Saab and Brazil sign contract for Gripen NG

Defence and security company Saab has signed a contract with the Brazilian
Federal Government (Ministry of Defense through the Aeronautics Command, COMAER)
covering the development and production of 36 Gripen NG fighter aircraft for the
Brazilian Air Force. The total order value is approximately SEK 39.3 billion.
Saab and COMAER have also signed an Industrial Co-operation contract to deliver
substantial technology transfer from Saab to Brazilian industry.
On 18 December 2013 Brazil selected the Gripen NG to be its next-generation
fighter aircraft, through the F-X2 evaluation programme. Since then all parties
have negotiated to finalise a contract. Today’s announcement marks the
successful conclusion of that process.

Saab and COMAER have signed a contract for the development and production of 36
Gripen NG fighter aircraft, plus related systems and equipment. The programme
comprises 28 single-seat and eight two-seat Gripen NG. The total order value is
approximately SEK 39.3 billion.

Saab and COMAER have also signed a contract for industrial co-operation
projects, including technology transfer to Brazilian industry, to be performed
over approximately ten years.

“We are proud to stand side-by-side with Brazil in this important programme.
There is already a long and successful history of industrial co-operation
between our two countries, and this historic agreement takes that partnership to
a new level”, says Marcus Wallenberg, Chairman of Saab’s Board of Directors.

The contract with COMAER for Gripen NG and the associated Industrial Co
-operation contract will come into effect once certain conditions have been
fulfilled. These include, among others, the necessary export control-related
authorisations. All of these conditions are expected to be fulfilled during the
first half of 2015. Gripen NG deliveries to the Brazilian Air Force will be
undertaken from 2019 to 2024.

“The contract with Brazil validates Gripen as the most capable and modern
fighter system on the market. It solidifies Saab’s position as a world-leading
fighter aircraft producer and strengthens our platform for growth,” says Håkan
Buskhe, President and CEO of Saab.

The contract with Brazil strengthens the ties between Saab and Brazilian
industry. Embraer will have a leading role as the strategic partner in the F-X2
programme. As part of the technology transfer plan, Brazilian industry will have
an important role in the development of, and be responsible for, the production
of the two-seat Gripen NG variant for the Brazilian Air Force.

Brazil joins Sweden in becoming the launch customer for the next-generation
Gripen, which shares the same smart design and innovative technology as today’s
Gripen versions. Gripen aircraft are currently in operational service with the
Swedish, Czech, Hungarian, South African and Royal Thai Air Forces, and also
with the UK Empire Test Pilots’ School (ETPS).

The next-generation Gripen meets the market’s demand for a sophisticated and
flexible combat aircraft with sustainable costs. The aircraft provides more
thrust, extended range and endurance, expanded weapons capacity, new sensors
including an advanced AESA radar, highly effective electronic warfare systems
and multi-function communications.

The Gripen NG for Brazil and Gripen E for Sweden share all the attributes of the
next-generation Gripen design, but are also tailored to each country’s specific
national requirements. The commitments by Sweden and Brazil secure Gripen’s
industrial and operational future into the 2050 timeframe.

For further information, please contact:
Saab Press Centre, +46 (0)734 180 018, presscentre@saabgroup.com

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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.

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 October 27, 2014 at 06.30 (CET).