Export breakthrough for gripen

EXPORT BREAKTHROUGH FOR GRIPEN At a ceremony in Pretoria on Friday, an export contract was signed whereby the South African Air Force will purchase 28 Gripen aircraft from Sweden. This is the first firm export order obtained for the Gripen. "The decision is highly gratifying, since it represents a true international breakthrough for our investment in the Gripen. I would like to first and foremost congratulate Saab for the company's excellent work," comments Fred Bodin, President of Volvo Aero, which delivers the RM12 engine for the Gripen aircraft. According to Fred Bodin, the contract means that additional business opportunities are now created for Volvo Aero, which in its position as engine supplier to the Gripen is directly involved in the industrial cooperation with South Africa now being developed as a result of this transaction. "The fact that we have developed a product that can successfully compete with the major manufacturers in Europe and the US also underlines Sweden's industrial prowess. A third point is that South Africa is an attractive market for the rest of Volvo. With the attention created by the Gripen deal for Volvo and Sweden in general, we can hopefully increase our overall sales in South Africa," says Bodin. In 1998, Volvo's sales in South Africa totaled SEK 650 M, of which Volvo Car Corporation accounted for SEK 306 M. Volvo recently announced plans to make purchases in South Africa totaling approximately USD 800 M. The total value of the order for the 28 Gripen planes, nine two-seater and 19 single-seater aircraft, is SEK 12.8 billion, including arms, support packages, spare parts, training and other items. According to the contract, deliveries of the Gripen will commence with the two-seater aircraft in 2007. Final delivery of the remaining single-seater aircraft will be made during 2012. Volvo Aero's share of the South Africa order is almost in direct proportion to the company's approximately 15-20 percent share in the Swedish order. December 3, 1999 For information, contact Mauritz Ljungman +46 520 94 424. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/03/19991203BIT00500/bit0001.doc http://www.bit.se/bitonline/1999/12/03/19991203BIT00500/bit0002.pdf