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Sony Ericsson Mobile Communications
Q4 FY2004 Earnings Release

January 18, 2005
Sony Corporation
ERICSSON

Sony Ericsson reports sustained growth in sales and profits

Tokyo and Stockholm -- Sony and Ericsson today announced the consolidated financial summary for the fourth quarter and fiscal year ended December 31, 2004 of Sony Ericsson Mobile Communications AB (Sony Ericsson), the 50:50 joint venture of Sony and Ericsson.
Q4 2003
Q3 2004
Q4 2004
2003
2004
Numbers of units shipped
(million)
8.0 10.7 12.6 27.2 42.3
Sales (EURO m.) 1437 1678 2005 4673 6525
Income before taxes
(EURO m.)
46 136 140 -130 486
Net income (EURO m.) 43 90 55 -86 316
* Q3 & Q4 2004 IBT includes consolidation of BMC1 and Net Income includes deduction of minority interest in BMC
** Q4 2004 Net Income includes a negative effect of a valuation allowance on deferred tax assets of Euro 45 million

Units shipped in the quarter reached 12.6 million, a 56% increase compared to the same period last year. Sales for the quarter were Euro 2,005 million, representing a year-on-year increase of 40%. Income before taxes was Euro 140 million and net income was Euro 55 million, which represent year-on-year improvements of Euro 94 million (204%) and Euro 12 million (28%) respectively.

The company experienced a strong quarter led by consumer demand for the V800 series and Z1010 3G UMTS phones, as well as GSM models like the S700, K700 and K500 series. During the quarter Sony Ericsson increased investment in brand and product development, while the Average Selling Price (ASP), one of the highest in the industry, increased sequentially to Euro 160.

"2004 was a good year for Sony Ericsson as the company established profitability and entered into a growth phase in its development," said Miles Flint, President of Sony Ericsson. "The fourth quarter continued a trend of expansion in both volume and sales, showing the company's ability to effectively compete in this dynamic market. Strong growth in Q4 was led by good up-take of our latest 3G UMTS phone which has laid the groundwork for future expansion of our 3G portfolio."

During the fourth quarter, Sony Ericsson launched a new entry-level GSM product, the J200, for the Asia Pacific and Chinese markets, and introduced the Vodafone V800 and V802SE UMTS phones for the global and Japanese markets. The company also announced the entry-level T290 which will start shipping globally during Q1 and signed an agreement with Sharp Corporation in relation to the co-development of 3G FOMA® base software for NTT DoCoMo2 in Japan. In addition, Sony Ericsson announced a major global sports sponsorship with the WTA (Women's Tennis Association) Tour at the beginning of January 2005.


1. On June 30 2004, 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 from the second quarter 2004 which had a positive effect on the company results. The name of the factory has been changed to Beijing SE Putian Mobile Communications Co. Ltd. (BMC).

2. FOMA is a registered trademark of NTT DoCoMo, Inc. in Japan and other countries. NTT DoCoMo's FOMA service is only available to subscribers in Japan.
Note:
Sony Ericsson Mobile Communications 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.sonymobile.co.jp

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CONTACTS:

Investors/Analysts

Ericsson Investor Relations
Gary Pinkham, Vice President +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 +46 8 719 2864

Sony Corporate Communications
Koji Kurata (Tokyo) +81 3 5448 2200

Sony Ericsson Corporate Communications
Aldo Liguori, Corporate Vice President (London) +44 208 762 5860
Merran Wrigley, Manager (London) +44 208 762 5862
Peter Bodor, Manager, (Sweden) +46 702 484372

Previous Sony Ericsson Mobile Communications earnings releases can be found within our IR Library.

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