Swedish Match Report on Operations 1999

Report on Operations 1999 * Sales increased 15 percent to MSEK 9,420 * Operating income, before items affecting comparability, increased 13 percent to MSEK 1,689 (1,489) * Operating income, including capital gain of MSEK 4,102 and a provision for restructuring of Matches of MSEK 395, rose to MSEK 5,396 (1,381) * Strong sales and earnings improvement for Cigars, Snuff and Pipe Tobacco * Revised business strategy: Cigarettes divested and clear focus on Smokeless Tobacco (snuff, chewing tobacco) and Brown Tobacco (cigars, pipe tobacco) * The Board proposes an increased dividend to SEK 1.25 (1.10) *The Board proposes a share redemption program of approximately MSEK 1,000 and the launch of a long term share repurchase program ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/02/09/20000209BIT00370/bit0001.doc http://www.bit.se/bitonline/2000/02/09/20000209BIT00370/bit0002.pdf