American United Defense purchases Bofors Weapon Systems from Saab

American United Defense purchases
Bofors Weapon Systems from Saab

The American company United Defense has today signed an agreement with
Saab:s subsidiary Celsius regarding purchase of Bofors Weapon Systems.
United Defense acquires 100 per cent of the shares in Bofors Weapon
Systems.

The purchase of Bofors Weapon Systems creates a transatlantic defence
company linking Sweden and the United States.
"I'm extremely happy that we've been successful in getting a strong and
competent owner for Bofors Weapon Systems ­ an owner that can develop the unique
competencies that are to be found with the company. The divestment is
fully in keeping with Saab¹s strategy of concentrating its operations",
said Saab's, president and CEO, Bengt Halse.

United Defense Industries (UDI) acquires 100 percent of the stock of the
Karlskoga defence company in a union that promises to establish a strong
position in advanced artillery technology, naval gun design and
intelligent munitions. Terms of the sale will not be revealed. The
agreement is subject to approval from Swedish and American government
officials.

The combination of companies offers a completely integrated weapon system
competency, end-to-end, from projectile dynamics, ballistics, launch and
propulsion, trajectory guidance and sensors to detonation and warhead
effectiveness; a comprehensive capability to develop, manufacture,
integrate and support combat vehicles, land and naval guns and
intelligent munitions.

"Bofors Weapon Systems is an excellent fit to support our core business,"
said Tom Rabaut, President of United Defense.

Our defence customers in the U.S. and Sweden share a common joint vision
on future military capabilities. We now have the potential to be the defense
company that offers a unique life-cycle approach to armament systems and
intelligent munitions that focus on precision engagement."

UDI intends to retain BWS as a Swedish corporation, headquartered in its
present location in Karlskoga. All activities will be in line with Swedish
export regulations and any prior business transactions will not be
affected by the present agreement.

Bofors Weapon Systems has about 550 employees and an annual turnover of
approximately 1500 MSEK. BWS has a strong position within several areas
of artillery and combat vehicles and is a world leader in intelligent
ammunition. Current operations include strong research and development
capabilities.

According to Magnus Ingesson, president of Bofors Weapon Systems, this
acquisition is a fiscally wise move for both companies.

"With United Defense's acquisition of BWS, we will be joining a
strong company where we will be a valuable complement. This was a natural
development given the prior close working relationship between the two
companies" said Ingesson.

Saab is Northern Europe's leading high technology company and operates
within the defense and aerospace areas and offers leading-edge products
and systems built on sophisticated information technology. Its business
areas are Infomatics, Aerospace, Dynamics, Technical Support & Services,
Space and Aviation Services

For further information, please contact:
Anders FloreniusVice President, Corporate Communications, Saab Bofors Dynamics
tel +46 (0)70 58 23 230
Magnus Ingesson, President, Bofors Weapon Systems tel +46 (0)70 34 75 965
Douglas R Coffey, Vice President Communications United Defense
tel +1 703 312 6121

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