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Autoliv Completes Deal with Norma

11 October 1999

Autoliv Completes Deal with Norma

    STOCKHOLM, Sweden, Oct. 11 -- Autoliv Inc. and
(SSE: ALIV), the worldwide leader in automotive safety systems, has reached a
definitive agreement with the Estonian Norma Group AS to acquire 49.5% of the
shares in Norma AS -- the dominant seat belt supplier to the Russian vehicle
industry.  The agreement also gives Autoliv the right to acquire another 1.5%
of the Norma shares.
    The Estonian seat belt manufacturer Norma has been one of Autoliv's
Licensees and is currently a component supplier to Autoliv.
    "With its long-standing relationships with the Russian car industry, Norma
offers a unique opportunity to expand our seat belt business in Eastern Europe
and as the industry's technology leader we can contribute by offering Norma's
customers new safety technologies Norma is lacking," explained Autoliv's
President and Chief Executive Officer Lars Westerberg.
    "Norma will also provide yet another possibility for us to move production
to low labor-cost countries.  The transaction therefore provides several
advantages and, together with Norma's management, we will explore how we can
further develop Norma by, for instance, transfer production and technologies
to Estonia," 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 22,000 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, +46-705-91-10-37
    Mats Odman, Dir. Corp. Com., +46-8-58-72-06-23 or mob. +46-708-32-09-33
    Website: http://www.autoliv.com