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Autoliv: Malaysian Seat Belt Industry to be Restructured

31 August 1999

Autoliv: Malaysian Seat Belt Industry to be Restructured

    STOCKHOLM, Sweden, Aug. 31 -- Autoliv Inc.
, a worldwide leader in automotive safety systems, has
reached an agreement to consolidate all automotive safety suppliers in
Malaysia into one company.  The new company will consist of Autoliv's two
local joint ventures, Autobelt and Airbag Systems Malaysia, and the two
Malaysian seat belt companies Dapat and Brimal. The restructuring should lead
to economics of scale that will contribute to strengthening the Malaysian car
industry. This will be particularly evident in the areas of technology
development and other competitive sourcing parameters.
    The new company, which will be known as Autoliv HT (Malaysia), is a joint
venture of Hirotako Holdings of Malaysia with 51% of the shares and the
Autoliv Group with the remaining interest. The new company will have
250 employees and sales of approximately US $25 million.
    The agreement is subject to approval of the Malaysian Government.
    After a sharp drop last year due to the "Asian Crisis", sales of passenger
cars and light vehicles in Malaysia are recovering and are expected to reach
this year 250,000 vehicles. The most important car manufacturers in Malaysia
are Proton, Nissan, Toyota, Honda, Mitsubishi, Volvo, Mazda and Ford. The new
company will have all of these vehicle manufacturers as its customers.
    Autoliv Inc. develops and manufactures automotive safety systems for all
major automotive manufacturers in the world. The company has more than
60 wholly-owned subsidiaries and joint ventures with 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.)

    Inquiries:
    Lars Westerberg, President & CEO, Autoliv Inc., +46-8-58-72-06-20
    Mats Odman, Dir. Corp. Com., +46-8-58-72-06-23, or mob. +46-708-32-09-33
    Barry Murphy, Director Investor Relations, +1-248-475-0409
    Gunnar Dahlen, President Autoliv Asia Pacific, +60-3-466-7666