We have audited the accompanying financial statements of Ericsson Nikola Tesla d.d. Zagreb (the Company) as at 31 December 2000, as set out on pages 5 to 30. The financial statements have been prepared on the basis of the accounting standards issued by the International Accounting Standards Committee, as required by Croatian accounting law, under the accounting policies set out on pages 10 and 11.

Respective responsibilities of the Board and auditors

As described on page 3, these financial statements are the responsibility of the Company's Board. Our responsibility is to express an independent opinion on these financial statements based on our audit.

Basis of opinion

We conducted our audit of the financial statements of the Company in accordance with International Standards on Auditing. Those standards require that we plan and perform our audit so as to obtain all the information and explanations which we consider necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Opinion

In our opinion the financial statements give a true and fair view of the financial position of the Company as at 31 December 2000 and of the results of its operations, cash flows and changes in equity for the year then ended, and have been prepared in accordance with International Accounting Standards and the requirements of the Croatian Accounting Law (90/92).

Arthur Andersen d.o.o., Zagreb
Republic of Croatia

Zagreb, 27 November 2000
Zagreb, 8 March 2001