The "New Food Company" acquires discount food chains with combined annual sales of about 2 billion SEK

The "New Food Company" acquires discount food chains with combined annual sales of about 2 billion SEK. * Wholly owned food retail increases to approximately 45 percent of consolidated net sales * Earnings per share expected to increase by more than 0.20 SEK in 2000 * Directed new issue of approximately 3 million shares The "New Food Company" (Hemköp/D&D/SPAR) has signed a letter of intent to acquire * Svensk Detaljhandelsutveckling AB, which among other things owns the discount food retail chain Exet * Mats Persson Mellansverige AB, which owns the discount food retail chains XL and L-köp * Eurotaste AB, which supplies food retail with private label products. The discount food retail chains Exet, XL and L-köp will thereby become wholly owned subsidiaries of the "New Food Company". Wholly owned food retail operations increases to approximately 14 billion SEK after the acquisitions, corresponding to more than 45 percent (previously 40 percent) of the "New Food Company's" consolidated net sales of approximately 30 billion SEK. The acquisitions are made for a combination of cash and a directed share issue of approximately 3 million shares. The "New Food Company's" earnings per share is expected to increase by slightly more than 0.20 SEK for the year 2000. The acquisitions are conditional upon a decision by the Board of Directors and the Ordinary General Meeting of the "New Food Company", as well as trade union negotiations. Through the acquisition, Svensk Detaljhandelsutveckling AB and its discount food retail chain Exet, with 20 stores, will become wholly owned by the "New Food Company". Exet reported sales of 1.4 billion SEK in 1999. At present, the "New Food Company" owns 25 percent of Exet. Svensk Detaljhandelsutveckling also has franchise agreements with Matex, which operates 14 stores. Mats Persson Mellansverige AB operates eight discount stores under the names XL and L-köp, which reported sales of approximately 500 MSEK in 1999. The "New Food Company" owns 25 percent of the company at present. Furthermore, 91 percent of Eurotaste AB is acquired. Eurotaste supplies food retail with private label products, for example brands such as O'Lacy's and Godegården. Eurotaste has a turnover of approximately 500 MSEK annually. - We are happy to tie some very well run food chains closer to the "New Food Company", says Göran Ennerfelt, Chairman of the "New Food Company". We increase the share of wholly owned food retail operations and further strengthen our position on the discount market. We also gain access to some very successful private labels. Enquiries to: Göran Ennerfelt, Chairman, The "New tel: +46-70-598 61 08 Food Company" Lars Otterbeck, CEO D&D Dagligvaror AB tel: +46-8-553 990 00 Lennart Hall, Chairman, Svensk tel: +46-70-581 21 03 Detaljhandelsutveckling Mats Persson, CEO Mats Persson tel: +46-70-729 42 00 Mellansverige AB Tommy Söderberg, CEO Eurotaste AB tel: +46-451- 594 00 The "New Food Company" is the working name for one of the largest listed company within food wholesale and retail in the Nordic region. The company is formed through a combination of Hemköp and D&D Dagligvaror and the acquisitions of Spar Sverige, Spar Inn Snabbgross as well as the voting majority of Spar Finland. The company operates a number of retail chains such as Hemköp, SPAR, Vivo, Tempo, Willys and Billhälls. Consolidated net sales pro forma amounts to approximately 30 billion SEK. The number of employees amount to approximately 7,000. The company includes approximately 1,000 stores in Sweden, whereof 250 are wholly or partly owned and the remaining stores are operated by independent retailers associated to the company through contracts, as well as approximately 330 stores in Finland, whereof 85 are wholly owned and the remaining stores are operated by independent retailers. The market share in Sweden is approximately 20 percent and in Finland approximately 10 percent. The company is listed on the OM Stockholm Exchange's A-list. Principle owner is Axel Johnson AB with approximately 47 percent of the shares. Mats Jansson has been elected CEO and will assume office on 15 March 2000. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/06/20000306BIT00640/bit0001.doc http://www.bit.se/bitonline/2000/03/06/20000306BIT00640/bit0002.pdf