Interim Report January – June 2004

7/21/2004 5:20 AM EST

·Sales in Swedish crowns increased by 2% and amounted to 6,377 MSEK
(6,280). In local currencies, sales were up 5%

·Operating income excluding item affecting comparability amounted to
988 MSEK (1,069) after a restructuring charge of 160 MSEK

·A gain from the UST settlement of 1,521 MSEK is reported as an item
affecting comparability, including 104 MSEK in the second quarter

·Net profit for the period amounted to 1,440 MSEK (850)

·EPS increased to 4.39 SEK (2.52), of which settlement with UST
accounts for 2.68 SEK

For further information, please contact:
Sven Hindrikes, President and Chief Executive Officer
Office +46 8 658 02 82, Mobile +46 70 567 41 76

Lars Dahlgren, Chief Financial Officer
Office +46 8 658 04 41, Mobile +46 70 958 04 41

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

Emmett Harrison, Vice President, Investor Relations (IR)
Office +46 8 658 01 73, Mobile +46 70 938 01 73

Richard Flaherty, Vice President, Business Control & CFO, IR (US)
Office +1 804 302 1774, Mobile +1 804 400 1774