Breakthrough for Gripen on the export market

At a ceremony today in Pretoria, an export contract for the supply of 28
Gripen and 24 Hawk to the South African Air Force has been signed. This means
that the first export order for Gripen has been secured.

Saab was represented at the ceremony at the South African ARMSCOR by President
Bengt Halse and Senior Vice President and Manager for Saab AB Gripen Hans
Krüger. BAE SYSTEMS was represented by Chief Executive John Weston.

Bengt Halse commented:
- This is a great success for Gripen, for Saab and for Sweden as an industrial
nation. It is the first Gripen export order and as such a success for our
Joint Venture with BAE SYSTEMS. We look forward to a partnership with South
Africa for at least 30 years. I am convinced that this contract will be the
catalyst for extended cooperation between South Africa and Sweden in many
areas.

John Weston commented:
- This contract with South Africa is the first for our Joint Venture with
Saab. I am fully convinced that it is the first of several contracts that we
can see coming in the future. BAE SYSTEMS strongly believes in Gripen and its
potential in the international markets.

Hans Krüger commented:
- After a very professional evaluation by the South Africans and a year of
negotiations, we have concluded a breakthrough order for Gripen. It will be a
very important reference in our continued marketing of Gripen. We now have two
very qualified Air Forces which have selected Gripen and will have the
opportunity to cooperate and exchange operational experiences.

The order value for 28 Gripen and 24 Hawk is 15,7 billion Rand including
statutory cost like VAT, customs and others. The Hawks will be delivered from
2005 to 2006 and the Gripen deliveries begins in 2007 with the two-seaters and
final delivery of the last single-seat Gripen is scheduled for 2012.

The Gripen aircraft ordered by South Africa have large similarities with the
Batch 3 aircraft ordered for the Swedish Air Force by the Swedish Defence
Materiel Administration in June 1997. They contain for example new color
displays from Ericsson Saab Avionics, air-to-air-refueling equipment and
electronic warfare system to protect the aircraft when attacked by hostile
missiles.

In the contract Saab and BAE SYSTEMS make commitments concerning industrial
cooperation, NIP (National Industrial Participation), with South Africa to a
total value of 60 billion SEK. Furthermore, there are commitments concerning
DIP (Direct Industrial Participation), which are aimed directly at the
defense- and aviation industry. The value of DIP is app 12,6 billion SEK.

This economic growth will be generated during eleven years and includes sales
in South Africa, export from and investments in South Africa. A good example
is Volvo´s recently announced plans of purchases for 7 billion SEK, which
represents more than 10% of the total commitment. A week ago, Scania announced
an order for 340 buses from South Africa to a value of 320 MSEK.

Gripen is one of the world´s most modern fighter aircraft and the first of the
fourth generation to enter operational service. 78 Gripen aircraft have so far
been delivered to the Swedish Air Force and three squadrons are daily
operating the Gripen.

Gripen is marketed internationally by Saab and BAE SYSTEMS.

Photos are available on www.gripen.se

Saab AB is active in the aviation, space and Defense industry and offers
advanced products and systems based on sophisticated information technology.
The business areas within Saab are Military Aerospace, Space, Training
Systems, Commercial Aircraft and Combitech.

For further information, please contact:
Jan Ahlgren, Vice President Communications and Public Affairs tel +46 13 18 39 07 or
Saab AB, Gripen tel +46 70 518 39 07

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