(Stockholm, October 18, 2007) - - - Autoliv Inc. (NYSE: ALV and SSE:ALIV), the world¬wide leader in automotive safety, has agreed to buy 41% of the shares in its 59% held Chinese company Autoliv (Changchun) Maw Hung Vehicle Safety Systems for nearly U.S. $14 million. The joint venture, which has one of Autoliv’s nine manufacturing facilities in China, primarily produces seatbelts.

The acquisition is subject to customary governmental approvals.

The joint venture in Changchun in Northern China was formed in 2002 to deliver safety products primarily to FAW-Volkswagen Jetta, Audi A6 and First Automotive Works. Business has grown rapidly, and this year the company expects to reach U.S. $50 million in sales and employ 170 people. In 2007, Autoliv’s total sales in China are expected to reach $260 million, an increase of 40% from 2006.

In China, Autoliv has manufacturing facilities in the Shanghai area; one seatbelt and airbag plant supplying both for domestic and export markets, and one seatbelt webbing weaving plant as well as three recently opened plants for safety electronics, airbag inflators and steering wheels. The three remaining plants of the Company’s nine facilities in China are producing seatbelts in Changchun, Nanjing and Guangzhou, with Guangzhou plant primarily supplying to Japanese vehicle manufacturers in China and Japan.

Vehicle production in China last year grew to 5.5 million and is expected to double by 2012 to 11 million. In tandem, the safety content of many Chinese vehicles are continuously being upgraded with airbags and more sophisticated seatbelt technologies.