Sony Ericsson reports continued growth in shipments, sales and profits

Sony Ericsson's Average Selling Price (ASP) decreased sequentially in line with expectation due to an increase in GSM phones in the overall product mix. The company maintained momentum from the previous quarter, and continued to grow while sustaining a consistent level of profitability. Sony Ericsson is revising its global market outlook for 2004 to approximately 600 million units from its previously stated level of over 550 million.

"Sony Ericsson is pleased to report a fourth consecutive quarter of profit. These results reflect continued strong demand for our style-oriented line-up of imaging and multi-media phones. The company has established a solid basis for sustained growth going forward. In addition to reporting successively improving profitability, we have maintained momentum in an increasingly competitive market environment. We are confident that as we continue to enhance our portfolio with exciting and innovative products, the Sony Ericsson brand will become ever stronger", said Miles Flint, President of Sony Ericsson.

During the end of the second quarter a number of new products started shipping to network operators and retailers including Sony Ericsson's first UMTS 3G phone, the Z1010, which has now been launched by over a dozen network operators.  The K700, a high-end multi-media phone for GSM markets, and the 'premini', a very small and stylish PDC phone for NTT DoCoMo in Japan, have also started shipping during the quarter.

Q2 2003   Q1 2004   Q2 2004

Numbers of units shipped (million)
6.7             8.8         10.4
Sales (EURO m.)
1125         1338        1504
Income before taxes (EURO m.)
-102             97         113
Net income (EURO m.)
-88             82           89

* Q2 2003 IBT includes restructuring charges of Euro 58m
** Q2 2004 IBT includes consolidation of BMC and Net Income includes deduction of minority interest in BMC

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Note:
On June 30, Sony Ericsson announced it had increased its equity stake in a Chinese factory, Beijing Ericsson Putian Mobile Communications Co. Ltd. (BMC), to 51%, taking over majority ownership of the facility from Ericsson.  BMC operations have been fully consolidated into Sony Ericsson in the second quarter which had a positive effect on the company's results.  The name of the factory has been changed to Beijing SE Putian Mobile Communications Co. Ltd. (BMC).

Sony Ericsson Mobile Communications AB serves the global communications market with innovative and feature-rich mobile phones, accessories, PC-cards and M2M solutions. Established as a joint venture by Ericsson and Sony in 2001, with headquarters in London, the company employs approximately 5,000 people worldwide, including R&D sites in Europe, Japan, China and America. For more information, please visit www.SonyEricsson.com

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CONTACTS:

Investors/Analysts
Ericsson Investor Relations
Gary Pinkham, Vice President (Sweden) +46 8 719 0000

Sony Investor Relations
Yukio Ozawa, Vice President (Tokyo) +81 3 5448 2180 Chris Hohman, Senior Manager (London) +44 20 7444 9711

Press/Media
Ericsson External Relations
Pia Gideon, Vice President (Sweden) +46 8 719 2864

Sony Corporate Communications
Gerald Cavanagh, (Tokyo) +81 3 5448 2200 Keita Sanekata, (Tokyo) +81 3 5448 2200

Sony Ericsson Corporate Communications
Aldo Liguori, Corporate Vice President (London) +44 208 762 5860 Peter Bodor, Manager, (London) +44 208 762 5863 Merran Wrigley, Manager (London) +44 208 762 5862

This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For a detailed description of risk factors see Sony's and Ericsson's filings with the US Securities and Exchange Commission, particularly each company's latest published Annual Report on Form 20-F.