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Autoliv Intensifies Cooperation for Russian Market

6 July 1999

Autoliv Intensifies Cooperation for Russian Market

    STOCKHOLM, Sweden, July 6 -- Autoliv Inc.
(Stockholm Stock Exchange: ALIV), the worldwide leader in automotive safety
systems, has signed a Memorandum of Understanding with the Estonian Norma
Group AS to acquire approximately 50% of the shares in Norma AS -- the
dominant seat belt supplier to the Russian vehicle industry.  A definitive
agreement is expected to be concluded before the fall.
     The Estonian seat belt manufacturer Norma has been one of Autoliv's
licensees and is currently a component supplier to Autoliv.
    "We are interested in expanding our seat belt business in Eastern Europe.
Norma, with its long-standing relationships with the Russian car industry,
offers such an opportunity," explained Autoliv's President and Chief Executive
Officer Lars Westerberg.
    "As a global company doing business with all major car producers in the
world, we should also be able to further develop Norma by better utilizing its
production capacity and its capabilities as a component supplier," said
Mr. Westerberg.
    In 1998, Norma had annual sales of EEK 483 million
(approx. US $30 million) and slightly more than 1,000 employees.  The
company's shares will remain listed on the Tallinn Stock Exchange.
    Automobile production in Russia is this year expected to reach one million
light vehicles.

    Autoliv Inc. develops and manufactures automotive safety systems for all
major automotive manufacturers in the world.  The company has 60 wholly owned
subsidiaries and joint ventures with more than 21,000 employees in
28 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 1998 amounted to close to
US $3.5 billion and net income US $188 million.  The company's shares are
listed on the New York Stock Exchange , its Swedish Depositary
Receipts on the Stockholm Stock Exchange (SSE: ALIV) and its stock options on
the Chicago Board Options Exchange (CBOE: ALV).

    Contact:  Lars Westerberg, +46-705-91-10-37, or Mats Odman,
Dir. Corp. Com., +46-8-58-72-06-23 or cellular, +46-708-32-09-33, both of
Autoliv.