Sardus Chark & Deli announces salaried employee layoffs

Following negotiations with the affected trade unions, Sardus Chark & Deli, a company within Sardus, the exchange-listed food group, today submitted notice to the county labor boards in Halmstad and Tranås regarding termination of a total of 30 jobs. The notice pertains to salaried employees within the business unit and is a result of the previously announced merger of the Pastejköket and Charkdelikatesser to form Sardus Chark & Deli, which was implemented on February 1, 2005. The main reason for the merger is that the convenience store chains are increasingly demanding larger and more complete suppliers. Price competition has also intensified as a result of many low-price players having entered the market. Sardus Chark & Deli will enhance the efficiency of operations through coordinating administration and sales, among other areas. Through more efficient use of resources, the company expects to achieve annual savings of between SEK 5-10 M. Sardus Chark & Deli will have its head office in Helsingborg, where the Parent Company Sardus is also located. Some of the office activities will continue to be based in Tranås, but the office in Halmstad will be closed. Helsingborg, February 21, 2005 SARDUS CHARK & DELI Pelle Hjalmarsson President, Sardus Chark & Deli Ragnar Bringert President and CEO, Sardus Group For further information: Pelle Hjalmarsson +46 (0)70-875 18 51 Ragnar Bringert +46 (0)42-37 02 50