STOCKHOLM, Sweden, March 25, 2002 (PRIMEZONE) -- Stockholmsborsen takes a very serious view of the information leaks from Ericsson that occurred on two occasions during the course of one year. Accordingly, the Exchange has conducted a comprehensive inquiry into the procedures applied by Ericsson for the handling of confidential information ahead of the release of its financial reports. Despite the information leaks that have occurred, the inquiry did not find grounds for Stockholmsborsen to direct criticism against Ericsson for deficient procedures in these contexts.
On October 25, 2001, the Reuters news agency published information that was said to concern Ericsson's interim report for the third quarter of 2001. Since this particular interim report had not been approved at the time that this information was published, Ericsson informed Stockholmsborsen immediately of the degree of truth contained in the published information and the fact that it had probably been released in an unauthorized manner. In view of this and because an information leak from Ericsson had occurred on a previous occasion, in connection with the interim report for the third quarter of 2000, Stockholmsborsen decided to conduct an inquiry. The purpose of the inquiry was to decide whether Ericsson's internal procedures in connection with the preparation of financial reports were of the standard that could be required of a company of Ericsson's size. The inquiry, which was relatively extensive and conducted in part with the assistance of external experts, also encompassed the additional measures that Ericsson introduced following the interim report that was released in October 2001.
Stockholmsborsen arrived at the following conclusions, among others, "According to the Exchange's listing agreement, exchange-listed companies are subject to the requirement that information that could have an impact on share prices must be released immediately. This requirement is based on the principle that all participants in the market must be provided with simultaneous access to the same information. Reports and forecasts regarding earnings must be released immediately after the report or forecast has been approved." In Ericsson's case, the leak occurred before the report had been approved. In other words, the information published by Reuters was not covered by the disclosure obligation. On the other hand, Stockholmsborsen's rules and regulations do cover the procedures for handling information. It was in the light of these rules that the Exchange examined Ericsson's internal procedures prior to the publication of financial reports. Stockholmsborsen's role does not, however, include conducting investigations to determine the identity of the person who divulged the information or imposing any penalties on such a person.
The unauthorized release from a listed company of information that could affect the company's share price is a very serious matter. Naturally, the matter becomes particularly serious in a case such as this, where information has been leaked twice within the course of just over a year and, especially, when it has pertained to the contents of a financial report from a company of Ericsson's size and which has such a large number of shareholders.
However, the Exchange's inquiry showed that, following the information leak of autumn 2000, the procedures applied by Ericsson for handling the information concerned satisfy the requirements that can be placed on a company of Ericsson's size. With respect to the actions that Ericsson has taken after the information leak in 2001, which include further restrictions on access to information about an imminent report, it has been concluded that these adequately satisfies the requirements that can be placed on such a company.
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