Scandic's sale of holding in Hotellus to Pandox completed

Scandic's sale of holding in Hotellus to Pandox completed Yesterday, March 30, the Annual General Meeting of Pandox approved the Board of Director's decision regarding a non-cash issue, as a result of which Scandic's sale of shares in the Hotellus International real estate company is now being completed as planned. Pandox's takeover of the Hotellus shares and operations occurs at the end of March, beginning of April. Scandic Hotels is receiving newly issued shares in Pandox, corresponding to a share ownership of 20.8%, as the main payment. The transaction does not result in any capital gain/loss for Scandic, but it is assessed that tax deductions can be claimed for loss carryforwards in the range of SEK 350 M. Through the sale, Scandic is participating in the creation of a large, streamlined listed hotel property company with well-known brand names and operations in northern Europe. For additional information, please contact: Roland Nilsson, President & CEO, tel.+46 8 517 352 00 Fredrik Sandelin, Executive Vice President & CFO, tel.+46-8 517 351 21 Gunnar Brandberg, Vice President Marketing & Investor Relations, tel: +46 8 517 352 12 or : +46 709 73 52 12 Scandic Hotels is the Nordic region's leading hotel company with 133 hotels in 10 countries. Scandic's strategy is to be dedicated hotel operator and its business mission is to "offer many people the highest value for money when staying in its hotels, during work and leisure." [REMOVED GRAPHICS] Scandic Hotels AB (publ.) PO Box 6197, S-102 33 Stockholm, Sweden Tel: +46 8 517 350 00. Fax: +46 8 517 352 80 e-mail: info@scandic -hotels.com Company no. 556299-1009 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/31/20000331BIT00310/bit0001.doc http://www.bit.se/bitonline/2000/03/31/20000331BIT00310/bit0002.pdf