Saab Ericsson Space to implement cutbacks in Gothenburg

Saab Ericsson Space is giving notice to 60 employees at its Gothenburg
plant. The measures being taken now are the result of a decreasing
international telecommunications market and a shrinking Swedish space
budget.

Saab Ericsson Space has operations in Gothenburg, Linköping and Austria,
employing a total of 680 personnel. There are 490 employees in
Gothenburg and the notice applies especially to those involved in
international telecommunications projects and state-financed space
projects in all service categories and product areas.

"Significantly fewer telecommunications satellites were procured in 2001
than in previous years. This trend seems to be holding in 2002 and we
believe there will be a recovery at the earliest by next year. Since an
increasing part of our activity has been focused on telecommunications
satellites, this has a direct effect on the company. At the same time
there has been a reduction in Sweden's participation in areas of the
European space project that are relevant for us. The measures that we
are now taking are a necessary adaptation to prevailing market
conditions and they are essential in order for the company to continue
to be competitive and profitable in the long term," says Bengt Mörtberg,
CEO for Saab Ericsson Space.

Negotiations are ongoing at the moment with trade union representatives
as to which
employees will be affected by the notice and information will be
provided as soon as
the negotiations are complete. The company has initiated a dialogue with
a Swedish
Private Employment Service for Affiliated Companies and Employees and
the Swedish
Public Employment Service in order to help those issued to find new
jobs.

Austrian Aerospace, a wholly owned subsidiary of Saab Ericsson Space
located in
Vienna, Austria, is not affected by the cutbacks.

Saab Ericsson Space is an international and independent supplier of
space equipment. The company's main products are computers, microwave
electronics and antennas, guidance and separation systems and also
thermal insulation material for use onboard satellites and launch
vehicles. The main office is located in Gothenburg and there is also a
division in Linköping. The company has subsidiaries in Austria (Austrian
Aerospace) and in the USA (Saab Ericsson Space Inc.)

Saab Ericsson Space employs 680 people.

Saab Ericsson Space is under the joint ownership of Saab and Ericsson.

For further information, please contact:
Iréne Svensson, Communications Director Phone : +46 31 735 44 63,
+46 705 35 08 18
Fax: +46 31 735 45 00


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