Based on the decision by the listing commission of the Zagreb Stock Exchange, the ordinary shares of Ericsson Nikola Tesla will be listed in the quotation of public joint stock companies on the Zagreb Stock Exchange as of Thursday, July 17, 2003. The trading will start on the same day under the SE symbol ERNT-R-A. The Raiffeisenbank Austria d.d. Zagreb acted as the listing advisor. Ericsson Nikola Tesla is the 35th company listed in this quotation on the Zagreb Stock Exchange.

The share capital of Ericsson Nikola Tesla as of the date of the shortened prospectus amounts to HRK 399.495.000,00 and is allocated to 1.331.650 ordinary shares issued to a name, series A, each of nominal value of HRK 300,00. The shares have been issued in a non-material form and the share capital has been fully paid in. The General Assembly held on May 8, 2003 made a Decision on an ordinary share capital redemption through the diminished nominal value of shares by which the share capital of the Issuer was diminished from HRK 399.495.000,00 by HRK 133.165.000,00 to the amount of HRK 266.330.000,00. The stated Decision was reported to the Commercial Court in Zagreb and it shall be put into effect after all legal deadlines for the announcement of this redemption expire and after the redemption is entered into the Court Register of Companies. Pursuant to this Decision the amount by which the share capital is diminished has to be paid out to all shareholders of the Issuer who ten days ahead of the general assembly i.e. on April 28, 2003 have shares of the Issuer entered into the securities account in the Central Depositary Agency. Every share shall be involved in the payment with the amount of HRK 100, the amount to be paid out within three months after the legally possible date.

The Croatian joint stock company Ericsson Nikola Tesla is the major manufacturer and exporter of telecommunications equipment, software solutions and services in Central and Eastern Europe with an uninterrupted performance record of more than fifty years.

The joint stock company is the privatized form of the former socially owned enterprise “Nikola Tesla”, the legal form prevailing in the economy and legislative of former Yugoslavia. The joint stock company Ericsson Nikola Tesla was founded on May 13, 1995 with the share capital amounting to HRK 501.366.225. The company was registered in the court register of companies on June 13, 1995. Pursuant to the decision by the general assembly of December 17, 1998 equity redemption was carried out; the share capital of the company was diminished by HRK 101.871.225 and it now amounts to HRK 399.495.000. In November 1999 the six months period given to suppliers to file claims expired and the joint stock company paid out HRK 101.067 thousand. The rest of HRK 804.000 relates to own shares of the joint stock company on that date. The redemption of share capital was performed through diminishing the nominal value of shares from DEM 100 to HRK 300. According to the ownership structure on April 30, 2003 the Telefonaktiebolaget LM Ericsson (Ericsson) is the major shareholder and owns 49,07%, small shareholders hold 48,18% whereas the Croatian Privatization Fund holds 2,75% of shares.