Re Contract

RNS Number:7112Q
Alvis PLC
09 October 2003

09 October 2003


                   ITALY BUYS 112 Bv206S ALL-TERRAIN VEHICLES

                              FROM ALVIS HAGGLUNDS

Alvis plc is pleased to announce that its subsidiary Alvis Hagglunds has
received an order worth approximately #40m for 112 Bv206S all-terrain vehicles
from the Italian Army. The vehicles will be delivered between 2004 and 2007. The
order represents the first phase of a programme currently planned to total 189
vehicles. Discussions continue on the additional phases.

Nick Prest, Chairman and Chief Executive of Alvis plc, commented:

"This important order from the Italian Army further demonstrates the leading
position of Alvis Hagglunds in the all-terrain vehicle sector. There are a
number of other substantial all-terrain vehicle programmes planned in Europe and
elsewhere, and we anticipate significant growth in this area of our business."

Sven Kagevall, President of Alvis Hagglunds, said:

"This Italian order for our armour-protected, all-terrain Bv206S is a tremendous
boost for the vehicle's future and means that it will be in continuous
production for three years. This is an extremely positive step for Bv206S and is
a significant factor in the successful future of Alvis Hagglunds."

For more information contact:


Martin Greenslade                                       Rupert Trefgarne

Finance Director                                        Smithfield Financial

Alvis plc, London, UK                                   London, UK

[phone]                                     [phone]

Notes to Editors:

 1. Alvis Hagglunds has built more than 11,000 Bv206 all-terrain vehicles for
    over 40 countries world-wide. Bv206S, an armoured development of Bv206, has
    been sold to Sweden, Germany, France, Italy and Spain, where it is used by
    rapid reaction forces and for border patrol roles.
 2. Alvis Hagglunds AB is wholly owned by Alvis plc. The Alvis Hagglunds
    Group comprises Alvis Hagglunds AB in Ornskoldsvik, Sweden, Alvis Moelv AS
    in Norway and a 50% share in HB Utveckling AB in Stockholm and Patria
    Hagglunds OY, Finland. The Alvis Hagglunds Group employs around 1000
    personnel and in 2002 had a turnover of SEK1.6 billion.
 3. Alvis plc is listed on the London Stock Exchange and is one of the leading
    companies in the world in the design development and production of armoured
    fighting vehicles and military land systems. The Alvis Group employs 2800
    personnel and its turnover in 2002 was #310 million (on a pro-forma basis).
    To know more visit www.alvis.plc.uk
 4. The media can choose and download a selection of print-quality images free of
    charge from Alvis Hagglunds website: www.alvishagglunds.se
 5. Other businesses in the Alvis Group include Alvis Vickers and Alvis Bridging
    in UK, Alvis OMC and Alvis Gear Ratio in South Africa.










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