Observer AGM dividend of SEK 0.45 per share

5/7/2003 3:50 AM EST

Observer AGM approves dividend of SEK 0.45 per share

The Annual General Meeting of Observer AB on Tuesday, May 6,
2003 approved a dividend of SEK 0.45 (0.45) per share. The record day is
May 9 and the dividend is expected to be paid on May 14, 2003.

Board of Directors
The Annual General Meeting reelected as members of the Board of
Directors of Observer AB Örjan Håkanson, Maria Lilja, Ulf Ivarsson,
Håkan Bryngelson and Robert Lundberg, and elected as a new member Pia
Gideon. The accounting firm Ernst & Young AB was elected the company's
auditor for the period until the Annual General Meeting in 2007, with
Lars Träff as Chief Auditor. At the statutory Board meeting following
the Annual General Meeting, Örjan Håkanson was appointed Chairman.

Share repurchase
In order to increase the flexibility of Observer's capital
structure and complement its dividend policy, the Annual General Meeting
authorized the Board to decide to acquire and transfer/re-sell the
company's own shares. The authorization applies until the next Annual
General Meeting in 2004, comprises not more than 6,795,732 shares and
includes the right to decide on deviations from shareholders'
preferential rights and that payment for transfers/re-sells may be made
with other than cash.

New share issue authorization
The Annual General Meeting authorized the Board to decide until the next
Annual General Meeting in 2004 to issue not more than 2,000,000 new
shares in the company. Such issues may deviate from current
shareholders' preferential rights to subscribe for new shares. The
reason for the deviation from the preferential rights is that the new
shares will be used to acquire operations or companies.

Observer AB (publ)

For further information, please contact:

Per Blixt, Senior VP Corporate Communications/Investor Relations,
telephone: +46 70 549 28 08, +46 8 507 410 12
e- mail:  

This press release is also available online at www.observergroup.com