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Autoliv Acquires Japanese Airbag Company

17 December 1997

Autoliv Acquires Japanese Airbag Company

    STOCKHOLM, Sweden, Dec. 17 -- Autoliv Inc.
(SSE: ALIV), a worldwide leader in automotive safety, has concluded
an agreement to acquire most of the assets of Sensor Technology Co. Ltd.
(STC), a Japanese manufacturer of airbag modules, sensors and electronics,
mainly for Mazda, Isuzu, Daihatsu, Nissan and Mitsubishi.  STC's inflator
operations are not included in the agreement.
    Autoliv is the leading supplier of airbag inflators to Japan.  These
products are imported from the United States.
    "But now we have enough contracts for complete airbag modules to start our
own local airbag assembly operations close to the customers, which is
important in an industry where shipments are done on a just-in-time basis,"
explained Autoliv's Chairman and Chief Executive Officer Gunnar Bark.
    "We can also ramp up production much faster by using STC's experienced
work force in airbag production than if we had started a greenfield operation.
In addition, we will get engineering resources which will strengthen our local
development capabilities in Japan.  The acquisition will therefore give us
excellent capabilities to increase our support to the Japanese car
manufacturers, and give them the same service in their domestic market as we
have been able to give them already in other parts of the world," concludes
Gunnar Bark.
    The acquisition includes 28,000 square meters of land (300,000 sq. feet),
a 4,500 square meter (48,000 sq. feet) production plant and a 1,400 square
meter (15,000 sq. feet) administration building at STC's facilities in
Tsukuba, 70 kilometers north of Tokyo.  With the acquisition, Autoliv will
have approximately 130 employees in Japan.
    Operations are planned to commence under Autoliv's direction on April 1,
1998.
    Autoliv Inc. manufactures airbags for front and side-impact applications,
inflatable knee bolsters, seat belts, pretensioners, steering wheels, seat
components, child seats, and electronics for virtually all major automotive
manufacturers in the world.  Autoliv Inc. has close to 60 wholly-owned
subsidiaries and joint ventures with 17,000 employees in 27 vehicle-producing
countries.  In addition, the company has eight technical centers around the
world, including 19 test tracks, more than any other automotive safety
supplier.  Sales in 1996 totaled US $3.2 billion and net income US $174
million.  The company's shares are listed on the New York Stock Exchange
, its Swedish Depository Receipts on the Stockholm Stock Exchange
(SSE: ALIV) and its stock options on the Chicago Board of Option Exchange
(CBOE: ALV).

SOURCE  Autoliv Inc.