Ascom Announces the Acquisition of TEMS From Ericsson - Creating a Global Leader in Mobile Network Testing

ZURICH - Ascom has signed a binding agreement to purchase TEMS, a test business,
from Ericsson for a total consideration of CHF 190 million in cash (on a debt
and cash-free basis).

(Logo: www.newscom.com/cgi-bin/prnh/20080325/297903 )

TEMS is a software company with a global market leadership position in
optimization solutions for mobile networks. TEMS has approximately 300
employees in 17 countries around the globe. Its principal locations are in
Skelleftea (Sweden), and Reston, Virginia (USA). In 2008, TEMS generated
total revenues of CHF 165 million and is highly profitable. The acquisition
significantly increases Ascom’s revenue and is expected to be EPS (earnings
per share) accretive in 2010. Ascom anticipates the transaction to close in
June 2009.

This acquisition represents an important strategic step for Ascom,
creating a global market leader for mobile network benchmarking and
optimization. TEMS will form, with Ascom’s Mobile Test Solutions (MTS), a new
third division named “Network Testing”, from January 2010.

The acquisition of TEMS (www.tems.com) forms an excellent
strategic fit with the current offering of MTS, a market leader in mobile and
stationary network testing and benchmarking solutions. TEMS adds global
market leadership in mobile network optimization with a presence in 17
countries around the globe to MTS. As a result, Ascom will now be able to
offer “one-stop shopping” solutions in the area of mobile testing and
optimization for mobile telecom operators. TEMS currently has over 450
customers, including the world’s twenty largest mobile network operators.

“This acquisition is a logical next step, following the take-over of
Argogroup and Comarco WTS in 2008. TEMS represents an excellent strategic
addition for Ascom and can be merged with the Mobile Test Solutions business
unit to form a powerful third Ascom division. This will strengthen Ascom’s
global presence and, due to TEMS’ very solid profitability, our target of a
two-digit EBIT margin on a Group level becomes realistic in 2010,” says Riet
Cadonau, Ascom CEO.

Ascom will finance the purchase price of CHF 190 million through a
combination of cash (CHF 70 million) and a syndicated credit facility (CHF
120 million) secured from a consortium of eight Swiss banks led by UBS and
Credit Suisse. Closing of the transaction is expected in June 2009.

With this transaction, Ascom will have three clearly focused divisions
going forward: Wireless Solutions, Security Communication and Network Testing
- all three being homogenous units under the common umbrella of
“mission-critical communication”.

About Ascom

Ascom is an international solution provider with comprehensive
technological know-how in Mission-Critical Communication. The company
concentrates on the core areas of Wireless Solutions (high-value,
customer-specific on-site communications solutions) and Security Solutions
(applications for security, communication and control systems for
infrastructure operators, public security institutions and the army). The
company has subsidiaries in 16 countries and a workforce of some 2,000
employees worldwide. Ascom registered shares (ASCN) are listed on the SIX
Swiss Exchange in Zurich.

This document does not constitute an offer or solicitation to subscribe
for, purchase or sell any securities. This document is not being issued in
the United States of America or the United Kingdom and should not be
distributed in any jurisdiction in a manner where such distribution would not
comply with regulatory requirements. In particular, this document may not be
distributed into the United States, to United States persons or to
publications with a general circulation in the United States. In addition,
the securities of Ascom have not been and will not be registered in any
jurisdiction outside Switzerland. The securities of Ascom may not be offered,
sold or delivered and no solicitation to purchase such securities may be made
within the United States or to U.S. persons absent an applicable exemption
from the registration requirements of the United States securities laws or
within any other jurisdiction and in a manner where such offer, sale,
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requirements (including the United Kingdom).

Source: Ascom (Sweden) AB

Ascom Corporate Media Office, Daniel Lack, General Secretary and Director of Corp. Communications, E-mail: daniel.lack at ascom.com, Tel.: +41-44-823-1330, Fax: +41-44-823-1333