Drott's concentration continues

Drott's concentration continues * Withdrawing from UK and Luxembourg * Restructuring in Sweden * Acquiring housing and building rights in Stockholm region The phase-out of Drott's portfolio of non-priority properties continues as planned. A total of 15 properties have been sold for SEK 204 million, yielding a capital gain of approximately SEK 45 million. Two properties outside Sweden - in the UK and Luxembourg - have been sold for a total of SEK 65 million. Drott now owns a total of four properties outside Sweden. Final negotiations have been initiated regarding the sale of Drott's remaining UK property. Six properties in Örebro have been sold for SEK 86 million. This transaction is in line with the Group's aim of concentrating its housing portfolio to Stockholm, Gothenburg and the Öresund region. Drott had acquired four of the sold properties as part of a larger structural transaction during autumn 1998. Drott has also sold three residential properties in Gothenburg, one in Arvika, and one in Ödåkra outside Helsingborg, as well as two small commercial properties situated in Malmö and Stockholm suburb Danderyd. The sales proceeds total SEK 53 million. In addition, Drott has acquired seven residential properties in Stockholm and in Stockholm suburb Solna, as well as an office project along the E4 Highway at Järva Krog, just north of central Stockholm. These assets were acquired through companies. Drott paid SEK 34 million for the shares in these companies and acquired loans and similar liabilities amounting to about SEK 110 million. 2 Construction on the approximately 8,000-m office project is scheduled to commence next year. This investment along Stockholm's northern access route will strengthen Drott's position in an area where demand for offices is expected to be very strong during the years immediately ahead. Sales of managed properties announced today Location Name of property Rentable - of which, Hand- 2 floor housing, m over 2 space, m date England Tech West House 3 465 - 99-09-06 Luxembourg Faience 1 812 - 99-10-01 Örebro * 10 310 9 301 99-10-01 Gothenburg Kviberg 20:2, 23:1, 24:1 6 178 5 814 99-09-01 Arvika Arbetaren 9 3 348 3 348 99-08-31 Helsingbor Malmån 1 2 552 2 552 99-10-01 g Malmö Stillman 48 3 120 - 99-07-01 Stockholm part of Danarö 6 305 - fall-99 Total 31 090 21 015 * Brandstationen 6, Liljan 9, Fåraheden 3, Gurkan 11, Räven 3, Ärlan 25 The above sales will be included in Drott's nine-month report, which will be 1 published on Friday, October 22. Acquisitions of managed properties announced today Location Name of property Rentable - of which, Take 2 floor housing, m over 2 space, m date Enskede Fanérpressen 1 2 138 2 041 99-10-11 Enskede Vattenhon 5 1 228 999 99-10-11 Hägersten Maskrosen 5 1 998 1 932 99-10-11 Johanneshov Botanikern 1 1 261 446 99-10-11 Johanneshov Skalbaggen 1 1 727 1 654 99-10-11 Solna Järvakrogen 2 1 474 1 206 99-10-11 Solna Rosklinten 6 1 750 1 410 99-10-11 Total 11 576 9 688 These acquisitions have been implemented during the fourth quarter. Drott AB (publ) For further information, contact Mats Mared, President and Chief Executive Officer (Tel: +46-8-545 83 010) 1 Other transactions implemented by Drott during the third quarter were reported in the six-month report published on August 13 (sale of four UK properties) and in a press release dated August 26 (acquisition of Blästern 14, Stockholm). A specification of all the properties sold/acquired by Drott to date during 1999 is available on www.drott.se (can also be ordered from Drott - call Ingemo Österberg; Tel: +46-8-545 83 018). Drott is a pure real estate company that focuses on the Swedish market. The Company's mission is to generate a return on the capital invested by shareholders through management of its own real estate and through real estate transactions. Based on satisfied tenants, profitable properties and a strong position in growth markets - mainly for offices and housing - Drott aims to secure a rising operating surplus in real terms combined with growth in cash flow per share. On June 30, 1999, Drott owned 556 properties with 2 approximately 3.0 million m of rentable floor space, of which housing (about 2 18,500 apartments) accounted for about 1.3 million m . Contracted annual rental revenues from these properties amount to approximately SEK 2.7 billion, with the Stockholm area accounting for approximately half. Drott has about 300 employees. The Company has 55,000 shareholders and is the largest real estate company on the Stockholm Stock Exchange. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/12/19991012BIT00300/bit0001.doc http://www.bit.se/bitonline/1999/10/12/19991012BIT00300/bit0002.pdf