Saab divests Saab Space to RUAG

Saab divests Saab Space to RUAG

Saab divests Saab Space to Swiss Aerospace and Defence group RUAG.

Saab AB divests 100 percent of the shares in Saab Space AB including its
subsidiary Austrian Aerospace to the Swiss company RUAG Holding AG. The
divestment requires approval of competition authorities before completion.

“As early as in November 2007, Saab concluded that there were reasons to
consider a sale. Saab Space is well managed and profitable, but we have not been
able to reach sufficient synergies with other operations within Saab and as a
result not the desired possibilities of growth and profit. It was considered to
be a good time to act since a consolidation process in the European space
industry is ongoing.

At Saab we put up two conditions to carry through a sale: To find a professional
buyer with the ambition to further develop the operations and to get a fair
price.
With RUAG we have been able to reach an agreement that fulfils both conditions.
The price is acceptable and RUAG is a company that in our view has the
capability of further developing the operations of Saab Space and Austrian
Aerospace.” says Saab CEO Åke Svensson.

The purchase price for the shares amounts to 335 MSEK. In addition to the fixed
purchase price, Saab is entitled to an additional consideration related to the
long-term positive performance of Saab Space. The transaction will generate a
capital gain to Saab during 2008 of approximately 100 MSEK.

Saab Space is a leading independent supplier of highly qualified space
equipment: Computer systems, Antennas and Microwave electronics for satellites
and Adapters and separation systems for launchers. Saab Space is headquartered
in Gothenburg, Sweden, with a division for mechanical systems located in
Linköping, Sweden. Saab Space also has a fully owned subsidiary in Vienna,
Austria, named Austrian Aerospace, focused on digital signal processing, thermal
hardware, mechanisms and mechanical ground support equipment. In 2007, more than
90 percent of Saab Space sales represented exports.

The RUAG technology group is an international aerospace and defence specialist
with strong technological skills. The Group's holding company is based in Berne
(Switzerland) and is 100% owned by the Swiss Confederation. RUAG has development
and production sites in Switzerland, Germany and Sweden. In Aviation & Space
RUAG are a leading supplier and integrator of systems and components for
military and civilian aerospace applications. As a dependable niche player RUAG
has operated for many years as a reliable partner of ESA and many commercial
space companies worldwide. 

Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has operations
and employees on all continents and constantly develops, adopts and improves new
technology to meet customers' changing needs.

For further information, please contact:
Toni Eriksson, Acting Press secretary, Saab AB
Telephone: +46 (0)734-18 00 18
Christiane Schneider, Head of Corporate Communication RUAG
Telephone: + 41 (0)31 376 64 50

www.saabgroup.com
www.ruag.com

The information is that which Saab AB is required to declare by the Securities
Business Act and/or the Financial instruments Trading Act. The information was
submitted for publication on July 15 at GMT+1 12.00 (Stockholm 13.00).