Autoliv Increases Jobs Act $$$$ Distribution

STOCKHOLM, Sweden--Dec. 1, 20053, 2005--Autoliv Inc., the worldwide leader in automotive safety systems, has decided to pay an additional $518 million as a one-time internal distribution under the American Jobs Creation Act.

The Act was adopted in 2004 by the U.S. Congress to provide for an 85% deduction on certain non-U.S. earnings that are repatriated to the United States before the end of this year and invested in accordance with a Qualified Domestic Reinvestment Plan, DRP.

In August, Autoliv made a $337 million cash distribution under the Act from Sweden to the United States. After further analysis the Company has now decided to make an additional distribution of $518 million.

The cash payments will enable Autoliv to reduce the level of its U.S. net debt and replace that net debt in Europe at interest rates that currently are approximately 2% lower. Aggregated interest and tax savings associated with these transactions are expected - given current interest rates in Sweden and the U.S. - to be around $17 million annually on the net income line.

In addition, Autoliv's balance sheet exposure to currency translation adjustments ("CTA") will be significantly reduced.

The one-time additional U.S. tax cost of the $855 million distribution (of which $810 million will qualify under the Jobs Act) is expected to be around $10 million, of which $3 million was recognized in the third quarter this year and the remaining $7 million will be recognized in the current quarter.

As part of the transaction, Autoliv has established a new Swedish holding company, Autoliv Holding AB, which has taken full ownership of Autoliv AB, the former Swedish holding company.

Autoliv Inc. develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with 40,000 employees in 30 vehicle-producing countries. In addition, the company has development and engineering centers in six countries around the world, including 20 test tracks, more than any other automotive safety supplier. Sales in 2004 amounted to US $6.1 billion. The Company's shares are listed on the New York Stock Exchange and its Swedish Depository Receipts on the OM Stockholm Stock Ex-change (SSE:ALIV).