Distribution of acquisition value between shares in Bure and Observer

Distribution of acquisition value between shares in Bure and Observer During 2001, Bure Equity AB distributed all the shares in Observer AB, to the shareholders. The benefit for shareholders to receive shares in another company free of charge is placed on a par with a dividend. However, according to the provisions for state tax such dividend is tax- exempt subject to certain specified conditions. The National Tax Board has established that the aforementioned provision regarding tax- exemption is applicable to this distribution. Under such circumstances the proportion of the average acquisition value of the shares in Bure, which is equivalent to change in the market value as a consequence of the distribution, shall be regarded as acquisition value for the distributed shares in Observer. The last day for trading shares in Bure with a right to distribution was 26 April 2001, when the lowest price paid was SEK 49.00. The first day for trading shares in Bure without a right to distribution was 27 April 2001, when the lowest price paid was SEK 33.50. The National Tax Board has issued recommendations in its communication, Dnr 7754-01/140, and announced that, in these circumstances, the acquisition value should be distributed as follows: Recommendations: · Of the acquisition value for shares in Bure, 74 per cent should relate to these shares and 26 per cent to shares in Observer. These recommendations will be applied from the 2002 assessment of tax. The distribution ment that for each six shares in Bure one share in Observer was distributed. Gothenburg, 8 November 2001 Bure Equity AB (publ) For further information, please contact: Johanna Pettersson, Public Relations Officer, Bure +46 31-335 76 33 +46 708-35 76 51 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/11/08/20011108BIT00370/bit0001.doc http://www.waymaker.net/bitonline/2001/11/08/20011108BIT00370/bit0001.pdf