Interim Report Saab AB January-March 1999

INTERIM REPORT

January - March 1999

Sales increased 10 % to SEK 1,995 m. (1,817).

Export development efforts concerning Gripen has been intensified and has
resulted in a higher R&D expenditure in accordance with plan.

Net income amounted to SEK 150 m. (245) and earnings per share to
SEK 1.41 (2.30). The lower income is mainly the result of lower capital gains
and lower income of a non-recurring nature compared to the exceptionally good
first quarter last year. The outlook for the full year remains encouraging.

The acquisition of the aircraft maintenance company Nyge Aero will strengthen
Saab's maintenance and modification operations.

Investment in systems for safer air and sea navigation through the acquisition
of GP&C Sweden.

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