New President and CEO at Swedish Match

8/10/1998 7:00 AM EST

Earlier this year, Göran Lindén, the current President and CEO of Swedish
Match, informed the Chairman of the Board that he wished to resign operational
responsibility for the company prior to the 1999 Annual General Meeting.

In view of this request, the Board has today appointed Lennart Sundén to be
President and CEO, effective November 1, 1998. Lennart Sundén, who is a Master
of Engineering and of Business Administration, is 46 years old and currently
employed by Electrolux, where he has worked for more than 20 years. Following
some 10 years in which he held senior executive posts in the white goods
sector, Mr Sundén has had global responsibility for the Electrolux Group's
vacuum-cleaner product line for the past five years.

Göran Lindén will continue to be employed by Swedish Match until June 30,
1999, in order to assist in the introduction of the new President among other
things. As specified in his contract of employment, he will not receive any
employment benefits or other remuneration following termination of his
employment. Since employment will cease prior to the normal age of retirement,
which is 60 in Göran Lindéns case, his pension will be reduced from the age of
60 and 65, respectively, to take the limited period of pension qualification
into account.

Göran Lindéns resignation as President and CEO does not affect his assignment
as a member of the Board of Swedish Match AB.

- I wanted to retire from operative management responsibility in order to
devote more time for Board Assignments, which I very much enjoy and which
interests me a lot Göran Lindén says.
- This is also the right time to leave office, after a heavy workload in
connection with the stock exchange listing and organizational changes among
other things.

The Chairman of the Board, Bernt Magnusson says - Göran Lindén has done an
exceptional job at Swedish Match, particularly in view of the heavy demands
with reference to the stock exchange listing and the integration of the lights
and tobacco operations. I am convinced that Göran has considered this decision
very carefully, and I would like to thank him for his important contribution
to the company over the years. I wish him every success in the future. Lennart
Sundén is very well qualified for the post of President and CEO of Swedish
Match. His long international experience and his considerable expertise in the
consumer product area will be a great asset to the company.

Lennart Sundén will be receiving a fixed annual salary of 3 MSEK at 1999 rates
of pay. In addition he may receive a bonus corresponding to not more than 35%
of salary. He will also be eligible for the option program which was recently
implemented. Termination of employment calls for six months' notice on Sundéns
part and 12 months on the part of the company. If the company terminates
employment, severance pay may be payable for a maximum of 24 months after
termination of employment. Other remuneration received during this period is
deducted from this amount, but this deduction may not be more than 50% of
severance pay. Full pension is payable at a rate of 70% of pensionable salary
from the age of 60 to 65, and 45% after the age of 65. Full pension is
conditioned by employment until the age of 60 and a qualification period of at
least 10 years. In other cases, the pension is reduced in relation to the
qualifying period. In addition, Lennart Sundén is entitled to customary terms
of employment in line with company policy.