Sale of Mandamus' Karlstad stock

SALE OF MANDAMUS' KARLSTAD STOCK Mandamus has signed an agreement on the sale of its property stock in Karlstad to Klövern AB. The stock comprises some 41,200 m2 of commercial premises in 11 properties. The agreement is conditional on Klövern AB obtaining financing. Mandamus is receiving SEK 168m in cash and 5,538,460 "B" shares in Klövern AB. These, at the share price of SEK 11 each at the date of the latest close of the annual accounts, 27 June 2003, are worth some SEK 61m. This corresponds to a purchase price of SEK 229m. The Klövern shares are being acquired through a non-cash issue. To make the deal independent of the Klövern AB share price, Mandamus acquired a put option and issued a call option for the aforesaid Klövern shares. Purchase of the option solution took place on a competitive basis. The best tender was submitted by Akelius Kontor AB, which has committed itself to buying shares at a price of at least SEK 11 per share. If the share price for "B" shares in Klövern exceeds SEK 11 when the option is exercised, this price is to be paid instead. Mandamus has undertaken to sell the shares to Akelius Kontor AB on corresponding terms. The put and call options can be exercised from 15 August to 22 August 2003 inclusive. Mandamus' obligations under the put option are conditional on delivery of the Klövern shares to Mandamus in accordance with the agreement with Klövern AB. The aforesaid Klövern shares correspond to 9.1 per cent of the shares and 5.9 per cent of the votes in the company, based on a total of 60,870,130 shares, i.e. the number of shares in Klövern AB after the share issues of 1 August 2003. Today, Mandamus owns no shares in Klövern AB. This message is also intended as a disclosure of substantial share acquisitions. The deal yields a sale profit of some SEK 10m. Klövern AB will take possession of the properties on 1 August 2003. Comment from Mandamus' Acting Managing Director, Anders Silverbåge Karlstad has long been on our sales list. It is therefore gratifying that we have now succeeded in signing a sales agreement. The Karlstad sale is part of our endeavour of further concentrating our property stock in housing. Queries Please address any queries to Anders Silverbåge, phone +46-709-118 555 or e-mail anders.silverbage@mandamus.se. Mandamus is a property company that seeks, on a long-term basis, to own, develop and manage high-yield residential properties, mainly in growth areas in Southern and Central Sweden. Mandamus owns properties with a book value of some SEK 5,700m, yielding annual rental income of roughly SEK 900m. Mandamus Fastigheter AB (publ) Corporate ID No.: 556549-6360 Box 12 SE-171 18 Solna +46-8-566 130 00 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/07/01/20030701BIT00670/wkr0001.doc http://www.waymaker.net/bitonline/2003/07/01/20030701BIT00670/wkr0002.pdf