Saab restructures Combitech

Saab restructures Combitech Restructuring of Combitech continues - next by divestments of additional companies within the business area. The divestments are part of Saab's focus and the strategy to realize values in commercial applications of ideas from Saab's military programs. In connection with this, management of the development operations will be restructured. Business area Combitech manages the development of commercial applications of ideas from Saab's military programs. These can be divested or listed when it is possible to realize value for Saab or when there is no longer an advantage for them to be part of Saab. Together with Saab, Osterman Helicoptermätning AB started Survey Systems. Osterman Helicoptermätning has now taken over the whole of Survey Systems and is investing in increased activity in the sales of topographical measurement services. OEM Industrial Components AB has signed a letter of intent to acquire Pronesto. The purpose of the acquisition is to complement the supply of products in radio and telecommunications. Kitron ASA, a Norwegian listed electronics company, has signed a letter of intent to acquire Combitech Electronics. Kitron intends to make Electronics the center for its Swedish investment in advanced electronics. As announced previously, discussions are in progress on the future structure of Combitech Traffic Systems. The company is taking part in the installation of the world's first free-flow road toll system in Melbourne, Australia. In the future, development of new applications of ideas from Saab's military programs and administration of the business area will be managed from Linköping, where Saab has the major part of its research and development activities. By this, the search for new ideas will be brought closer to the operations that generate them. Bo Wass, responsible for development of new commercial business ideas, will head this work. Gert Schyborger of Saab's executive management will step in as Chairman of the Board of most of the remaining companies in Combitech. A new investment is made in GP&C, a satellite navigation system enabling safer maritime and aviation navigation. It is an area where Saab Dynamics has previously been active. The investment is in the form of a joint venture with Celsius. As a result, Jan Carlson, Head of business area Combitech, will leave Saab for a new position at Autoliv. - The divestments and acquisitions made are an expression of our ambition to focus operations, while at the same time it is our intention to grow in areas that have natural connections with our core activities. By these divestments, Jan has carried out a large part of the restructuring he was assigned, says Saab CEO Bengt Halse. - I am pleased with placing the divested companies in environments where they will have great opportunities to develop within their respective business niches, says Jan Carlson. The other companies in Combitech - Saab Marine Electronics, Combitech Network, Combitech Software and the new GP&C Sweden - are not affected by the restructuring. In total, Saab Combitech has about 850 employees with 1998 sales of almost SEK 1.1 billion. Combitech Electronics AB has 160 employees with 1998 sales of about SEK 200 million. Kitron is currently merged with the Norwegian company Alphatron and combined, these companies have about 750 employees with sales of about NOK 720 million. Pronesto AB has 22 employees with 1998 sales of about SEK 75 million. OEM International has about 570 employees with 1998 sales of about SEK 1.4 billion. Saab Survey Systems AB has 6 employees with 1998 sales of about SEK 2 million. Osterman Helicoptermätning has about 40 employees with 1998 sales of about SEK 60 million. For further information, please contact: Lars Jagerfelt, Vice President, Corporate Communications and Public Affairs, Saab AB +46 13 18 71 65 Jan Carlson, General Manager Saab Combitech +46 36 19 42 15 Anders Jonzon, Manager, Communications and Public Affairs, Saab Combitech+46 36 19 40 15 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/05/06/19990506BIT00100/bit0001.doc http://www.bit.se/bitonline/1999/05/06/19990506BIT00100/bit0002.pdf