The conference Corporate Reputation held on December 7, 2005. in the Hotel Westin in Zagreb, the first gathering of experts and stakeholders in the sphere of business reputation, featured the Award «Business Reputation 2005», handed out to most prominent Croatian companies in eight categories. Ericsson Nikola Tesla won first positions in two categories and in three of them the company ranked second.

Late in November Ericsson Nikola Tesla and BH Telecom, the major national operator in Bosnia and Herzegovina, signed three contracts, together worth roughly 2,5 million euros. These contracts shall considerably broaden and improve the communication among mobile and fixed network users in the BH Telecom networks.

On Wednesday, October 2, 2005 our company organized a Capital Markets Day to stress the importance devoted to building of top quality and open communication with investors, as well as to strengthening of partnership with them.

The results achieved over the first nine months this year show that the company has continued its successful operations.

On October 4th Gordana Kovačević, president of Ericsson Nikola Tesla, signed the Code of Business Ethics. In May 2005 the Assembly of the Croatian Chamber of Commerce adopted this document and advised all its members to sign it. This document provides an outline of ethical conduct to be applied by all subjects in the Croatian economy.

Ericsson Nikola Tesla and the Croatian Railways, the state-owned enterprise for passenger and goods transport in national and international traffic, signed a few days ago two contracts related to the modernization and extension of business communication network of the Croatian Railways, worth ca. 27 million HRK.

Ericsson Nikola Tesla, supplier of cutting-edge telecom equipment and total solutions, and HT – Hrvatske Telekomunikacije, telecom services provider, signed a significant agreement to serve the needs of T-Com, leading supplier of services in fixed telephony in the Republic of Croatia.

In the big fire which broke out on September 10, 2005 at one of Zagreb warehouses at Jankomir owned by the company Trius, among other things damaged by the fire there was a part of Ericsson's equipment that was to be delivered to Ericsson Nikola Tesla's customers in the country and abroad.

Ericsson Nikola Tesla, the leading Croatian exporter of advanced telecommunication solutions, is continuously being successful in Bosnia and Herzegovina, one of its traditionally good export markets. In Grude, on September 8th, 2005 the company signed a contract with Eronet, one of three mobile operators in Bosnia and Herzegovina, worth 8,5 million euro.

Croatian leading exporter of advanced telecommunications solutions Ericsson Nikola Tesla has been also very successful in its activities in the market of Bosnia and Herzegovina. On August 22, 2005 the company signed two contracts with the operator BH Telecom, its traditional business partner. The contracts exceeds the value of HRK 25 million.

Ericsson Nikola Tesla key performance indicators in the first half of 2005 were in compliance with plans and expectations. The Company's focus on customer partnerships as well as continuous operational efficiency improvement contributed to further growth of profitability.

Croatian leading exporter of advanced telecommunications solutions, Ericsson Nikola Tesla has been very successful in its activities in the Belarus market in the first part of July this year. The company signed two contracts whose joint value exceeds HRK 200 million within both the wireline and wireless telecommunications segments.

The award presentation ceremony of the contest for the best industrial share and investment fund in the Croatian capital market took place in the Regent Hotel Esplanade on 24th May 2005. Ericsson Nikola Tesla obtained the certificate of merit for the Best Industrial Share in 2004, Gordana Kovačević, the president of the company received this award.

Dividend will be paid out on June 9, 2005.

The General Assembly of Ericsson Nikola Tesla (ETK) was held on 12th May 2005. The Assembly was marked by the tenth anniversary of Ericsson's taking major shareholding in the company – the constituent assembly of then formed joint stock company Ericsson Nikola Tesla was held on 13th May 1995.

Ericsson announced signing of the contract for the supply and implementation of infrastructure equipment, including ENGINE, DWDM, CDMA and SDH transmission network and 3200 kilometers of fiber-optical cable, for the complex multi-network project for Kazakhstan’s customer TOO TelecomNet. The Contract, valued at app. 60 million EURO, runs for 3 years and will be implemented in three phases.

Ericsson Nikola Tesla (ETK) and the major Croatian Internet Service Provider and a new concessionary in fixed telephony, Vodatel, signed a technical and business cooperation agreement on 10th May 2005.

The Corporate Governance denotes the framework and rules of conducting business and supervision in a company, with the objective to create a long-term economic value for shareholders. Ericsson Nikola Tesla follows the international trend and is among the forerunners in Croatia who adopted the principles of corporate governance as a constituent part of their operations.

Tele2, since recently the third mobile telephony operator in Croatia and Ericsson Nikola Tesla, supplier of communication equipment and solutions, have signed the agreement for the delivery of equipment and total communication solution for a GSM network in Croatia. That Ericsson Nikola Tesla was the choice as the major supplier of communication equipment and solutions is another proof of good cooperation between the business partners Tele 2 and Ericsson in the markets of many European countries.

The results achieved in the first quarter of 2005 do not differ considerably from our forecast. Business volume is lower compared to the same period last year, which is not suprising if we consider that the preceding year, and especially its first quarter was very good owing to the realization of contract in Belarus which was planned in the year before.

Pursuant to the Company Law, Art. 277 sections 2 and 3, the Managing Director of the Joint Stock Company Ericsson Nikola Tesla (hereinafter: Company) took a decision on 10th March 2005 to convene the Annual Meeting of Ericsson Nikola Tesla, Zagreb, Krapinska 45 (hereinafter: Meeting) that shall take place at the registered office of the Company in Zagreb, Krapinska 45, on 12th May 2005 at 17.00.

The year 2004 in which Ericsson Nikola Tesla celebrated its 55th anniversary was another successful year for the company. It featured a series of good results; it was excellent when speaking of booked orders and sales and with solid net income before taxes.

Effective January 1, 2005 Gordana Kovačević is appointed as new president of Ericsson Nikola Tesla. Gordana Kovačević is renown both in Croatia and the Ericsson Group as an exceptional leader who was many times awarded for her achievements as successful manager.