Autoliv asks for reconsideration

Autoliv asks for reconsideration

(Stockholm, Sweden, July 17, 2007) - - - On July 16, Autoliv received notice
that the United States Federal Circuit Court of Appeals upheld a judgment
entered against Autoliv ASP, Inc., a subsidiary of Autoliv Inc. - the worldwide
leader in automotive safety systems. The judgment requires Autoliv ASP to pay
damages and interest to a former supplier. The aggregate amount could total
approximately $36 million depend¬ing on the court's calculation of post-judgment
interest which has not yet been made. 

Autoliv maintains that the damage award was based in part on accounting errors
by the supplier discovered in the course of the supplier's bankruptcy
proceedings. Autoliv has therefore decided to file with the Federal Circuit
Court a motion seeking reconsideration of its decision. 

As a consequence of the Federal Circuit's decision, Autoliv has decided to
increase its provisions for legal disputes by $30 million that together with
existing provisions should cover the amount fully.

As disclosed in Autoliv's Annual Report and filings with the Securities and
Exchange Commission (SEC), a former supplier sued Autoliv ASP in 1999. The law
suit relates to certain commercial agreements dating back to 1995. In December
2003, the district court awarded the supplier approximately $27 million in
damages plus $7 million in pre-judgment interest. In 2004, in connection with
the  proceedings in the supplier's bankruptcy proceeding, it was revealed that
the supplier's account data, upon which the damages were in part based,
contained errors and misrepresentations. On that basis, Autoliv appealed the
lower court's judgment and the supplier cross-appealed the calculation of the
pre-judgement interest. On Monday this week, Autoliv received notice that the
Federal Circuit Court of Appeals affirmed the judgment of the lower court. Given
the exceptional circumstances in this case, Autoliv decided to file a motion for
reconsideration. 

The $30 million increase in Autoliv's provisions will be made in to the second
quarter this year and will be included in Other operating expense in the
quarterly report that Autoliv will publish on July 26 as announced earlier. The
effect on net income, earnings per share and other variables will be further
disclosed in the second quarter report next week. 

Inquiries:
Mike Anderson, Acting Company Secretary,  Phone +1-248-475-0442
Mats Ödman, VP Corporate Communications, Phone +46-8-587-20 623.