Reorganisation

Reorganisation will provide increased efficiency After five years with a focus on expansion and investment, AssiDomän is now in a phase of consolidation. The present level of profitability is unsatisfactory. In order to raise efficiency and be able to make better use of the synergies and opportunities created by its investments, the Group will now be restructured in a more business- and customer-oriented organisation. The present business areas will be phased out and the highest operational level will be ten business units (see attached organi-sational chart). The present Group Management will be replaced with a smaller Executive Manage- ment composed of Lennart Ahlgren, President, CEO, Roger Asserståhl, deputy CEO, and Sven Eric Lundström, CFO. The Executive Management will be complemented with a market strategist. In connection with the reorganisation, the present CFO, Christina Liffner, and the head of the Packaging business area, Ulf Kilander, are leaving the company. These organisational changes will lead to an increased customer focus where priority will be given to flexibility and the ability to work in networks. Greater efforts will be made in sales and marketing and the main emphasis will be shifted from placing the product in the centre to a focus on customer requirements. The new organisation has fewer organisational levels and shorter decision- making channels. Ten distinct business units will be created directly subordinate to the Executive Management. Profitability requirements will be made more explicit by a clear emphasis on every operation. A technology staff will be formed to co-ordinate the operations of all paper mills. Cost efficiency will be improved through better co-ordination between the different business units. The reorganisation will lead to a reduction in the total number of staffs on group and business unit level, while the structure will be simplified. Negotiations in accordance with the Co-determination in the Workplace Act will be started regarding staff reductions at the head office in Stockholm. A total of 60 people will be affected. The simplification of the organisation now being implemented, with its focus on efficiency and customer orientation, is expected to reduce costs by approximately MSEK 100. Added to this, restructuring of the sack business and additional efficiency enhancement measures will be carried out within the business units in order to reduce costs. A summary of completed, ongoing, and future economy measures is attached. AssiDomän AB Corporate Communications 6 November 1998 [REMOVED GRAPHICS] Cost Savings Staff reductions MSEK 1) Ongoing cost savings programme 300 280 New savings programmes 760 (of which in Sweden 210) 500 Project for co-ordinated purchasing 400 1) Completed parts of ongoing programme 1997-98: Staff reduction; 2,200. Cost reduction; 320 MSEK. For further information: Lennart Ahlgren, President and CEO Berit Hallberg, Vice President Communications Frans Benson, Vice President Investor Relations Tel. +46 8 655 90 00 Photos available on the internet: [www.asdo.se] under "latest news". ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/06/19981106BIT00040/bit0001.doc http://www.bit.se/bitonline/1998/11/06/19981106BIT00040/bit0002.pdf