SAS Group to increase holding in Spanair

SAS Group to increase holding in Spanair The SAS Group has signed an agreement with Spanair's other principal owner, Teinver S.A., which will result in the SAS Group increasing its ownership holding in Spanair S.A. from 73.9 percent to 94.9 percent at a price of MEUR 73,5 (MSEK 660). The price is based on the same valuation of Spanair that was applied when the SAS Group acquired a majority holding in the airline in 2002. The remaining 5.1 percent will be retained by Teinver for the time being, but there is a possibility for the company to sell its remaining shareholding in Spanair to SAS. The SAS Group is also entitled to acquire Teinver's remaining shares in Spanair on the same terms and conditions as Teinver is able to sell its shares to the SAS Group. This agreement follows the SAS Group's strategy of having a full shareholding in its subsidiaries. It also gives Teinver a corresponding possibility of selling its remaining shareholding in Spanair. Since the SAS Group acquired its majority holding in Spanair, Spanair has improved its profitability and, in its most recent interim report (for the third quarter of 2003), the airline was able to post a pretax profit of 238 MSEK. The SAS group regards Spanair as a highly attractive airline, in view of its favorable position in the Spanish market, which is one of the largest in Europe in terms of numbers of passengers and anticipated faster growth than other European markets. As a member of the Star Alliance, Spanair fulfills a major role for the SAS Group and the Star Alliance in the Spanish market. Spanair is the second-largest airline in the Spanish market, with a market share of slightly more than 27 percent on its domestic routes. The company also has at its disposal attractive takeoff and landing slots in Madrid, Barcelona and Palma. Spanair will continue its efforts to strengthen its position within Spain and on routes between Spain and northern Europe, as well as developing further its cooperation with other Star Alliance partners. Spanair has an extremely competitive cost scenario compared with other European airlines and the conditions are favorable for very high profitability and growth in Spanair's operations through intensified focus on the business segment. No changes are planned in the structure of Spanair's management and Board of Directors as a result of the transaction. For further information Gunnar Reitan, Executive Vice President & Deputy CEO, +46 8 797 2844, +46 709 972844 Hans Ollongren, Senior Vice President, Corporate Communication & Public Affairs, +46 8 797 1950 or +46 709 97 19 50 Sture Stølen, Head of SAS Group Investor Relations, +46 8 797 1451 SAS GROUP CORPORATE COMMUNICATIONS ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/11/22/20031122BIT00010/wkr0001.doc http://www.waymaker.net/bitonline/2003/11/22/20031122BIT00010/wkr0002.pdf