Extraordinary General Meeting of Swedish Match

7/7/1998 9:49 AM EST

Shareholders at an today
resolved in favor of the proposal of the Board of Directors to redeem
34,752,689 shares at a re-
demption price of SEK 35 per share. The company's share capital is thereby
reduced
by SEK 69,505,378. The total redemption amount is SEK 1,216,344,115.

Shareholders at the Extraordinary General Meeting further decided in favor of
the Board's proposal to implement a bonus issue by increasing the par value of
each share
from SEK 2.00 to SEK 2.20, after which the share capital will amount to SEK
948,947,258.60.

The bonus issue will be effected through a transfer to the share capital from
the premium reserve of an amount equal to SEK 64,442,163, which accrued to the
company through the new issue decided by the Board on June 26, 1998, and the
remaining amount from the statutory reserve. Payment of the redemption amount
is expected to occur on or about the turn of the month July-August 1998.
Share-holders who tendered shares for redemption do not need to take any
further action.

Swedish Match AB (publ)

Board of Directors

For further information, please contact:

Jan Gabrielsson, Senior Vice President, Office: +46-8-658 01 72
Corporate Finance Mobil: +46-708-581 172

Bo Aulin, Senior Vice President, Corporate Affairs Office: +46 8 658 03 64
Mobile:+46 70 558 03 64

Boel Sundvall, Vice President, Investor Relations Office: +46 8 658 01 73
Mobile: +46 70 651 39 09