Celsius receives order from FMV for modernization of submarines

11/3/1999 3:28 AM EST

Two submarines to be modernized and equipped with Stirling

Kockums has received an order from the Swedish Defence Material Administration
(FMV) for modernization of two Västergötland-class submarines. The order is
worth about SEK 600 M. The order includes installation of the air-independent

Stirling propulsion system, which enables a submarine to remain submerged for
much longer periods than would otherwise be possible. The installation of this
system will significantly increase the operational and tactical capability of
the two submarines.

The Stirling system, which has attracted considerable international attention,
has been developed at Kockums over a period of several years. It has also been
sold to export customers, including Japan. The system to be installed at the
two submarines is the latest version, known as the Stirling MK 3. The order
means that the swedish Navy will in the future be able to deploy five
submarines equipped with the air-independent Stirling system.

The upgrade is also designed to increase the submarines´ operational
efficiency in warmer waters, thereby improving the Swedish Navy´s capability
to participate in peace-keeping international missions.

For more details, please contact Kjell Göthe, Vice president/Corporate
Communications, Kockums, on +46 (0)40 - 34 82 88 or via mobile phone on
+46 (0)70 - 583 95 44.

Kockums and Germany´s HDW (Howaldtswerke Deutsche Werft AG) have recently
announced a merger of their operations. This creates a new company which is
the global leader in conventional (non-nuclear) submarines and naval surface
vessels. First, however, the deal must receive the formal approval of the
European Commission.
Celsius owns 25 per cent in the new Kockums-HDW.

Celsius is an international advanced-technology and knowledge-based
corporation which, in close interaction with its customers develops,
manufactures and maintains advanced systems, products and services within
three core areas: Defence, with a focus on electronics, IT and smart weapon
systems; Aerotech Services, which comprises advanced services, consultancy and
maintenance, primarily for defence-sector customers, and Aviation Services,
which is focused on engine, component maintenance and asset management
services for the commercial market.
This comprehensive competence provides a platform for the development of new
products and services with strong growth potential in both defence-related and
commercial markets.
Celsius has sales in excess of SEK 12 billion and some 9,500 employees.