Saab Training Systems signs contract with the Ministry of Defense in Italy

Saab Training Systems AB in Huskvarna, Sweden, has signed a contract with the
Italian Ministry of Defense for the supply of Saab BT 46 laser simulators and
target systems for army training.

The contract includes delivery of Saab BT 46 tank gunnery and combat
simulators for the Ariete and Leopard 1A5 main battle tanks and the Centauro
armored vehicle. It also includes BT46 target systems for jeeps as well as
BT 18 pop-up targets. Delivery will take place in the beginning of year 2000.

Italy has, like most users of the German Leopard tanks, selected the BT 46
simulators for gunnery and combat training. The BT18 target systems, normally
used for live fire practice, will be equipped with laser receivers to enable
safe training with the simulators.

The BT46 simulators are used, among others, by the Swedish, German, British
and US Armed Forces and has become the NATO de facto standard gunnery and
combat simulator for tanks and anti-tank weapons.

Saab AB is active in the aircraft-, space- and defense industry and supplies
advanced products and systems based on sophisticated information technology.
The business areas are Military Aerospace, Space, Training Systems, Commercial
Aircraft and Combitech.

Saab Training Systems AB is specialized in military training equipment; laser
simulators, target equipment and graphic simulators. It is a wholly owned
subsidiary of Saab AB and has 257 employees. The turnover 1998 was 621 MSEK.

For further information, please contact:
Johan Ohlson, President Saab Training Systems AB, tel. +46 36 38 86 01

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