Ericsson Nikola Tesla and TeleKRONA signed a new large contract worth 206.1 MHRK. With this contract the collaboration has been continued that started last year with a very large agreement with TelecomNet (TeleKRONA took over the jobs from TelecomNet).

With customers from Kazakhstan we concluded two agreements; one is from the Enterprise area and the other is from the MiniLink area.

Grawe Croatia chose HrPro's HrNet application and Ericsson Nikola Tesla as the leading ICT system integrator – an asset in the project realization/implementation.

Ericsson Nikola Tesla and Transmitters and Links, signed two agreements worth more than 5 MHRK for the delivery of digital radio relay systems. Transmitters and Links are about to continue modernizing their existing links systems and together with Ericsson Nikola Tesla they will introduce a new system based on digital radio relay transmission of SDH signal in the 4 GHz band.

Ericsson Nikola Tesla signed new agreements worth more than 20 MHRK. ETK signed them with the operators BH Telecom (B and H), and with T-Com and T-Mobile (Montenegro).

In October Ericsson Nikola Tesla signed contracts worth more than 29 MHRK with enterprise system users and telecom operators in the CIS market.

As one of the first Croatian companies that produced its own Code of Corporate Governance Ericsson Nikola Tesla continues to build good relationship with investors and undertakes activities that lead in that direction, it was pointed out during the ETK Capital Markets Day held on October 30, for the third year in a row.

„The results achieved in the first nine months indicate that we have continued to perform well and fully in line with our plans and expectations," says Gordana Kovačević, the president of Ericsson Nikola Tesla.

Compared to the first two quarters of the last year, orders booked increased by 19%, whereas sales increased by 4%. Higher business volume results from a large number of contracts concluded in Croatia, in the internal Ericsson market, in Bosnia and Herzegovina and in CIS market.

Dividend will be paid out on July 7, 2006.

The biggest Croatian exporter of telecom services and solutions Ericsson Nikola Tesla signed a contract with the first Belarus mobile operator JV MDC Velcom about the infrastructure upgrade, valued at HRK 250 million. The Croatian telecom exporter and Belarus operator that this year celebrates the seventh year of its operation contracted this job in the middle of June.

The operator from Bosnia and Herzegovina HT Mobile Communications (a new name for Eronet) and Ericsson Nikola Tesla signed a new contract valued at EUR 2,1 million.

With new contracts signed in Russia Ericsson Nikola Tesla has significantly widened its existing AXE system infrastructure in that market and the company also signed several strategic enterprise contracts in the markets of the Commonwealth of the Independent Countries (CIS).

The joint stock company Ericsson Nikola Tesla (ETK) held its Annual Meeting on June 1, 2006. At the Meeting HRK 73,086,900.00 of share capital was represented, which is 55,4% of the equity and sufficient for adopted decisions to be valid in law.

At the end of May Ericsson Nikola Tesla, the leading regional and Croatian supplier of ICT solutions, and Tele2 Croatia, a subsidiary of the leading pan-European alternative telecom operator, signed a managed services (field operation) contract covering all Tele2 locations in the country. This is the first managed services job contracted in Croatia and, when mobile networks are concerned, it is the first managed services contract in Central Europe.

In a celebrative atmosphere of 10th anniversary of the foundation of Ericsson company in Sarajevo on May 10, 2006 Hamdo Katica, CEO of BH Telecom, the biggest operator in Bosnia and Herzegovina, and Gordana Kovačević, president of Ericsson Nikola Tesla signed a packet of contracts whose value exceeds HRK 34 million.

Ericsson Nikola Tesla, Croatian ICT leader will provide BH Telecom, the biggest operator in Bosnia and Herzegovina with the equipment and solutions enabling new advanced mobile telephony services. The representatives of these two business partners whose cooperation spans many years signed contracts valued at more than HRK 7.5 million. This contract will enable significant expansion and upgrade of the mobile communication services in BH Telecom's networks.

The main features of the Ericsson Nikola Tesla operations in the first quarter of 2006 are stability and growth. Orders booked went up by 14%, whereas sales went up by 11% compared to the same period last year. Rising activities are due to the growing business volume in Croatia, in internal Ericsson market and continued business in the CIS markets.

Pursuant to the Company Law, Art. 277 sections 2 and 3 and to the Managing Director’s decision of 6th June 2006, the Managing Director of the joint stock company Ericsson Nikola Tesla, Zagreb, Krapinska 45 convenes the Annual Stockholders Meeting of Ericsson Nikola Tesla that shall take place at the registered office of the Company in Zagreb, Krapinska 45, on 1st June 2006 at 17.00.

Ericsson Nikola Tesla and Vodatel Croatia, one of the most important Internet services providers in the country, signed a contract on delivery of total TriplePlay infrastructure covering the area of the City of Zagreb, and as the demand in the market dictates, in the wider area.

Tele2, the third mobile operator in Croatia, and Ericsson Nikola Tesla signed an agreement for the delivery of equipment and total communication solution for UMTS, the 3rd generation mobile network.

In 2005, the year of its 56th anniversary, Ericsson Nikola Tesla (ETK) performed well again. It was the year of further business growth, the year that created new and strengthened old partnerships, the year of stronger regional and global positioning within Ericsson with subsequent demand for employment of young specialists, the year of permanent adjustment to market situation and of continued orientation to business and operational excellence.

The payout shall be effected on February 15, 2006.