Autoliv: Financial Report April - June 2006.

STOCKHOLM, Sweden -- Autoliv Inc. (NYSE:ALV) (STO:ALIV):

Net sales - down 3% to $1.6 billion
Operating income - down 2% to $141 million
Earnings per share - up 6% to $1.00
Continued strong cash flow

For the quarter ended June 30, 2006, Autoliv Inc. - the world-wide leader in automotive safety systems - reported better-than-expected sales, margins and cash flow.

Compared to the corresponding quarter 2005, consolidated sales decreased by 3% to $1,608 million due to a 7% drop in light vehicle production in Western Europe where Autoliv generates approximately half of its revenues. Operating income decreased by 2% to $141 million. However, operating margin improved to 8.8% from 8.7%. Income before taxes stood almost unchanged at $132 million. Net income declined by 3% to $83 million, while earnings per share rose by 6% to $1.00.

Cash flow provided from operations amounted to $162 million and to $94 million after investing activities. Factoring agreements had a positive impact on cash flow of $58 million.

Consolidated sales for the third quarter 2006 are expected to increase by 2% with organic sales expected to be flat, despite an anticipated 4% decline in light vehicle production in both Western Europe and North America. Operating margin is expected to exceed 7%.

An earnings conference call will be held today at 3.30 p.m. (CET); call (in Europe) [phone] and (in the U.S.) [phone] to listen in or access www.autoliv.com under Investors - News/Calendar.

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