Saab: U.S. Special Operations Command (USSOCOM) Signs a 5 Year Framework Contract for the Carl-Gustaf Weapon System

Regulatory News:

Defence and security company Saab (STO:SAABB) has signed a new framework contract with the USSOCOM for the company’s Carl-Gustaf man-portable weapon system (in the US named MAAWS; Multi-role, Anti-armor Anti-Personnel Weapon System). The contract is a follow on agreement to a previous 5 year contract for the 84mm recoilless rifle system. In connection with award of the contract, USSOCOM issued an initial order with a value of MSEK 99 (approx. $14.3 million).

The framework contract enables the USSOCOM to place orders for weapons and ammunition over a 5 year contract period up to a total value of BSEK 1.3 (approx. $187 Million).

"This is another great milestone for Saab and the Carl-Gustaf system. This new order demonstrates the continued belief by the customer in the capabilities and versatility of our product as well as its future potential.” says Görgen Johansson, Senior Vice President and Head of Saab’s business area Dynamics.

"The Carl-Gustaf has repeatedly proven itself in the most demanding environments and it is a versatile, powerful tool for the soldier. The fact that the system is also being fielded to U.S. Army light infantry combat teams speaks for itself.” said Lars Borgwing, President and CEO of Saab Defense and Security USA, LLC.

The Carl-Gustaf system has a successful history and has successively been modernized and adapted to meet new requirements. Anticipating future operational needs, a new, lighter weight, version of the Carl-Gustaf is currently under development. The next generation system will also include additional functionality that will greatly increase the capability of the already formidable weapon system.

Other recent advances to the Carl-Gustaf system include the release of the new 655 CS (Confined Space) High explosive anti-tank (HEAT) round designed to reduce back blast and allow soldiers to safely employ the weapon in confined spaces, minimizing the hazardous effects of traditional shoulder fired munitions.

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Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs. Follow us on Twitter: @Saab

Saab Defense and Security USA, LLC. (SDAS) delivers advanced technology and systems to United States armed forces and other government agencies. Headquartered in Sterling Virginia, the company has business units and local employees in four states. SDAS is a wholly owned subsidiary of the Saab Group.

The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was submitted for publication on August 27, 2014 at 13.00 (CET).

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