Press Release– Year-End Report 2004

1 January – 31 December 2004 * AP3’s portfolio generated a return of 11.4% before expenses * Net profit for the year totalled SEK 16.1 billion * AP3’s fund capital increased SEK 17.8 billion and totalled SEK 160.3 billion at year-end. * Risk, measured as standard deviation for the portfolio, amounted to 5.4% Total investment return of 11.4% Equity market gains and lower long-term interest rates had a favourable effect on AP3’s fund capital in 2004. Swedish equities were the best- performing asset category, posting a return of 20.1%. The liquid market-listed portfolio, i.e. the portfolio excluding real estate and private equity, recorded a return of 11.4% (17.2) before expenses. The Fund’s benchmark index also increased 11.4% (17.3). Total portfolio risk, calculated as standard deviation, declined from 8.6% in 2003 to 5.4% in 2004 –- the lowest level since AP3 was founded in 2001. Kerstin Hessius, AP3 Chief Executive Officer, said: “The Fund generated a high and stable return in 2004 due to a good portfolio structure. Market trends were favourable and the decline in capital sustained in 2001 and 2002 has now been recouped. Fund assets have risen SEK 12.5 billion in value, excluding net inflows, since AP3 was founded." Reference Fair value, AP3’s portfolio portfolio Return, 2004 31-12-04 31-12-03 31-12-04 AP3’s Reference portfolio portfolio Asset SEK bn per SEK bn per per cent per cent per cent category cent cent Global equities 60.4 37.7% 56.2 39.4% 38.5% 11.1% 11.4% Swedish equities 26.9 16.8% 23.6 16.6% 16.0% 20.1% 20.8% Fixed income 67.8 42.3% 1) 58.5 41.1% 37.0% 8.1% 7.8% Total liquid portfolio 155.1 96.8% 138.3 97.1% 11.4% 11.4% Private equity 1.7 1.1% 1.0 0.7% 2) Real estate 3.5 2.2% 3.2 2.2% 8.5% 12.5% - Total portfolio 160.3 100.0% 142.5 100.0% 100.0% Currency exposure 30.4 12.8 1) Excludes debt financing in relation to AP Fastigheter. If debt financing was reported under real estate the market value of the fixed income portfolio would be 39.9% and the real estate portfolio 4.5%. 2) Included in equity portfolio As of 2005, changes have been made to the reference portfolio in relation to currency exposure and fixed income portfolio structure. Currency exposure has been reduced from 19.3% to 15.6% and the average term to maturity of the fixed income portfolio has been halved. The weighting in index-linked bonds has also been lowered from 9.5% to zero. For further information, please contact: - Kerstin Hessius, CEO, phone: +46 8 555 17100, kerstin.hessius@ap3.se - Christina Kusoffsky Hillesöy, Communications Manager, phone: +46 8 555 17 123, mobile: +46 709 517 223, christina.hillesoy@ap3.se The Annual Report 2004 in Swedish may be downloaded from AP3’s website at www.ap3.se. An English version will be published in the beginning of April.