Norma                         NEWS RELEASE                      02/03/2003



DOWNSIZING



The continuing low in the Russian vehicle industry has a direct 

impact on the sales volumes of AS Norma. According to the plans 

disclosed by AvtoVAZ, the output of vehicles will decrease 

approximately by 40%, i.e. 34,000-36,000 vehicles per month, 

in the first quarter of 2003, when compared  2002.

In relation to the significant decrease in production, 

the management board of AS Norma filed an application to the 

Labour Inspectorate for collective cancellation of employment 

contracts. The Labour Inspectorate granted its consent and 

approval for termination of employment contracts with 60 employees. 

In addition, AS Norma makes a proposal to the employees to 

enter into an agreement on reducing the working time from eight 

hours to six hours per working day by February and March 2003.

The planned downsizing affects 6% of the total number of positions.

The purpose of downsizing is to optimise costs and adjust production 

capacity to the orders from the Russian vehicle industry.

Downsizing and introduction of a shortened working day will not 

take place in the division producing for Autoliv.





Peep Siimon

Chairman of the Board

+372 6500 442