JM's Board of Directors Proposes Incentive Program

JM's Board of Directors proposed today that the Annual General Meeting 2007 resolve to approve a convertible debenture program aimed at JM employees in Sweden and a performance share program aimed at the company’s senior executives within the JM-group. The programs are aimed to further strengthen commitment to the company. Equivalent programs will be established coming years, on condition of approval by the Annual General Meeting each year.

Convertible program in brief:
- The Board proposes that JM raise a debenture loan through the issue of convertible debentures with term of four years.
- Convertible debentures will be offered to JM employees from May 23, until June 1, 2007.
- The loan will amount to a maximum of SEK 154 million through the issue of a maximum of 700,000 convertible debentures.
- Each debenture may be converted into one share, at a price equivalent to about 125 percent of the average price paid for the JM share during a benchmark period in May 2007.
- Through conversion JM's share capital could increase by a maximum of SEK 700,000, equivalent to a dilution of about 0.8 percent of JM's share capital and votes.
- The convertible debenture loan must be subscribed to and paid for by June 15, 2007.

Performance share program in brief:
- The Board proposes establishment of a long-term, share-related, incentive program: 2007 Performance Share Program.
- The program will cover up to 50 of the company's senior executives within the JM-group.
- Participation requires a personal investment in JM ordinary shares (contribution share) which are held for three years. For each contribution share the participant is assigned the right to acquire one ordinary JM share (performance share) at a redemption price of SEK 10.
- The potential size of the investment is based on the participant's variable compensation after tax.
- The duration of the 2007 Performance Share Program will be seven years, with the opportunity to acquire performance shares after three years.
- The program will include a maximum of 55,000 ordinary shares, equivalent to a dilution of a maximum of about 0.06 percent of shares and votes.
- Rights will be allotted by May 31, 2007.

The complete proposal will be made available at JM AB's head office, Legal Affairs and Development, Telegrafgatan 4, Solna, and on JM's website www.jm.se, beginning on March 27, 2007.