The restructuring process that Ericsson Nikola Tesla underwent during the previous period created the prerequisites for stable company growth and development.

Awards and certificates in 2005. Line organization of Ericsson Nikola Tesla. Ericsson Nikola Tesla - flexible organization.

THE BROAD RESPONSIBILITIES which Ericsson Nikola Tesla obtained within the Ericsson corporation and higher business volume achieved in domestic and export markets resulted in the full utilization of its existing workforce and also required new employment, especially in the research and development area.

Maria Radtke, Finance and Sourcing Director of Ericsson Nikola Tesla, addresses shareholders

Using clearly defined and transparent operations, constructive communications and a good remuneration system, Ericsson Nikola Tesla will endeavor to achieve EFQM business excellence.

During 2005 more than 329 thousand shares were traded, 89% of them on the Varaždin Stock Exchange and 11% on the Zagreb Stock Exchange. Total turnover amounted to 638.4 MHRK, which is an increase of 103% compared to the previous year with an effected turnover of 313.8 MHRK.

Financial statements as at 31 December 2005 together with auditors' report.