OFFERING CIRCULAR

ERICSSON

Telefonaktiebolaget LM Ericsson (publ)(incorporated in the Kingdom of Sweden with limited liability)

U.S.$5,000,000,000

Euro Medium Term Note Programme

Under this U.S.$5,000,000,000 Euro Medium Term Note Programme (the "Programme"),Telefonaktiebolaget LM Ericsson (publ) ("Ericsson" or the "Issuer") may from time to time issue notes(the "Notes") denominated in any currency agreed between the Issuer and the relevant Dealer (asdefined below). The aggregate principal amount of Notes outstanding will not at any time exceedU.S.$5,000,000,000 (or the equivalent in other currencies calculated as described herein) subject toincrease as described herein.

Application has been made to the Financial Services Authority as competent authority under theFinancial Services and Markets Act 2000 (the "UK Listing Authority") for Notes issued during theperiod of twelve months from the date of this Offering Circular to be admitted to the Official List of theUK Listing Authority (the "Official List") and to the London Stock Exchange plc (the "London StockExchange") for such Notes to be admitted to trading on the London Stock Exchange's market for listedsecurities. Admission to the Official List together with admission to trading on the London StockExchange's market for listed securities constitute official listing on the London Stock Exchange. Noticeof the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue priceof Notes and any other terms and conditions not contained herein which are applicable to each Tranche(as defined in "Terms and Conditions of the Notes" below) of Notes will be set forth in a pricingsupplement (the "Pricing Supplement") which, with respect to Notes to be admitted to the Official List,and admitted to trading on the London Stock Exchange's market for listed securities, will be deliveredto the UK Listing Authority and the London Stock Exchange in each case on or before the date of issueof the Notes of such Tranche.

The Programme is, as of 7th May, 2004, rated B 1 in respect of Notes with a maturity of more than oneyear by Moody's Investors Service Limited ("Moody's') and BB in respect of Notes with a maturity ofmore than one year by Standard and Poor's Ratings services, a Division of the McGraw-Hill CompaniesInc. ("Standard & Poor's'). Notes issued pursuant to the Programme may be rated or unrated. Where anissue of Notes is rated, its rating will be specified in the applicable Pricing Supplement. A security ratingis not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction orwithdrawal at any time by the assigning rating agency.

The Issuer may agree with any Dealer that Notes may be issued in a form not contemplated by theTerms and Conditions of the Notes herein, in which event (in the case of Notes admitted to the OfficialList only) supplementary listing particulars or further listing particulars, if appropriate, will be madeavailable which will describe the effect of the agreement reached in relation to such Notes.

This document is issued in replacement of an Offering Circular dated 29th July, 2003 and issued byEricsson and Ericsson Treasury Services AB (publ) and accordingly supersedes that earlier OfferingCircular. This does not affect any Notes issued by Ericsson or Ericsson Treasury Services AB (publ)prior to the date of this Offering Circular.

ArrangerABN AMRO

Dealers

ABN AMRO CitigroupDeutsche Bank HSBC

JPMorgan SEBMerchantBanking

The date of this Offering Circular is 7th May, 2004

The Issuer accepts responsibility for the information contained in this Offering Circular. To thebest of the knowledge and belief of the Issuer (having taken all reasonable care to ensure that suchis the case) the information contained in this Offering Circular is in accordance with the facts anddoes not omit anything likely to affect the import of such information.

A copy of this Offering Circular, which comprises the listing particulars approved by the UKListing Authority as required by the Financial Services and Markets Act 2000, as amended (the"Listing Particulars") in relation to Notes admitted to the Official List and admitted to tradingon the London Stock Exchange's market for listed securities and issued during the period of 12months from the date of this Offering Circular, has been delivered for registration to theRegistrar of Companies in England and Wales as required by section 83 of that Act. Copies ofeach Pricing Supplement (in the case of Notes to be admitted to the Official List) will be availablefrom FT Business Research Centre, operated by FT Interactive Data at Fitzroy House, 13-17Epworth Street, London EC2A 4DL and from the specified office set out below of each of thePayiwg Agents (as defined below). Any reference in this Offering Circular to Listing Particularsmeans this Offering Circular excluding all information incorporated by reference. The Issuer hasconfirmed that any information incorporated by reference, including any such information towhich readers of this document are expressly referred, has not been and does not need to beincluded in the Listing Particulars to satisfy the requirements of the Financial Services andMarkets Act 2000 or the listing rules of the UK Listing Authority. The Issuer believes that noneof the information incorporated in the Offering Circular by reference conflicts in any materialrespect with the information included in the Listing Particulars.

This Offering Circular is to be read in conjunction with all documents which are deemed to beincorporated herein by reference (see "Documents Incorporated by Reference" below) provided,howe'ver, that such incorporated documents do not form part of the Listing Particulars. ThisOffering Circular shall, save as specified herein, be read and construed on the basis that such

documents are so incorporated and form part of this Offering Circular but not part of the ListingParticulars.

The Notes to be issued under the Programme may be issued on a continuing basis to one or moreof the Dealers specified in "Summary of the Programme" below and any additional Dealerappointed under the Programme from time to time, which appointment may be for a specific issueor on an ongoing basis (each a "Dealer" and together the "Dealers"). References in this OfferingCircular to the "relevant Dealer" shall, in the case of an issue of Notes being (or intended to be)subsc:ribed by more than one Dealer, be to all Dealers agreeing to purchase such Notes.

The Dealers have not separately verified the information contained herein. Accordingly, norepre:_entation, warranty or undertaking, express or implied, is made and no responsibility orliability is accepted by the Dealers as to the accuracy or completeness of the informationcontaiined in this Offering Circular or any other information provided by the Issuer in connectionwith the Programme or the Notes or their distribution.

No person is or has been authorised to give any information or to make any representation notcontained in or not consistent with this Offering Circular or any other information supplied inconnection with the Programme or the Notes and, if given or made, such information orrepre.,;entation must not be relied upon as having been authorised by the Issuer or any of theDealers.

Neither this Offering Circular nor any other information supplied in connection with theProgramme or any Notes (i) is intended to provide the basis of any credit or other evaluation or(ii) should be considered as a recommendation or constituting an invitation or offer by the Issueror any of the Dealers that any recipient of this Offering Circular or any other informationsupplied in connection with the Programme or any Notes should purchase any Notes. Eachinvestor contemplating purchasing any Notes should make its own independent investigation ofthe financial condition and affairs, and its own appraisal of the creditworthiness, of the IssuerNeither this Offering Circular nor any other information supplied in connection with theProgramme or the issue of any Notes constitutes an offer by or on behalf of the Issuer or any ofthe Dealers to any person to subscribe for or to purchase any Notes.

Neither the delivery of this Offering Circular nor the offering, sale or delivery of any Notes shallin any circumstances imply that the information contained herein concerning the Issuer is correctat any time subsequent to the date hereof or that any other information supplied in connectionwith the Programme is correct as of any time subsequent to the date indicated in the documentcontaining the same. The Dealers expressly do not undertake to review the financial condition oraffaiJrs of the Issuer during the life of the Programme. Investors should review, inter alia, the mostrecently published financial statements of the Issuer when deciding whether or not to purchaseany Notes.

This Offering Circular does not constitute an offer to sell or the solicitation of an offer to buy anyNotes in any jurisdiction to any person to whom it is unlawful to make such offer or solicitationin such jurisdiction. The distribution of this Offering Circular and the offer or sale of Notes maybe restricted by law in certain jurisdictions. The Issuer and the Dealers do not represent that thisdocument may be lawfully distributed, or that any Notes may be lawfully offered, in compliancewith any applicable registration or other requirements in any such jurisdiction, or pursuant to anexemption available thereunder, or assume any responsibility for facilitating any suchdistriibution or offering. In particular, no action has been taken by the Issuer or the Dealers (savefor the approval of this Offering Circular as listing particulars by the UK Listing Authority anddelivery of copies of this document to the Registrar of Companies in England and Wales) whichwould permit a public offering of any Notes or distribution of this document in any jurisdictionwhere action for that purpose is required. Accordingly, no Notes may be offered or sold, directlyor indirectly, and neither this Offering Circular nor any advertisement or other offering materialmay be distributed or published in any jurisdiction, except under circumstances that will resultin compliance with any applicable laws and regulations and the Dealers have represented that alloffer:_ and sales by them will be made on the same terms. Persons into whose possession thisOffering Circular or any Notes come must inform themselves about, and observe, any suchrestrictions. In particular, there are restrictions on the distribution of this Offering Circular andthe offer or sale of Notes in the United States, the United Kingdom, Japan, The Netherlands, Italyand Sweden (see "Subscription and Sale" below).

The Notes have not been and will not be registered under the United States Securities Act of 1933,as amended, (the "Securities Act") and are subject to U.S. tax law requirements. Subject tocerta:in exceptions, Notes may not be offered, sold or delivered within the United States or to U.S.persons (see "Subscription and Sale" below).

All references in this document to "U.S. dollars" and "U.S.$" refer to the currency of the UnitedStates of America, those to "Japanese yen" and "yen" refer to the currency of Japan, those to"Sterling" and "£" refer to the currency of the United Kingdom, those to "Skr" and "kronor"refer to the currency of Sweden and those to "euro" and "_" refer to the lawful currency of themember states of the European Union that adopt the Single Currency in accordance with theTreaty establishing the European Community, as amended.

TABLE OF CONTENTS

DOCUMENTS INCORPORATED BY REFERENCE ...................... 5

SUMMARYOFTHEPROGRAMME 6

FORMOFTHENOTES .......................... 10

TERMSANDCONDITIONSOF THENOTES ................ 19

USEOFPROCEEDS 38

CAPITALISATION AND INDEBTEDNESS OF THE ERICSSON GROUP .......... 39

DESCRIPTIONOFTHEISSUER 40

MANAGEMENTOFERICSSON........................ 42

SUBSCRIPTIONANDSALE.. 44

GENERALINFORMATION ................................ 47

In connection with the issue and distribution of any Tranche of Notes, the Dealer (if any) disclosed asthe stabilising manager in the applicable Pricing Supplement or any person acting for him mayover-allot or effect transactions with a view to supporting the market price of the Notes of the Series (asdefined below) of which such Tranche forms part at a level higher than that which might otherwiseprevail for a limited period after the issue date. However, there may be no obligation on the stabilisingmanager or any agent of his to do this. Such stabilising, if commenced, may be discontinued at anytime and must be brought to an end after a limited period.

DOCUMENTS INCORPORATED BY REFERENCE

The following documents shall be deemed to be incorporated in, and to form part of, this OfferingCircular (provided, however, that such incorporated documents do not form a part of the ListingPartic:ulars):

(a) the publicly available audited consolidated and non-consolidated annual financial statements and

interim financial statements (if any, including any unaudited published financial statements) ofthe Issuer for the most recent financial period; and

(b) all supplements to this Offering Circular circulated by the Issuer from time to time in accordancewith the provisions of the Programme Agreement described below,

save that any statement contained herein or in a document which is deemed to be incorporated byreference herein shall be deemed to be modified or superseded for the purpose of this Offering Circular

(but not the Listing Particulars) to the extent that a statement contained in any such subsequentdocument which is deemed to be incorporated by reference herein modifies or supersedes such earlierstatement (whether expressly, by implication or otherwise).

The Issuer will provide, without charge, to each person to whom a copy of this Offering Circular hasbeen ,delivered, upon the request of such person, a copy of any or all of the documents deemed to be

incorporated herein by reference unless such documents have been modified or superseded as specifiedabove. Requests for such documents should be directed to the Issuer at its registered office as set out at

the end of this Offering Circular. In addition, such documents will be available from the principal officein England of the Agent (as defined below).

The I,;suer has undertaken to the Dealers in the Programme Agreement (as defined in "Subscription andSale" below) to comply with sections 81 and 83 of the Financial Services and Markets Act 2000. In the

event that supplementary listing particulars are produced pursuant to such undertaking a copy of suchsupplementary listing particulars will accompany this Offering Circular.

If the terms of the Programme are modified or amended in a manner which would make this OfferingCircu]ar, as supplemented, inaccurate or misleading, a new offering circular will be prepared.

SUMMARY OF THE PROGRAMME

The following summary does not purport to be complete and is taken from, and is qualified in its entiretyby, the remainder of this Offering Circular and, in relation to the terms and conditions of any particularTranche of Notes, the applicable Pricing Supplement. Words and expressions defined in "Form of theNotes" and "Terms and Conditions of the Notes" below shall have the same meanings in this summary.

Issuer: Telefonaktiebolaget LM Ericsson (publ)

Description: Euro Medium Term Note Programme

Arranger: ABN AMROBank N.V.

Dealers: ABNAMROBankN.V.

Citigroup Global Markets LimitedDeutsche Bank AG London

HSBC Bank plcJ.E Morgan Securities Ltd.

Skandinaviska Enskilda Banken AB (publ)

and any other Dealer(s) appointed in accordance with theProgramme Agreement

Certain Restrictions: Each issue of Notes denominated in a currency in respect of whichparticular laws, guidelines, regulations, restrictions or reportingrequirements apply will only be issued in circumstances whichcomply with such laws, guidelines, regulations, restrictions orreporting requirements from time to time (see "GeneralInformation" and "Subscription and Sale" below).

Notes having a maturity of Notes having a maturity of less than one year will, if the proceedsless than one year: of the issue are accepted in the United Kingdom, constitute deposits

for the purposes of the prohibition on accepting deposits containedin section 19 of the Financial Services and Markets Act 2000 unless

they are issued to a limited class of professional investors and havea denomination of at least £100,000 or its equivalent (see"Subscription and Sale" below).

Issuing and Principal Paying JPMorgan Chase BankAgent:

Programme Size: Up to U.S.$5,000,000,000 (or its equivalent in other currenciescalculated as described below) outstanding at any time. The Issuermay from time to time increase the amount of the Programme inaccordance with the terms of the Programme Agreement.

Distribution: Notes may be distributed by way of private or public placement andin each case on a syndicated or non-syndicated basis.

Currencies: Subject to any applicable legal or regulatory restrictions, suchcurrencies as may be agreed between the Issuer and the relevantDealer, including, without limitation, Australian dollars, Austrian

Schillings, Canadian dollars, Danish kroner, euro, Hong Kongdollars, Japanese Yen, New Zealand dollars, Sterling, Swedishkronor, Swiss francs and United States dollars.

Maturities: Such maturities as may be agreed between the Issuer and the

relevant Dealer and as indicated in the applicable PricingSupplement, subject to such minimum or maximum maturities as

may be allowed or required from time to time by the relevant central

bank (or equivalent body) or any laws or regulations applicable tothe Issuer or the relevant Specified Currency.

Issue Price: Notes may be issued on a fully-paid or a partly-paid basis and at anissue price which is at par or at a discount to, or premium over, par.

Form of Notes: Each Tranche of Notes will initially be represented by a global Notewhich will be exchangeable as described therein for either apermanent global Note or definitive Notes upon certain conditionsincluding, in the case of a temporary global Note when the issue issubject to TEFRA D selling restrictions, certification of non-U.S.beneficial ownership as required by U.S. Treasury regulations.

Fixed Rate Notes: Fixed interest will be payable on such date or dates as may beagreed between the Issuer and the relevant Dealer (as indicated inthe applicable Pricing Supplement) and on redemption and will becalculated on the basis of such Day Count Fraction as may beagreed between the Issuer and the relevant Dealer and indicated inthe applicable Pricing Supplement.

Floating Rate Notes: Floating Rate Notes will bear interest at a rate determined:

(i) on the same basis as the floating rate under a notional interestrate swap lxansaction in the relevant Specified Currencygoverned by an agreement incorporating the 2000 ISDADefinitions (as published by the International Swaps andDerivatives Association, Inc., and as amended and updated asat the Issue Date of the first Tranche of the Notes of therelevant Series); or

(ii) on the basis of a reference rate appearing on the agreed screenpage of a commercial quotation service; or

(iii) on such other basis as may be agreed between the Issuer andthe relevant Dealer,

as indicated in the applicable Pricing Supplement.

The Margin (if any) relating to such floating rate will be agreedbetween the Issuer and the relevant Dealer for each Series ofFloating Rate Notes.

Inde_ Linked Notes: Payments of principal in respect of Index Linked Redemption Notesor of interest in respect of Index Linked Interest Notes will becalculated by reference to such index and/or formula as the Issuerand the relevant Dealer may agree (as indicated in the applicablePricing Supplement).

Othe:r provisions in relation Floating Rate Notes and Index Linked Interest Notes may also haveto Floating Rate Notes and a maximum interest rate, a minimum interest rate or both.Index Linked Interest Notes:

Interest on Floating Rate Notes and Index Linked Interest Notes inrespect of each Interest Period, as selected prior to issue by theIssuer and the relevant Dealer, will be payable on such InterestPayment Dates specified in, or determined pursuant to, theapplicable Pricing Supplement and will be calculated on the basis ofthe relevant Day Count Fraction as may be agreed between theIssuer and the relevant Dealer and as indicated in the applicablePricing Supplement.

Dual Currency Notes: Payments (whether in respect of principal or interest and whether atmaturity or otherwise) in respect of Dual Currency Notes will bemade in such currencies, and based on such rates of exchange, as theIssuer and the relevant Dealer may agree (as indicated in theapplicable Pricing Supplement).

Zero Coupon Notes: Zero Coupon Notes will be offered and sold at a discount to theirnominal amount and will not bear interest other than in the case oflate payment.

Redemption: The Pricing Supplement relating to each Tranche of Notes willindicate either that the Notes of such Tranche cannot be redeemed

prior to their stated maturity (other than in specified instalments (seebelow), if applicable, or for taxation reasons or following an Eventof Default) or that such Notes will be redeemable at the option ofthe Issuer and/or the Noteholders upon giving not less than 15 normore than 30 days' irrevocable notice (or such other notice period(if any) as is indicated in the applicable Pricing Supplement) to theNoteholders or the Issuer, as the case may be, on a date or datesspecified prior to such stated maturity and at a price or prices andon such terms as are indicated in the applicable Pricing Supplement.

The applicable Pricing Supplement may provide that Notes may beredeemable in two or more instalments of such amounts and on such

dates as are indicated in the applicable Pricing Supplement.

Notes having a maturity of less than one year may be subject torestrictions on their denomination and distribution (see "CertainRestrictions" and "Notes with a maturity of less than one year"above).

Denomination of Notes: Notes will be issued in such denominations as may be agreedbetween the Issuer and the relevant Dealer and as indicated in theapplicable Pricing Supplement save that the minimumdenomination of each Note will be such as may be allowed orrequired from time to time by the relevant central bank (orequivalent body) or any laws or regulations applicable to therelevant Specified Currency (see "Certain Restrictions" and "Noteswith a maturity of less than one year" above).

Taxation: All payments in respect of the Notes will be made withoutdeduction for or on account of withholding taxes imposed withinthe Kingdom of Sweden, subject as provided in Condition 8.

Negative Pledge: The terms of the Notes will contain a negative pledge provision asfurther described in Condition 3.

Cross Default: The terms of the Notes will contain a cross default provision asfurther described in Condition 10.

Status of the Notes: The Notes will constitute direct, unconditional, unsubordinated and,subject to the provisions of Condition 3, unsecured obligations ofthe Issuer and will rank pari passu among themselves and (save forcertain debts required to be preferred by law) equally with all otherunsecured obligations (other than subordinated obligations, if any)of the Issuer from time to time outstanding.

Rating: The Programmeis, as of 7th May,2004, rated B1 in respectof Noteswith a maturity of more than one year by Moody's Investors ServiceLimited and BB in respect of Notes with a maturity of more than one

year by Standard and Poor's Ratings services, a Division of theMcGraw-Hill Companies Inc. Notes issued pursuant to theProgramme may be rated or unrated. A security rating is not arecommendation to buy, sell or hold securities and may be subjectto suspension, reduction or withdrawal at any time by the assigningrating agency.

Listing: Application has been made to the UK Listing Authority for Notesissued during the period of twelve months from the date of thisOffering Circular to be admitted to the Official List and for such

Notes to be admitted for trading on the London Stock Exchange.The Notes may also be listed on such other or further stockexchange(s) as may be agreed between the Issuer and the relevantDealer in relation to each Series.

Unlisted Notes may also be issued.

The Pricing Supplement relating to each Tranche of Notes will statewhether or not and, if so, on which stock exchange(s) the Notes areto be listed.

Governing Law: The Notes will be governed by, and construed in accordance with,English law.

Selling Restrictions: There are selling restrictions in relation to the United States, theUnited Kingdom, Sweden and Japan and such other restrictions asmay be required in connection with the offering and sale of aparticular Tranche of Notes (see "Subscription and Sale" below).

This Offering Circular and any supplement will only be valid to admit Notes to the Official List and forsuch Notes to be admitted for trading on the London Stock Exchange during the period of 12 monthsfrom the date of this Offering Circular in an aggregate nominal amount which, when added to theaggregate nominal amount then outstanding of all Notes previously or simultaneously issued under theProgramme, does not exceed U.S.$5,000,000,000 or its equivalent in other currencies. For the purposeof cai[culating the U.S. dollar equivalent of the aggregate nominal amount of Notes issued under theProgramme from time to time:

(a) the U.S. dollar equivalent of Notes denominated in another Specified Currency (as specified inthe applicable Pricing Supplement in relation to the relevant Notes, described under "Form of theNotes") shall be determined, at the discretion of the Issuer, either as of the date on whichagreement is reached for the issue of Notes or on the preceding day on which commercial banksand foreign exchange markets are open for business in London, in each case on the basis of thespot rate for the sale of the U.S. dollar against the purchase of such Specified Currency in theLondon foreign exchange market quoted by any leading international bank selected by the Issueron the relevant day of calculation;

(b) the U.S. dollar equivalent of Dual Currency Notes, Index Linked Notes and Partly Paid Notes(each as specified in the applicable Pricing Supplement in relation to the relevant Notes,described under "Form of the Notes") shall be calculated in the manner specified above byreference to the original nominal amount on issue of such Notes (in the case of Partly Paid Notesregardless of the subscription price paid); and

(c) the U.S. dollar equivalent of Zero Coupon Notes (as specified in the applicable PricingSupplement in relation to the relevant Notes, described under "Form of the Notes") and otherNotes issued at a discount or a premium shall be calculated in the manner specified above byreference to the net proceeds received by the Issuer for the relevant issue.

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FORM OF THENOTES

Each Tranche of Notes will be in bearer form and will be initially represented by a global Note, withoutreceipts, interest coupons or talons, which will be delivered to a common depositary for Euroclear BankS.A./N.V., as operator of the Euroclear System ("Euroclear") and Clearstream Banking, soci6t6anonyme ("Clearstream, Luxembourg"). Whilst any Note is represented by a temporary global Noteand subject to TEFRA D selling restrictions, payments of principal and interest (if any) due prior to theExchange Date (as defined below) will be made against presentation of the temporary global Note onlyto the extent that certification (in a form to be provided) to the effect that the beneficial owners of

interests in such Note are not U.S. persons or persons who have purchased for resale to any U.S. person,as required by U.S. Treasury regulations, has been received by Euroclear and/or Clearstream,Luxembourg and Euroclear and/or Clearstream, Luxembourg, as applicable, has given a likecertification (based on the certifications it has received) to the Agent. Any reference in this section"Form of the Notes" to Euroclear and or Clearslxeam, Luxembourg shall, whenever the context sopermits, be deemed to include a reference to any additional or alternative clearance system approved bythe Issuer and the Agent.

On and after the date (the "Exchange Date") which is 40 days after the date on which any temporaryglobal Note is issued, interests in such temporary global Note will be exchangeable (free of charge)upon a request as described therein either for interests in a permanent global Note, without receipts,interest coupons or talons, or for definitive Notes with, where applicable, receipts, interest coupons andtalons attached (as indicated in the applicable Pricing Supplement and subject, in the case of definitiveNotes, to such notice period as is specified in the applicable Pricing Supplement) in each case (if theNotes are subject to TEFRA D selling restrictions) against certification of beneficial ownership asdescribed in the second sentence of the immediately preceding paragraph unless such certification hasalready been given. The holder of a temporary global Note will not be entitled to collect any paymentof interest or principal due on or after the Exchange Date unless upon due certification exchange of thetemporary global Note is improperly withheld or refused. Pursuant to the Agency Agreement (asdefined under "Terms and Conditions of the Notes" below) the Agent shall arrange that, where a furtherTranche of Notes is issued, the Notes of such Tranche shall be assigned a common code and ISIN byEuroclear and Clearstream, Luxembourg which are different from the common code and ISIN assignedto Notes of any other Tranche of the same Series until at least 40 days (as notified by the Agent to therelevant Dealer) after the completion of the distribution of the Notes of such Tranche.

Payments of principal and interest (if any) on a permanent global Note will be made through Euroclearand or Clearstream, Luxembourg against presentation or surrender (as the case may be) of thepermanent global Note without any requirement for certification. A permanent global Note will beexchangeable (free of charge) in whole but not in part for definitive Notes with, where applicable,receipts, interest coupons and talons attached either (i) upon not less than 60 days' written notice to theAgent or (ii) only in certain limited circumstances, in each case as specified in the Pricing Supplementand as described in the permanent global Note. Global Notes and definitive Notes will be issuedpursuant to the Agency Agreement.

The following legend will appear on all global Notes, definitive Notes, receipts and interest couponswhich are subject to TEFRA D selling restrictions:

"Any United States person who holds this obligation will be subject to limitations under the UnitedStates income tax laws, including the limitations provided in Sections 16500) and 1287(a) of theInternal Revenue Code."

The sections referred to provide that United States holders, with certain exceptions, will not be entitledto deduct any loss on Notes, receipts or interest coupons and will not be entitled to capital gainstreatment of any gain on any sale, disposition, redemption or payment of principal in respect of Notes,receipts or interest coupons.

A Note may be accelerated automatically by the holder thereof in certain circumstances described inTerms and Conditions of the Notes. In such circumstances, where any Note is still represented by aglobal Note and a holder of such Note so represented and credited to his securities account withEuroclear or Clearstream, Luxembourg gives notice that it wishes to accelerate such Note, unless within

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a period of 14 days from the giving of such notice payment has been made in full of the amount due in

accordance with the terms of such global Note, such global Note will become void. At the same time,holders of interests in such global Note credited to their accounts with Euroclear or Clearstream,Luxembourg will become entitled to proceed directly against the Issuer on the basis of statements of

account provided by Euroclear and Clearstream, Luxembourg, on and subject to the terms of a deed ofcovenant (the "Deed of Covenant") dated 7th August, 2002, executed by the Issuer.

Appl:icable Pricing Supplement

Set out below is the form of Pricing Supplement which will be completed for each Tranche of"Notesissued under the Programme.

[Date]

Telefonaktiebolaget LM Ericsson (publ)

Issue of [Aggregate Nominal Amount of Tranche] [Title of Notes]

under the U.S.$5,000,000,000 Euro Medium Term Note Programme

This document constitutes the Pricing Supplement relating to the issue of Notes described herein.

Terms used herein shall be deemed to be defined as such for the purposes of the Conditions set forth inthe Offering Circular dated 7th May, 2004. This Pricing Supplement contains the final terms of theNotes and must be read in conjunction with such Offering Circular.

[The following alternative language applies if the first tranche of an issue which is being increased wasissued under an Offering Circular with an earlier date.

Terms used herein shall be deemed to be defined as such for the purposes of the Conditions (theConditions) set forth in the Offering Circular dated [original date]. This Pricing Supplement containsthe final terms of the Notes and must be read in conjunction with the Offering Circular dated [current

date], save in respect of the Conditions which are extracted from the Offering Circular dated [originaldate] and are attached hereto.]

[Include whichever of the following apply or specify as "Not Applicable" (N/A). Note that thenumbering should remain as set out below, even if "Not Applicable" is indicated for individualparagraphs or sub-paragraphs. Italics denote directions for completing the Pricing Supplement.]

[If the Notes must be redeemed before the first anniversary of their date of issue, the minimumdenomination may need to be £100,000 or its equivalent in any other currency.]

1. Issuer: Telefonaktiebolaget LM Ericsson (publ)

2. (i) Series Number: [ ]

(ii) TrancheNumber: [ ]

(If fungible with an existing Series, details of thatSeries, including the date on which the Notes becomefungible)

3. Specified Currency or Currencies: [ ]

4. Aggregate Nominal Amount:(i) Series: [ ]

(ii) Tranche: [ ]

11

5. (i) Issue Price: [ ] per cent. of the Aggregate Nominal Amount [plusaccrued interest from [insert date] (in the case offungible issues only, if applicable)

(ii) Net proceeds: [ ] (Required only for listed issues)

6. Specified Denominations: [ ][]

7. (i) IssueDate: [ ]

(ii) Interest Commencement Date: [ ]

8. Maturity Date: [Fixed rate -- specify dateFloating rate -- InterestPayment Date falling in or nearest to [specify month]]

9. Interest Basis: [[ ] percent.FixedRate]

[[LIBOR/EURIBOR] +/- [ ] per cent.Floating Rate][Zero Coupon][Index Linked Interest][Dual Currency Interest][specify other]

(further particulars specified below)

10. Redemption/Payment Basis: [Redemption at par][Index Linked Redemption][Dual Currency Redemption][Partly Paid][Instalment]

[specify other]

11. Change of Interest Basis or [Specify details of any provision for change of NotesRedemption/Payment Basis: into another Interest Basis or RedemptionPayment

Basis]

12. Put/Call Options: [Investor Put][Issuer Call]

[(further particulars specified below)]

13. Listing: [Londonspecify otherNone]

14. Method of distribution: [Syndicated/Non-syndicated]

PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

15. Fixed Rate Note Provisions [Applicable/Not Applicable]

(If not applicable, delete the remaining sub-paragraphs of this paragraph)

(i) Rate(s) of Interest: [ ] per cent. per annum [payable [annually/semi-annually/quarterly] in arrear] (If payable other thanannually, consider amending Condition 5)

(ii) Interest Payment Date(s): [[ ] in each year up to and including the MaturityDate]/[specify other] (NB: This will need to be

amended in the case of long or short coupons)

(iii) Fixed Coupon Amount(s): [ ] per [ ] in nominal amount

12

(iv) Broken Amount(s): [Insert particulars of any initial or final brokeninterest amounts which do not correspond with theFixed Coupon Amount]

(v) Day Count Fraction: [30/360 or Actual/Actual (ISMA) or specify other]

(vi) Determination Date(s): [ ] in each year

(Insert regular interest payment dates, ignoring issuedate or maturity date in the case of a long or shortfirst or last coupon)

NB: This will need to be amended in the case ofregular interest payment dates which are not of equalduration

NB: Only relevant where Day Count Fraction isActualActual (ISMA ))

(vii) Other terms relating to the [NoneGive details]method of calculating interest forFixed Rate Notes:

16. ]Floating Rate Note Provisions [Applicable/Not Applicable]

(If not applicable, delete the remaining sub-paragraphs of this paragraph)

(i) Specified Period(s)/Specified [ ]Interest Payment Dates:

(ii) Business Day Convention: [Floating Rate Convention/Following Business DayConvention/Modified Following Business DayConvention/Preceding Business DayConvention[specify other]]

(iii) Additional Business Centre(s): [ ]

(iv) Manner in which the Rate of [Screen Rate Determination/ISDAInterest and Interest Amount is to Determinationspecify other]be determined:

(v) Party responsible for calculating [ ]the Rate of Interest and Interest

Amount(if not theAgent): _-

(vi) Screen Rate Determination:

- ReferenceRate: [ ]

(Either LIBOR, EURIBOR or other, althoughadditional information is required if other- includingfallback provisions in the Agency Agreement)

- Interest Determination Date(s): [ ]

(Second London business day prior to the start ofeach Interest Period if LIBOR (other than Sterling oreuro LIBOR), first day of each Interest Period ifSterling LIBOR and the second day on which theTARGET System is open prior to the start of eachInterest Period if EURIBOR or euro L1BOR)

- Relevant Screen Page: [ ]

(In the case of EURIBOR, if not Telerate Page 248

13

ensure it is a page which shows a composite rate oramend the fallback provisions appropriately)

(vii) ISDA Determination:- FloatingRateOption: [ ]

- DesignatedMaturity: [ ]

- ResetDate: []

(viii)Margin(s): [+/-] [ ] per cent. per annum

(ix) Minimum Rate of Interest: [ ] per cent. per annum

(x) Maximum Rate of Interest: [ ] per cent. per annum

(xi) Day Count Fraction: /Actual/365Actual/365 (Fixed)Actual/365 (Sterling)Actual/36030/36030E/360Other](See Condition 5for alternatives)

(xii) Fall back provisions, rounding [ ]provisions and any other termsrelating to the method ofcalculating interest on FloatingRate Notes, if different from thoseset out in the Conditions:

17. Zero Coupon Note Provisions /Applicable/Not Applicable] (If not applicable, deletethe remaining sub-paragraphs of this paragraph)

(i) AccrualYield: [ ] percent.perannum

(ii) ReferencePrice: [ ]

(iii) Any other formula/basis of [ ]determining amount payable:

(iv) Day Count Fraction in relation to [Conditions 7(e) (iii) and 7(j) applyspecify other]Early Redemption Amounts and (Consider applicable day count fraction if not U.S.latepayment: dollardenominated)

18. Index Linked Interest Note Provisions /Applicable/Not Applicable](If not applicable, delete the remaining sub-paragraphs of this paragraph)

(i) Index/Formula: [give or annex details]

(ii) Calculation Agent responsible for [ ]calculating the interest due:

(iii) Provisions for determining Coupon [ ]where calculation by reference toIndex and/or Formula is impossibleor impracticable:

14

(iv) Specified Period(s)/Specified [ ]Interest Payment Dates:

(v) Business Day Convention: [Floating Rate Convention/Following Business DayConvention/Modified Following Business DayConvention/Preceding Business DayConventionspecify other]

(vi) Additional Business Centre(s): [ ]

(vii) Minimum Rate of Interest: [ ] per cent. per annum

(viii)Maximum Rate of Interest: [ ] per cent. per annum

(ix) DayCountFraction: [ ]

19. ]Dual Currency Interest Note Provisions [Applicable/Not Applicable](If not applicable, delete the remaining sub-paragraphs of this paragraph)

(i) Rate of Exchange/method of [give details]calculating Rate of Exchange:

fii) CalculationAgent, if any, [ ]responsible for calculating theinterest payable:

(iii) Provisions applicable where [ ]calculation by reference to Rate ofExchange impossible orimpracticable:

(iv) Person at whose option Specified [ ]Currency(ies) is/are payable:

PROVISIONS RELATING TO REDEMPTION

20. Issuer Call: [Applicable/Not Applicable](If not applicable, delete the remaining sub-paragraphs of this paragraph)

(i) Optional Redemption Date(s): [ ]

(ii) Optional Redemption Amount(s) of [ ] per Note of [ ] Specified Denominationeach Note and method, if any, ofcalculation of such amount(s):

(iii) If redeemable in part:

(a) MinimumRedemption [ ]Amount of each Note:

(b) MaximumRedemption [ ]Amount of each Note:

(iv) Notice period (if other than as set [ ]out in the Conditions): (N.B. If setting notice periods which are different to

those provided in the Conditions, the Issuer is advised

15

to consider the practicalities of distribution ofinformation through intermediaries, for example,clearing systems and custodians, as well as any othernotice requirements which may apply, for example, asbetween the Issuer and the Agent)

21. Investor Put: /Applicable/Not Applicable](If not applicable, delete the remaining sub-paragraphs of this paragraph)

(i) Optional Redemption Date(s): [ ]

(ii) Optional Redemption Amount(s) [ ] per Note of [ ] Specified Denominationof each Note and method, if any,of calculation of such amount(s):

(iii) Notice period (if other than as set [ ]out in the Conditions): (N.B. If setting notice periods which are different to

those provided in the Conditions, the Issuer is advisedto consider the practicalities of distribution ofinformation through intermediaries, for example,clearing systems and custodians, as well as any othernotice requirements which may apply, for example, asbetween the Issuer and the Agent)

22. Final Redemption Amount of each Note: [[ ] per Note of [ ] Specified Denominationspecifyother/see Appendix]

23. Early Redemption Amount(s) of each [ ]Note payable on redemption for taxationreasons or on event of default and/or themethod of calculating the same (ifrequired or if different from that set outin Condition 7(e)):

GENERAL PROVISIONS APPLICABLE TO THE NOTES

24. Formof Notes: TemporaryGlobalNoteexchangeablefor a -Permanent Global Note which is exchangeable forDefinitive Notes [on 60 days' notice given at anytime/only in limited circumstances][Temporary Global Note exchangeable for DefinitiveNotes on and after the Exchange Date][Permanent Global Note exchangeable for DefinitiveNotes [on 60 days' notice given at any time/only inlimited circumstances]]

25. Additional Financial Centre(s) or other [Not Applicablegive details]special provisions relating to Payment (Note that this item relates to the place of paymentDates: and not Interest Period end dates to which items

16(iii) and 18(vi) relate)

26. Talons for future Coupons or Receipts [Yes/No. If yes, give details]to be attached to Definitive Notes (anddates on which such Talons mature):

16

27. Details relating to Partly Paid Notes: [Not Applicable]give details] NB: a new form ofamount of each payment comprising the Temporary Global Note andor Permanent GlobalIssue Price and date on which each Note may be required for Partly Paid issues]payment is to be made andconsequences of failure to pay, includingany right of the Issuer to forfeit the Notesand interest due on late payment:

28. Details relating to Instalment Notes:

(i) Instalment Amount(s): [Not Applicablegive details]

(ii) Instalment Date(s): [Not Applicablegive details]

29. Redenomination applicable: Redenomination [not] applicable(lf Redenomination is applicable, specify theapplicable Day Count Fraction and any provisionsnecessary to deal with floating rate interestcalculation (including alternative reference rates)

30. Other terms or special conditions: [Not Applicablegive details]

DISTRIBUTION

31. (i) If syndicated, names of Managers: [Not Applicablegive names]

(ii) Stabilising Manager (if any): [Not Applicablegive name]

32. ]ifnon-syndicated,nameof relevant [ ]Dealer:

33. Whether TEFRA D or TEFRA C rules [TEFRA D/TEFRA C/TEFRA not applicable]applicable or TEFRA rules notapplicable:

34. Additional selling restrictions: [Not Applicablegive details]

OPERATIONAL INFORMATION

35. Any clearing system(s) other than [Not Applicablegive name(s) and number(s)]Euroclear and Clearstream,Luxembourg and the relevantidentification number(s):

36. Delivery: Delivery [against/free of] payment

37. Additional Paying Agent(s) (if any): [ ]

38. DateAuthorisationfor [ ]issuance of Notesc,btained:

39. l;tating of the Notes [Insert RatingNot Rated]

I;SIN: [ ]

Common Code: [ ]

17

[LISTING APPLICATION

This Pricing Supplement comprises the final terms required to list the issue of Notes described herein

pursuant to the U.S.$5,000,000,000 Euro Medium Term Note Programme of Telefonaktiebolaget LMEricsson (publ).

RESPONSIBILITY

The Issuer accepts responsibility for the information contained in this Pricing Supplement.

Signed on behalf of the Issuer:

By: ..................................................................

Duly authorised

18

TERMS AND CONDITIONS OF THE NOTES

The fgllowing are the Terms and Conditions of the Notes which (subject to completion and amendmenOwill be incorporated by reference into each global Note and each definitive Note, in the latter case onlyif permitted by the relevant stock exchange or other relevant authority (if any) and agreed by the Issuerand t,_e relevant Dealer at the time of issue but, if not so permitted and agreed, such definitive Note will

have endorsed thereon or attached thereto such Terms and Conditions. The applicable PricingSupp,!ement in relation to any Tranche of Notes may specify other terms and conditions which shall, to

the eJctent so specified or to the extent inconsistent with the following Terms and Conditions, replace or

modij_¢ the following Terms and Conditions for the purpose of such Notes. The applicable PricingSupp,!ement (or the relevant provisions thereof will be endorsed upon, or attached to, each temporaryglobal Note, permanent global Note and definitive Note. Reference should be made to "Form of theNotes" above for a description of the content of Pricing Supplements which will specify which of suchterms are to apply in relation to the relevant Notes.

This Note is one of a Series (as defined below) of Notes issued by the Issuer pursuant to the AgencyAgreement (as defined below).

References herein to the "Notes" shall be references to the Notes of this Series and shall mean:

(i) in relation to any Notes represented by a global Note, units of the lowest Specified Denominationin the Specified Currency;

(ii) definitive Notes issued in exchange for a global Note; and

(iii) any global Note.

The Notes, the Receipts (as defined below) and the Coupons (as defined below) also have the benefitof an amended and restated Agency Agreement dated 7th May, 2004 (as further amended and/orsupplemented and/or restated from time to time, the "Agency Agreement") and made, inter alia,

between the Issuer, JPMorgan Chase Bank as issuing and principal paying agent and agent bank (the"Age nt", which expression shall include any successor agent) and the other paying agents named therein(togel:her with the Agent, the "Paying Agents", which expression shall include any additional orsuccessor paying agents).

Interest bearing definitive Notes (unless otherwise indicated in the applicable Pricing Supplement) haveinterest coupons ("Coupons") and, if indicated in the applicable Pricing Supplement, talons for further

Coupons ("Talons") attached on issue. Any reference herein to Coupons or coupons shall, unless thecontext otherwise requires, be deemed to include a reference to Talons or talons. Definitive Notes

repayable in instalments have receipts ("Receipts") for the payment of the instalments of principal(other than the final instalment) attached on issue.

The Pricing Supplement for this Note (or the relevant provisions thereof) is attached to or endorsed on

this Note and supplements these Terms and Conditions (the "Conditions") and may specify other termsand conditions which shall, to the extent so specified or to the extent inconsistent with these Conditions,replac;e or modify these Conditions for the purposes of this Note. References herein to the "applicablePricing Supplement" are to the Pricing Supplement (or the relevant provisions thereof) attached to orendorsed on this Note.

Any reference herein to "Noteholders" shall mean the holders of the Notes, and shall, in relation to anyNotes represented by a global Note, be construed as provided below. Any reference herein to

"Receiptholders" shall mean the holders of the Receipts and any reference herein to "Couponholders"shall mean the holders of the Coupons, and shall, unless the context otherwise requires, include theholders of the Talons.

As used herein, "Tranche" means Notes which are identical in all respects (including as to listing) and"Series" means a Tranche of Notes together with any further Tranche or Tranches of Notes which are

(i) expressed to be consolidated and form a single series and (ii) identical in all respects (including asto listing) except for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices.

19

The Noteholders, the Receiptholders and the Couponholders are entitled to the benefit of the Deed of

Covenant (the "Deed of Covenant") dated 7th August, 2002 and executed by the Issuer. The original ofthe Deed of Covenant is held by a common depositary on behalf of Euroclear (as defined below) andClearstream, Luxembourg (as defined below).

Copies of the Agency Agreement, the Pricing Supplement applicable to this Note and the Deed ofCovenant are available for inspection during normal business hours at the specified office of each of theAgent and the other Paying Agents save that, if this Note is an unlisted Note of any Series, theapplicable Pricing Supplement will only be available for inspection by a Noteholder holding one ormore unlisted Notes of that Series and such Noteholder must produce evidence satisfactory to therelevant Paying Agent as to identity. The Noteholders, the Receiptholders and the Couponholders aredeemed to have notice of, and are entitled to the benefit of, all the provisions of the Agency Agreementand the applicable Pricing Supplement which are applicable to them. The statements in these Conditionsinclude summaries of, and are subject to, the detailed provisions of the Agency Agreement.

Words and expressions defined in the Agency Agreement or used in the applicable Pricing Supplementshall have the same meanings where used in these Terms and Conditions unless the context otherwise

requires or unless otherwise stated and provided that, in the event of inconsistency between the AgencyAgreement and the applicable Pricing Supplement, the applicable Pricing Supplement will prevail.

1. FORM, DENOMINATION AND TITLE

The Notes are in bearer form and, in the case of definitive Notes, serially numbered, in the SpecifiedCurrency and the Specified Denomination(s). Notes of one Specified Denomination may not beexchanged for Notes of another Specified Denomination.

This Note is a Fixed Rate Note, a Floating Rate Note, a Zero Coupon Note, an Index Linked InterestNote, a Dual Currency Interest Note or a combination of any of the foregoing, depending upon theInterest Basis shown in the applicable Pricing Supplement.

This Note is an Index Linked Redemption Note, an Instalment Note, a Dual Currency RedemptionNote, a Partly Paid Note or a combination of any of the foregoing depending on theRedemption/Payment Basis shown in the applicable Pricing Supplement.

Definitive Notes are issued with Coupons attached, unless they are Zero Coupon Notes in which casereferences to Coupons and Couponholders in these Terms and Conditions are not applicable.

Subject as set out below, title to the Notes, Receipts and Coupons will pass by delivery. The Issuer andany Paying Agent may deem and treat the bearer of any Note, Receipt or Coupon as the absolute ownerthereof (whether or not overdue and notwithstanding any notice of ownership or writing thereon ornotice of any previous loss or theft thereof) for all purposes but, in the case of any global Note, withoutprejudice to the provisions set out in the next succeeding paragraph.

For so long as any of the Notes is represented by a global Note held on behalf of Euroclear BankS.A./N.V., as operator of the Euroclear System ("Euroclear") and/or Clearstream Banking, soci6t_anonyme ("Clearstream, Luxembourg") each person (other than Euroclear or Clearstream,Luxembourg), who is for the time being shown in the records of Euroclear or of Clearstream,Luxembourg as the holder of a particular nominal amount of such Notes (in which regard any certificateor other document issued by Euroclear or Clearstream, Luxembourg as to the nominal amount of suchNotes standing to the account of any person shall be conclusive and binding for all purposes save in thecase of manifest error) shall be treated by the Issuer, the Agent and any other Paying Agent as the holderof such nominal amount of such Notes for all purposes other than with respect to the payment ofprincipal or interest on the Notes, for which purpose the bearer of the relevant global Note shall betreated by the Issuer, the Agent and any other Paying Agent as the holder of such Notes in accordancewith and subject to the terms of the relevant global Note and the expressions "Noteholder" and "holderof Notes" and related expressions shall be construed accordingly. Notes which are represented by aglobal Note will be transferable only in accordance with the rules and procedures for the time being ofEuroclear or of Clearstream, Luxembourg, as the case may be.

20

RefeIences to Euroclear and/or Clearstream, Luxembourg shall, whenever the context so permits, bedeemed to include a reference to any additional or alternative clearing system approved by the Issuerand the Agent.

2. STATUS OF THE NOTES

The Notes and the relative Receipts and Coupons are direct, unconditional, unsubordinated and (subjectto the provisions of Condition 3) unsecured obligations of the Issuer and rank pari passu amongthem,;elves and (save for certain obligations required to be preferred by law) equally with all otherunsecured obligations (other than subordinated obligations, if any) of the Issuer, from time to timeoutstanding.

3. NEGATIVE PLEDGE

The llssuer will not at any time while any of the Notes is outstanding give security or procure aguarantee of any kind for any Relevant Indebtedness of the Issuer unless the benefit of such security orguarantee (or of such other security or guarantee as shall be approved by an Extraordinary Resolutionof Noteholders) is at the same time extended rateably (or, as the case may be, accorded) to the Notes.

"Relevant Indebtedness" means any loan or other indebtedness which is in the form of or representedor evJLdenced by, notes, bonds, debentures or other securities which are or are to be quoted or listed onany stock exchange or which are of a nature ordinarily dealt in on any over-the-counter market; and

(a) which, for so long as the Swedish Kronor remains a currency in its own fight, by its terms ispayable, or may be required to be paid, in or by reference to any currency other than SwedishKronor; or

(b) which, for so long as the Swedish Kronor remains a currency in its own right, by its terms ispayable, or may be required to be paid, in or by reference to Swedish Kronor and where morethan 50 per cent. in aggregate principal amount of such indebtedness is initially offered outsidethe Kingdom of Sweden.

4. REDENOMINATION

Where redenomination is specified in the applicable Pricing Supplement as being applicable, the Issuermay without the consent of the Noteholders, the Receiptholders, and the Couponholders, on giving priornotice to the Agent, Euroclear and Clearstream, Luxembourg and at least 30 days' prior notice to theNoteholders in accordance with Condition 14, elect that, with effect from the Redenomination Datespecified in the notice, the Notes shall be redenominated in euro.

The election will have effect as follows:

(a) the Notes and the Receipts shall be deemed to be redenominated into euro in the denominationof euro 0.01 with a nominal amount for each Note and Receipt equal to the nominal amount ofthat Note or Receipt in the Specified Currency, converted into euro at the Established Rate,provided that, if the Issuer determines, with the agreement of the Agent, that the then marketpractice in respect of the redenomination into euro of internationally offered securities is differentfrom the provisions specified above, such provisions shall be deemed to be amended so as tocomply with such market practice and the Issuer shall promptly notify the Noteholders, the stockexchange (if any) on which the Notes may be listed and the Paying Agents of such deemedamendments;

(b) save to the extent that an Exchange Notice has been given in accordance with paragraph (d)below, the amount of interest due in respect of the Notes will be calculated by reference to theaggregate nominal amount of Notes presented (or, as the case may be, in respect of whichCoupons are presented) for payment by the relevant holder and the amount of such payment shallbe rounded down to the nearest euro 0.01;

(c) if definitive Notes are required to be issued after the Redenomination Date, they shall be issuedat the expense of the Issuer in the denominations of euro 1,000, euro 10,000, euro 100,000 and

21

(but only to the extent of any remaining amounts less than euro 1,000 or such smaller

denominations as the Agent may approve) euro 0.01 and such other denominations as the Agentshall determine and notify to the Noteholders;

(d) if issued prior to the Redenomination Date, all unmatured Coupons denominated in the SpecifiedCurrency (whether or not attached to the Notes) will become void with effect from the date onwhich the Issuer gives notice (the "Exchange Notice") that replacement euro-denominated Notes,Receipts and Coupons are available for exchange (provided that such securities are so available)and no payments will be made in respect of them. The payment obligations contained in anyNotes and Receipts so issued will also become void on that date although those Notes andReceipts will continue to constitute valid exchange obligations of the Issuer. New euro-denominated Notes, Receipts and Coupons will be issued in exchange for Notes, Receipts andCoupons denominated in the Specified Currency in such manner as the Agent may specify andas shall be notified to the Noteholders in the Exchange Notice. No Exchange Notice may be givenless than 15 days prior to any date for payment of principal or interest on the Notes;

(e) after the Redenomination Date, all payments in respect of the Notes, the Receipts and theCoupons, other than payments of interest in respect of periods commencing before theRedenomination Date, will be made solely in euro as though references in the Notes to theSpecified Currency were to euro. Payments will be made in euro by credit or transfer to a euroaccount (or any other account to which euro may be credited or transferred) specified by thepayee or, at the option of the payee, by a euro cheque;

(f) if the Notes are Fixed Rate Notes and interest for any period ending on or after theRedenomination Date is required to be calculated for a period ending other than on an InterestPayment Date, it will be calculated by applying the Rate of Interest to each SpecifiedDenomination, multiplying such sum by the applicable Day Count Fraction, and rounding theresultant figure to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention;

(g) if the Notes are Floating Rate Notes, the applicable Pricing Supplement will specify any relevantchanges to the provisions relating to interest; and

(h) such other changes shall be made to these Conditions as the Issuer may decide, after consultationwith the Agent, and as may be specified in the notice, to conform them to conventions thenapplicable to instruments denominated in euro. Any such other changes will not take effect untilafter they have been notified to the Noteholders in accordance with Condition 14.

In these Conditions, the following expressions have the following meanings:

"Established Rate" means the rate for the conversion of the Specified Currency (including compliancewith rules relating to roundings in accordance with applicable European Community regulations) intoeuro established by the Council of the European Union pursuant to Article 123 of the Treaty;

"euro" means the currency introduced at the start of the third stage of European economic and monetaryunion pursuant to the Treaty;

"Redenomination Date" means (in the case of interest bearing Notes) any date for payment of interestunder the Notes or (in the case of Zero Coupon Notes) any date, in each case specified by the Issuer inthe notice given to the Noteholders pursuant to the provisions specified above and which falls on orafter the date on which the country of the Specified Currency first participates in the third stage ofEuropean economic and monetary union; and

"Treaty" means the Treaty establishing the European Community, as amended.

5. INTEREST

(a) Interest on Fixed Rate Notes

Each Fixed Rate Note bears interest on its nominal amount (or, if it is a Partly Paid Note, theamount paid up) from (and including) the Interest Commencement Date at the rate(s) per annum

22

equal to the Rate(s) of Interest. Interest will be payable in arrear on the Interest Payment Date(s) in eachyear and on the Maturity Date if that does not fall on an Interest Payment Date.

Except as provided in the applicable Pricing Supplement, the amount of interest payable on each

Interest Payment Date in respect of the Fixed Interest Period ending on (but excluding) such datewill amount to the Fixed Coupon Amount. Payments of interest on any Interest Payment Datewill, if so specified in the applicable Pricing Supplement, amount to the Broken Amount sospecified.

If interest is required to be calculated for a period other than a Fixed Interest Period, such interest

shall be calculated by applying the Rate of Interest to each Specified Denomination, multiplyingsuch sum by the applicable Day Count Fraction, and rounding the resultant figure to the nearestsub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards orotherwise in accordance with applicable market convention.

In this Condition 5(a), "Day Count Fraction" means:

(i) if "Actual/Actual (ISMA)" is specified in the applicable Pricing Supplement:

(A) in the case of Notes where the number of days in the relevant period from andincluding the most recent Interest Payment Date (or, if none, the InterestCommencement Date) to but excluding the relevant payment date (the "Accrual

Period") is equal to or shorter than the Determination Period during which theAccrual Period ends, the number of days in such Accrual Period divided by theproduct of (1) the number of days in such Determination Period and (2) the numberof Determination Dates that would occur in one calendar year; or

(B) in the case of Notes where the Accrual Period is longer than the DeterminationPeriod during which the Accrual Period ends, the sum of (1) the number of days insuch Accrual Period falling in the Determination Period in which the Accrual Period

begins divided by the product of (x) the number of days in such DeterminationPeriod and (y) the number of Determination Dates that would occur in one calendar

year; and (2) the number of days in such Accrual Period falling in the nextDetermination Period divided by the product of (x) the number of days in suchDetermination Period and (y) the number of Determination Dates that would occurin one calendar year; and

(ii) if "30/360" is specified in the applicable Pricing Supplement, the number of days in theperiod from and including the most recent Interest Payment Date (or, if none, the Interest

Commencement Date) to but excluding the relevant payment date (such number of daysbeing calculated on the basis of 12 30-day months) divided by 360;

In these Conditions:

"Determination Period" means each period from (and including) a Determination Date to butexcluding the next Determination Date (including, where either the Interest Commencement Date

or the final Interest Payment Date is not a Determination Date, the period commencing on thefirst Determination Date prior to, and ending on the first Determination Date falling after, suchdate); and

"Fixed Interest Period" means the period from and including an Interest Payment Date (or theInterest Commencement Date) to but excluding the next (or first) Interest Payment Date; and

"sub-unit" means, with respect to any currency other than euro, the lowest amount of such

currency that is available as legal tender in the country of such currency and, with respect to euro,means one cent.

23

(b) Interest on Floating Rate Notes and Index Linked Interest Notes

(i) Interest Payment Dates

Each Floating Rate Note and Index Linked Interest Note bears interest on its nominal amount (or,if it is a Partly Paid Note, the amount paid up) from (and including) the Interest CommencementDate and such interest will be payable in arrear on either:

(A) the Specified Interest Payment Date(s) in each year specified in the applicable PricingSupplement; or

(B) if no Specified Interest Payment Date(s) is/are specified in the applicable PricingSupplement, each date (each such date, together with each Specified Interest PaymentDate, an "Interest Payment Date") which falls the number of months or other periodspecified as the Specified Period in the applicable Pricing Supplement after the precedingInterest Payment Date or, in the case of the first Interest Payment Date, after the InterestCommencement Date.

Such interest will be payable in respect of each Interest Period (which expression shall, in theseConditions, mean the period from (and including) an Interest Payment Date (or the InterestCommencement Date) to (but excluding) the next (or first) Interest Payment Date).

If a Business Day Convention is specified in the applicable Pricing Supplement and (x) if thereis no numerically corresponding day on the calendar month in which an Interest Payment Dateshould occur or (y) if any Interest Payment Date would otherwise fall on a day which is not aBusiness Day, then, if the Business Day Convention specified is:

(1) in any case where Specified Periods are specified in accordance with Condition 5(b)(i)(B)above, the Floating Rate Convention, such Interest Payment Date (i) in the case of (x)above, shall be the last day that is a Business Day in the relevant month and the provisionsof (B) below shall apply mutatis mutandis or (ii) in the case of (y) above, shall bepostponed to the next day which is a Business Day unless it would thereby fall into the nextcalendar month, in which event (A) such Interest Payment Date shall be brought forwardto the immediately preceding Business Day and (B) each subsequent Interest PaymentDate shall be the last Business Day in the month which falls the Specified Period after thepreceding applicable Interest Payment Date occurred; or

(2) the Following Business Day Convention, such Interest Payment Date shall be postponedto the next day which is a Business Day; or

(3) the Modified Following Business Day Convention, such Interest Payment Date shall bepostponed to the next day which is a Business Day unless it would thereby fall into the nextcalendar month, in which event such Interest Payment Date shall be brought forward to theimmediately preceding Business Day; or

(4) the Preceding Business Day Convention, such Interest Payment Date shall be broughtforward to the immediately preceding Business Day.

In these Conditions, "Business Day" means a day which is both:

(A) a day on which commercial banks and foreign exchange markets settle payments and areopen for general business (including dealing in foreign exchange and foreign currencydeposits) in London and any Additional Business Centre specified in the applicable PricingSupplement; and

(B) either (1) in relation to any sum payable in a Specified Currency other than euro, a day onwhich commercial banks and foreign exchange markets settle payments and are open forgeneral business (including dealing in foreign exchange and foreign currency deposits) inthe principal financial centre of the country of the relevant Specified Currency (if otherthan London and any Additional Business Centre and which if the Specified Currency isAustralian dollars or New Zealand dollars shall be Sydney or Auckland, respectively) or

24

(2) in relation to any sum payable in euro, a day on which the TARGET System is open.In these Conditions, "TARGET System" means the Trans-European Automated Real-TimeGross Settlement Express Transfer (TARGET) System.

(ii) Rate of Interest

The Rate of Interest payable from time to time in respect of Floating Rate Notes and IndexLinked Interest Notes will be determined in the manner specified in the applicable PricingSupplement.

(A) ISDA Determination for Floating Rate Notes

Where ISDA Determination is specified in the applicable Pricing Supplement as the manner inwhich the Rate of Interest is to be determined, the Rate of Interest for each Interest Period willbe the relevant ISDA Rate plus or minus (as indicated in the applicable Pricing Supplement) theMargin (if any). For the purposes of this subparagraph (A), "ISDA Rate" for an Interest Periodmeans a rate equal to the Floating Rate that would be determined by the Agent under an interestrate swap transaction if the Agent were acting as Calculation Agent for that swap transactionunder the terms of an agreement incorporating the 2000 ISDA Definitions as published by theInternational Swaps and Derivatives Association, Inc. and as amended and updated as at the IssueDate of the first Tranche of the Notes, (the "ISDA Definitions") and under which:

(1) the Floating Rate Option is as specified in the applicable Pricing Supplement;

(2) the Designated Maturity is a period specified in the applicable Pricing Supplement; and

(3) the relevant Reset Date is either (i) if the applicable Floating Rate Option is based on theLondon interbank offered rate CLIBOR") or on the Euro-zone inter-bank offered rate

CEURIBOR") for a currency, the first day of that Interest Period or (ii) in any other case,as specified in the applicable Pricing Supplement.

For the purposes of this sub-paragraph (A), "Floating Rate", "Calculation Agent", "Floating RateOption", "Designated Maturity" and "Reset Date" have the meanings given to those terms in theISDA Definitions.

(B) Screen Rate Determination for Floating Rate Notes

Where Screen Rate Determination is specified in the applicable Pricing Supplement as themanner in which the Rate of Interest is to be determined, the Rate of Interest for each InterestPeriod will, subject as provided below, be either:

(1) the offered quotation; or

(2) the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 beingrounded upwards) of the offered quotations,

(expressed as a percentage rate per annum) for the Reference Rate which appears or appear, asthe case may be, on the Relevant Screen Page as at 11.00 a.m. (London time, in the case ofLIBOR, or Brussels time, in the case of EURIBOR) on the Interest Determination Date in

question plus or minus (as indicated in the applicable Pricing Supplement) the Margin (if any),all as determined by the Agent. If five or more of such offered quotations are available on theRelevant Screen Page, the highest (or, if there is more than one such highest quotation, one onlyof such quotations) and the lowest (or, if there is more than one such lowest quotation, one onlyof such quotations) shall be disregarded by the Agent for the purpose of determining thearithmetic mean (rounded as provided above) of such offered quotations.

If the Relevant Screen Page is not available or if, in the case of Condition 5(b)(ii)(B)(1) above,no such offered quotation appears or, in the case of Condition 5(b)(ii)(B)(2) above, fewer thanthree such offered quotations appear, in each case as at the time specified in the precedingparagraph the Agent shall request the principal London office of each of the Reference Banks toprovide the Agent with its offered quotation (expressed as a percentage rate per annum) for the

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Reference Rate at approximately 11.00 a.m. (London time, in the case of LIBOR, or Brusselstime, in the case of EURIBOR) on the Interest Determination Date in question. If two or more ofthe Reference Banks provide the Agent with such offered quotations, the Rate of Interest for such

Interest Period shall be the arithmetic mean (rounded if necessary to the fifth decimal place with0.000005 being rounded upwards) of such offered quotations plus or minus (as appropriate) theMargin (if any), all as determined by the Agent.

If on any Interest Determination Date one only or none of the Reference Banks provides theAgent with such offered quotations as provided in the preceding paragraph, the Rate of Interestfor the relevant Interest Period shall be the rate per annum which the Agent determines as beingthe arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 beingrounded upwards) of the rates, as communicated to (and at the request of) the Agent by theReference Banks or any two or more of them, at which such banks were offered, at approximately11.00 a.m. (London time, in the case of LIBOR, or Brussels time, in the case of EURIBOR) onthe relevant Interest Determination Date, deposits in the Specified Currency for a period equal tothat which would have been used for the Reference Rate by leading banks in the London inter-bank market (if the Reference Rate is LIBOR) or the Euro-zone inter-bank market (if theReference Rate is EURIBOR) plus or minus (as appropriate) the Margin (if any) or, if fewer thantwo of the Reference Banks provide the Agent with such offered rates, the offered rate fordeposits in the Specified Currency for a period equal to that which would have been used for theReference Rate, or the arithmetic mean (rounded as provided above) of the offered rates fordeposits in the Specified Currency for a period equal to that which would have been used for theReference Rate, at which, at approximately 11.00 a.m. (London time, in the case of LIBOR, orBrussels time, in the case of EURIBOR) on the relevant Interest Determination Date, any one ormore banks (which bank or banks is or are in the opinion of the Issuer suitable for such purpose)informs the Agent it is quoting to leading banks in the London inter-bank market (if the ReferenceRate is LIBOR) or the Euro-zone inter-bank market (if the Reference Rate is EURIBOR) plus orminus (as appropriate) the Margin (if any), provided that, if the Rate of Interest cannot bedetermined in accordance with the foregoing provisions of this paragraph, the Rate of Interestshall be determined as at the last preceding Interest Determination Date (though substituting,where a different Margin is to be applied to the relevant Interest Period from that which appliedto the last preceding Interest Period, the Margin relating to the relevant Interest Period, in placeof the Margin relating to that last preceding Interest Period).

If the Reference Rate from time to time in respect of Floating Rate Notes is specified in theapplicable Pricing Supplement as being other than LIBOR or EURIBOR, the Rate of Interest inrespect of such Notes will be determined as provided in the applicable Pricing Supplement.

(iii) Minimum andor Maximum Rate of lnterest

If the applicable Pricing Supplement specifies a Minimum Rate of Interest for any InterestPeriod, then, in the event that the Rate of Interest in respect of such Interest Period determinedin accordance with the provisions of paragraph (ii) above is less than such Minimum Rate ofInterest, the Rate of Interest for such Interest Period shall be such Minimum Rate of Interest.

If the applicable Pricing Supplement specifies a Maximum Rate of Interest for any InterestPeriod, then, in the event that the Rate of Interest in respect of such Interest Period determinedin accordance with the provisions of paragraph (ii) above is greater than such Maximum Rate ofInterest, the Rate of Interest for such Interest Period shall be such Maximum Rate of Interest.

(iv) Determination of Rate of lnterest and Calculation of Interest Amounts

The Agent, in the case of Floating Rate Notes, and the Calculation Agent, in the case of IndexLinked Interest Notes, will at or as soon as practicable after each time at which the Rate ofInterest is to be determined, determine the Rate of Interest for the relevant Interest Period. In thecase of Index Linked Interest Notes, the Calculation Agent will notify the Agent of the Rate ofInterest for the relevant Interest Period as soon as practicable after calculating the same.

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The Agent will calculate the amount of interest (the "Interest Amount") payable on the FloatingRate Notes or Index Linked Interest Notes in respect of each Specified Denomination for therelevant Interest Period. Each Interest Amount shall be calculated by applying the Rate of Interestto each Specified Denomination, multiplying such sum by the applicable Day Count Fraction,and rounding the resultant figure to the nearest sub-unit of the relevant Specified Currency halfof any such sub-unit being rounded upwards or otherwise in accordance with applicable marketconvention.

"Day Count Fraction" means, in respect of the calculation of an amount of interest in accordancewith this Condition 5(b):

(i) if "Actual/365" or "Actual/Actual" is specified in the applicable Pricing Supplement, theactual number of days in the Interest Period divided by 365 (or, if any portion of thatInterest Period falls in a leap year, the sum of (A) the actual number of days in that portionof the Interest Period falling in a leap year divided by 366 and (B) the actual number ofdays in that portion of the Interest Period falling in a non-leap year divided by 365);

(ii) if "Actual/365 (Fixed)" is specified in the applicable Pricing Supplement, the actualnumber of days in the Interest Period divided by 365;

(iii) if "Actual/360" is specified in the applicable Pricing Supplement, the actual number ofdays in the Interest Period divided by 360;

(iv) if "Actual/365 (Sterling)" is specified in the applicable Pricing Supplement, the actualnumber of days in the Interest Period divided by 365 or, in the case of an Interest PaymentDate falling in a leap year, 366;

(v) if "30/360", "360/360" or "Bond Basis" is specified in the applicable Pricing Supplement,the number of days in the Interest Period divided by 360 (the number of days to becalculated on the basis of a year of 360 days with 12 30-day months (unless (a) the last dayof the Interest Period is the 31st day of a month but the first day of the Interest Period is aday other than the 30th or 31 st day of a month, in which case the month that includes thatlast day shall not be considered to be shortened to a 30-day month, or (b) the last day ofthe Interest Period is the last day of the month of February, in which case the month ofFebruary shall not be considered to be lengthened to a 30-day month)); and

(vi) if "30E/360" or "Eurobond Basis" is specified in the applicable Pricing Supplement, thenumber of days in the Interest Period divided by 360 (the number of days to be calculatedon the basis of a year of 360 days with 12 30-day months, without regard to the date of thefirst day or last day of the Interest Period unless, in the case of an Interest Period endingon the Maturity Date, the Maturity Date is the last day of the month of February, in whichcase the month of February shall not be considered to be lengthened to a 30-day month).

(v) Notification of Rate of Interest and Interest Amounts

The Agent will cause the Rate of Interest and each Interest Amount for each Interest Period and

the relevant Interest Payment Date to be notified to the Issuer and any stock exchange on whichthe relevant Floating Rate Notes or Index Linked Interest Notes are for the time being listed andnotice thereof to be published in accordance with Condition 14 as soon as possible after theirdetermination but in no event later than the fourth London Business Day thereafter. Each InterestAmount and Interest Payment Date so notified may subsequently be amended (or appropriatealternative arrangements made by way of adjustment) without prior notice in the event of anextension or shortening of the Interest Period. Any such amendment will be promptly notified toeach stock exchange on which the relevant Floating Rate Notes or Index Linked Interest Notesare for the time being listed and to the Noteholders in accordance with Condition 14. For the

purposes of this paragraph, the expression "London Business Day" means a day (other than aSaturday or a Sunday) on which banks and foreign exchange markets are open for generalbusiness in London.

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(vi) Certificates to be Final

All certificates, communications, opinions, determinations, calculations, quotations anddecisions given, expressed, made or obtained for the purposes of the provisions of this Condition5(b), whether by the Agent or, if applicable, the Calculation Agent, shall (in the absence of wilfuldefault, bad faith or manifest error) be binding on the Issuer, the Agent, the Calculation Agent (ifapplicable), the other Paying Agents and all Noteholders, Receiptholders and Couponholders and(in the absence as aforesaid) no liability to the Issuer, the Noteholders, the Receiptholders or theCouponholders shall attach to the Agent or the Calculation Agent (if applicable) in connectionwith the exercise or non-exercise by it of its powers, duties and discretions pursuant to suchprovisions.

(c) Interest on Dual Currency Interest Notes

In the case of Dual Currency Interest Notes, if the rate or amount of interest falls to be determined

by reference to an exchange rate, the rate or amount of interest payable shall be determined in themanner specified in the applicable Pricing Supplement.

(d) Interest on Partly Paid Notes

In the case of Partly Paid Notes (other than Partly Paid Notes which are Zero Coupon Notes),interest will accrue as aforesaid on the paid-up nominal amount of such Notes and otherwise asspecified in the applicable Pricing Supplement.

(e) Accrual of lnterest

Each Note (or in the case of the redemption of part only of a Note, that part only of such Note)will cease to bear interest (if any) from the date for its redemption unless, upon due presentationthereof, payment of principal is improperly withheld or refused. In such event, interest willcontinue to accrue until whichever is the earlier of: (1) the date on which all amounts due inrespect of such Note have been paid; and (2) five days after the date on which the full amount ofthe moneys payable has been received by the Agent and notice to that effect has been given inaccordance with Condition 14 or individually.

6. PAYMENTS

(a) Method of Payment

Subject as provided below:

(i) payments in a Specified Currency other than euro will be made by credit or transferto anaccount in the relevant Specified Currency (which, in the case of a payment in JapaneseYen to a non-resident of Japan, shall be a non-resident account) maintained by the payeewith, or, at the option of the payee, by a cheque in such Specified Currency drawn on, abank in the principal financial centre of the country of such Specified Currency (which, ifthe Specified Currency is Australian or New Zealand dollars, shall be Sydney orAuckland,respectively); and

(ii) payments in euro will be made by credit or transfer to aeuro account (orany other accountto which euro, may be credited or transferred) specified by the payee or, at the option ofthe payee, by a euro, cheque.

Payments will be subject in all cases to any fiscal or other laws and regulations applicable theretoin the place of payment, but without prejudice to the provisions of Condition 8.

(b) Presentation of Notes, Receipts and Coupons

Payments of principal in respect of definitive Notes will (subject as provided below) be made inthe manner provided in paragraph (a) above only against surrender of definitive Notes, andpayments of interest in respect of definitive Notes will (subject as provided below) be made as

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aforesaid only against surrender of Coupons, in each case at the specified office of any PayingAgent outside the United States (which expression, as used herein, means the United States ofAmerica (including the States and the District of Columbia, its territories, its possessions andother areas subject to its jurisdiction)).

Payments of instalments of principal (if any), other than the final instalment, will (subject asprovided below) be made in the manner provided in paragraph (a) above against surrender of therelevant Receipt. Payment of the final instalment will be made in the manner provided inparagraph (a) above only against surrender of the relevant Note. Each Receipt must be presentedfor payment of the relevant instalment together with the definitive Note to which it appertains.Receipts presented without the definitive Note to which they appertain do not constitute validobligations of the Issuer. Upon the date on which any definitive Note becomes due and repayable,unmatured Receipts (if any) relating thereto (whether or not attached) shall become void and nopayment shall be made in respect thereof.

Fixed Rate Notes in definitive form (other than Long Maturity Notes (as defined below), DualCurrency Notes or Index Linked Notes) should be presented for payment together with allunmatured Coupons appertaining thereto (which expression shall for this purpose includeCoupons failing to be issued on exchange of matured Talons), failing which the amount of anymissing unmatured Coupon (or, in the case of payment not being made in full, the sameproportion of the amount of such missing unmatured Coupon as the sum so paid bears to the sumdue) will be deducted from the sum due for payment. Each amount of principal so deducted willbe paid in the manner mentioned above against surrender of the relative missing Coupon at anytime before the expiry of 10 years after the Relevant Date (as defined in Condition 8) in respectof such principal (whether or not such Coupon would otherwise have become void underCondition 9) or, if later, five years from the date on which such Coupon would otherwise havebecome due, but in no event thereafter.

Upon any Fixed Rate Note becoming due and repayable prior to its Maturity Date, all unmaturedTalons (if any) appertaining thereto will become void and no further Coupons will be issued inrespect thereof.

Upon the date on which any Long Maturity Note, Floating Rate Note, Dual Currency Note orIndex Linked Note in definitive form becomes due and repayable, unmatured Coupons andTalons (if any) relating thereto (whether or not attached) shall become void and no payment or,as the case may be, exchange for further Coupons shall be made in respect thereof. A "LongMaturity Note" is a Fixed Rate Note (other than a Fixed Rate Note which on issue had a Talonattached) whose nominal amount on issue is less than the aggregate interest payable thereonprovided that such Note shall cease to be a Long Maturity Note on the Interest Payment Date onwhich the aggregate amount of interest remaining to be paid after that date is less than thenominal amount of such Note.

If the due date for redemption of any definitive Note is not an Interest Payment Date, interest (ifany) accrued in respect of such Note from (and including) the preceding Interest Payment Dateor, as the case may be, the Interest Commencement Date shall be payable only against surrenderof the relevant definitive Note.

Payments of principal and interest (if any) in respect of Notes represented by any global Note will(subject as provided below) be made in the manner specified above in relation to definitive Notesand otherwise in the manner specified in the relevant global Note against presentation orsurrender, as the case may be, of such global Note at the specified office of any Paying Agent. Arecord of each payment made against presentation or surrender of such global Note,distinguishing between any payment of principal and any payment of interest, will be made onsuch global Note by such Paying Agent and such record shall be prima facie evidence that thepayment in question has been made.

The holder of a global Note shall be the only person entitled to receive payments in respect ofNotes represented by such global Note and the Issuer will be discharged by payment to, or to theorder of, the holder of such global Note in respect of each amount so paid. Each of the persons

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shown in the records of Euroclear or Clearstream, Luxembourg as the beneficial holder of aparticular nominal amount of Notes represented by such global Note must look solely toEttroclear or Clearstream, Luxembourg, as the case may be, for his share of each payment somade by the Issuer to, or to the order of, the holder of such global Note.

Notwithstanding the foregoing, if any amount of principal and or interest in respect of this Noteis payable in U.S. dollars, such U.S. dollar payments of principal and or interest in respect of thisNote will be made at the specified office of a Paying Agent in the United States if:

(i) the Issuer has appointed Paying Agents with specified offices outside the United Stateswith the reasonable expectation that such Paying Agents would be able to make paymentin U.S. dollars at such specified offices outside the United States of the full amount ofprincipal and interest on the Notes in the manner provided above when due;

(ii) payment of the full amount of such principal and interest at all such specified officesoutside the United States is illegal or effectively precluded by exchange controls or othersimilar restrictions on the full payment or receipt of principal and interest in U.S. dollars;and

(iii) such payment is then permitted under United States law without involving, in the opinionof the Issuer adverse tax consequences to the Issuer.

(c) Payment Day

If the date for payment of any amount in respect of any Note, Receipt or Coupon is not a PaymentDay, the holder thereof shall not be entitled to payment until the next following Payment Day inthe relevant place and shall not be entitled to further interest or other payment in respect of suchdelay. For these purposes, "Payment Day" means any day which is:

(i) a day on which commercial banks and foreign exchange markets settle payments and areopen for general business (including dealing in foreign exchange and foreign currencydeposits) in:

(A) the relevant place of presentation;

(B) London;

(C) any Additional Financial Centre specified in the applicable Pricing Supplement; and

(ii) either (1) in relation to any sum payable in a Specified Currency other than euro, a day onwhich commercial banks and foreign exchange markets settle payments in the principalfinancial centre of the country of the relevant Specified Currency (if other than the placeof presentation, London and any Additional Financial Centre and which if the SpecifiedCurrency is Australian or New Zealand dollars shall be Sydney or Auckland, respectively)or (2) in relation to any sum payable in euro, a day on which the TARGET System is open.

(d) Interpretation of Principal and Interest

Any reference in these Conditions to principal in respect of the Notes shall be deemed to include,as applicable:

(i) any additional amounts which may be payable with respect to principal under Condition 8;

(ii) the Final Redemption Amount of the Notes;

(iii) the Early Redemption Amount of the Notes;

(iv) the Optional Redemption Amount(s) (if any) of the Notes;

(v) in relation to Notes redeemable in instalments, the InstalmentAmounts;

(vi) in relation to Zero Coupon Notes, the Amortised Face Amount; and

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(vii) any premium and any other amounts (other than interest) which may be payable by theIssuer under or in respect of the Notes.

Any reference in these Conditions to interest in respect of the Notes shall be deemed to include, as

applicable, any additional amounts which may be payable with respect to interest under Condition 8.

7. REDEMPTION AND PURCHASE

(a) At Maturity

Unless previously redeemed or purchased and cancelled as specified below, each Note will beredeemed by the Issuer at its Final Redemption Amount specified in, or determined in the mannerspecified in, the applicable Pricing Supplement in the relevant Specified Currency on theMaturity Date.

(b) Redemption for Tax Reasons

The Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time (ifthis Note is neither a Floating Rate Note, an Index Linked Interest Note nor a Dual CurrencyInterest Note) or on any Interest Payment Date (if this Note is either a Floating Rate Note, anIndex Linked Interest Note or a Dual Currency Interest Note), on giving not less than 30 nor morethan 60 days' notice to the Agent and, in accordance with Condition 14, the Noteholders (whichnotice shall be irrevocable), if:

(i) on the occasion of the next payment due under the Notes, the Issuer has or will becomeobliged to pay additional amounts as provided or referred to in Condition 8 as a result of

any change in, or amendment to, the laws or regulations of the Kingdom of Sweden or anypolitical subdivision or any authority thereof or therein having power to tax, or any changein the application or official interpretation of such laws or regulations, which change oramendment becomes effective on or after the Issue Date of the first Tranche of the Notes;and

(ii) such obligation cannot he avoided by the Issuer taking reasonable measures available to it,

provided that no such notice of redemption shall be given earlier than 90 days prior to theearliest date on which the Issuer would be obliged to pay such additional amounts were apayment in respect of the Notes then due.

Prior to the publication of any notice of redemption pursuant to this Condition, the Issuer shall

deliver to the Agent a certificate signed by two authorised signatories of the Issuer stating thatthe Issuer is entitled to effect such redemption and setting forth a statement of facts showing thatthe conditions precedent to the right of the Issuer so to redeem have occurred, and an opinion ofindependent legal advisers of recognised standing to the effect that the Issuer has or will becomeobliged to pay such additional amounts as a result of such change or amendment.

Each Note redeemed pursuant to this Condition 7(b) will be redeemed at its Early RedemptionAmount referred to in paragraph (e) below together (if appropriate) with interest accrued to (butexcluding) the date of redemption.

(c) Redemption at the Option of the Issuer

If the Issuer is specified in the applicable Pricing Supplement as having an option to redeem, theIssuer shall, having given:

(i) not less than 15 nor more than 30 days' notice to the Noteholders in accordance withCondition 14; and

(ii) not less than 15 days before the giving of the notice referred to in (i), notice to the Agent;

(which notices shall be irrevocable), redeem all or some only of the Notes then outstanding onany Optional Redemption Date and at the Optional Redemption Amount(s) specified in, or

determined in the manner specified in, the applicable Pricing Supplement together, if appropriate,

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with interest accrued to (but excluding) the relevant Optional Redemption Date. Any suchredemption must be of a nominal amount not less than the Minimum Redemption Amount or notmore than the Maximum Redemption Amount, in each case as may be specified in the applicablePricing Supplement. In the case of a partial redemption of Notes, the Notes to be redeemed("Redeemed Notes") will be selected individually by lot, in the case of Redeemed Notesrepresented by definitive Notes, and in accordance with the rules of Euroclear and/orClearstream, Luxembourg, in the case of Redeemed Notes represented by a global Note, not morethan 30 days prior to the date fixed for redemption (such date of selection being hereinafter calledthe "Selection Date"). In the case of Redeemed Notes represented by definitive Notes, a list ofthe serial numbers of such Redeemed Notes will be published in accordance with Condition 14not less than 15 days prior to the date fixed for redemption. The aggregate nominal amount ofRedeemed Notes represented by definitive Notes shall bear the same proportion to the aggregatenominal amount of all Redeemed Notes as the aggregate nominal amount of definitive Notesoutstanding bears to the aggregate nominal amount of the Notes outstanding, in each case on theSelection Date, provided that such first mentioned nominal amount shall, if necessary, be roundeddownwards to the nearest integral multiple of the Specified Denomination, and the aggregatenominal amount of Redeemed Notes represented by a global Note shall be equal to the balanceof the Redeemed Notes. No exchange of the relevant global Note will be permitted during theperiod from and including the Selection Date to and including the date fixed for redemptionpursuant to this paragraph (c) and notice to that effect shall be given by the Issuer to theNoteholders in accordance with Condition 14 at least 5 days prior to the Selection Date.

(d) Redemption at the Option of the Noteholders

If the Noteholders are specified in the applicable Pricing Supplement as having an option toredeem, upon the holder of any Note giving to the Issuer in accordance with Condition 14 not

less than 15 nor more than 30 days' notice or such other period of notice as is specified in theapplicable Pricing Supplement the Issuer will, upon the expiry of such notice, redeem, subject to,and in accordance with, the terms specified in the applicable Pricing Supplement, such Note onthe Optional Redemption Date and at the Optional Redemption Amount specified in, ordetermined in the manner specified in, the applicable Pricing Supplement together, if appropriate,with interest accrued to (but excluding) the Optional Redemption Date.

To exercise the right to require redemption of this Note the holder of this Note must, if this Noteis in definitive form and held outside Euroclear and Clearstream, Luxembourg, deliver, at thespecified office of any Paying Agent at any time during normal business hours of such PayingAgent falling within the notice period, a duly completed and signed notice of exercise in the form(for the time being current) obtainable from any specified office of any Paying Agent (a "PutNotice") and in which the holder must specify a bank account (or, if payment is required to bemade by cheque, an address) to which payment is to be made under this Condition accompaniedby this Note or evidence satisfactory to the Paying Agent concerned that this Note will, followingdelivery of the Put Notice, be held to its order or under its control. If this Note is represented bya Global Note or is in definitive form and held through Euroclear or Clearstream, Luxembourg,to exercise the right to require redemption of this Note the holder of this Note must, within thenotice period, give notice to the Agent of such exercise in accordance with the standard

procedures of Euroclear and Clearstream, Luxembourg (which may include notice being givenon his instruction by Euroclear or Clearstream, Luxembourg or any common depositary for themto the Agent by electronic means) in a form acceptable to Euroclear and Clearstream,Luxembourg from time to time and, if this Note is represented by a Global Note, at the same timepresent or procure the presentation of the relevant Global Note to the Agent for notationaccordingly.

Any Put Notice given by a holder of any Note pursuant to this paragraph shall be irrevocableexcept where prior to the due date of redemption an Event of Default shall have occurred and becontinuing in which event such holder, at its option, may elect by notice to the Issuer to withdrawthe notice given pursuant to this paragraph and instead to declare such Note forthwith due andpayable pursuant to Condition 10.

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(e) Early Redemption Amounts

For the purpose of paragraph (b) above and Condition 10, each Note will be redeemed at its EarlyRedemption Amount calculated as follows:

(i) in the case of Notes with a Final Redemption Amount equal to their Nominal Amount, atthe Final Redemption Amount thereof;

(ii) in the case of Notes (other than Zero Coupon Notes but including Instalment Notes andPartly Paid Notes) with a Final Redemption Amount which is or may be less or greater thantheir Nominal Amount or which is payable in a Specified Currency other than that in whichthe Notes are denominated, at the amount specified in, or determined in the manner

specified in, the applicable Pricing Supplement or, if no such amount or manner is sospecified in the Pricing Supplement, at their nominal amount; or

(iii) in the case of Zero Coupon Notes, at an amount (the "Amortised Face Amount") equal tothe sum of:

(A) the Reference Price; and

(B) the product of the Accrual Yield (compounded annually) being applied to theReference Price from (and including) the Issue Date to (but excluding) the date fixedfor redemption or (as the case may be) the date upon which such Note becomes dueand repayable.

Where such calculation is to be made for a period which is not a whole number of years,it shall be made on the basis of a 360-day year consisting of 12 months of 30 days each orsuch other calculation basis as may be specified in the applicable Pricing Supplement.

09 Instalments

If the Notes are repayable in instalments, they will be redeemed in the Instalment Amounts and

on the Instalment Dates. In the case of early redemption, the Early Redemption Amount will bedetermined pursuant to paragraph (e) above.

(g) Partly Paid Notes

If the Notes are Partly Paid Notes, they will be redeemed, whether at maturity, early redemptionor otherwise, in accordance with the provisions of this Condition and the applicable PricingSupplement.

(h) Purchases

The Issuer and any of its subsidiaries may at any time purchase Notes (provided that, in the caseof definitive Notes, all unmatured Receipts, Coupons and Talons appertaining thereto arepurchased therewith) at any price in the open market or otherwise. Such Notes may be held,

reissued, resold or, at the option of the Issuer or the relevant subsidiary, surrendered to any PayingAgent for cancellation.

(i) Cancellation

All Notes which are redeemed will forthwith be cancelled (together with all unmatured Receiptsand Coupons attached thereto or surrendered therewith at the time of redemption). All Notes socancelled and the Notes purchased and cancelled pursuant to paragraph (h) above (together withall unmatured Receipts and Coupons cancelled therewith) shall be forwarded to the Agent andcannot be reissued or resold.

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(j) Late payment on Zero Coupon Notes

If the amount payable in respect of any Zero Coupon Note upon redemption of such Zero CouponNote pursuant to paragraph (a), (b), (c) or (d) above or upon its becoming due and repayable asprovided in Condition 10 is improperly withheld or refused, the amount due and repayable inrespect of such Zero Coupon Note shall be the amount calculated as provided in paragraph (e)(iii)above as though the references therein to the date fixed for the redemption or the date upon whichsuch Zero Coupon Note becomes due and payable were replaced by references to the date whichis the earlier of:

(i) the date on which all amounts due in respect of such Zero Coupon Note have been paid;and

(ii) five days after the date on which the full amount of the moneys payable has been receivedby the Agent and notice to that effect has been given to the Noteholders either inaccordance with Condition 14 or individually.

8. TAXATION

All payments of principal and interest in respect of the Notes, Receipts and Coupons by the Issuer willbe made without withholding or deduction for or on account of any present or future taxes or duties ofwhatever nature imposed or levied by or on behalf of the Kingdom of Sweden or any politicalsubdivision or any authority thereof or therein having power to tax unless such withholding ordeduction is required by law. In such event, the Issuer will pay such additional amounts as shall benecessary in order that the net amounts received by the holders of the Notes, Receipts or Coupons aftersuch withholding or deduction shall equal the respective amounts of principal and interest which wouldotherwise have been receivable in respect of the Notes, Receipts or Coupons, as the case may be, in theabsence of such withholding or deduction; except that no such additional amounts shall be payable withrespect to any Note, Receipt or Coupon:

(a) presented for payment by or on behalf of a Noteholder, Receiptholder or Couponholder who isliable for such taxes or duties in respect of such Note, Receipt or Coupon by reason of his havingsome connection with the Kingdom of Sweden other than the mere holding of such Note, Receiptor Coupon; or

(b) presented for payment where the Noteholder is able to avoid such withholding or deduction bymaking a declaration of non-residence or other similar claim for exemption to the relevant taxauthority; or

(c) presented for payment more than 30 days after the Relevant Date (as defined below) except tothe extent that the holder thereof would have been entitled to an additional amount on presentingthe same for payment on such thirtieth day; or

(d) where such withholding or deduction is imposed on a payment to an individual and is requiredto be made pursuant to European Council Directive 2003/48/EC or any other Directiveimplementing the conclusions of the ECOFIN Council meeting of 26th - 27th November, 2000on the taxation of savings or any law implementing or complying with, or introduced in order toconform to, such Directive or law; or

(e) presented for payment by or on behalf of a holder who would be able to avoid such withholdingor deduction by presenting the relevant Note, Receipt or Coupon to another Paying Agent in aMember State of the European Union.

As used herein, the "Relevant Date" means the date on which such payment first becomes due, exceptthat, if the full amount of the moneys payable has not been duly received by the Agent on or prior tosuch due date, it means the date on which, the full amount of such moneys having been so received,notice to that effect is duly given to the Noteholders in accordance with Condition 14.

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9. PRESCRIPTION

The Notes, Receipts and Coupons will become void unless presented for payment within a period of10 years (in the case of principal) and five years (in the case of interest) after the Relevant Date (asdefined in Condition 8) therefor.

There shall not be included in any Coupon sheet issued on exchange of a Talon any Coupon the claimfor payment in respect of which would be void pursuant to this Condition or Condition 6(b) or any Talonwhich would be void pursuant to Condition 6(b).

10. EVENTS OF DEFAULT

If any one or more of the following events (each an "Event of Default") shall occur:

(i) default is made for more than 30 days in the payment of principal or interest due in respect of theNotes or any of them; or

(ii) the Issuer is in default in the performance of any obligation of the Issuer in respect of the Notes(other than any obligation for the payment of any amount due in respect of any of the Notes) andsuch default continues for a period of 30 days after notice thereof has been given to the Issuer atits principal office; or

(iii) any other indebtedness for borrowed money of the Issuer shall become prematurely repayablefollowing a default or the Issuer shall fail to repay any such indebtedness when due or within anypermitted grace period or shall fail to perform its payment obligations under any guarantee of anyindebtedness for borrowed money of any other person, unless liability under such indebtednessor under such guarantee shall be contested in good faith, provided that the aggregate principalamount of all such indebtedness for borrowed money which has become prematurely repayableor not been repaid or in respect of which the guarantee has not been performed is at leastU.S.$50,000,000 or its equivalent in any other currency or currencies; or

(iv) the Issuer is wound up or dissolved or stops payment of its debts as and when they fall due or(otherwise than for the purpose of an amalgamation or merger the terms whereof have previouslybeen approved by an Extraordinary Resolution of Noteholders) ceases or threatens to cease tocarry on all or substantially all of its business; or

(v) a decree or order by a court having jurisdiction in the premises shall have been entered and shallhave continued undischarged and unstayed for 60 days, adjudging the Issuer bankrupt orinsolvent under the applicable laws of the Kingdom of Sweden or any sub-division thereof, orappointing a liquidator, trustee or assignee (or similar official) in bankruptcy or insolvency of theIssuer or of any substantial part of its property;

(vi) any action is taken by the Issuer seeking or consenting to its adjudication as bankrupt or insolventunder the applicable laws of the Kingdom of Sweden or any sub-division thereof, or theappointment of a liquidator, trustee or assignee (or similar official) in bankruptcy or insolvencyof the Issuer or of any substantial part of its property, or if the Issuer shall make an assignmentfor the benefit of creditors, or shall admit in writing its inability to pay its debts generally as theybecome due, or shall take corporate action in furtherance of any such action; or

then any Noteholder may, provided that at the time the notice is given the relevant Event of Default iscontinuing, by written notice to the Issuer at the principal office of the Issuer effective upon the date ofreceipt thereof by the Issuer declare the Note held by the holder to be forthwith due and payablewhereupon the same shall become forthwith due and payable at the Early Redemption Amount (asdescribed in Condition 7(e)), together with accrued interest (if any) to the date of repayment.

11. REPLACEMENT OF NOTES, RECEIPTS, COUPONS AND TALONS

Should any Note, Receipt, Coupon or Talon be lost, stolen, mutilated, defaced or destroyed, it may berepla_zed at the specified office of the Agent upon payment by the claimant of such costs and expensesas may be incurred in connection therewith and on such terms as to evidence and indemnity as the Issuer

35

may reasonably require. Mutilated or defaced Notes, Receipts, Coupons or Talons must be surrenderedbefore replacements will be issued.

12. AGENT AND PAYING AGENTS

The names of the initial Agent and the other initial Paying Agents and their initial specified offices areset out below.

The Issuer is entitled to vary or terminate the appointment of any Paying Agent and/or appointadditional or other Paying Agents outside Sweden and/or approve any change in the specified officeoutside Sweden through which any Paying Agent acts, provided that:

(i) so long as the Notes are listed on any stock exchange or admitted to listing or trading by any otherrelevant authority, there will at all times be a Paying Agent (which may be the Agent) outsideSweden with a specified office in such place as may be required by the rules and regulations ofthe relevant stock exchange or other relevant authority, as applicable;

(ii) there will at all times be a Paying Agent outside Sweden with a specified office in a city incontinental Europe;

(iii) there will at all times be an Agent outside Sweden; and

(iv) there will at all times be a Paying Agent in a Member State of the European Union that will notbe obliged to withhold or deduct tax pursuant to European Council Directive 2003/48/EC or anyother Directive implementing the conclusions of the ECOFIN Council meeting of 26th - 27thNovember, 2000 on the taxation of savings or any law implementing or complying with, orintroduced in order to conform to such Directive.

In addition, the Issuer shall forthwith appoint a Paying Agent having a specified office in New York Cityin the circumstances described in the final paragraph of Condition 6(b). Any variation, termination,appointment or change shall only take effect (other than in the case of insolvency, when it shall be ofimmediate effect) after not less than 30 nor more than 45 days' prior notice thereof shall have beengiven to the Noteholders in accordance with Condition 14.

13. EXCHANGE OF TALONS

On and after the Fixed Interest Date or the Interest Payment Date, as appropriate, on which the finalCoupon comprised in any Coupon sheet matures, the Talon (if any) forming part of such Coupon sheetmay be surrendered at the specified office of the Agent or any other Paying Agent in exchange for afurther Coupon sheet including (if such further Coupon sheet does not include Coupons to (andincluding) the final date for the payment of interest due in respect of the Note to which it appertains) afurther Talon, subject to the provisions of Condition 9.

14. NOTICES

All notices regarding the Notes shall be published in a leading English language daily newspaper ofgeneral circulation in London which is expected to be the Financial Times. The Issuer shall also ensure

that notices are duly published in a manner which complies with the rules and regulations of any otherstock exchange (or any other relevant authority) on which the Notes are for the time being listed or bywhich they have been admitted to listing. Any such notice will be deemed to have been given on thedate of the first publication.

Until such time as any definitive Notes are issued, there may (provided that, in the case of Notes listedon a stock exchange, such stock exchange or other relevant authority permits), so long as the globalNote(s) is or are held in its/their entirety on behalf of Euroclear and Clearstream, Luxembourg, besubstituted for such publication in such newspaper(s) the delivery of the relevant notice to Euroclearand Clearstream, Luxembourg for communication by them to the holders of the Notes and, in addition,for so long as any Notes are listed on a stock exchange or are admitted to listing by another relevantauthority and the rules of that stock exchange or relevant authority so require, such notice will bepublished in a daily newspaper of general circulation in the place or places required by those rules. Any

36

such notice shall be deemed to have been given to the holders of the Notes on the seventh day after theday on which the said notice was given to Euroclear and Clearstream, Luxembourg.

Notices to be given by any holder of the Notes shall be in writing and given by lodging the same,together with the relative Note or Notes, with the Agent. Whilst any of the Notes are represented by aglobal Note, such notice may be given by any holder of a Note to the Agent via Euroclear and/orClearstream, Luxembourg, as the case may be, in such manner as the Agent and Euroclear and orClearstream, Luxembourg, as the case may be, may approve for this purpose.

15. MEETINGS OF NOTEHOLDERS, MODIFICATION AND WAIVER

The Agency Agreement contains provisions for convening meetings of the Noteholders to consider anymatter affecting their interests, including the sanctioning by Extraordinary Resolution of a modificationof the Notes, the Receipts, the Coupons or any of the provisions of the Agency Agreement. Such ameetJLngmay be convened at any time by the Issuer or Noteholders holding not less than ten per cent.in nominal amount of the Notes for the time being remaining outstanding. The quorum at any suchmeetJ_ngforpassing an Extraordinary Resolution is one or more persons holding or representing not lessthan a clear majority in nominal amount of the Notes for the time being outstanding, or at any adjournedmeetJalg one or more persons being or representing Noteholders whatever the nominal amount of theNotes so held or represented, except that at any meeting the business of which includes the modificationof certain provisions of the Notes, Receipts or Coupons (including modifying the date of maturity ofthe Notes or any date for payment of interest thereof, reducing or cancelling the amount of principal orthe rate of interest payable in respect of the Notes or, altering the currency of payment of the Notes,Receipts or Coupons), the quorum shall be one or more persons holding or representing not less thantwo-thirds in nominal amount of the Notes for the time being outstanding, or at any adjourned suchmeeting one or more persons holding or representing a one-third in nominal amount of the Notes forthe ti:rnebeing outstanding. An Extraordinary Resolution passed at any meeting of the Noteholders shallbe bJLndingon all the Noteholders, whether or not they are present at the meeting, and on allRece:iptholders and Couponholders.

The .Agent and the Issuer may agree, without the consent of the Noteholders, Receiptholders orCouponholders, to:

(i) any modification (except as mentioned above) of the Agency Agreement which is not prejudicialto the interests of the Noteholders; or

(ii) any modification of the Notes, the Receipts, the Coupons or the Agency Agreement which is ofa formal, minor or technical nature or is made to correct a manifest or proven error or to complywith mandatory provisions of the law of the jurisdiction in which the Issuer is incorporated.

Any such modification shall be binding on the Noteholders, the Receiptholders and the Couponholdersand any such modification shall be notified to the Noteholders in accordance with Condition 14 as soonas practicable thereafter.

16. FURTHER ISSUES

The Issuer shall be at liberty from time to time without the consent of the Noteholders, Receiptholdersor Couponholders to create and issue further notes having terms and conditions the same as the Notesor the same in all respects save for the amount and date of the first payment of interest thereon and sothat the same shall be consolidated and form a single Series with the outstanding Notes.

17. THIRD PARTY RIGHTS

This Note confers no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any termof the Notes, but this does not affect any right or remedy of a third party which exists or is availableapart from that Act.

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18. GOVERNING LAW AND SUBMISSION TO JURISDICTION

The Agency Agreement, the Deed of Covenant, the Notes, the Receipts and the Coupons are governedby, and shall be construed in accordance with, English law.

The Issuer agrees, for the benefit of the Noteholders, the Receiptholders and the Couponholders, thatthe courts of England are to have jurisdiction to settle any disputes which may arise out of or inconnection with the Notes, the Receipts and/or the Coupons and that accordingly any suit, action orproceedings (together referred to as "Proceedings") arising out of or in connection with the Notes, theReceipts and the Coupons may be brought in such courts.

The Issuer hereby irrevocably waive any objection which it may have now or hereafter to the laying ofthe venue of any such Proceedings in any such courtand any claim that any such Proceedings have beenbrought in an inconvenient forum and hereby further irrevocably agrees that a judgment in any suchProceedings brought in the English courts shall be conclusive and binding upon it and may be enforcedin the courts of any other jurisdiction.

Nothing contained in this Condition shall limit any right to take Proceedings against the Issuer in anyother court of competent jurisdiction, nor shall the taking of Proceedings in one or more jurisdictionspreclude the taking of Proceedings in any other jurisdiction, whether concurrently or not, if and to theextent permitted by applicable law.

The Issuer appoints Ericsson (Holdings) Ltd. at its registered office at Telecommunications Centre,Ericsson Way, Burgess Hill, West Sussex RHI5 9UB as its agent for service of process, and undertakesthat, in the event of Ericsson (Holdings) Ltd. ceasing so to act or ceasing to have a registered office inEngland, it will appoint another person as its agent for service of process in England in respect of anyProceedings.

Nothing herein shall affect the right to serve proceedings in any other manner permitted by law.

The Issuer has in the Agency Agreement and the Deed of Covenant submitted to the jurisdiction of theEnglish courts and appointed an agent for service of process in terms substantially similar to those setout above.

USE OF PROCEEDS

The net proceeds from each issue of Notes will be used for general corporate purposes.

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CAPITALISATION AND INDEBTEDNESS OF THE ERICSSON GROUP

The fiallowing table sets forth the total consolidated capitalisation and indebtedness of Ericsson and itssubsidiaries (the "Ericsson Group") as at 31st December, 2003 and as at 31st March, 2004 and has been

compiled from the audited consolidated financial statements of the Ericsson Group as at 31 st December,2003 and the unaudited consolidated management accounts of the Ericsson Group as at 31st March,

2004 respectively:

31st 31st

December, March,2003 2004

(SEK (SEKmillion) <'> million) <'>

Long-term debt _2_Notesandbondloans 26,312 27,084Convertibledebentures 0 0Pensionand similarcommitments 8,005 10,093

Other long-term interest bearing liabilities and liabilities to financialinstitutions including current maturities of long-term debt) 7,951 6,749

Less current maturities of long-term debt _2> .. (7,262) (6,162)Total long-term debt °×*_.. 35,006 37,764

Minorityinterests.............. 2,299 2,447Stockholders' equity:

Capital stock <_×6>........ 16,132 16,132Reserves not available for distribution ...... 40,298 _<7>Retained earnings ................ 4,051 __7>Totalstockholders'equity .............. 60,481 63,371

Total capitalisation and long-term indebtedness ...... 97,786 103,582

Notes:

(1) This capitalisation table has been derived from the audited consolidated financial statements as at 31st December, 2003 and theanaudited consolidated management accounts as at 31 st March, 2004.

(2) Short-term borrowings, excluding current maturities of long-term debt, at 31st December, 2003 amounted to SEK 2,247 million, ofwhich SEK 608 million was secured and none was guaranteed. At 31st March, 2004, short-term borrowings, excluding currentmaturities of long-term debt, amounted to SEK 1,940 million of which SEK 233 million was secured and none was guaranteed. Currentmaturities of long-term debt related to financial leases amounted to SEK 19 million and SEK 71 million at 31st December, 2003 andat 31st March, 2004 respectively.

(3) No material new long-term debt has been incurred since 31st March, 2004. Long-term financial leases included in long-term debt wasSEK 1,694 million at 31 st December 2003 and SEK 1,693 million at 31st March, 2004. None of the total long-term debt of the EricssonGroup outstanding as at 31st December, 2003 and as at 31st March, 2004 was guaranteed or secured except for SEK 6,548 million andSEK 6,706 million, respectively which was guaranteed in relation to pension liabilities and SEK 5,950 million and SEK 6,086 million,respectively, which was secured in relation to pension liabilities.

(4) Ericsson had unused long-term committed credit facilities amounting to US$1,600 million at 31st December, 2003 and at 31st March,2004 respectively. Of the total unused long-term committed credit facilities US$600 million are subject to conditions linked to the creditrating of Ericsson.

(5) Ericsson's issued share capital at 31st December, 2003 and at 31st March, 2004 consisted of the following fully paid shams:Number of Number of

shares issued shares issued

31st December, 2005 31st March, 2004

A shares (par value SEK 1.00) .......................... 656,218,640 656,218,640

B shares (par value SEK 1.00) ............................. 15,476,040,038 15,476,040,038

16,132,258,678 16,132,258,678

(6) The capital stock of Ericsson is divided into two classes: Class A shares (par value SEK 1.00) and Class B shares (par value SEK 1.00).Both classes have the same rights of participation in the net assets and earnings of the company. Class A shares, however, are entitledto one vote per share whilst Class B shares are entitled to 1/l,000th of one vote per share. There is no concept of authorised capitalunder Swedish law.

(7) Division between reserves not available for distribution and retained earnings are only available as at year end.(8) Contingent liabilities, including guarantees of the Ericsson Group as at 31 st December, 2003 amounted to SEK 2,691 million, of which

SEK 204 million was related to loan guarantees for external parties. At 31st March, 2004, contingent liabilities, including guaranteesof the Ericsson Group, amounted to SEK 2,174 million, of which SEK 118 million was related to loan guarantees for external parties.

(9) At 31st December, 2003 and 31st March, 2004 assets pledged as collateral by the Ericsson Group totaled SEK 8,023 million and SEK8,062 million respectively.

(10) On 6th April, 2004 the Annual General Meeting decided that no dividend was to be paid in respect of the year ended 31st December 2003.(11) With effect from 2004, Ericsson has adopted Swedish accounting principles, RR29 Employee benefits, in its financial reporting. The

effect of this accounting change has been reported as increased pension provisions of SEK 1.8 billion and decreased equity, net aftertaxes, by SEK 1.3 billion.

(12) There has been no material change in the capitalisation, indebtedness and contingent liabilities, including guarantees, of the EricssonGroup since 31st March, 2004.

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DESCRIPTION OF THE ISSUER

The Issuer is a limited liability company under the Swedish Companies Act, formed in 1918 through amerger between AB L M Ericsson & Co and Stockholms Allm_xma Telefon AB. The origins of theIssuer date back to a manufacturingbusiness for communications equipment founded in Stockholm in1876.

The Issuer is a leading international supplier in telecommunications, providing advanced systems andproducts for fixed and mobile networks to public and private operators. Its broad range oftelecommunications products includes systems and services for handling voice, data, images and textin public and private fixed and mobile telecommunications networks, and telecommunications andpower cable.

With its strong international presence, the Issuer has an extensive knowledge of market conditions inall parts of the world. Based on this knowledge and on the Group's high technical expertise, the Issueris developing telecommunications solutions for customers in more than 140 countries.

The Issuer's operations are grouped into three Segments - Systems, Phones and Other Operations, andthree Market Areas - Europe, Middle East & Africa, Americas and Asia Pacific. These Segmentsproduce and supply products and services to public and private telecommunications operators, and othercustomers (for example enterprise and defense customers), while the role of the Market Areas is toprovide marketing and support services to customers in each of their respective regions. The Issuer'sbusiness strategy aims to strengthen its leading role in mobile internet solutions and continue as a toptier vendor for carrier-class multiservice networks based on Interact Protocol ("IP").

The Issuer is the parent company of a group comprising of approximately 300 wholly ownedsubsidiaries and a number of associated companies worldwide.

On 23rd April, 2004, the Ericsson Group published its first quarter report for 2004. During the firstquarter 2004, net sales for comparable units were up 9 per cent. compared to the first quarter 2003. Forthe three months ended 31 st March, 2004, orders were SEK 33.0 billion compared to SEK 27.1 billionfor the first three months of 2003. Net sales for the three months ended 31 st March, 2004, were SEK28.1 billion compared to SEK 25.9 billion for the first three months of 2003. The income after financialitems for the first quarter amounted to SEK 4.3 billion. The operating margin for the first quarter 2004was 16.1 per cent. compared to -10.8 per cent. (excluding restructuring charges) for the first quarter2003. Net income amounted to SEK 3.0 billion for the first three months of 2004 compared to SEK -4.3billion for the first three months of 2003. The cash flow before financing was SEK 2.9 billion for thethree month ended 31st March, 2004, compared to SEK 0.7 billion for the first three months of 2003.For the twelve month period ended 31st December, 2003 cash flow before financing was SEK 19.5billion. The positive development during the first quarter was mainly related to improved earnings,which compensated for increased work in progress as a result of higher business activities.

Stockholders' equity was SEK 63.4 billion as of 31 st March, 2004 compared to SEK 60.5 billion as of31st December, 2003. Ericsson's total fixed assets decreased during the first three months of 2004 toSEK 51.5 billion from SEK 52.6 billion at year end 2003. Total current assets increased during the firstthree months of 2004 to SEK 136.6 billion from SEK 129.8 billion at year end 2003.

Gross customer financing exposure decreased sequentially by SEK 1.0 billion to SEK 11.2 billion. Netcustomer financing credits on balance were reduced sequentially by SEK 0.1 billion to SEK 3.9 billion,compared to SEK 13.6 billion in the first quarter 2003. Un-utilised financing commitments availablefor customers were reduced to SEK 3.7 billion during the first quarter 2004 from SEK 6.1 billion at theyear end 2003. Ericsson's commitments are conditional upon the customers meeting future operationalor financial criteria. In some cases, incremental commitments become available to the customers as theysign additional contracts with Ericsson.

In the period 2001-2003, Ericsson carried out two major restructuring programs. The restructuringprograms were substantially completed by the end of 2003. Cash outlays of SEK 5 billion, with regardsto these programs, are expected during 2004, of this SEK 2.1 billion was paid in the first quarter 2004.

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As per the date of the first quarter report, the long-term ratings of Ericsson from Moody's and Standardand Poor's were B 1 and BB respectively, whereas the short-term ratings were NP (not prime) and B,respectively. The latest downgrades occurred on 17th February, 2003, and 7th November, 2002respectively, where both agencies also removed Ericsson's long term debt from their respective reviewfor possible downgrade and assigned negative outlook. Moody's assigned Ericsson stable outlook on16th March, 2004. Notes issued under the Programme may be rated or unrated. Where an issue of Notesis rated, such rating will not necessarily be the same as the rating assigned to the Programme. A securityrating is not a recommendation to buy, sell or hold securities and may be subject to suspension,reduction or withdrawal at any time by the assigning rating agency.

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MANAGEMENT OF ERICSSON

The Board of Directors of Ericsson is required to consist of not less than five and not more than twelveDirectors with not more than six Deputy Directors elected each year by the shareholders at theEricsson's Annual Meeting. The Board of Directors of Ericsson at the date of this document is as set outbelow.

Members:

Michael Treschow, Chairman of the Board of Directors. Chairman of the RemunerationChairman (since 2002) Committee and member of the Finance Committee. Member of the

Board of Directors of Electrolux, ABB and B-Business Partners and

Deputy Chairman of the Confederation of Swedish Enterprise.

Arne Mhrtensson, Econ. Dr h.c. Deputy Chairman of the Board of Directors andDirector (since 2003) member of the Finance Committee. Chairman of the Board of

Directors of Handelsbanken. Member of the Board of Directors of

Holmen, Industriv_irden, Sandvik, Skanska and Vin & Sprit.Chairman of Stockholm School of Economics Advisory Board.

Member of the Swedish Industry and Commerce Stock ExchangeCommittee and the International Business Council of the WorldEconomic Forum.

Marcus Wallenberg, Deputy Chairman of the Board of Directors. Chairman of theDirector (since 1996) Finance Committee. Deputy Chairman of Saab and SEB. Member

of the Board of Directors of, among others, AstraZeneca, Investor,Scania, Stora Enso and the Foundation of Knut and Alice

Wallenberg.

Sir Peter L. Bonfield, CBE Member of the Audit Committee. Member of the Board of DirectorsDirector (since 2002) of AstraZeneca, Mentor Graphics and T.S.M.C. Vice President of

the British Quality Foundation. Member of the InternationalAdvisory Group of Citigroup.

Lena Toreil, Member of the Remuneration Committee. Doctor of physics.Director (since 2002) Professor. President of the Royal Swedish Academy of Sciences.

Member of the Board of Directors of Imego, Universum and theEuropean Council of Applied Sciences and Engineering.

Sverker Martin-L6f, Chairman of the Audit Committee. Chairman of the Board ofDirector (since 1993) Directors of, SCA, SSAB and Skanska. Member of the Board of

Directors of Boliden, Handelsbanken, Industriv_irden and the

Confederation of Swedish Enterprise.

Eckhard Pfeiffer, Member of the Audit Committee. Chairman of the Board of

Director (since 2000) Directors of Intershop Communications. Member of the Board ofDirectors of General Motors, IFCO Systems and Syntek Capital.Member of the Advisory Board of Deutsche Bank.

Nancy McKinstry, Member of the Remuneration Committee. President and Chairman

Director (since 2004) of the Executive Board of Wolters Kluwer. Member of the AdvisoryBoard of the University of Rhode Island.

CarI-Henric Svanberg, President and CEO of Ericsson. Member of the Board of DirectorsDirector (since 2003) of Assa Abloy and Hexagon.

Torbj6rn Nyman, Member of the Finance Committee. Employee representative.Director (since 2004)

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Jan Hedlund, Member of the Audit Committee. Employee representative.Director (since 1994)

Per Lindh, Member of the Remuneration Committee. Employee representative.Director (since 1995)

Dep_'ty Members:

Monica Bergstr6m,Deputy Director (since 1998) Employee representative.

Anna Guldstrand,Deputy Director (since 2004) Employee representative.

Arne L/irving,Deputy Director (since 2003) Employee representative.

The business address of each member of the Board of Directors is Telefonplan, S-164 83 Stockholm,Sweden.

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SUBSCRIPTION AND SALE

The Dealers have in an amended and restated programme agreement dated 7th May, 2004 (as furtheramended and/or supplemented and/or restated from time to time, the "Programme Agreement") agreedwith the Issuers a basis upon which they or any of them may from time to time agree to purchase Notes.In the Programme Agreement, the Issuer has agreed to reimburse the Dealers for certain of theirexpenses in connection with the establishment and any update of the Programme and the issue of Notesunder the Programme.

United States

The Notes have not been and will not be registered under the Securities Act and may not be offered orsold within the United States or to, or for the account or benefit of, U.S. persons except in certaintransactions exempt from the registration requirements of the Securities Act.

Each Dealer has represented and agreed and each further Dealer appointed under the Programme willbe required to represent and agree that, except as permittedby the Programme Agreement, it will notoffer, sell or deliver Notes (i) as part of their distribution at any time and (ii) otherwise until 40 daysafter the completion of the distribution of all Notes of the Tranche of which such Notes are a partwithinthe United States or to, or for the account or benefit of, U.S. persons and it will have sent to each dealerto which it sells Notes duringthe distribution compliance period a confu_mationor other notice settingforth the restrictions on offers and sales of the Notes within the United States or to, or for the accountor benefit of, U.S. persons. Terms used in the preceding paragraph and in this paragraph have themeanings given to them by Regulation S under the Securities Act.

In addition, until 40 days after the completion of the distribution of all Notes of the Tranche of whichsuch Notes are a part,an offer or sale of Notes within the United States by any dealer (whether or notparticipating in the offering) may violate the registrationrequirements of the Securities Act.

The Notes are subject to U.S. tax law requirements andmay not be offered, sold or delivered within theUnited States or its possessions or to a United States person, except in certain transactions permitted byU.S. tax regulations. Terms used in this paragraph have the meanings given to them by the U.S. InternalRevenue Code and regulations thereunder.

Each issue of Index linked Notes and Dual Currency Notes shall be subject to such additional U.S.selling restrictions as the Issuer and the relevant Dealer or Dealers shall agree as a term of the issue andpurchase of such Notes, which additional selling restrictions shall be set out in the applicable PricingSupplement. Each relevant Dealer will be required to agree that it will offer, sell or deliver such Notesonly in compliance with such additional U.S. selling restrictions.

United Kingdom

Each Dealer has represented and agreed and each further Dealer appointed under the Programme willbe required to represent and agree that:

(i) in relation to Notes which have a maturity of one year or more and which are to be admitted tothe Official List, it has not offered or sold and will not offer or sell any Notes to persons in theUnited Kingdom prior to admission of such Notes to listing in accordance with Part VI of theFinancial Services and Markets Act 2000 (the "FSMA") except to persons whose ordinaryactivities involve them in acquiring, holding, managing or disposing of investments (as principalor agent) for the purposes of their businesses or otherwise in circumstances which have notresulted and will not result in an offer to the public in the United Kingdom within the meaningof the Public Offers of Securities Regulations 1995 or the FSMA;

(ii) in relation to Notes which have a maturity of one year or more and which are not to be admittedto the Official List, it has not offered or sold and, prior to the expiry of the period of six monthsfrom the issue date of such Notes, will not offer or sell any such Notes to persons in the UnitedKingdom except to persons whose ordinary activities involve them in acquiring, holding,managing or disposing of investments (as principal or agent) for the purposes of their businesses

44

or otherwise in circumstances which have not resulted and will not result in an offer to the publicin the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995;

(iii) in relation to any Notes which have a maturity of less than one year, (i) it is a person whoseordinary activities involve it in acquiring, holding, managing or disposing of investments (asprincipal or agent) for the purposes of its business and (ii) it has not offered or sold and will notoffer or sell any Notes other than to persons whose ordinary activities involve them in acquiring,holding, managing or disposing of investments (as principal or as agent) for the purposes of theirbusinesses or who it is reasonable to expect will acquire, hold, manage or dispose of investments(as principal or agent) for the purposes of their businesses where the issue of the Notes wouldotherwise constitute a contravention of Section 19 of the FSMA by the Issuer;

(iv) it has only communicated or caused to be communicated and will only communicate or cause tobe communicated any invitation or inducement to engage in investment activity (within themeaning of Section 21 of the FSMA) received by it in connection with the issue or sale of anyNotes in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer; and

(v) it has complied and will comply with all applicable provisions of the FSMA with respect toanything done by it in relation to any Notes in, from or otherwise involving the United Kingdom.

Japan

The Notes have not been and will not be registered under the Securities and Exchange Law of Japan(the "Securities and Exchange Law") and each Dealer has agreed and each further Dealer appointedunder the Programme will be required to agree that it will not offer or sell any Notes, directly orindirectly, in Japan or to, or for the benefit of, any resident of Japan (which term as used herein meansany person resident in Japan, including any corporation or other entity organised under the laws ofJaparL), or to others for re-offering or resale, directly or indirectly, in Japan or to a resident of Japanexcept pursuant to an exemption from the registration requirements of, and otherwise in compliancewith, the Securities and Exchange Law and any other applicable laws, regulations and ministerialguide lines of Japan.

The Netherlands

Each Dealer has represented and agreed and each further Dealer appointed under the Programme willbe required to represent and agree that it has not, directly or indirectly, offered or sold and will not,directly or indirectly, offer or sell in the Netherlands any Notes with a denomination of less than(_50,000 (or its foreign currency equivalent) other than to persons who tradeor invest in securities inthe conduct of a profession or business (which include banks, stockbrokers, insurance companies,pension funds, other institutional investors and finance companies and treasury departments of largeenterprises) unless one of the other exemptions from or exceptions to the prohibition contained in article3 of the Dutch Securities Transactions Supervision Act 1995 (Wet toezicht effectenverkeer 1995) isapplicable and the conditions attached to such exemption or exception are complied with.

Italy

The offering of the Notes has not been cleared by CONSOB (the Italian Securities ExchangeCommission) pursuant to Italian securities legislation and, accordingly, each of the Dealers hasrepre:_entedand agreed and each further Dealer will be requiredto represent and agree, that it will notoffer, sell or deliver any Notes or distribute copies of this Offering Circular or any other documentrelating to the Notes in the Republic of Italy, except:

(i) to professional investors ("operatori qualificati"), as defined in Article 31, second paragraph, ofCONSOB Regulation No. 11522 of 1st July, 1998, as amended; or

(ii) in circumstances which are exempted from the rules on solicitation of investments pursuant toArticle 100 of Legislative Decree No. 58 of 24th February, 1998 (the "Financial Services Act"')and Article 33, first paragraph, of CONSOB Regulation No. 11971 of 14th May, 1999, asamended.

45

Each of the Dealers has represented and agreed and each further Dealer will be required to representand agree, that any offer, sale or delivery of the Notes or distribution of copies of the Offering Circularor any other document relating to the Notes in the Republic of Italy under (i) or (ii) above must be:

(a) made by an inveslment firm, bank or financial intermediary permitted to conduct such activitiesin the Republic of Italy in accordance with the Financial Services Act and Legislative Decree No.385 of 1st September, 1993 (the "Banking Act"), as amended; and

(b) in compliance with Article 129 of the Banking Act and the implementing guidelines of the Bankof Italy pursuant to which the issue or the offer of securities in the Republic of Italy may need tobe preceded and followed by an appropriate notice to be filed with the Bank of Italy depending,inter alia, on the aggregate value of the securities issued or offered in the Republic of Italy andtheir characteristics; and

(c) in accordance with any other applicable laws and regulations.

Sweden

Each Dealer has represented and agreed and each further Dealer appointed to the Programme will berequired to represent and agree that it will not, directly or indirectly, offer for subscription or purchaseor issue invitations to subscribe for or buy or sell Notes or distribute any draft or definitive documentin relation to any such offer, invitation or sale in the Kingdom of Sweden except in compliance with thelaws of the Kingdom of Sweden.

General

Each Dealer has agreed and each further Dealer appointed under the Programme will be required toagree that it will, to the best of its knowledge and belief, comply with all applicable securities laws andregulations in force in any jurisdiction in which it purchases, offers, sells or delivers Notes or possessesor distributes this Offering Circular and will obtain any consent, approval or permission required by itfor the purchase, offer, sale or delivery by it of Notes under the laws and regulations in force in anyjurisdiction to which it is subject or in which it makes such purchases, offers, sales or deliveries andneither the Issuer nor any other Dealer shall have any responsibility therefor.

Neither the Issuer nor any of the Dealers represents that Notes may at any time lawfully be sold incompliance with any applicable registration or other requirements in any jurisdiction, or pursuant to anyexemption available thereunder, or assumes any responsibility for facilitating such sale.

With regard to each Tranche, the relevant Dealer will be required to comply with such other additionalrestrictions as the Issuer and the relevant Dealer shall agree and as shall be set out in the applicablePricing Supplement.

46

GENERAL INFORMATION

Authorisation

The establishment of the Programme was duly authorised by a resolution of the Board of Directors of

the Issuer dated 15th August, 1996. The current update of the Programme was duly authorised by anauthorisation certificate of the Chief Financial Officer of the Issuer dated 22nd April, 2004

At the date hereof the power to issue Notes under the Programme has been delegated by the Issuer tothe Chief Financial Officer of the Issuer. Such delegation instructions may be amended or revoked atany time. Each issue of Notes must be authorised pursuant to such delegated authority.

Notes admitted to the Official List and traded on the London Stock Exchange

Note:; admitted to the Official List and traded on the London Stock Exchange will be expressed as apercentage of their nominal amount (excluding accrued interest). It is expected that each Tranche of

Notes which is to be admitted to the Official List and traded on the London Stock Exchange will beadmRted separately as and when issued, subject only to the issue of a temporary or permanent globalNote initially representing the Notes of such Tranche. The renewed listing of the Programme in respectof Notes is expected to be granted on or around 11th May, 2004. Convertible Notes issued under the

Programme will not be admitted to the Official List or traded on the London Stock Exchange.

Documents Available

So long as Notes are capable of being issued under the Programme, copies of the following documentswill, when published, be available from the registered office of the Issuer and from the specified officeof the Agent in London:

(i) the constitutional documents (with an English translation thereof) of the Issuer;

(ii) the consolidated audited financial statements of the Issuer in respect of the financial years ended31st December, 2002 and 2003 (with an English translation thereof);

(iii) the most recently published consolidated audited annual financial statements of the Issuer and the

most recently published consolidated interim financial statements (if any) of the Issuer (with anEnglish translation thereof);

(iv) the Programme Agreement, the Agency Agreement, the forms of the Temporary Global Notes, thePermanent Global Notes, the Definitive Notes, the Receipts, the Coupons, the Talons and theDeeds of Covenant;

(v) a copy of this Offering Circular;

(vi) any future offering circulars, prospectuses, information memoranda and supplements (includingPricing Supplements, save that a Pricing Supplement relating to an unlisted Note will only beavailable for inspection by a holder of such Note and such holder must produce evidencesatisfactory to the Paying Agent as to the identity of such holder) to this Offering Circular andany other documents incorporated herein or therein by reference; and

(vii) in the case of each issue of listed Notes subscribed pursuant to a subscription agreement, thesubscription agreement (or equivalent document).

Clearing Systems

The Notes have been accepted for clearance through Euroclear and Clearstream, Luxembourg. Theappropriate Common Code and ISIN for each Tranche of Notes allocated by Euroclear and Clearstream,

Luxembourg will be specified in the applicable Pricing Supplement. If the Notes are to clear throughan additional or alternative clearing system the appropriate information will be specified in theapplicable Pricing Supplement.

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Significant or Material Change

Save as disclosed in this Offering Circular, there has been no significant change in the financial ortrading position of the Ericsson Group since 31st March, 2004. Save as disclosed in this OfferingCircular, there has been no material adverse change in the financial position or prospects of the EricssonGroup since 31st December, 2003.

Litigation

There are no, nor have there been any, legal or arbitration proceedings (including any proceedingswhich are pending or threatened of which the Issuer is aware) which may have or have had in the past12 months a significant effect on the financial position of the Ericsson Group.

Auditors

The auditors of the Issuer are Jeanette Skoglund and Bo Hjalmarsson, Authorised Public Accountants,PricewaterhouseCoopers and Thomas Thiel, Authorised Public Accountant KPMG, who have togetheraudited the accounts of the Issuer without qualification, in accordance with generally accepted auditingstandards in the Kingdom of Sweden for the year ending 31st December, 2003. Previously, the auditorsof the Issuer were Carl-Eric Bohlin and Olar Herolf, Authorised Public Accountants,PricewaterhouseCoopers and Thomas Thiel, Authorised Public Accountant KPMG, who have togetheraudited the accounts of the Issuer, without qualification, in accordance with generally accepted auditingstandards in the Kingdom of Sweden for each of the years ending 31st December, 2001 and 31stDecember, 2002 respectively.

Proposed EU Directive on the Taxation of Savings Income

On 3rd June, 2003, the European Council of Economics and Finance Ministers adopted a Directive onthe taxation of savings income under which Member States will be required if a number of importantconditions are met and from a date not earlier than 1st January, 2005, to provide to the tax authoritiesof another Member State details of payments of interest (or similar income) paid by a person within itsjurisdiction to an individual resident in that other Member State, except that, for a transitional period,Belgium, Luxembourg and Austria will instead be required (unless during that period they electotherwise) to operate a withholding system in relation to such payments (the ending of such transitionalperiod being dependent upon the conclusion of certain other agreements relating to informationexchange with certain other countries).

48

THE ISSUER

Telefonaktiebolaget LM Ericsson (publ)S-164 83 Stockholm

DEALERS

ABNAMRO Bank N.V. Citigroup Global Markets Limited250 Bishopsgate Citigroup Centre

LondonEC2M4AA CanadaSquareCanary Wharf

London El4 5LB

Deutsche Bank AG London HSBC Bank plcWinchesterHouse Level3

1GreatWinchesterStreet 8 CanadaSquareLondonEC2N2DB LondonEl4 5HQ

J.P. Morgan Securities Ltd. Skandinaviska Enskilda Banken AB (publ)125LondonWall 2 CannonStreet

LondonEC2Y5AJ LondonEC4M6XX

AGENT

JPMorgan Chase BankTrinity Tower

7 Thomas More StreetLondon E1W IYT

PAYING AGENT

J.P. Morgan Bank Luxembourg S.A.5 Rue Plaetis

L-2338 Luxembourg

LEGAL ADVISERS

To the Issuer as to Swedish law

Wistrand Advokatbyr_ Stockholm KBWorld Trade Center

Klarabergsviadukten 70Box 70393

SE-107 24 StockholmSweden

To the Dealers as to English law

Allen & Overy LLPOne New Change

London EC4M 9QQ

AUDITORS

Jeanette Skoglund Bo Hjalmarsson Thomas ThielPricewaterhouseCoopers PricewaterhouseCoopers KPMG Bohlins AB

Box 1702 Box 1702 Box 16106S- 11187 Stockholm S- 111 87 Stockholm S-10323 Stockholm

AUTHORISED ADVISER

ABN AMRO Bank N.V.250 Bishopsgate

London EC2M 4AA

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