Summary of CEO Åke Svensson's address to Saab's Annual General Meeting, April 12, 2007

Summary of CEO Åke Svensson's address to Saab's Annual General Meeting, April
12, 2007

Saab's President and CEO, Åke Svensson, provided a brief historical summary of
Saab's first 70 years in his address to the Annual General Meeting on April 12.

“Saab has developed in close cooperation with the Swedish defence through
Sweden's decision to remain neutral,” he said.

Åke Svensson also mentioned that the defence industry has been decisive to
Sweden's growth and development: “Analyses show that the investments have repaid
society by a wide margin. When engineers from Sweden's most research-intensive
company have continued on in their careers, they have shared their expertise and
thereby helped to develop other areas of Swedish business. In this way, Saab has
served - and still serves - as an incubator and technology generator for Sweden.
This is a role we would gladly continue to play.”

He expressed his concern over the fact that fewer young people in Sweden are
choosing to study natural sciences and engineering: “Swedish companies have a
great need for engineering professionals. Yet we face a future where we risk an
acute shortage. Saab has made efforts for years to counteract this, and we feel
it is important to continue to do so.”

World-leading technology, the ability to adapt to continuous change and
financial strength have distinguished the company through the years, Åke
Svensson stated, noting that they are also Saab's most important success factors
in the future. 

2006 was a fantastic year for Saab. Sales increased to SEK 21 billion and
operating income rose to slightly over SEK 1.7 billion, generating a margin
before structural costs of over 10 percent. 

“This means that we are meeting our long-term profit targets, and our underlying
earning capacity is good,” Åke Svensson said.
2006 was also a successful year from an acquisitions standpoint. “We acquired
Ericsson Microwave Systems, which I would consider another historical milestone
for Saab. The acquisition added 1,200 new colleagues, SEK 2.5 billion in sales
and world-leading technological content and offerings in sensors, an excellent
complement to our portfolio.” 

The acquisition from Ericsson included the remaining 40-percent interest in
Saab's space operations. Two other important structural moves in 2006 were the
acquisition of Denmark's Maersk Data Defence and the establishment of a new
aerostructures business in South Africa.

“Taken together, these moves give us a stronger position in our key home
markets, the Nordic region and South Africa,” he continued. “2006 was also a
fantastic year from the perspective of new orders.” 

He noted that an increasingly important aspect of Saab's business is support
solutions, which are conducted in close with our customers' operations. Saab
remains in place in Afghanistan, for example, to support Sweden's peacekeeping
forces.

“This is no one-time occurrence. Saab is prepared to support and stand alongside
the Swedish defence in its international missions in the future.”

2006 was also a good year for Saab's best-known product, the Gripen fighter.
Perhaps the biggest event regarding Gripen was the Swedish Air Force's
participation in Red Flag, an international exercise in Alaska. 

“Competitors and observers were deeply impressed by Gripen's performance. Our
opinion - that Gripen is world's most modern fighter in operational service -
was reaffirmed,” Åke Svensson said.

He devoted a portion of his address to the bribery accusations against Saab and
the ongoing investigation of the lease of Gripen aircraft to the Czech Republic:
“It is our firm conviction that our business uses only legal methods. Bribes
have never been allowed at Saab. We are fully cooperating with the public
prosecutor and providing all the information needed in the investigation. This
makes it unsuitable for us to further comment before the prosecutor's work is
done.”

Defence orders are complicated, and Åke Svensson explained in detail what is
required, for example, to seal a deal involving Gripen and why advisers are
essential to such orders: 

“The first piece of the puzzle, and what gets us considered in the first place,
is having a product whose price and performance meet the customer's
requirements. 
“Our second puzzle piece is financing. Saab can offer competitive export credits
through the Export Credits Guarantee Board in Sweden, for example, which also
helps us to manage various types of business risks. Naturally, this also
requires that Saab is a well-managed and trustworthy company. 

“In major defence orders, the customer always requires so-called industrial
cooperations. This means that we, as the seller, also have to help to create
long-term economic growth and development in the buyer's country. This can be
done through the direct participation of the country's industry in the
production and development of the Gripen system, or by having Saab help to
establish companies and transfer technology. 

“Our fourth puzzle piece is political considerations. An order for fighters, for
example, entails so much more. It is also a question of a long-term relationship
between nations. Aircraft orders are an international affair based on extensive
security and cooperation agreements - and therefore require close cooperation
between governments and industry.

“The larger and more complex the systems we sell, the greater the importance of
industrial cooperations and politics. The needs and terms set by each
buyer-country differ, which is why we, and our competitors, need advisors and
representatives to understand the situation at hand and act appropriately.” 

Saab's and BAE Systems' rules on hiring and paying advisors are crystal clear
and are published on Saab's website. 

“We do careful research and obtain references. And we are always spell out our
ethical requirements,” Åke Svensson explained. “For me, not only as the
president of Saab but also from a personal standpoint, business ethics are a
matter of principle. And I know that this opinion is shared by all my
colleagues. It is very clear to me that we are, and will remain, a company that
does business based on our values and good business ethics.”

In his address, Åke Svensson also described the most important aspects of Saab's
three strategic business segments, noting that the company will be concentrating
in 2007 on a number of programs to make it even more efficient. “The aim is
naturally to increase profitability, with the goal of leaving us more money to
invest in research and development as well as marketing. Only in this way can
Saab remain a world leader.” 

In conclusion, Åke Svensson offered two concrete examples of how Saab can
contribute to a safer society. The breakthrough order to supply Securitas with a
security platform for Stockholm's Arlanda and Bromma airports and deliveries of
the Giraffe radar system to France demonstrate two things. 
“The first is that Saab, with its expertise, can develop new system solutions
for civil security, though also that we can utilize our existing products and
systems to make society safer against today's most prevalent threats. The second
fact that these examples show is that such deals require world-leading
technology, the ability to continuously change, and financial strength,” he
said. “Saab has all this and more. We stand strong - and proud - as we look to
the future.”