Sale of Mandamus' Karlstad stock

7/1/2003 9:06 AM EST

SALE OF MANDAMUS' KARLSTAD STOCK

Mandamus has signed an agreement on the sale of its property stock in
Karlstad to Klövern AB. The stock comprises some 41,200 m2 of commercial
premises in 11 properties. The agreement is conditional on Klövern AB
obtaining financing.

Mandamus is receiving SEK 168m in cash and 5,538,460 "B" shares in
Klövern AB. These, at the share price of SEK 11 each at the date of the
latest close of the annual accounts, 27 June 2003, are worth some SEK
61m. This corresponds to a purchase price of SEK 229m. The Klövern
shares are being acquired through a non-cash issue.

To make the deal independent of the Klövern AB share price, Mandamus
acquired a put option and issued a call option for the aforesaid Klövern
shares. Purchase of the option solution took place on a competitive
basis. The best tender was submitted by Akelius Kontor AB, which has
committed itself to buying shares at a price of at least SEK 11 per
share. If the share price for "B" shares in Klövern exceeds SEK 11 when
the option is exercised, this price is to be paid instead. Mandamus has
undertaken to sell the shares to Akelius Kontor AB on corresponding
terms. The put and call options can be exercised from 15 August to 22
August 2003 inclusive. Mandamus' obligations under the put option are
conditional on delivery of the Klövern shares to Mandamus in accordance
with the agreement with Klövern AB.

The aforesaid Klövern shares correspond to 9.1 per cent of the shares
and 5.9 per cent of the votes in the company, based on a total of
60,870,130 shares, i.e. the number of shares in Klövern AB after the
share issues of 1 August 2003. Today, Mandamus owns no shares in Klövern
AB. This message is also intended as a disclosure of substantial share
acquisitions.

The deal yields a sale profit of some SEK 10m.

Klövern AB will take possession of the properties on 1 August 2003.

Comment from Mandamus' Acting Managing Director, Anders Silverbåge
Karlstad has long been on our sales list. It is therefore gratifying
that we have now succeeded in signing a sales agreement. The Karlstad
sale is part of our endeavour of further concentrating our property
stock in housing.

Queries
Please address any queries to Anders Silverbåge, phone +46-709-118 555
or e-mail  .

Mandamus is a property company that seeks, on a long-term basis, to own,
develop and manage high-yield residential properties, mainly in growth
areas in Southern and Central Sweden. Mandamus owns properties with a
book value of some SEK 5,700m, yielding annual rental income of roughly
SEK 900m.

Mandamus Fastigheter AB (publ)
Corporate ID No.: 556549-6360
Box 12
SE-171 18 Solna
+46-8-566 130 00