SME, Saab and Patria complete the creation of EURENCO

January 22, 2004, 1 p.m. – GROUPE SNPE and SNPE Matériaux Energétiques (SME) of France, on one side, and Saab of Sweden and Patria of Finland (the owners of NEXPLO Industries AB), on the other side, have today completed the merger of their explosives and propellants operations within a new company called EURENCO, European Energetics Corporation. The ownership of the new company is 60.2% for SME, GROUPE SNPE, and 19.9 % for both Patria and Saab. A binding agreement to create EURENCO was signed on July 10, 2003.

EURENCO has a starting turnover of more than 100 million euros and 850 employees. Based in Paris, the company has subsidiaries operating in Belgium, Finland, France and Sweden.

The parent companies are aiming to create a leading propellants and explosives company in Europe, drawing on advanced technologies and in-depth knowledge of this business. EURENCO will ensure the secure supply of explosives and propellants to all ammunition manufacturers, not only in Europe but throughout the world.

The company will focus on safety, quality and environmental issues and will develop its five industrial plants (Clermont in Belgium, Vihtavuori in Finland, Bergerac and Sorgues in France, and Karlskoga in Sweden) around their respective strengths.

GROUPE SNPE is a leading French industrial group with two core businesses, energetic materials and chemicals.
It generates annual sales of more than 800 million euros around the world and employs over 5000 people. Built on its original business, chemical solutions for the defense industry, GROUPE SNPE has successfully applied a strategy of diversification and international development through major acquisitions and joint ventures. SNPE Matériaux Energétiques (SME) is the SNPE subsidiary in charge of energetic materials research, development, production and marketing.

Saab is one of the world’s leading high-technology companies, with its main operations focusing on defence, aviation and space. The group covers a broad spectrum of competence and capabilities in systems integration. Saab is a Public listed company with a turnover of 1.8 billion euros and 14 000 employees in 2002.

Patria is an internationally operating Aerospace and Defence Group actively participating in the development of new technologies. Patria's core business areas are armoured wheeled vehicles and heavy weapon systems including their life cycle service, defence electronics, helicopter and military aircraft life cycle support as well as demanding composite structures. Patria is a leading supplier of armoured wheeled vehicles in Europe. The Finnish State and EADS are Patria's shareholders. The Group had net sales of 232.5 million euros in 2002 and the number of employees was 2004.

Contacts:
GROUPE SNPE/SME: Mr Bernard Roussel  +33 148 04 68 29 - dircom@snpe.com
Patria: Mr Jorma Wiitakorpi : +358 40 869 2001
Mr Jukka Holkeri : +358 40 869 2008 – jukka.holkeri@patria.fi
Saab : Mr Peter LARSSON : + 46 13 18 00 18 – peter.larsson@saab.se