Breakthrough in the European Snus issue

11/26/2002 9:35 AM EST

The Administrative Court in Minden, Westfahlen, Germany, has decided to
refer the question of the legality of the EU-ban on snus to the European
Court of Justice in Luxembourg.

In its decision the Court decided to stay the initiated proceedings and
that a preliminary ruling from the European Court of Justice in
accordance with the procedure laid down in Art 234 of the EC Treaty
should be sought concerning the following question: Is Art. 8 of
Directive 2001/73/EC in accordance with imperative law of the European
Community? This provision contains the prohibition of certain tobacco
products including snus (Swedish moist snuff - for oral use).

- The ban on oral smokeless tobacco lacks adequate legal base and
violates the principles of non-discrimination and proportionality, says
Lennart Sundén, President and CEO of Swedish Match AB. - It does not
even serve the purpose of promoting public health, but is in fact
counter-productive to that purpose.

- Sweden is the first country to have reached the WHO-target of less
than 20 % adult smokers among the population, although tobacco is as
commonly used in Sweden as elsewhere in Europe, says Sundén. - The
explanation is snus, which is more commonly used by Swedish men than
cigarettes (20 % vs. 15 %). Approximately half of all snus users are
former cigarette smokers, says Sundén. As a consequence tobacco related
disease is far less prevalent in Sweden than in other European
countries.

- Recent independent scientific studies clearly show that the health
risks related to snus use are far less than those related to cigarette
smoking, says Sundén. The ban simply does not make sense. Snus is not
part of the tobacco problem, but rather part of the solution to this
problem, says Sundén.

The process in the European Court of Justice is expected to take
approximately two years.

Swedish Match is an international group with headquarters in Stockholm,
Sweden. The company manufactures a broad range of tobacco products,
matches and disposable lighters which are sold in approximately 140
countries. Sales for the twelve month period ending September 30, 2002
amounted to 13,847 MSEK. Swedish Match is listed on Stockholmsbörsen
(SWMA) and on NASDAQ (SWMAY).

For further information, please contact:

Lennart Sundén, President and Chief Executive office +46 8 658 01 75
Officer

Sven Hindrikes, Executive Vice President and office +46 8 658 02 82
Chief Financial Officer mobile +46 70 567 41 76

Bo Aulin, Senior Vice President, Secretary office +46 8 658 03 64
and General Counsel mobile +46 70 558 03 64

Emmett Harrison, Vice President, Investor office +46 8 658 01 73
Relations
mobile +46 70 938 01 73