SNPE, Saab and Patria Create a Leading European Propellants and Explosives Company - EURENCO

SNPE, Saab and Patria Create a Leading European Propellants and
Explosives Company - EURENCO

The French GROUPE SNPE and its subsidiary SME (SNPE Energetic Materials)
and the owners of NEXPLO Industries AB, the Swedish Saab AB and the
Finnish Patria, have today signed a binding agreement in order to merge
their activities in propellants and explosives within a new company
named EURENCO, i.e. European Energetics Corporation. The ownership of
the company will be 60,2 % for GROUPE SNPE and 19,9 % for both Patria
and Saab.

According to the envisaged time schedule, EURENCO will be operational in
the beginning of 2004, after receiving all necessary authority
approvals, with a starting turnover of more than 100 MEUR and 850
employees. Based in Paris, the company will have subsidiaries operating
in Belgium, Finland, France and Sweden.

The intention of the shareholders and of the future management is to
create one of the world's leading propellants and explosive companies,
with a high level of technology and knowledge, making safe and reliable
supplies to ammunition manufacturers in Europe, as well as world-wide.

EURENCO will focus on safety and environmental issues and will develop
its five industrial plants (Clermont in Belgium, Vihtavuori in Finland,
Bergerac and Sorgues in France, Karlskoga in Sweden) around their
respective strengths.

Founded in 1971 GROUPE SNPE is a leading French industrial group with
two core businesses, energetic materials and chemicals.
It generates annual sales of more than 800 million Euros around the
world and employs over 5000 people. Build on its original business,
chemical solutions for the defense industry; GROUPE SNPE has
successfully applied a strategy of diversification and international
development through major acquisitions and joint ventures. SNPE
Matériaux Energétiques (SME) is the SNPE subsidiary in charge of
energetic materials research, development, production and marketing.

Saab is one of the world's leading high-technology companies, with its
main operations focusing on defence, aviation and space. The group
covers a broad spectrum of competence and capabilities in systems
integration. Saab is a Public listed company with a turnover of 1, 8 BN
EUROS and 14 000 employees in 2002.

Patria is an internationally operating Aerospace and Defence Group
actively participating in the development of new technologies. Patria's
core business areas are armoured wheeled vehicles and heavy weapon
systems including their life cycle service, defence electronics,
helicopter and military aircraft life cycle support as well as demanding
composite structures. Patria is the leading supplier of armoured wheeled
vehicles in Europe. The Finnish State and EADS are Patria's
shareholders. The Group had net sales of EUR 232.5 million in 2002 and
the number of employees was 2 004.

For further information please contact:

Patria
President and CEO Mr Jorma Wiitakorpi GSM: +358 40 869 2001
VP Corporate Development Jukka Holkeri GSM +358 40 869 2008
www.patria.fi

Saab AB
Senior Vice President Iréne Svensson, GSM +46 734 18 71 30
General Manager Per Lagerqvist GSM + 46 705 28 31 52
www.saab.se



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