Saab Ericsson Space to shed 80 people in Gothenburg

Saab Ericsson Space is to lose a further 80 personnel from its
Gothenburg operation. The international market for telecommunications
satellites remains weak, and Sweden's space budget has gradually been
cut back over a number of years.

Since its formation in 1992, Saab Ericsson Space has successfully
marketed products for use onboard commercial telecommunications
satellites. In recent years some 50 percent of the company's net sales
have been generated in this field. However, only 5 new satellites were
commissioned on the world market last year, compared to the normal 25-
30. The market is expected to remain weak for the next few years. This
is largely a result of the general telecom crisis.

"In a difficult situation like this, matters are not made easier by the
fact that the state budget for space-related operations has continued to
decrease, and there is nothing at present to indicate that
appropriations are set to increase. Altogether this leads to a very
distressing situation for Swedish space industry," says Bengt Mörtberg,
President of Saab Ericsson Space.

Personnel in construction, production and administration will be
affected by today's official notice. Industrial co-determination talks
will begin immediately. As with previous workforce reductions, the
company is cooperating with TRR Trygghetsrådet career transition support
and the Public Employment Services.

Saab Ericsson Space AB's facility in Linköping and the subsidiary
Austrian Aerospace in Vienna, Austria, are not affected by these latest
measures.

Saab Ericsson Space is an international, independent supplier of space
equipment. The company's main products are computers, microwave
electronics and antennas, control and separation systems, and thermal
insulation material for use onboard satellites and launch vehicles. The
company has its headquarters in Gothenburg, Sweden, a division located
in Linköping, Sweden, and subsidiaries in Austria (Austrian Aerospace)
and the USA (Saab Ericsson Space Inc). Saab Ericsson Space has
approximately 600 employees, 420 of whom in Gothenburg.

The company is jointly owned by Saab and Ericsson.

For further information please contact:
Lars Nordfeldt, Director Communications & Public Affairs
Phone: +46 (0)31-735 43 12, Mobile: +46 (0)703-668 03 12, Fax: +46 (0)31-
735 45 00

www.saab.se
www.space.se

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