Saab - Northern Europes leading high-technology company

Two of Swedens most knowledge intensive companies - Saab and Celsius are
merging to create Northern Europes leading high-technology company.

"With the acquisition of Celsius, Saab is further strengthening its
position as a growth oriented and innovative knowledge company, with the
ambition and ability to be the natural choice of customers. We will
continue to be a leading supplier in our home markets. Independently, or
together with partners, we will focus on international growth markets
within our areas of expertise. In addition, we have the ability to take
our advanced technology to the civilian markets, where it is in demand",
said Bengt Halse when he presented the company on Wednesday.

Together, these two companies have broad and in-depth knowledge that
comprises everything from aviation technology, aerodynamics, space
technology and underwater technology, to areas such as information
gathering, command and control, precision engagement, sensors, image
processing and communication technology. Today, a substantial portion of
Swedens most advanced skills within electronics and information technology
can be found within Saab.

There is a strong logic to the merger. It shows that Saab is taking an
active part in the restructuring of the Swedish defense industry, which
will save money for the companies customers and shareholders. Annual cost
saving synergies are expected to total SEK 400 million and one-time costs
for the merger amount to SEK 600 million.

"But this merger is especially important as the company strengthens its
position in the areas that we are seeing the defense market and defense
organizations develop, especially in Sweden. The English term Revolution
in Military Affairs (RMA) is used to describe the technological and
strategic changes that defense organizations are going through. RMA means
that the combined development within three areas information gathering,
decision-making support and precision engagement are changing, in a
comprehensive way, a defense organization "possibilities to operate",
continued Halse.
Therefore, the Swedish National Defense, like a large number of defense
organizations in other countries, is planning to modernize, using
perspectives that are based on the RMA concept. The ability to use
firepower is being complemented with increasingly important systems for
information and command and control. The defense against invasion is being
transformed into a defense of information.

Saab is strong within all three areas of this perspective and also has the
ability to carry out systems integration. Today, Gripen is an example of a
combined information-, command and control, and engagement system, with
the capacity to play a broad and varying role in the total defense.

The skills of Saab and Celsius complement each other in a way that puts us
in a very good position to face these developments within the defense
markets growth segments.

From an international perspective, the BAE SYSTEMS partnership and partial
ownership is of great importance. The Saab that is evolving will gain even
greater utilization of this link to the rest of Europe and to other
international markets. This will also result in noticeable marketing

Saab shall continue to grow within its core areas organically in those
markets where we are focused, but also through acquiring skills and
operations that complement and strengthen our focus and core operations.

Celsius Aviation Services
Against the background of Saabs focus, and in order to provide Celsius
Aviation Services the best possibilities to develop to its full potential,
we are seeking to broaden the ownership of the company. The intention is

to seek out new majority shareholders in Celsius Aviation Services, with a
long-term interest and focus on the aviation market.

Bofors Weapon Systems
Bofors Weapon Systems has operations focusing on artillery pieces and
ammunition as well as fire control, that is, the entire competence chain
from target data to neutralizing the target. The intention is to seek out
new majority shareholders in Bofors Weapon Systems with a long-term
interest and focus on the current market.

For additional information, contact:
Lars Jagerfelt, Corporate Communications, Saab AB tel. +46 13-187165
Guy Hörnfeldt, information manager, business area Infomatics
tel. +46 8 580 85 370
Jan Ahlgren, information manager, business area Aerospace tel. +46 13-183907
Anders Florenius, information manager, business area Dynamics tel. +46
586-812 23, 070-582 32 10
Bertil Ullergren, information manager, business area
Technical Support and Services tel. +46 470-422 42, 070-621 10 28
Irené Svensson, information manager, business area Space tel. +46 31-735 44 63
Christer Persson, business manger, Aviation Services tel. +1 703 683 0007
Additional information concerning business areas and other companies

The business area, Infomatics, comprises Saabs operations within command
and control, and information systems. The business area also develops,
manufactures and sells advanced systems for electronic warfare, avionics,
sensors, simulation and training as well as signature management. In
addition, this business area is also active within civilian growth niches.
The business area has a strong position in important markets today and
good conditions to play a central role in the development of information
defense both in Sweden and internationally. In addition, the business area
has good possibilities to reach the civilian markets with its technology.

Business area manager is the former President of Celsius, Lars Josefsson,
who is also a senior vice-president in Saab.

Aerospace has the comprehensive systems integration competence that is
required in order to construct entire aerospace and defense systems, and
to, in cooperation with others, develop total and partial solutions for
the fighter aircraft of the future.

Today, Gripen is the business areas most important product. By being the
only fourth-generation fighter aircraft in operative service, Gripen
offers a unique defense system and the export potential is very good. From
a longer perspective, Aerospace is well advanced in the development of
tomorrows aerospace technology and is working with the solutions, which
within 20-30 years, are expected to begin replacing the technology that
Gripen represents. Aerospace also develops and produces subassemblies for
commercial aircraft in cooperation with the Airbus-company and others.

Business area manager is Åke Svensson, former manager of the business
unit, Future Products and Technology.

The business area Dynamics develops missile systems, mobile anti-tank
weapons and underwater systems for use in the air, on land and at sea.
Through the merger of Saab and Celsius, the business area can offer a
complete range within its core areas. The business area has also been a
consistent presence in many export markets.

The Swedish National Defenses long-term supply strategy provides a base
for Dynamics operation. Swedish participation in international cooperative
programs is an important part of this base. Dynamics foremost growth
potential lies in the development and success of international programs
and in continued export of the systems in focused product and market

Business area manager is Ingemar Anderson, former manager of the business
area, Defense, within Celsius.
Technical Support and Services
The business area, Technical Support and Services, focuses on the growing
military and civilian markets for high-technological services within
aviation, command and control, information, communication and sensors. The
business area is dominated by AerotechTelub, which was formed at the
beginning of the year through the merger of Celsius Aerotech and parts of
TietoEnator. Saab owns 57% of AerotechTelub and TietoEnator owns 43%. In
addition to AerotechTelub, the business area also includes Saab Nyge Aero
and parts of the after-market operations within Saab.

The business area offers
- Technological services, primarily consultation-, integration-,
information-, maintenance- and testing services
- Operation and maintenance
- Systems supplier primarily for testing/measuring, simulation, traffic
control, tele-contractors and customers adapted information systems.
- Aerial target towing and calibration

Business area manager is Jan Eiborn, also President of AerotechTelub.

Together, Saab and Ericsson run Saab Ericsson Space (60/40), which
develops and manufactures different types of space equipment. Space is a
leading and independent manufacturer of computer systems, microwave
electronics and antennas as well as separation systems, and markets the
business areas products throughout the entire accessible international
market. The business area has shown good growth and profitability for
several years and sees the greatest growth potential in the commercial
telecommunications market.

Business area manager is Bengt Mörtberg, former manager of Mechanical
at Saab Ericsson Space

Aviation Services
Aviation Services carries out commercial flight maintenance primarily in
the US. The operation offers a wide selection of services in the
maintenance market and also within asset management services such as
leasing, and within the sales of aircraft engines, components and

The area is working towards a growing market with a consolidated
industrial structure.
Celsius Aviation Services has shown very strong growth with profitability
in recent years. Future growth possibilities are assessed as good.

Business area manager is Christer Persson, also a former manager for
Celsius Aviation Services.

Other Operations
Other Operations contains the wholly owned subsidiaries, Saab Aircraft
Leasing, Saab Aircraft AB and Bofors Weapon Systems, which are active in
both artillery pieces and ammunition as well as fire control and forms the
complete competence chain from target data to neutralization of the

Operations are also managed in a number of additional companies that are
outside Saabs primary focus. In the coming years, Saab will be reducing
its commitments in the majority of these companies that are outside the
core operations. Efforts to find a good owner both for the employees and
for Saab is a continuous job. The different operations nature and focus
determine the rate of the structuring work.

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