PRESS RELEASE

January 19, 2012

Sony Ericsson reports fourth quarter and full year 2011 results
Q4 loss reflects intense competition, price erosion and restructuring charges TM 65% year-on-year increase in Android-based Xperia smartphone quarterly sales 28 million Xperia smartphones shipped to date

The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the fourth quarter and full year ended December 31, 2011 is as follows*:
Q4 2010 Number of units shipped (million) 11.2 Average selling price (Euro) 136 Sales (Euro m.) 1,528 Gross margin (%) 30% Operating income (Euro m.) 39 Operating margin (%) 3% Restructuring charges (Euro m.) -3 Operating income excl. restructuring charges (Euro m.) 43 Operating margin excl. restructuring charges (%) 3% Income before taxes (IBT) (Euro m.) 35 IBT excl. restructuring charges (Euro m.) 39 Net income (Euro m.) 8 Q3 2011 9.5 166 1,586 27% 38 2% 38 2% 31 31 0 Q4 2011 9.0 143 1,288 24% -227 -18% -93 -134 -10% -247 -154 -207 FY 2010 43.1 146 6,294 29% 159 3% -42 202 3% 147 189 90 FY 2011 34.4 152 5,212 28% -206 -4% -93 -113 -2% -243 -150 -247

*All amounts are according to Swedish GAAP. Bert Nordberg, President and CEO of Sony Ericsson commented: Our fourth quarter results reflected intense competition, unfavorable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter. We are aligning our business to drive profitability and to meet customer needs. In spite of these challenges, throughout 2011 weve shifted our business from feature phones to smartphones, and our Android-based smartphone sales in the quarter increased by 65% year-on-year. The Xperia portfolio, including the recently announced Xperia NXT series, will serve as a cornerstone of our smartphone lineup in 2012. Units shipped during the quarter were 9 million, a 20% decrease year-on-year and a 5% decrease compared to last quarter. The year-on-year and sequential declines reflect a significantly lower number of feature phones shipped, partially offset by an increase in smartphone shipments. Sony Ericsson has shipped 28 million Xperia smartphones to date. Average selling price (ASP) for the quarter was Euro 143, up 5% year-on-year but down 14% sequentially. The year-on-year increase is due to the shift to smartphones and geographic mix. The sequential decrease in ASP is attributed to geographic and product mix, including declining prices of products launched earlier in the year, and the absence of new products introduced in the fourth quarter.

Sales for the quarter were approximately Euro 1.3 billion, down 16% year-on-year and 19% quarter over quarter. The year-on-year decline reflects the decrease of feature phone sales which was only partially offset by an increase in smartphone sales. The sequential decline is due to geographic and product mix, resulting in lower sales of both smartphones and feature phones. Fourth quarter sales were negatively impacted by macroeconomic challenges in advanced economies contributing to weaker holiday sales, and certain component shortages from the flooding in Thailand in late October and early November 2011. Xperia smartphones accounted for approximately 80% of total sales in the fourth quarter. The gross margin for the quarter was 24%, a decrease of 6 percentage points year-on-year and 3 percentage points from the previous quarter. The year-on-year and sequential decreases are attributed to product and geographic mix. Fourth quarter gross margin was also adversely affected by intense smartphone price competition which more than offset the benefit of royalty and other items. Loss before taxes, excluding restructuring charges, was Euro 154 million for the quarter, compared to income of Euro 39 million for the same quarter last year and of Euro 31 million in the previous quarter. The year-on-year and sequential declines are due to lower gross margin and increased operational expenses, including higher development and selling expenses. In December 2011, Sony Ericsson launched a restructuring program including global workforce reductions to reduce costs and drive competitiveness. Restructuring charges for the quarter are Euro 93 million and the program is estimated to be completed by the end of 2012. The quarter ended in a net loss of Euro 207 million, compared to a net income of Euro 8 million in the same quarter of the previous year, and essentially a break even result in the previous quarter. Cash flow from operating activities during the quarter was negative Euro 26 million. External borrowings were Euro 19 million during the quarter. Total borrowings were Euro 742 million at the end of the quarter. Total cash balances at December 31, 2011 were Euro 442 million. Sony Ericsson estimates that its share of the global Android-based smartphone market was 10% in volume and 7% in value during the quarter and 10% in volume and 10% in value for the full year. Sony Ericsson estimates that the global smartphone market for the full year 2011 increased by 60% in volume to 463 million units. Sony Ericsson estimates strong growth in the smartphone market in 2012. In October 2011 Sony Corporation (Sony) and Telefonaktiebolaget LM Ericsson (Ericsson) announced that Sony will acquire Ericssons stake in Sony Ericsson and that Sony Ericsson will become a wholly-owned subsidiary of Sony. The transaction is expected to close in late January to February, subject to customary closing conditions, including regulatory approvals.
The liquid identity is a registered trademark of Sony Ericsson Mobile Communications AB. Xperia is a trademark of Sony Erics son Mobile Communications AB. Sony is a registered trademark of Sony Corporation. Ericsson is a registered trademark of Telefonaktiebolaget LM Ericsson. Any rights not expressly granted herein are reserved and subject to change without prior notice.

EDITORS NOTES:
Financial statements: Consolidated income statement Consolidated income statement isolated quarters Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of cash flows isolated quarters Net sales by market area by quarter

About Sony Ericsson Sony Ericsson is a 50:50 joint venture between Sony Corporation (Sony) and Telefonaktiebolaget LM Ericsson (Ericsson). In October 2011 it was announced by Sony and Ericsson that Sony will acquire Ericssons stake in the company and that Sony Ericss on will become a wholly-owned subsidiary of Sony. The transaction is expected to close in late January to February, subject to customary closing conditions, including regulatory approvals. Over the years Sony Ericsson has brought together the best communication technologies with superior entertainment user experiences to create its Xperia line of the most entertaining smartphones in the mobile handset industry. With its global corporate functions in London, Sony Ericsson has sales and marketing operations in all major regions of the world, as well as manufacturing in China, and product development sites in China, Japan, Sweden and Silicon Valley, California. For more information, please visit: www.sonyericsson.com/press. - ENDS

CONTACTS:
Ericsson investor relations Stefan Jelvin (Stockholm) +46 10 714 2039 Sony investor relations Yoshinori Hashitani (Tokyo) +81 3 6748 2111 Yas Hasegawa (London) +44 20 7426 8696 Press / Media Sony Ericsson global communications and PR Cathy Davies (London) +44 208 762 5879 Holly Rossetti (London) + 44 208 762 5851 Gustaf Brusewitz (London) +44 208 762 5805
This press release contains forward-looking statements that involve inherent risks and uncertainties. Sony Ericsson has identified certain important factors that may cause actual results to differ materially from those contained in such forwardlooking 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.

Sony Ericsson
CONSOLIDATED INCOME STATEMENT*
EUR million 2010 Oct-Dec 2011 Change 2010 Jan-Dec 2011 Change

Net sales Cost of sales Gross profit Gross margin % Research and development expenses Selling and administrative expenses Operating expenses** Other operating income, net Operating income Operating margin % Financial income Financial expenses Income before taxes Taxes Minority interest Net income Number of units shipped (million) ASP (EUR)

1 528 -1 069 459 30% -191 -236 -427 7 39 3% 2 -6 35 -27 0 8 11,2 136

1 288 -985 303 24% -268 -270 -538 8 -227 -18% 4 -24 -247 46 -6 -207 9,0 143

-16% -8% -34% -6pp 40% 14% 26% 14% -682% -21pp 100% 300% -806% -267% -2688% -20% 5%

6 294 -4 440 1 853 29% -746 -986 -1 732 38 159 3% 18 -30 147 -48 -9 90 43,1 146

5 212 -3 735 1 477 28% -815 -900 -1 715 32 -206 -4% 19 -56 -243 19 -23 -247 34,4 152

-17% -16% -20% -1pp 9% -9% -1% -16% -230% -7pp 6% 87% -265% -140% 156% -374% -20% 4%

EUR million Restructuring charges Cost of sales Research and development expenses Selling and administrative expenses Total

Oct-Dec 2010 2011 2 0 0 -55 -5 -38 -3 -93

Jan-Dec 2010 2011 -32 0 7 -55 -17 -38 -42 -93

* All amounts are according to Swedish GAAP **Operating expenses in 2010 have been restated to reflect certain organizational changes.

Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS*
EUR million Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4

Net sales Cost of sales Gross profit Gross margin % Research and development expenses Selling and administrative expenses Operating expenses** Other operating income, net Operating income Operating margin % Financial income Financial expenses Income before taxes Taxes Minority interest Net income Number of units shipped (million) ASP (EUR)

1 ,405 -975 429 31%

1 ,757 -1,266 492 28%

1 ,603 -1,130 473 30%

1 ,528 -1,069 459 30%

1, 145 -763 382 33%

1, 193 -828 365 31%

1, 586 -1,159 427 27%

1 ,288 -985 303 24%

-185 -238 -423 14 20 1% 7 -9 18 6 -3 21

-191 -272 -463 7 36 2% 2 -7 31 -16 -4 12

-179 -241 -420 10 63 4% 7 -8 62 -12 -2 49

-191 -236 -427 7 39 3% 2 -6 35 -27 0 8

-173 -199 -372 10 19 2% 3 -8 15 -5 1 11

-184 -224 -408 6 -37 -3% 5 -10 -42 -3 -5 -50

-190 -207 -397 8 38 2% 7 -14 31 -17 -14 0

-268 -270 -538 8 -227 -18% 4 -24 -247 46 -6 -207

10.5 134

11.0 160

10.4 154

11.2 136

8.1 141

7.6 156

9.5 166

9.0 143

EUR million Restructuring charges Cost of sales Research and development expenses Selling and administrative expenses Total

Q1 2 -2

2010 Q2 -33 -1

Q3 -3 5

Q4 2 0

Q1 -

2011 Q2 -

Q3 -

Q4 0 -55

-3 -3

2 -32

-6 -4

-5 -3

-38 -93

* All amounts are according to Swedish GAAP. ** Operating expenses in 2010 have been restated to reflect certain organizational changes.

Sony Ericsson CONSOLIDATED BALANCE SHEET*

EUR million ASSETS Total fixed and financial assets Current assets Inventories Accounts receivable Other assets Other short-term cash investments Cash and bank Total current assets 803 819 890 1,122 Dec 31 2010 Jun 30 2011 Sep 30 2011 Dec 31 2011

460 836 295 276 329 2,196

570 872 330 329 188 2, 289

656 1,090 408 301 165 2,620

447 692 380 270 172 1,961

Total assets SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Minority interest Total equity Borrowing, Non Current Other long-term liabilities Total long-term liabilities Accounts payable Borrowing, Current Other current liabilities Total current liabilities Total shareholders' equity and liabilities Net cash**

2,999

3 ,108

3,510

3,083

532 42 574 100 32 132 769 130 1, 394 2 ,293 2, 999 375

451 43 494 0 31 31 716 769 1,098 2,583 3,108 -252

507 60 567 0 40 40 1 050 718 1,135 2,903 3, 510 -252

309 58 367 0 44 44 676 742 1,254 2,672 3 ,083 -300

* All amounts are according to Swedish GAAP. ** Net cash is defined as cash and bank deposit plus short-term cash investments less interest-bearing liabilities.

Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS*
EUR million OPERATING Net income Adjustments to reconcile net income to cash Oct-Dec 2010 2011 Jan-Dec 2010 2011

8 -50 -42 -86 -128

-207 112 -95 69 -26

90 -156 -65 -183 -248

-247 -27 -274 -276 -550

Changes in operating net assets Cash flow from operating activities INVESTING Investing activities Cash flow from investing activities FINANCING Financing activities Cash flow from financing activities Net change in cash Cash, beginning of period Translation difference in Cash Cash, end of period
* All amounts are according to Swedish GAAP.

-18 -18

-19 -19

-4 -4

-113 -113

- 178 -178 -324 921 7 605

11 11 -34 466 10 442

- 60 -60 -312 878 38 605

496 496 -167 605 4 442

Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS*
2010 EUR million OPERATING Net income Adjustments to reconcile net income to cash 21 -44 -23 Changes in operating net assets Cash flow from operating activities INVESTING Investing activities Cash flow from investing activities FINANCING Financing activities Cash flow from financing activities Net change in cash Cash, beginning of period Translation difference in Cash Cash, end of period * All amounts are according to Swedish GAAP. 150 150 83 878 19 980 0 0 15 980 45 1, 039 - 32 -32 -85 1 039 -33 921 - 178 -178 -324 921 7 605 375 375 8 605 -14 599 165 165 -80 599 -3 516 - 56 -56 -61 516 11 466 11 11 -34 466 10 442 27 27 -15 -15 2 2 -18 -18 -14 -14 -21 -21 -58 -58 -19 -19 -72 -94 12 4 16 13 29 49 -66 -17 -38 -54 8 -50 -42 -86 -128 11 -137 -127 -226 -353 -50 -29 -79 -145 -224 0 27 27 26 53 -207 112 -95 69 -26 Q1 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4

Sony Ericsson
NET SALES BY MARKET AREA BY QUARTER*
EUR million Isolated quarters Europe, Middle East & Africa ** Americas Asia Total ** of which Western Europe Q1 711 201 493 1,405 525 2010 Q2 876 223 659 1, 757 668 2010 Sequential change (%) Europe, Middle East & Africa ** Americas Asia Total ** of which Western Europe Q1 -26% -9% -12% -20% -23% Q2 23% 11% 34% 25% 27% 2010 Year over year change (%) Europe, Middle East & Africa ** Americas Asia Total ** of which Western Europe Q1 -27% 1% -12% -19% -27% Q2 -6% 14% 17% 4% -1% 2010 Year to date Europe, Middle East & Africa ** Americas Asia Total ** of which Western Europe 1003 711 201 493 1 ,405 525 1006 1 ,587 424 1, 152 3 ,162 1,193 1009 2 ,424 646 1, 695 4, 765 1 ,825 1012 3 ,219 851 2, 224 6 ,294 2 ,393 1103 485 151 509 1, 145 307 Q3 -4% -4% 6% -1% -1% Q4 -18% -8% -6% -13% -16% Q1 -32% -25% 3% -19% -42% Q3 -4% 0% -17% -9% -5% Q4 -5% -8% -3% -5% -10% Q1 -39% -26% -4% -25% -46% Q3 837 222 544 1, 603 632 Q4 795 205 528 1, 528 569 Q1 485 151 509 1, 145 307 2011 Q2 435 193 565 1, 193 323 2011 Q2 -10% 28% 11% 4% 5% 2011 Q2 -50% -13% -14% -32% -52% 2011 1106 919 345 1,075 2 ,339 630 2011 1009 -13% 3% 4% -5% -10% 1012 -14% 0% 1% -7% -12% 1103 -32% -25% 3% -19% -42% 1106 -42% -19% -7% -26% -47% 1109 -42% -28% 22% -18% -48% 1112 -39% -22% 16% -17% -46% 1109 1, 399 466 2,060 3 925 944 1112 1,970 664 2,577 5, 211 1 ,298 Q3 -43% -45% 81% -1% -50% Q4 -28% -3% -2% -16% -38% Q3 10% -37% 74% 33% -3% Q4 19% 64% -47% -19% 13% Q3 480 121 985 1,586 313 Q4 571 199 518 1, 288 355

2010 YTD year over year change (%) Europe, Middle East & Africa ** Americas Asia Total ** of which Western Europe 1003 -27% 1% -12% -19% -27% 1006 -17% 7% 3% -8% -15%

*All amounts are according to Swedish GAAP.