Celsius CEO comments on proposed defence budget

Press release November 13, 1998 Celsius´ CEO Lars G. Josefsson comments on the Swedish Supreme Commander´s measures to meet proposed defence budget "The consequences will be severe for the activities of Business Area Defence of the Celsius Group if the Swedish Supreme Commander´s measures are put into practice. The controversy over the economic situation of Swedish Defence Forces, that came to light in October, can in an irrecoverable way lead to short-sighted decisions that can seriously damage Sweden´s defence industries in the future", said Celsius President Lars G. Josefsson when commenting on the Supreme Commander´s materiel plan that was recently presented to the Swedish government. "Sweden has a defence industry that is highly respected throughout the world. We have systems and products that are very competitive compared with other countries. In many cases our competence is regarded internationally as unique. That is why we are considered an attractive partner today when cooperation is being discussed in Europe. If we lose the competence that has been built up over a long period of time, it can never be regained", he continued. "The Swedish defence industry employs many in the area of high technology. It stimulates and creates synergic effects in the development of industry in other areas. In this way a large number of jobs are created in other Swedish industries. Sweden needs growth and employment emerging from a competitive export industry among which it the defence industry". Lars G. Josefsson also stated that, at the same time the Celsius Group is at the fore of the changes that are now taking place. Certain distinctive traits in these changes are concentrating the Group´s activities into fewer product areas, increasing international operations and making powerful investments in commercial business opportunities. He further points out that the work within the Swedish Defence Commission will continue until the turn of the year. In March the Swedish government will put forward its proposal and after that a decision will be taken in Parliament during its spring session. "We assume that there will be an open and constructive dialogue between political departments, the Armed Forces and the defence industries regarding these important decisions". Celsius is undergoing rapid changes. This year a Nordic ammunition company as well as a Nordic explosives company were formed. Furthermore, a company was formed in Germany with DASA. A technical agreement for cooperation on submarines was signed with DCN in France and four aircraft companies were acquired. "The rate of changes will continue to be rapid. Celsius continuously adapts to the prevailing conditions in the world and on the market, said Lars G. Josefsson. Celsius´ activities are 60 % defence related and 40 % commercial. For further information, please contact Kjell Göthe, Director/Corporate Communications, on + 46 (0)8 - 463 00 19 or + 46 (0)70 - 583 95 44 (mobile). Celsius is an advanced-technology international industrial group, with domestic markets in the Nordic countries, the U.S.A. and Australia. Firmly founded on a comprehensive joint technological base, operations focus primarily on three priority areas: Defence, Commercial Aviation Services and Business Development, which currently comprises Materials Technology, Explosives and Infomatics. With annual sales of approximately SEK 12 billion, the Celsius Group numbers some 11,000 employees. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/13/19981113BIT00260/bit0001.pdf http://www.bit.se/bitonline/1998/11/13/19981113BIT00260/bit0002.doc