Observer appeals against decision on raised tax assessment

3/31/2006 4:39 AM EST

The County Administrative Court has upheld the Swedish tax authorities earlier decision to raise Observer AB’s taxable income for year 2000 with approximately SEK 440 million, which would result in tax costs of SEK 173 million. The decision concerns the sale of Sifo Research & Consulting.

Observer intends to appeal against the decision to the Administrative courts of appeal. The company is of the opinion that the decision is groundless and believes that the prospects of winning on appeal are good.

Observer is of the opinion that the tax authorities’ decision will not result in any increased tax cost and will, until further notice, not make any provision due to the County Administrative Court’s decision.