NEW ORGANIZATION STRUCTURE FOR KONGSBERG AUTOMOTIVE

See attachment on www.newsweb.no. The strategy for the coming years has focus on growth in Asia and Americas combined with more effort on product and market development. In addition there is a need for cost reductions and effective integration of future acquisitions. The organization structure must be aligned with these objectives. As far a possible Kongsberg Automotive must operate as one company to avoid duplication of resources and control levels applying the best practice processes. Seat Comfort will continue as today. Gearshifts and Commercial Vehicle Systems (CVS) will be combined in one new division named Driveline & Chassis. Today both Business Areas are involved in gear shifters representing a total annual revenue of about NOK 450 mill where close to NOK 200 mill are related to CVS. The main arguments for this merger are the following; - The technical concepts for gearshifters for passenger cars and trucks will be very much the same in the future. The synergies in R&D are obvious. - To serve new markets there is a need for combined resources. - Two divisions will give a better internal balance between the units. Independent of the above, Hans Trogen, VP Gearshifts, has decided to leave the company at the end of February 2007. 26 Oct 2006 Olav Volldal CEO