Record sales for the 21st consecutive quarter

st Record sales for the 21 consecutive quarter Skandia's sales for the first half of 2000 rose to SEK111 billion (62.4), an increase of 78 per cent compared with the same period in the previous year. In the second quarter, sales increased to SEK 51.5 billion (35.1), of which unit linked assurance accounts for SEK 36.8 billion (24.1) and mutual fund savings products for SEK 13.9 (9.7) billion. The sales trend for mutual fund savings products in the second quarter compared with the first quarter is explained by a generally weak stock market, higher interest rates and seasonal fluctuations. Sales of unit linked assurance, which are of greater significance for Skandia's earnings development, in the second quarter were slightly below sales in the first quarter. American Skandia strengthened its market position still further. In the period until the end of May, American Skandia's sales of unit linked assurance (variable annuities) increased by 75 per cent compared with the same period in 1999 while the total market for long-term savings products (including variable annuities) rose by 45 per cent. According to the Investment Company Institute in the US sales in the total American market for long-term savings products (including variable annuities) decreased in April and May by 21.9 and 18 per cent respectively. Corresponding figures for Skandia were 21.8 and 12 per cent respectively. In the total market for non-proprietary mutual funds, net sales from March to April decreased by 72 per cent, according to Strategic Insight. The corresponding figure for Skandia in this market was 40 per cent during the same period. In the US, total sales in the first half of the year amounted to USD 7.7 billion (4.7), of which variable annuities accounted for USD 5.1 billion (3.2) and mutual funds for USD 2.6 billion (1.5). Sales in the second quarter amounted to USD 2.4 billion (1.8) for variable annuities and USD 1.0 billion (0.8) for mutual fund savings products. In markets outside the US, total sales in the second quarter were on a par with the first quarter. In the UK, second-quarter sales exceeded the figures for the first three months of the year. Skandia Life's total sales increased by 110 per cent in the first half of the year to GBP 2.1 billion (1.0), which is on a par with full-year sales for 1999. In the highly competitive British market, sales of unit linked assurance rose by 92 per cent, mutual fund savings products by 94 percent and Skandia Life's sales to markets outside the UK rose by 155 per cent. In Sweden, sales rose by 103 per cent in the first half to SEK 5.8 billion, the same level as in the full-year 1999. The complete half-year report for 2000 and sales figures for July will be presented on 9 August 2000. For further information, please contact: Harry Vos, Head of Investor Relations, tel. +46 8-788 3643 or +46 70-605 6773 ------------------------------------------------------------ This informatin was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/07/12/20000712BIT00300/bit0001.doc http://www.bit.se/bitonline/2000/07/12/20000712BIT00300/bit0002.pdf