Swedish Match acquires match business in Bulgaria

PRESS RELEASE December 1, 1997 Swedish Match acquires match business in Bulgaria Swedish Match have, at a price of 2.35 MUSD, acquired 58% of the shareholding of PLAM Bulgarski Kibrit JSCo, Bulgaria's leading match manufacturer. PLAM has aprox. 400 employees in one factory and headoffice located in the town of Kostenets, 70 km Southeast of the capitol Sofia. Sales 1997 amounts to approx. 35 MSEK. PLAM is being sold as part of Bulgaria's privatisational campaign. The company controls virtually all the Bulgarian Match market (approx. 9 billion matches, almost the size of the German market). In addition, half of the matches produced are exported to neighbouring countries. Bulgaria have extensive ethnic, cultural and commercial ties with many markets in the Balkans (Serbia, Romania, etc.) and the Black Sea (Georgia and Ukraine), a market of approx. 140 million people and opening up to western way of life. PLAM is intended to become the vehicle for Swedish Match's expansion in the field of Matches, Lighters and Tobacco products in the above described areas, where Swedish Match has practically no presence today. Swedish Match is a company specialised in Matches, Lighters and Tobacco products with a turnover of approximately 7.500 MSEK. Swedish Match is a listed company both at the Stockholm Stock Exchange and at the Nasdaq Stock Exchange, in New York. For further information, please contact: Bo Aulin, Senior Vice President, Corporate Affairs Office: +46 8 658 03 64 Mobile: +46 70 558 03 64 Residence: +46 8 768 45 22 Göran Ekdahl, Vice President, Corporate Communication Office: +46 8 658 01 62 Mobile: +46 70 858 11 62 Residence: +46 8 768 38 22 Boel Sundvall, Vice President, Investor Relations Office: +46 8 658 01 73 Mobile: +46 70 651 39 09 Residence: +46 8 25 87 12 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1997/12/01/19990301BIT00160/bit0001.doc http://www.bit.se/bitonline/1997/12/01/19990301BIT00160/bit0002.pdf

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.