Rezidor SAS continues expansion strategy by investing in new multi-brand concept

Rezidor SAS continues expansion strategy by investing in new multi-brand concept Rezidor SAS Hospitality, a wholly owned subsidiary of the SAS Group, today announces that it has signed a contract with US-based Carlson Hotels Worldwide (CHW) for a master franchise with exclusive rights in Europe, the Middle East and Africa (EMEA) for three additional brands: · Regent · Country Inn · Park Inn The master franchise that includes the right to license or operate is valid for 30 years and is expected to include several hundred hotels in Europe, Middle East and Africa over time. The agreement also includes a take over of existing franchise contracts for these brands in the region including two Regent International Hotels and 12 Country Inns. It also includes an extension of the current master franchise of the Radisson SAS brand for the same 30-year period. Gunnar Reitan, Executive Vice President & deputy CEO of the SAS Group and Chairman of the Board of Rezidor SAS says: "The strength of our current brand - Radisson SAS - has proven to be a valuable asset and has developed attractively in the past few years. This transaction will enable us to grow in new and important segments of the market while capitalizing on the existing brand and knowledge. I am very confident that this strategic move will represent a significant uplift for the hotel chain of the SAS Group in the years to come and that the excellent value creation in Rezidor SAS will be enhanced to the benefit of the shareholders of the SAS Group. . Curtis Nelson, President and CEO of Carlson Hospitality Worldwide, the parent company of CHW comments; "This is a breakthrough agreement which significantly benefits both companies. As the travel industry continues to consolidate, the power of global branding is a key element of future success in serving our customers. Partnership is power and this agreement is a major advancement of that strategy in the hotel industry." The investment from Rezidor SAS Hospitality in the transaction amounts to approximately MSEK40 primarily as a result of the take over of current Country Inn operations in Europe. For further information Gunnar Reitan, Executive Vice President & deputy CEO of the SAS Group, +46 8-797 1266 Kurt Ritter, President & CEO Rezidor SAS Hospitality, + 32 2 702 9200 Fact Sheet Rezidor SAS Development Plans in Europe, the Middle East and Africa Radisson SAS Hotels & Resorts- Rezidor SAS currently operates 114 Radisson SAS hotels and resorts with over 40 hotels under development in 38 countries in the region. Rezidor SAS expects to expand the brand significantly in the region within the next 10 years. Key development priorities include the United Kingdom, Germany, France, Poland and the Benelux. Highlights of some of the most recent openings in 2002 include the first hotel in the heart of Paris, just off the Champs Elysées; and properties in Leeds, United Kingdom; Limerick, Ireland; and Wroclaw and Warsaw in Poland. Another nine contracts were signed this year for hotels in Birmingham, United Kingdom; Sochi, Russia; Narvik, Norway; Karlstad, Sweden; Berlin (2), Germany; Marseille, France; and Istanbul and Ankara, Turkey. Regent - There are currently two Regent hotels in the EMEA region- one in Berlin, Germany; and Almaty, Kazakhstan. Rezidor SAS plans to develop a considerable number of Regent hotels in the next 10 years, with particular growth expected in the Middle East region. Country Inn- Currently, there are 12 Country Inn locations in Europe, in the United Kingdom (2), Germany (7) and Austria (2), including the most recent opening at Charles de Gaulle Airport in Paris, France. Rezidor SAS will now manage and oversee licensing relationships for these properties and expects to grow the brand substantially within the next 10 years. Park Inn- Rezidor SAS officials said they expect to expand this brand initially in South Africa (Cape Town) and the United Kingdom, but also in the United Arab Emirates and Saudi Arabia. The total number of hotels for this brand is expected to rapidly increase within 10 years. The Park Plaza brand, which is included in Carlson Hotels Worldwide's global portfolio, is not included in this licensing agreement with Rezidor SAS. SAS GROUP INVESTOR RELATIONS ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/08/01/20030801BIT00700/wkr0001.doc http://www.waymaker.net/bitonline/2003/08/01/20030801BIT00700/wkr0002.pdf