Sardus acquires two sandwich companies Launches new business unit for light meals

The Sardus foods group, which focuses on sandwich toppings and light meals, has acquired Allt Smörgås, based in Stockholm, and Smörgåsfabriken, based in Norrköping. The acquired companies manufacture and sell ready-to-eat sandwiches and salads, primarily to the convenience foods trade and gas stations. The companies, which are approximately equal in size, are both profitable and in a strong growth phase. In 2004 they had combined net sales of approximately SEK 120 M. The acquisition is part of the Sardus's expansion strategy, which involves a focus on light ready-to-eat meals. The acquisition is expected to have a favorable effect on Sardus' earnings per share in 2005.

The two companies will be integrated to form the basis of a new business unit - Sardus Light Meals. Both companies manufacture ready-to-eat sandwiches and salads that are sold in consumer packages. Combined the two companies have a nationwide presence, so their products are sold in grocery stores and gas stations throughout the country. The companies have a total of approximately 125 employees. Part of the payment will consist of slightly more than 197,000 Sardus shares corresponding to slightly less than 2% of the total number of shares in the company. The settlement price is based on the market price on December 17. "The acquisition is an important part of our focus on light meals - that is, meals that are easy to prepare, easy to eat and can also be low-fat. Most of the products manufactured within the Group can form part of a meal in one way or another," says Sardus president Ragnar Bringert. "The market for ready-to-eat sandwiches has grown rapidly in recent years. In an international perspective, however, there is still substantial room for development. Launching a new business unit intensifies the focus on light meals. Our intention is to assemble a complete customer offering of light meals in stores, through our own range and additional acquisitions in the future," says Ragnar Bringert. "Becoming a member of the Sardus family improves our ability to develop our operations through increased marketing and product development," say Gabi Hakim, Smörgåsfabriken, and Rose Marie Ljungström, Allt Smörgås, in a joint statement. All previous owners will remain in the organization, with Rose Marie Ljungström as president. Sardus's strategy is to expand through both acquisitions and organic growth. With its purchases of Allt Smörgås and Smörgåsfabriken, Sardus has acquired 16 companies since its start in 1982, of which five were acquired since 2000. Helsingborg, December 17, 2004 AB SARDUS (publ.) Ragnar Bringert President Further information: Sardus: Ragnar Bringert, President, Tel: +46-42-37 02 50, or Henrik Ljung, Chief Accountant, +46-708-29 29 48. Smörgåsfabriken: Gabi Hakim, President, Tel: +46-11-36 80 41 Allt Smörgås: Rose Marie Ljungström, President, +46-8-771 55 35