Swedish Match and Cuba Tobacco reach cigar settlement

10/10/2002 4:29 AM EST

Swedish Match and Cuba Tobacco announced today that they have reached an
international settlement regarding "Wilde Havana" cigars.

Today, Swedish Match AB, Cubatabaco (Empresa Cubana del Tabaco, La
Habana, Cuba) and Habanos, S.A. (La Habana, Cuba) entered into a
settlement agreement with regard to the Wilde Havana cigars.

Cubatabaco is the administrator of the Cuban Tobacco appellations of
origin, among others Habana and Habanos and Habanos S.A. distributes the
Havana cigars produced by Cuban factories.

Mainly through its subsidiaries, Swedish Match produces and distributes
since the 1970's cigars under i.a. the name Wilde Havana, which are not
made in Cuba with Cuban tobacco only.

Cubatabaco, Habanos, S.A. and some of their distributors have launched
several proceedings in different European countries against subsidiaries
of Swedish Match claiming that the use of a name including the term
Havana, such as Wilde Havana, for cigars which are not made in Cuba with
Cuban tobacco only constitutes an infringement of the appellation of
origin Havana. This claim has been upheld by the Belgian courts.

Under the settlement agreement reached today, Swedish Match recognises
that the prestigious appellation of origin "Havana" should be reserved
for cigars that are manufactured in Cuba from Cuban tobacco only.

Swedish Match undertakes to cease world wide the selling of cigars under
the "Wilde Havana" name as of 31 December 2002.

This settlement agreement thus puts an end to the dispute between
Swedish Match, Cubatabaco, Habanos S.A. and their respective
distributors in Europe that has lasted for more than a decade.

Strengthened by such an agreement, Cubatabaco and Habanos, S.A. will
more than ever continue their fight against the few remaining infringers
in order to make them stop using the appellation of origin Habana and
derivatives for cigars which are not manufactured in Cuba with Cuban
tobacco only.

Swedish Match is pleased to announce that, as of 1 January 2003, its
cigars previously sold under the brand name "Wilde Havana" will be sold
world wide under the brand name "Wilde Cigarros" already used in a
number of countries.

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 June 30, 2002
amounted to 13,921 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

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


Lin McKinnie, Vice President, Investor office +1 804 302 1912
Relations (US)
mobile + 1 917 592 7670