Break-through in Turkey

10/8/1997 7:00 AM EST

PRESS RELEASE
October 8, 1997

BREAK-THROUGH IN TURKEY

Swedish Match and Kav Orman San.A.S., a company controlled by Koç Holding A.S.
- the leading industrial conglomerate in Turkey with a turnover of 13 billion
USD - have entered into an agreement on forming a joint venture on a 60/40
basis (SM/KAV) to develop match, lighter and tobacco business in Turkey and
the Turkic Republics, (Azerbaijan, Kyrgyztan, Turqmenistan etc.), a fast
growing market area of some 120 million inhabitants.

Kav is the leading match producer in Turkey. The turnover in 1996 for the
match business
was some USD 14 million.

Swedish Match - active in lights and tobacco business- have a Group Sales
amounting to approximately USD 1 Billion. Swedish Match is the leading match
producer in the world.
The match business has an annual turnover of USD 130 million and some 2000
employees.

The agreement constitutes the establishing of a new company in Turkey in which
Kav will transfer its existing match business with its fixed assets. The
establishment will be executed once all necessary approvals of relevant
authorities will be received.

AQUISITION IN SWEDEN

Swedish Match makes a public offer of SEK 170 per share for the shares of
Treab Plus AB,
a Swedish distributor of tobacco and tobacco related products as well as
postcards, wrapping paper etc to retailers in Sweden. The value of the offer
represents SEK 16,5 million. The turnover in 1996 for Treab Plus was SEK 105
million (USD 14 million).

The offer is subject to Swedish Match reaching at least 90% of the shares and
receives the approval of the Swedish Competition Authority.

For further information, please contact:
Bo Aulin, Senior Vice President, Corporate Affairs Work: +46 8 658
03 64
Mobile: +46 70 558 03 64
Home: +46 8 768 45 22

Boel Sundvall, Vice President, Investor Relations, Corporate Affairs Work:
+46 8 658 01 73
Mobile: +46 70 651 39 09
Home: +46 8 25 87 12

Göran Ekdahl, Vice President, Communication, Corporate Affairs Work: +46 8 658
01 62
Mobile: +46 70 858 11 62