Financial Report April - June 2007

Continued Sales Growth and Strong Cash Flow

(Stockholm, July 26, 2007) – – – For the quarter ended June 30, 2007, Autoliv Inc. (NYSE: ALV and SSE: ALIV) – the worldwide leader in automotive safety systems – reported a sales increase of more than 7% to $1,728 million and record-breaking cash flow before financing of $230 million compared to cash flow of $94 million during the same quarter 2006.

Reported operating income amounted to $102 million and was affected by the recently announced $30 million increase in legal reserves. Excluding this item, operating income was $132 million, operating margin 7.7%, income before taxes $119 million, net income $78 million and earnings per share $0.98 (for reconciliation of these non-U.S. GAAP measures see table attached).
For the third quarter 2007, sales are expected to increase by approximately 7% with the organic sales portion growing at 4%. Operating margin is expected to approximate 7% compared to 7.2% in the same quarter 2006.

An earnings conference call will be held at 3:00 p.m. (CET) today July 26. To listen in, call (in Europe) +44-207-947-5033 and (in the U.S.) +1-866-432-7186 or access www.autoliv.com under “News/Calendar”.