298 at 31 March 2010, we have recognised an impairment charge in respect of these balances equivalent to MHRK 126.

The dividend for the business year 2009 will be paid out on June 17, 2010.

The Annual Shareholders Assembly of Ericsson Nikola Tesla d.d. was held with following voting results.

The Annual Shareholders’ Assembly of Ericsson Nikola Tesla d.d. took place on May 20, 2010 with the represented equity capital of HRK 87,814,700, which means 65.94 percent of the total share capital of the Company. Thus, the conditions for lawfully convened an eligible operation of the annual general assembly were set, which means the decisions made were legally valid.

Julian Ogrin, the president management Tele2 Croatia and MSc Gordana Kovačević, the president of Ericsson Nikola Tesla, signed two contracts compliant to which Ericsson Nikola Tesla shall continue with deliveries of solutions and service in the area of GSM and UMTS networks. The signing was witnessed by Johan Bergstrom, technical director of Tele2 Croatia and Goran Ožbolt, the Marketing and Sales director for Tele2 Croatia.

Ericsson Nikola Tesla signed new contracts for the Russian Federation, Belarus, Moldova and Uzbekistan market, which cover new business and extension of current capacities in the fixed and mobile networks.

In the evaluation of the Company's performance Gordana Kovačević, President of Ericsson Nikola Tesla, pointed out the following: "Ericsson Nikola Tesla results for Q1 2010 show an increase of orders booked, sales revenues, operating profit and Cash flow from operating activities when compared to Q1 2009.

Annual Shareholders’ Assembly of Ericsson Nikola Tesla, Zagreb, Krapinska 45 will take place at the registered office of the Company in Zagreb, Krapinska 45, on 20th May 2010 at 16.00.

MSc Gordana Kovačević, the president of Ericsson Nikola Tesla and MSc Nedžad Rešidbegović, BH Telecom director general, signed in Sarajevo on March 31, 2010, a contract on support services and maintenance of the complete network of BH Telecom, the largest operator in Bosnia and Herzegovina.

The dividend shall be paid out to all shareholders who seven days prior to the Annual Shareholders Meeting (i.e. on 13 May 2010) have Company shares registered on their securities account in the Central Depository&Clearing Company.

Ericsson Nikola Tesla and Crnogorski Telekom signed contracts to define the co-operation in the next four years. Thus, the latest Ericsson solutions will be available to T-Mobile CG. Also, the support services for T-Mobile CG and T-Com CG were contracted. The total value of the signed contracts amounts to more than HRK 21 mln per year, which means almost HRK 85 mln in the four years to come.

Ericsson Nikola Tesla and Beltelecom, a Belarus fixed telephony operator, signed in Minsk the contract on the delivery of the equipment for the extension of Internet infrastructure capacity. The contract value amounts to almost HRK 65 million. Besides the equipment delivery Ericsson Nikola Tesla will provide the support services, too.

MSc Gordana Kovačević, the president of Ericsson Nikola Tesla, presented the company business results of the previous year and the strategy for the period by 2012. It was pointed out that, despite complex business circumstances, in 2009 Ericsson Nikola Tesla managed to maintain its market position, profitable business and financial stability.

Ericsson Nikola Tesla d.d. will announce its 2009 results and 2010 outlook on Thursday, February 25, 2010 at 10.30 a.m.