---

Autoliv Strengthens its Position in Electronics

3 March 1998

Autoliv Strengthens its Position in Electronics

    STOCKHOLM, March 3 -- Autoliv Inc. ,
a worldwide leader in automotive safety, has reached an understanding with the
Finnish electronics group Nokia to acquire Nokia Audio & Electronics' 50
percent holding in Autoliv Nokia in Motala, Sweden.  The company manufactures
electronic control units for Autoliv's airbag systems.
    Autoliv will also acquire the other parts of Nokia's automotive-related
electronics business in Motala, except for the loudspeaker business (which
recently was sold to Harman International Industries).  The operations Autoliv
is acquiring have 250 employees and sales in excess of US$35 million to non-
Autoliv companies.

    - The acquisition gives us a stronger position in the fast-expanding
      safety electronics market for automobiles, said Autoliv's Chairman and
      Chief Executive Officer Gunnar Bark.

    - Last year we presented both an electronic system for smart airbags as
      well as a radar system for adaptive cruise control and pre-crash warning
      of airbags and seat belt pretensioners.  Future safety systems will also
      interact with communications systems currently under development in
      Motala.  Thus the acquisition from Nokia is the third example in less
      than a year advancing Autoliv's position in safety electronics and
      expanding the company's role as a total safety system supplier,
      concludes Gunnar Bark.

    The acquired entities will become part of Autoliv Electronics, which also
consists of Sagem-Autoliv in France, a joint venture with the leading French
electronics group SAGEM.
    The transaction is subject to completion of negotiations with relevant
labor organizations and clearance by the Swedish Anti-trust Authority.
    Autoliv Inc. develops and manufactures occupant restraint systems for all
major automotive manufacturers in the world.  The company has more than 60
wholly-owned subsidiaries and joint ventures with close to 20,000 employees in
27 vehicle-producing countries and 19 test tracks, more than any other
automotive safety supplier.  Sales in 1997 totaled US$3.3 billion.  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 Options Exchange (CBOE: ALV)

SOURCE  Autoliv Inc.