4 Based on full acceptance in the Offer. At a lower acceptance level, the number of shares to be issued, and the total amount of cash to be paid, will be reduced proportionately to maintain the aggregate proportions of shares in Castellum and cash to be paid in the Offer.

5 EPRA Net Reinstatement Value; Reported equity including recognised liability/asset for interest rate swaps and deferred tax.

6 EPRA NTA – Net Tangible Assets; Reported equity after adding back reported asset/liability of interest rate derivatives and adjusted for the estimated fair value of deferred tax (3.7 percent for properties).

 Rutger Arnhult, Chairman of the Board of Castellum, comments:

"Through the combination with Kungsleden, we strengthen our position as the leading Nordic listed commercial property company, with focus on the most interesting growth regions. Together, we create a company with a well-diversified property portfolio, a strong customer focus and an attractive project development portfolio. The real estate industry is going through a period of change, where size along with sustainable and innovative service development becoming more and more important. We are now creating a company with a property value of SEK 157 billion combined with a strong balance sheet, which together with a maintained rating enables attractive financing terms and thus enhanced competitiveness. The focus of the combined company is to continue creating shareholder value and to reach our long-term objective of an annual growth in profit from property management per share of 10 percent, with a maintained dividend of at least 50 percent of profit from property management. I welcome the shareholders of Kungsleden the opportunity to join this growth journey."

Rationale for the proposed combination

Castellum believes that the management and employees of Kungsleden have built a highly successful company with an attractive commercial property portfolio in Sweden. The combination of Castellum and Kungsleden will create significant value for all stakeholders, where the company's size, strong balance sheet and maintained financial strength will result in an enhanced competitive position.

Strengthen the position as the leading listed commercial property company in the Nordics

Castellum will, through the combination with Kungsleden, strengthen its position as the Nordics largest listed commercial property company and the fourth largest listed commercial property company in Europe.⁷ The combined company will have a continued focus on long-term growth, sustainability and financial stability. The combination is expected to create growth and shareholder value through an efficient common platform within property management, by continued property and project acquisitions as well as development of existing properties and project portfolio. The combined property portfolio consists mainly of offices and warehouses/logistics, where the former segment has a large element of public authorities.  

7 In terms of property value, based on the latest information available as of 30 July 2021. The comparison with commercial property companies in the Nordics and Europe excludes public property companies mainly focusing on residential, retail, hotel, or public service properties.

Leading market position in Nordic growth regions through complementing property portfolios

Castellum will, after the combination with Kungsleden, have a high-quality property portfolio focusing on commercial properties with a broad geographic diversification within attractive growth regions in Sweden, Finland and Denmark. Kungsleden's and Castellum's property portfolios complement each other well and thus strengthen the combined company's position on the respective prioritised market. At the same time, the combination provides an increased risk diversification due to a broader customer base. The combination therefore creates opportunities for continued strong growth and an attractive customer offering. In order to enable focus on prioritised growth regions, divestment of properties is planned within less prioritised areas after the combination.

Castellum's and Kungsleden's combined industry experiences unlock full potential from project development

The combined company will have an attractive portfolio with ongoing and upcoming projects of commercial properties which are expected to create a good foundation for future growth and profitability. Castellum, as well as Kungsleden have great experiences from project development and will, through exchange of knowledge and operational synergies, be able to further increase value creation within this business area.

Diversified base of stable and attractive tenants secures continued strong cash flow

The customer base will through the combination be further broadened with stable and well-renowned tenants and the already low tenant concentration will be reduced. The combined company's customer base will mainly consist of public authorities, municipalities and blue-chip corporates. The customers will, through the combination, be offered one of the market's best supplies of sustainable premises with the latest technical solutions intended to simplify the everyday life for both tenants and their employees.

Aligned agenda to become Europe's most sustainable property company

Castellum and Kungsleden are today driving the development of green properties and sustainable urban development. Ambitious sustainability targets, as carbon-neutrality and environmental certification, will enable reduced climate impact. The combined company will become a Nordic industry leader within digitalisation, energy efficiency and service in the continued development of future customer offering.

Significant and value creating synergies

The combination enables for great synergies within operation, property management, property development and financing. Both Kungsleden and Castellum are leading in sustainable energy use and efficient property management, and the combination will enable further cost reductions of operating costs. The operation will be strengthened within property management, transactions, project development and administration, at the same time as there will emerge opportunities to increase the efficiency through exchange of knowledge and utilisation of economies of scale. The financial synergies can be achieved by Kungsleden's outstanding loans successively being refinanced based on Castellum's higher rating. Kungsleden's and Castellum's aligned value-driven corporate cultures create great conditions for a successful combination and a successful integration. In aggregate, total annual synergies are estimated to SEK 285 million.

Attractive financial profile with a sustained financial policy and increased access to capital

The combined company will continue to have a strong financial position with the aim to maintain Castellum's rating, meaning an actual loan-to-value ratio below 45 percent. Castellum's policy to have a loan-to-value ratio not exceeding 50 percent remains for the new group, whilst actual loan-to-value ratio is estimated to be below the policy in order to meet the rating requirement. In order to achieve a lower loan-to-value ratio, Castellum plans to issue hybrid bonds during the second half of the year of 2021 while also divesting a property portfolio from the new company. The latter may only occur once the companies have been combined. Furthermore, Castellum's financial target of annual growth in profit from property management per share of 10 percent and dividend of at least 50 percent per share of the profit from property management remains.

The combination is, given the company's size, expected to strengthen the position and competitiveness on the capital markets. The combined company is also expected to gain increased attractiveness from debt investors as a result of a continued strong balance sheet, lower portfolio risk, maintained good rating as well as the possibility of issuing volume with high liquidity. The combination of the companies is therefore assessed to further increase interest in Castellum's shares, both in Sweden and internationally.

Kungsleden has sought and received waivers from Kungsleden's financing banks in respect of provisions such as change of control provisions under existing financing arrangements that may be invoked as a result of the Offer.

Strong and experienced management enables continuity in the combined company

Through the combination, two highly professional and competent organisations are combined. Following the completion of the combination, the board of directors in Castellum will offer Biljana Pehrsson, CEO of Kungsleden, and Ylva Sarby Westman, Deputy CEO and CFO of Kungsleden, to become CEO and Deputy CEO, respectively, for the combined company. Castellum believes that the management and employees of Kungsleden have built a very successful company with an attractive commercial property portfolio in Sweden. Castellum expects that the proposed combination of the businesses will be positive for both companies and lead to attractive opportunities for the employees of Kungsleden and Castellum.

The Offer

Consideration

The consideration in the Offer for the shares in Kungsleden consists of a combination of shares in Castellum and cash. Subject to the potential adjustment of each individual Kungsleden shareholder's consideration due to elections made under the Mix & Match Facility as described below, Castellum is offering each shareholder in Kungsleden the following (the Base Case Consideration):

• • In respect of 70 percent of the number of shares in Kungsleden tendered by such shareholder: 0.525 shares in Castellum per share in Kungsleden, and
  • in respect of the remaining 30 percent of the number of shares in Kungsleden tendered by such shareholder: SEK 121.00 in cash per share in Kungsleden.

No commission will be charged in respect of the settlement of the consideration of shares in Kungsleden acquired by Castellum under the Offer.

The offered consideration will not be adjusted for dividend previously resolved upon of SEK 0.70 per share in Kungsleden, with record date 30 September 2021, or for dividend previously resolved upon of SEK 3.45 per share in Castellum, with record date 27 September 2021. The offered consideration will be adjusted if Kungsleden or Castellum makes additional dividends or other value transfers to the shareholders before settlement has taken place in relation to Offer and will consequently be reduced by a corresponding amount per share for each such dividend or value transfer made by Kungsleden, or increased by a corresponding amount per share for each such dividend or value transfer made by Castellum.

Bid premium

The Base Case Consideration represents a premium of:⁸

• • 18.0 percent compared to Kungsleden's EPRA NRV per share of SEK 105.88 as of 30 June 2021.
  • 21.2 percent compared to Kungsleden's EPRA NTA per share of SEK 103.02 as of 30 June 2021.
  • 7.5 percent compared to the closing price of Kungsleden's shares on Nasdaq Stockholm on 30 July 2021 (the last trading day before the announcement of the Offer).
  • 12.5 percent compared to the volume-weighted average share price of Kungsleden's shares on Nasdaq Stockholm during the last 30 trading days up to and including 30 July 2021 (the last trading day before the announcement of the Offer).
  • 19.8 percent compared to the volume-weighted average share price of Kungsleden's shares on Nasdaq Stockholm during the last 90 trading days up to and including 30 July 2021 (the last trading day before the announcement of the Offer).

8 Based on a value of the Offer of approximately SEK 124.90 per share in Kungsleden, as of the day of announcement of the Offer.

The Mix & Match Facility for Kungsleden's shareholders

Castellum offers Kungsleden's shareholders a so-called Mix & Match facility, through which each shareholder in Kungsleden is, subject to the restrictions set out below, given the possibility, should the shareholder prefer a deviation from the Base Case Consideration, to elect either:

1. to receive as much consideration in cash as possible for tendered Kungsleden shares (in addition to the default cash entitlement of SEK 121.00 per Kungsleden share in respect of 30 percent of the number of Kungsleden shares tendered), and thus as little consideration in shares as possible,⁹ or
2. to receive as much consideration in shares as possible for tendered Kungsleden shares (in addition to the default share entitlement of 0.525 shares in Castellum per Kungsleden share in respect of 70 percent of the number of Kungsleden shares tendered), and thus as little consideration in cash as possible.¹⁰

In aggregate, up to a total of 79,028,043 shares in Castellum will be issued, and up to a total of SEK 7,806 million will be paid in cash as consideration for the shares in Kungsleden.¹¹ This proportion between shares and cash will not be varied as a result of individual elections made under the Mix & Match Facility. In order for individual shareholders in Kungsleden to receive a higher proportion of a certain requested consideration alternative under the Mix & Match Facility, other shareholders must have made the reverse elections to a corresponding extent.

In the event that Castellum, after the acceptance period, declares the Offer unconditional and thereafter extends the acceptance period, it will for practical reasons not be possible to cater for elections made under the Mix & Match Facility with regard to acceptances received after the initial acceptance period. Shareholders in Kungsleden accepting the Offer during a potential extension after the Offer has been declared unconditional will thus receive the Base Case Consideration in the Offer, consisting of 70 percent shares and 30 percent cash.

The shareholders in Kungsleden are made aware that the value of the share consideration will change over time in line with the Castellum share price, entailing that elections made under the Mix & Match Facility may result in a higher or lower value per Kungsleden share than the value of the Base Case Consideration.

In case tenders made by Kungsleden's shareholders under the Mix & Match Facility are not fully matched, they will be scaled down on a pro rata basis in relation to the number of shares tendered by the respective shareholder.

9 A cash consideration of SEK 121.00 per Kungsleden share would represent a premium of 14.3 percent compared to Kungsleden's EPRA NRV per share of SEK 105.88 as of 30 June 2021, 17.5 percent compared to Kungsleden's EPRA NTA per share of SEK 103.02 as of 30 June 2021, 4.1 percent compared to the closing price for Kungsleden's share on Nasdaq Stockholm on 30 July 2021 (the last day of trading prior to the announcement of the Offer), amounting to SEK 116.20, 9.0 percent compared to the volume-weighted average trading price on Nasdaq Stockholm of SEK 111.00 for Kungsleden's share during the last 30 trading days ended on 30 July 2021 (the last day of trading prior to the announcement of the Offer), and 16.0 percent to the volume-weighted average trading price on Nasdaq Stockholm of SEK 104.30 for Kungsleden's share during the last 90 trading days ended on 30 July 2021 (the last day of trading prior to the announcement of the Offer).

Fractions

No fractions of Castellum shares will be delivered to shareholders in Kungsleden accepting the Offer. If a shareholder in Kungsleden tenders a number of Kungsleden shares in the Offer and the share consideration to be delivered for these shares does not amount to an even number of full new Castellum shares, consideration for excess fractions of shares will be paid in cash.

The total value of the Offer

At announcement, the Offer values each Kungsleden share at 124.90 and the Offer's total value is approximately SEK 26,860 million, based on the closing price of the Castellum share as of 30 July 2021.¹²

12 The value of the Offer is based on a closing price of the Castellum share of SEK 241.10 per share on Nasdaq Stockholm on 30 July 2021, and 215,042,296 outstanding shares in Kungsleden as of 30 July 2021. When calculating the total value of the Offer shares held by Kungsleden have not been included (currently 3,361,006 shares).

Statement from the board of directors of Kungsleden and fairness opinion

The board of directors of Kungsleden has assessed the Offer and informed Castellum that the board of directors of Kungsleden unanimously has resolved to recommend the shareholders of Kungsleden to accept the Offer. Further, the board of directors of Kungsleden has informed Castellum that the board of directors of Kungsleden has obtained a fairness opinion from SHB, according to which the Offer is fair for Kungsleden's shareholders from a financial perspective, based on the conditions set out in the statement.

Castellum's shareholding in Kungsleden

Neither Castellum nor any of its affiliated parties currently holds or controls any shares or any other financial instruments in Kungsleden.

Neither Castellum nor any of its affiliated parties has acquired or agreed to acquire any shares in Kungsleden, or any other financial instruments that give a financial exposure equivalent to a shareholding in Kungsleden, during the six month-period preceding the announcement of the Offer.

Castellum may acquire, or enter into arrangements to acquire, shares in Kungsleden outside the Offer, and any purchases made or arranged will be disclosed in accordance with applicable rules.

Undertakings from shareholders in Kungsleden

Castellum has obtained irrevocable undertakings to accept the Offer from the following shareholders in Kungsleden:

• Gösta Welandson (through companies) has, on 28 July 2021, undertaken to tender 33,727,023 shares in Kungsleden, corresponding to approximately 15.7 percent of the outstanding shares and votes in Kungsleden;
• Ilija Batljan (through a company) has, on 28 July 2021, undertaken to tender 15,369,397 shares in Kungsleden, corresponding to approximately 7.1 percent of the outstanding shares and votes in Kungsleden; and
• Olle Florén (directly and through companies) has, on 30 July 2021, undertaken to tender 6,750,797 shares in Kungsleden, corresponding to approximately 3.1 percent of the outstanding shares and votes in Kungsleden.

Accordingly, irrevocable undertakings to accept the Offer from shareholders representing in total 55,847,217 shares have been obtained, which corresponds to approximately 26.0 percent of the outstanding shares and votes in Kungsleden. If a third party, prior to the Offer being declared unconditional, makes a public offer to acquire all outstanding shares in Kungsleden (the "Third Party Offer"), and the Third Party Offer corresponds to or exceeds 110 percent of the value of the Offer as per the date of the Third Party Offer and Castellum does not match the Third Party Offer within three (3) business days after the announcement of the Third Party Offer, Gösta Welandson (through companies) Ilija Batljan (through a company) and Olle Florén (directly and through companies) have the right to withdraw their acceptance and accept the Third Party Offer.

Conditions for completion of the Offer

Completion of the Offer is conditional upon:

1. the Offer being accepted to such an extent that Castellum becomes the owner of shares representing more than 90 percent of the total number of outstanding shares in Kungsleden;
2. the extraordinary general meeting in Castellum resolves, with the required majority, on the necessary resolutions to enable the issuance of new shares in Castellum in connection with the Offer;
3. no other party announcing an offer to acquire shares in Kungsleden on terms that are more favourable to the shareholders of Kungsleden than the Offer;
4. with respect to the Offer and the acquisition of Kungsleden, receipt of all necessary regulatory, governmental or similar clearances, approvals decisions and other actions from authorities or similar, including from competition authorities, in each case on terms which, in Castellum's opinion, are acceptable;
5. neither the Offer nor the acquisition of Kungsleden being rendered wholly or partially impossible or significantly impeded as a result of legislation or other regulation, any decision of a court or public authority, or any similar circumstance;
6. no circumstances having occurred which could have a material adverse effect or could reasonably be expected to have a material adverse effect on Kungsleden's financial position or operation, including Kungsleden's sales, results, liquidity, equity ratio, equity or assets;
7. no information made public by Kungsleden, or otherwise made available to Castellum by Kungsleden, being inaccurate, incomplete or misleading, and Kungsleden having made public all information which should have been made public; and
8. Kungsleden not taking any action that is likely to impair the prerequisites for making or completing the Offer.

Castellum reserves the right to withdraw the Offer in the event that it is clear that any of the above conditions are not satisfied or cannot be satisfied. However, with regard to conditions 2 – 8 above, the Offer may only be withdrawn where the non-satisfaction of such condition is of material importance to Castellum acquisition of Kungsleden or if otherwise approved by the Swedish Securities Council (Sw. Aktiemarknadsnämnden).

Castellum reserves the right to waive, in whole or in part, one, several or all of the conditions set out above, including, with respect to condition 1 above, to complete the Offer at a lower level of acceptance.

Affiliated parties

Charlotta Wikström, member of the board of directors of Kungsleden, is representing Olle Florén with companies, which in relation to Castellum have undertaken to accept the Offer (see above under "Undertakings from shareholders in Kungsleden"). Taking into account the contractual relationship between Castellum and Olle Florén with companies and the Takeover-rules, Charlotta Wikström has not participated, and will not participate, in the handling of or the decision in matters related to the Offer.

Information about Castellum

Castellum is a Swedish public limited liability company incorporated in Sweden and operating under Swedish law. Castellum's registered office is in Gothenburg, Sweden. Castellum shares are admitted to trading on Nasdaq Stockholm's main market under the ticker CAST. For more information, please refer to Castellum's webpage, www.castellum.se.

Castellum is one of the largest listed property companies in the Nordics and develops flexible workplaces and smart logistics solutions with a property value of approximately SEK 97 billion. Castellum is active in 14 Swedish growth regions as well as in Denmark (Copenhagen) and Finland. Castellum focuses on offices, with a large element of public authorities as well as warehouse/logistics, and the property portfolio consists of 558¹³ properties with a total yearly rental value of approximately SEK 5.9 billion.¹⁴ Taking into account Castellum's ownership in Entra and acquisitions carried out in July, the property value amounts to approximately SEK 114 billion.

Castellum's business model is built on investing in and developing commercial premises managed in a decentralised and customer-centric organization focusing on cash flow and low financial risk. The operations comprise three areas: (i) property management, (ii) project development, and (iii) transaction.

13 Including Castellum's 54 development properties.

For further information, please contact:

Rutger Arnhult, chairman
Phone: +46 704-58 24 70

Ulrika Danielsson, CFO
Phone: +46 70 647 12 61, email: ulrika.danielsson@castellum.se

This disclosure contains information that Castellum is obliged to make public pursuant to the EU Market Abuse Regulatio n (EU nr 596/2014). The information was submitted for publication, through the agency of the contact persons, on 2 August 2021, 07.30 (CEST).

Presentation and telephone conference

In connection with the publication of the offer document Castellum will invite journalists, analysts and investors to participate in a presentation regarding the Offer together with a subsequent Q&A session. An invitation will be published at a later stage.

Information about the Offer:

www.castellum.se

Important information

This press release has been published in Swedish and English. In the event of any discrepancy in content between the two language versions, the Swedish version shall prevail.

Nordea is acting as financial adviser to Castellum, and no one else, in connection with the Offer. Nordea will not consider any other persons as customers in relation to the Offer and is not responsible to anyone other than Castellum for providing the protection Nordea offers to its customers, or to provide advice in connection with the Offer or any other transaction, question or arrangement referenced in this press release. Nordea has not assumed any obligation to independently verify, and disclaims any liability with respect to, the information herein.

The Offer is not capable of being accepted by persons who are located or resident in the United States unless they are qualified institutional buyers (“QIBs”) (as defined in Rule 144A under the U.S. Securities Act of 1933, as amended). Any purported acceptance of the Offer by persons located or resident in the United States other than QIBs or which, at the sole discretion of Castellum, appear to be made in respect of Kungsleden shares beneficially held by persons located or resident in the United States other than QIBs will not be accepted. By accepting the Offer, Kungsleden shareholders, unless participating pursuant to the exception for QIBs referred to above, will be deemed to represent and warrant, on behalf of themselves and any person on whose behalf they beneficially hold Kungsleden shares, that they are not located or resident in the United States. (See “Special notice to shareholders in the United States” below.)

The Offer is not being made, directly or indirectly, in or into Australia, Hong Kong, Japan, New Zealand or South Africa by use of mail or any other communication means or instrumentality (including, without limitation, facsimile transmission, electronic mail, telex, telephone and the Internet) of interstate or foreign commerce, or of any facility of national securities exchange or other trading venue, of Australia, Hong Kong, Japan, New Zealand or South Africa, and the Offer cannot be accepted by any such use or by such means, instrumentality or facility of, in or from, Australia, Hong Kong, Japan, New Zealand or South Africa. Accordingly, this press release or any documentation relating to the Offer are not being and should not be sent, mailed or otherwise distributed or forwarded in or into Australia, Hong Kong, Japan, New Zealand or South Africa.

This press release is not being, and must not be, sent to shareholders with registered addresses in Australia, Hong Kong, Japan, New Zealand or South Africa. Banks, brokers, dealers and other nominees holding shares for persons in Australia, Hong Kong, Japan, New Zealand or South Africa must not forward this press release or any other document received in connection with the Offer to such persons.

Persons who receive this press release (including without limitation banks, brokers, dealers, nominees, trustees and custodians) and are subject to the laws and regulations of any such jurisdiction will need to inform themselves about, and observe, any applicable restrictions and requirements. Any failure to do so may constitute a violation of the securities laws or regulations of any such jurisdiction. To the extent permitted by applicable law, Castellum disclaims any responsibility or liability for any violations of any such restrictions and Castellum reserves the right to disregard any purported acceptance of the Offer resulting directly or indirectly from a violation of any of these restrictions.

The Offer, the information and documents contained in this press release are not being made and have not been approved by an authorized person for the purposes of section 21 of the UK Financial Services and Markets Act 2000 (the “FSMA”). Accordingly, the information and documents contained in this press release are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of the information and documents contained in this press release is exempt from the restriction on financial promotions under section 21 of the FSMA on the basis that it is a communication by or on behalf of a body corporate which relates to a transaction to acquire day to day control of the affairs of a body corporate; or to acquire 50 percent or more of the voting shares in a body corporate, within article 62 of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.

Statements in this press release relating to future status or circumstances, including statements regarding future performance, growth and other trend projections and other benefits of the Offer, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as "anticipates", "intends", "expects", "believes", or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Castellum. Any such forward-looking statements speak only as of the date on which they are made and Castellum has no obligation (and undertakes no such obligation) to update or revise any of them, whether as a result of new information, future events or otherwise, except for in accordance with applicable laws and regulations.

Special notice to shareholders in the United States

The new Castellum shares to be issued in connection with the Offer are not being, and will not be, registered under the Securities Act or under the securities laws of any jurisdiction of the United States. The Offer is not capable of being accepted by persons who are located or resident in the United States unless they are QIBs, and any purported acceptance of the Offer by persons located or resident in the United States other than QIBs or which, at the sole discretion of Castellum, appear to be made in respect of Kungsleden shares beneficially held by persons located or resident in the United States other than QIBs will not be accepted.

The Offer described in this press release is made for the issued and outstanding shares of Kungsleden, a company incorporated under Swedish law, and is subject to Swedish disclosure and procedural requirements, which may be different from those of the United States. The Offer is made in the United States to QIBs pursuant to Section 14(e) of the U.S. Securities Exchange Act of 1934, as amended (the "U.S. Exchange Act") and Regulation 14E thereunder, to the extent applicable, subject to exemptions provided by Rule 14d-1(d) under the Exchange Act for a “Tier II” tender offer, and otherwise in compliance with the disclosure and procedural requirements of Swedish law, including with respect to withdrawal rights, the Offer timetable, notices of extensions, announcements of results, settlement procedures (including as regards to the time when payment of the consideration is rendered) and waivers of conditions, which may be different from requirements or customary practices in relation to U.S. domestic tender offers. Holders of the shares of Kungsleden domiciled in the United States that are QIBs are encouraged to consult with their own advisors regarding the Offer.

Nordea is not registered as a broker or dealer in the United States and will not be engaging in direct communications relating to the Offer with investors located within the United States (whether on a reverse-inquiry basis or otherwise).

Castellum's and Kungsleden's financial statements and all financial information included herein, or any other documents relating to the Offer, have been or will be prepared in accordance with IFRS and may not be comparable to the financial statements or financial information of companies in the United States or other companies whose financial statements are prepared in accordance with U.S. generally accepted accounting principles. The U.S. shareholders that are QIBs should note that the price for the Offer is being paid in SEK and that no adjustments will be made based on changes in exchange rates.

The Offer is being made to Kungsleden's shareholders resident in the United States that are QIBs on the same terms and conditions as those made to all other shareholders of Kungsleden to whom an offer is made. Any information documents, including the offer document, are being disseminated to U.S. shareholders that are QIBs on a basis comparable to the method pursuant to which such documents are provided to Kungsleden's other shareholders.

The Offer, which is subject to Swedish law, is being made to the U.S. shareholders in accordance with the applicable U.S. securities laws, and applicable exemptions thereunder. To the extent the Offer is subject to U.S. securities laws, those laws only apply to U.S. shareholders and thus will not give rise to claims on the part of any other person. It may be difficult for Kungsleden's shareholders to enforce their rights and any claims they may have arising under U.S. federal or state securities laws in connection with the Offer, since Kungsleden and Castellum are located in countries other than the United States, and some or all of their officers and directors may be residents of countries other than the United States. Kungsleden's shareholders may not be able to sue Kungsleden or Castellum or their respective officers or directors in a non-U.S. court for violations of U.S. securities laws. Further, it may be difficult to compel Kungsleden or Castellum and/or their respective affiliates to subject themselves to the jurisdiction or judgment of a U.S. court.

To the extent permissible under applicable law or regulations, Castellum and its affiliates or its brokers and its brokers’ affiliates (acting as agents for Castellum or its affiliates, as applicable) may from time to time and during the pendency of the Offer, and other than pursuant to the Offer, directly or indirectly purchase or arrange to purchase shares of Kungsleden outside the United States, or any securities that are convertible into, exchangeable for or exercisable for such shares. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices, and information about such purchases will be disclosed by means of a press release or other means reasonably calculated to inform U.S. shareholders of such information. In addition, the financial advisors to Castellum may also engage in ordinary course trading activities in securities of Kungsleden, which may include purchases or arrangements to purchase such securities as long as such purchases or arrangements are in compliance with the applicable law. Any information about such purchases will be announced in Swedish and in a non-binding English translation available to U.S. shareholders through relevant electronic media if, and to the extent, such announcement is required under applicable Swedish or U.S. law, rules or regulations.

The receipt of cash pursuant to the Offer by a U.S. shareholder that is a QIB may be a taxable transaction for U.S. federal income tax purposes and under applicable U.S. state and local, as well as foreign and other, tax laws. Each shareholder is urged to consult an independent professional adviser regarding the tax consequences of accepting the Offer. Neither Castellum nor any of its affiliates and their respective directors, officers, employees or agents or any other person acting on their behalf in connection with the Offer shall be responsible for any tax effects or liabilities resulting from acceptance of this Offer.

NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY U.S. STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THE OFFER, PASSED ANY COMMENTS UPON THE MERITS OR FAIRNESS OF THE OFFER, PASSED ANY COMMENT UPON THE ADEQUACY OR COMPLETENESS OF THIS PRESS RELEASE OR PASSED ANY COMMENT ON WHETHER THE CONTENT IN THIS PRESS RELEASE IS CORRECT OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE IN THE UNITED STATES.