Autoliv to Make Another Subsidiary Wholly Owned

Regulatory News:

The Autoliv Inc. Group (STO:ALIVSDB)(NYSE:ALV), the worldwide leader in automotive safety products, today announced its intention to make a cash offer for all outstanding shares not owned by the Group in its 51%-owned Estonian subsidiary Aktsiaselts Norma ("Norma”). An offering prospectus for approval by the Estonian Financial Supervisory Authority (EFSA)will be filed today.

Norma is the leading supplier of automotive safety products for the Russian market and an important component supplier to Autoliv. Last year, it had sales of €50 million and 600 employees. The Norma shares are listed on the Tallin Stock Exchange.

Shareholders representing 26.4% of the outstanding shares in Norma have over the past weekend made irrevocable sales commitments for the planned offer. Total cost for the 49% outstanding shares amounts to approximately $50 million. The planned acquisition is expected to have virtually no effect on Autoliv’s earnings per share for 2010.

The offer is conditioned upon the Autoliv Group reaching at least 90 percent of all shares in Norma. The offer is made through AS Automotive Holding, a 100%-owned subsidiary of Autoliv.

Regarding the tender offer, Autoliv’s President and Chief Executive Officer, Jan Carlson, explained:

"Norma is facing certain challenges as vehicle manufacturers require their suppliers to be global. In addition, car manufacturers want their suppliers to continuously provide them with new technologies. These technologies are very expensive to develop and as a smaller player Norma has limited resources to do this.

At the same time, system suppliers such as Autoliv have a need for efficient and financially solid component manufacturers such as Norma, and Norma could with the support of Autoliv take advantage of restructuring opportunities in the automotive component industry. Therefore, expansion in component supply and integration into Autoliv’s pan-European manufacturing and logistics system provides a strong platform for Norma and its employees. In addition, it will be easier to coordinate sales to the Russian plants of our global customers if all Autoliv companies active in this market have the same ownership structure”, explained Mr. Jan Carlson.

About Autoliv

Autoliv Inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has 80 facilities with approximately 38,000 employees in 29 vehicle-producing countries. In addition, the Company has technical centers in ten countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2009 amounted to US $5.1 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.

About Norma

Norma’s main field of activity is production and sale of car safety systems, including seat belts and their components, for the Russian market and assembly of seatbelts for Volvo as a subcontractor to Autoliv. Norma also manufactures components for Autoliv and other global safety systems suppliers, as well as tools for plastic injection molding and stamped steel parts. The company also offers engineering services related to design and tooling of car safety systems and seatbelts.

Safe Harbor Statement

This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the United States federal Private Securities Litigation Reform Act of 1995 (PSLRA). Such forward-looking statements are those that address activities, events or developments that Autoliv or its management believes or anticipates may occur in the future, including statements relating to industry trends, business opportunities, sales contracts, sales backlog, and on-going commercial arrangements and discussions, as well as any statements about future operating performance or financial results. In some cases, you can identify these statements by forward-looking words such as "estimates,” "expects,” "anticipates,” "projects,” "plans,” "intends,” "believes,” "might,” "will,” "should,” or the negative of these terms and other comparable terminology, although not all forward-looking statements are so identified. All such statements are based upon our current expectations and various assumptions, and apply only as of the date hereof. Our expectations and beliefs are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that forward-looking statements will materialize or prove to be correct. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation, changes in general industry and market conditions, increased competition, changes in consumer preferences for end products, customer losses and changes in regulatory conditions, customer bankruptcies, consolidations or restructuring, divestiture of customer brands, the economic outlook for Autoliv’s markets, fluctuation in vehicle production schedules for which Autoliv is a supplier, continued uncertainty in program awards and performance, pricing negotiations with customers, product liability, warranty and recall claims and other litigations, possible adverse results of pending or future litigation or infringement claims, legislative or regulatory changes, dependence on customers and suppliers, as well the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2009. Except for our ongoing obligation to disclose information under the U.S. federal securities laws, we undertake no obligation to update publicly any forward-looking statements whether as a result of new information or future events. For any forward-looking statements contained in this press release or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the PSLRA.

Geographical Restrictions

This press release is not an offer to acquire shares. In addition, the offer will not be made to persons whose participation would require an additional offer document, registration or actions other than those required under Estonian law.

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