Ericsson Nikola Tesla d.d.

Regulatory Filings • Nov 18, 2016

Ericsson Nikola Tesla Delivers the Republic of Croatia State Border Control System

Ericsson Nikola Tesla, as the leader of a consortium comprising Ericsson Nikola Tesla, Tehnomobil Securitas and Dat-Con, has signed an agreement with the Ministry of Interior of the Republic of Croatia to deliver a state border control system. The contracted project amounts to nearly MHRK 48 (VAT excluded). The implementation is to start immediately and the realization is scheduled to end in January 2017.

Vlaho Orepić, Minister of the Interior of the Republic of Croatia, said: "We have signed a contract for the development of a 'green' border control system in Vukovar-Srijem County and Split-Dalmatia County. The border control system will ensure the monitoring of the situation on the very border and the surrounding area on both sides of the border, in all types of weather conditions, which will be achieved by combining several interconnected detection systems. The agreed solutions will enable our country to fulfill a part of the prerequisites necessary for joining the Schengen area, which will in the future enable our citizens to freely and easily travel without border controls within EU Member States, which are already members of the Schengen area. Furthermore, it is also worth mentioning that the contracted works are 100% financed through the Schengen Facility Fund, rather than being incurred by the citizens of the Republic of Croatia. The realization of this project significantly increases the efficiency of control and protection of the border of the Republic of Croatia by the Croatian Police. Also, it additionally moves us away from the thinking about the need for the border to be protected by physical barriers and with potentials outside of the Ministry of Interior of the Republic of Croatia."

Gordana Kovačević, MSc, president of Ericsson Nikola Tesla, pointed out the following: "This contract for an integral realization of the solution for the control over the Republic of Croatia state border represents a strategically important project for Ericsson Nikola Tesla. We are pleased to continue excellent cooperation with the Ministry of the Interior of the Republic of Croatia. Our expert teams in cooperation with partners are highly motivated and are to begin immediately with the realization of the project which will be implemented with quality and on time. This represents an acknowledgment of our competences and expertize in the area which is strategically important for the Republic of Croatia, and at the same time it will benefit the citizens of our country."

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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 multi-service 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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