Financial Report April - June 2006

Net sales - down 3% to $1.6 billion Operating income - down 2% to $141 million Earnings per share - up 6% to $1.00 Continued strong cash flow

(Stockholm, July 26, 2006) – For the quarter ended June 30, 2006, Autoliv Inc. (NYSE: ALV and SSE: ALIV) – the world¬wide leader in automotive safety systems – reported better-than-expected sales, margins and cash flow. Compared to the corresponding quarter 2005, consolidated sales decreased by 3% to $1,608 million due to a 7% drop in light vehicle production in Western Europe where Autoliv generates approximately half of its revenues. Operating income decreased by 2% to $141 million. However, operating margin improved to 8.8% from 8.7%. Income before taxes stood almost unchanged at $132 million. Net income declined by 3% to $83 million, while earnings per share rose by 6% to $1.00. Cash flow provided from operations amounted to $162 million and to $94 million after investing activities. Factoring agreements had a positive impact on cash flow of $58 million. Consolidated sales for the third quarter 2006 are expected to increase by 2% with organic sales expected to be flat, despite an anticipated 4% decline in light vehicle production in both Western Europe and North America. Operating margin is expected to exceed 7%. An earnings conference call will be held today at 3.30 p.m. (CET); call (in Europe) +44-207-947-5033 and (in the U.S.) +1-866-432-7186 to listen in or access www.autoliv.com under Investors – News/Calendar.