Gripen International signs enhanced offset agreement with Hungary

Gripen International has agreed to increase its offset commitment to
correspond to the higher value of the Gripen agreement. For Hungary this
means that more jobs can be created and more business opportunities can
be explored.

Kjell Möller, Deputy Managing Director Gripen International and Gábor
Szalay Pol.State Secretary, Hungarian Ministry of Economy and Transport,
signed the enhanced offset agreement today in Budapest. The agreement
was signed in conjunction with the Hungarian government and the Swedish
government signing the amended agreement for 14 Gripen multi-role combat
aircraft to Hungary.

"Hungary was the first NATO-member to choose Gripen and will be one of
the first countries within NATO to operate a fourth generation fighter.
We are pleased with today's agreement to provide Hungary with an
affordable solution, which is fully NATO-interoperable and meets the
extended technical requirements. We are fully committed to benefiting
Hungarian industry through the enhanced offset agreement and thereby
continue the excellent cooperation that we have had with Hungary since
1995", says Kjell Möller, Deputy Managing Director of Gripen

Gripen International has committed to provide offset and industrial
cooperation to a value of 110% of the amended agreement value, which
includes investments equaling 32% of the agreement's value. The full
offset program will be delivered within 14 years from the contract
signed in 2001 and half of the obligations will be achieved within 8
years. The 110% commitment represents net value, i.e. credits generated
without the application of any multipliers.

SAAB AB and BAE SYSTEMS are world leaders in the delivery of economic
compensation to support defense sales. To date, programs in more than 30
countries have been implemented with a total value in excess of US$20

The Gripen office in Hungary was established in 1994. A Gripen pre-
offset agreement was signed in September 1995 and registration of offset
projects worth 876 MUSD was registered until the closing of the pre-
offset account in 2002.

The first Gripen offset agreement was signed in December 2001 in
conjunction with Hungary´s signing of the lease agreement for 14 Gripen
A Gripen Investment Fund was established in June 2002 and Gripen
International thereby achieved the first milestone in the offset
The first Gripen offset claims was submitted to the Hungarian Ministry
of Economy and Transport on 4 December 2002. The offset claimed has a
total value of approximately 39 billion HUF (165 Million Euro).

Notes to editors:

Gripen International is the company, which acts as a prime contracting
organization, responsible for marketing, selling and supporting the
Gripen aircraft worldwide. SAAB of Sweden and BAE SYSTEMS of the United
Kingdom jointly own Gripen International.

Gripen is the first fourth generation multi-role fighter in service
world-wide, designed to meet the demands of all current and future
threats, while at the same time meeting strict requirements for flight
safety, reliability, training efficiency and low operating costs.

Already in operational service with the Swedish Air Force, which has
ordered 204 aircraft (including 28 dual-seater), Gripen has also been
ordered by the South African Air Force (28 aircraft) and Hungary has
signed an agreement with the Swedish government for the lease of 14
Gripen fighters.

Further information is available from:

Gripen International in Budapest
Phone: +36 30 466 9079 Email:

Marie Aktö, Communications Manager, Gripen International
Mobile: +46 70 989 71 10 Email:

Owe Wagermark, Senior Vice President Communications, Gripen
Mobile: +46 70 889 60 00 Fax: +46 13 18 0055 Email:

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