Break-through in Turkey

PRESS RELEASE October 8, 1997 BREAK-THROUGH IN TURKEY Swedish Match and Kav Orman San.A.S., a company controlled by Koç Holding A.S. - the leading industrial conglomerate in Turkey with a turnover of 13 billion USD - have entered into an agreement on forming a joint venture on a 60/40 basis (SM/KAV) to develop match, lighter and tobacco business in Turkey and the Turkic Republics, (Azerbaijan, Kyrgyztan, Turqmenistan etc.), a fast growing market area of some 120 million inhabitants. Kav is the leading match producer in Turkey. The turnover in 1996 for the match business was some USD 14 million. Swedish Match - active in lights and tobacco business- have a Group Sales amounting to approximately USD 1 Billion. Swedish Match is the leading match producer in the world. The match business has an annual turnover of USD 130 million and some 2000 employees. The agreement constitutes the establishing of a new company in Turkey in which Kav will transfer its existing match business with its fixed assets. The establishment will be executed once all necessary approvals of relevant authorities will be received. AQUISITION IN SWEDEN Swedish Match makes a public offer of SEK 170 per share for the shares of Treab Plus AB, a Swedish distributor of tobacco and tobacco related products as well as postcards, wrapping paper etc to retailers in Sweden. The value of the offer represents SEK 16,5 million. The turnover in 1996 for Treab Plus was SEK 105 million (USD 14 million). The offer is subject to Swedish Match reaching at least 90% of the shares and receives the approval of the Swedish Competition Authority. For further information, please contact: Bo Aulin, Senior Vice President, Corporate Affairs Work: +46 8 658 03 64 Mobile: +46 70 558 03 64 Home: +46 8 768 45 22 Boel Sundvall, Vice President, Investor Relations, Corporate Affairs Work: +46 8 658 01 73 Mobile: +46 70 651 39 09 Home: +46 8 25 87 12 Göran Ekdahl, Vice President, Communication, Corporate Affairs Work: +46 8 658 01 62 Mobile: +46 70 858 11 62 ------------------------------------------------------------ Please visit for further information The following files are available for download:

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Swedish Match develops, manufactures, and sells quality products with market-leading brands in the product segments Snus and moist snuff, Other tobacco products, and Lights. Production is located in seven countries, with sales concentrated in Scandinavia and the US. The Swedish Match share is listed on Nasdaq Stockholm (SWMA). Swedish Match’s vision is a world without cigarettes. Some of its well-known brands include: General, Longhorn, White Owl, Red Man, Fiat Lux, and Cricket.