Negotiations between Swedish Match and Kav Orman Sanayi

PRESS RELEASE June 27, 1997 SWEDISH MATCH and KAV ORMAN SANAYI, a company controlled by Koç Holding A.S. which is a leading industrial conglomerate in Turkey have entered into negotiations for the evaluation of possibilities concerning the development of match, lighter and tobacco products in Turkey and Turkic states. KAV is the largest of four match producers in Turkey. Its total turnover in 1996 was about USD 14 million and the number of employees are 260. SWEDISH MATCH is the world biggest match producer. The match business of SWEDISH MATCH has a total turnover of close to 1 billion SEK (130 million USD) and employs approx. 2000 people. In the event the negotiations results positively KAV and SWEDISH MATCH will establish a new company in Turkey in which KAV will transfer its existing match business with its fixed assets to the new Company. For further information, please contact: Bo Aulin, Senior Vice President, Corporate Affairs Phone: +46 8 658 03 64 Mobile: +46 70 558 03 64 Home: +46 8 768 45 22 ------------------------------------------------------------ Please visit for further information The following files are available for download:

About Us

Swedish Match develops, manufactures, and sells quality products with market-leading brands. Swedish Match’s product areas are Snus and moist snuff, Other tobacco products (cigars and chewing tobacco), Lights (matches, lighters, and complementary products), and Other operations. Production is located in six 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.