Pandox AB (publ): Interim Report - three months ending March 31, 2001

The adjusted direct yield for the period was 9.4% (9.9).

Net financial expense for the period amounted to SEK –44.5 M (-20,5).

Corporate group income, after tax, exclusive of nonrecurring revenue, for the period improved by SEK 20.8 M and amounted to SEK 41.5 M (20.7).

The Swedish Financial Accounting Standards Council’s recommendation on income tax (RR:9) is applied. In brief, the recommendation means that both deferred tax claims and deferred tax liabilities are incorporated into the accounts and that any changes in these items in the period will affect the income statement. All comparative figures in the income statement and balance sheet have been adjusted in accordance with the new accounting principle. During the period the hotel properties, Sten Stensson Sten in Eslöv and Scandic Karlshamn have been sold with a capital gain of SEK 8.7 M.

- “Pandox income and cash flow continue to improve. A high level of investments to increase cash flow as well as the fact that demand continues to grow in the majority of the markets where Pandox is represented creates favourable conditions for the future development of the company ”, says Anders Nissen, Chief Executive Officer, Pandox AB.

Outlook for 2001

Income after tax for the year 2001, excluding nonrecurring items, is expected to reach SEK 180 (157) M.

Encl: Complete interim report.

Pandox AB (publ.)

The full report including tables can be downloaded from the enclosed link.

For further information: <br> <br>Anders Nissen, Chief Executive Officer, Pandox, +46-8-506 205 50, +46 70 846 02 02 <br> <br>Nils Lindberg, Chief Financial Officer, Pandox, +46-8-506 205 53 <br>

About Us

Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox's hotel property portfolio comprises 142 hotels with approximately 32,200 hotel rooms in fifteen countries. Pandox's business is organised into Property Management, which comprises hotel properties leased on a long-term basis to market leading regional hotel operators and leading international hotel operators, and Operator Activities, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company's B shares are listed on Nasdaq Stockholm.