Re Contract

RNS Number:3978S
Alvis PLC
24 November 2003



24 November 2003


ITALY BUYS FURTHER ALL-TERRAIN VEHICLES

FROM ALVIS HAGGLUNDS

Alvis plc is pleased to announce that its subsidiary Alvis Hagglunds has
received an order worth approximately #17m (225 MSEK) for 34 Bv206S and 12
upgraded Bv206 all-terrain vehicles from the Italian Army. The order represents
the second phase of a programme currently planned to total 189 new Bv206S
vehicles. The first order for 112 vehicles was placed in October this year.
Discussions continue on the final phase for 43 Bv206S.

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

"It is pleasing to see that the second phase of this important Italian order has
been concluded so swiftly and reaffirms Alvis Hagglunds leading position 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:

"The successful co-operation with the Italian Defence Forces continues. This
order is further proof of the competitiveness of our products in the
international market. The successful export history of Bv206 continues to offer
us significant upgrade opportunities."


For more information contact:



Nick Prest

Chairman & Chief Executive

Alvis plc

Tel: [phone]



Rupert Trefgarne

Smithfield Financial

Tel: [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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