European Investment Bank Supports Safer Cars -Signs €225 million loans for Autoliv’s R&D in automotive safety

(Stockholm, December 18, 2009) – – –European Investment Bank (EIB) and Autoliv AB – the Swedish subsidiary of Autoliv Inc. (NYSE: ALV and SSE: ALIVsdb) – have signed a financing commitment agreement giving Autoliv access to a loan of €225 million (U.S. $325 million) on favorable terms.

The funds will help finance total research and development projects for €0.5 billion (nearly U.S. $0.75 billion) over the next three years at Autoliv's R&D facilities in Germany, France and Sweden. The projects to receive EIB funding relate to a wide range of important automotive safety improvements such as pre-crash safety systems, pedestrian protection systems, adaptive systems to optimize the effectiveness in the event of a crash, and improving existing automotive safety systems with a particular emphasis on application in small vehicles. In addition, the projects address the weight reduction of safety systems. Therefore, the financing will also contribute to the reduction of CO2 emissions by the automotive sector. Under EIB’s commitment, Autoliv AB can during an 18-month period, draw loans with a maturity of up to 10 years. The loans will be guaranteed by the parent company Autoliv Inc. As with all of the existing principal debt arrangements of Autoliv Inc, the new financial commitment does not have any financial covenants, i.e. performance-related restrictions. At September 30, 2009, Autoliv had unutilized long-term credit facilities of $1,025 million compared to a net debt of 878 million. The Company’s strong financial position reflects the prudent and cost-efficient refinancing activities in prior years and the fact that the Company raised $377 million of equity and equity-linked capital in March 2009 as well as a continued positive cash flow in 2009 despite the unprecedented crisis in the automotive industry. Including the new commitment from EIB, Autoliv’s total unutilized long term facilities now exceed $1.4 billion which is a record high for the Company. Standard and Poor’s recently changed its rating for Autoliv from BBB- to BBB while maintaining a stable outlook. This made Autoliv the first automotive company globally with an investment grade rating to be upgraded since the financial crisis started in September 2008. Inquiries: Mats Wallin, Vice President, Finance and CFO, Autoliv Inc. Tel +46 8 587 20619 Hannes Wadell, Treasurer, Autoliv Inc., Tel +46 8 587 20655