Ericsson Nikola Tesla d.d.

M&A Activity • Aug 31, 2020

PRESS INFO August 31, 2020

ERICSSON NIKOLA TESLA d.d. Krapinska 45 10000 Zagreb

SECURITY: ERNT (ISIN: HRERNTRA0000) LEI: 5299001W91BFWSUOVD63 HOME MEMBER STATE: Republic of Croatia REGULATED MARKET SEGMENT: Regular Market of the Zagreb Stock Exchange

Hrvatski Telekom and Ericsson Nikola Tesla Group continue the managed services cooperation for telecommunication networks

Hrvatski Telekom and Ericsson Nikola Tesla Servisi d.o.o. have signed an extension of the Management Services Agreement for the construction and maintenance of fixed and mobile telecommunications infrastructure, supervision of the telecommunications network, and field maintenance of the active access network and passive network.

This marks the continuation of the successful years-long cooperation between Hrvatski Telekom, the leading telecommunications operator in Croatia, and Ericsson Nikola Tesla Group, technology leader and associated company of the Ericsson corporation, which in this area started in 2014.

The Agreement is in force until the end of 2023, and its frame value is over HRK 1.6 billion. Ericsson Nikola Tesla Services has exclusivity for activities in the domain of the contract.

"Hrvatski Telekom continues a strong investment cycle in the fixed and mobile network. By extending the MSA with Ericsson Nikola Tesla Group, we continue with our great partnership cooperation. Still, more importantly, we provide resources for operational implementation and realization of new investments, which are crucial in the current economic situation. Despite the challenging business environment due to Covid-19, Hrvatski Telekom focuses on building and upgrading the network, providing the best service on the market, and connecting individuals, the business community, the economy and Croatian society, and in the process connecting everyone to the opportunities provided by digitalization", stated Kostas Nebis, Hrvatski Telekom, CEO.

Hrvatski Telekom's significant investments so far have enabled the successful completion of the mobile network modernization project, which is now 5G-ready, as well as made advanced services of the future possible. The strong focus is also put on the fiber roll-out plan with Hrvatski Telekom's plan to cover a record 80,000 new households with optics, which is an increase of 60 percent compared to last year.

"With this important agreement, the Ericsson Nikola Tesla Group is continuing its successful cooperation with our long-term strategic partner, which in this aspect began in 2014, and our Group has taken full responsibility for this job from Ericsson at the beginning of the year. The continuation of the cooperation is a proof of quality teamwork with Hrvatski Telekom experts and also the efforts and competencies of our employees in providing managed services throughout the period, especially in the challenging period marked by the earthquake and coronavirus. I expect Ericsson Nikola Tesla Service, our subsidiary, will continue responsibly providing quality service to Hrvatski Telekom, for which they will have the full support of the entire Ericsson Nikola Tesla Group", stated Gordana Kovačević, Ericsson Nikola Tesla, President.

Communications Ericsson Nikola Tesla

Ericsson enables communications service providers to capture the full value of connectivity. The company's portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ New York.

Ericsson Nikola Tesla is an associated company of the Ericsson Group which leads and supports modern communications. The company's activities include marketing and sales, research and development, design of the total communications solution, services in the multiservice and mobile networks area including the mobile Internet and complex system integration in all business areas. The company provides innovative ICT solutions that constantly improve people's life and create new value. Shares of Ericsson Nikola Tesla are traded in the Regular Market of the Zagreb Stock Exchange under the stock exchange symbol ERNT-R-A.

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PRESS INFO

August 31, 2020

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CONTACT:

Snježana Bahtijari Director Marketing, Communication and CSR Ericsson Nikola Tesla Tel.: + 385 1 365 4556 E-mail: snjezana.bahtijari@ericsson.com