Swedish Match and Gum Tech Intl finalize joint venture agreement

7/6/2000 9:43 AM EST

SWEDISH MATCH AND GUM TECH INTERNATIONAL FINALIZE JOINT VENTURE AGREEMENT

Swedish Match AB and Gum Tech International, Inc. today announced the
execution of definitive agreements for a joint venture for the purpose of
developing, manufacturing, marketing and distributing non-tobacco nicotine
products worldwide.

The terms of the Joint Venture Agreement provide for the creation of a new
company. Swedish Match will own 51% of the company in exchange for a
capital contribution of $10 million dollars, and Gum Tech will own 49% in
exchange for contribution of certain intellectual property rights. The
joint venture will execute a Research and Development Agreement with Gum
Tech as well as an agreement for the manufacturing of any non-tobacco
nicotine products required by the joint venture.
-"This joint venture provides a possibility to explore exiting business
opportunities by providing alternative products for smokers, who can not
or do not want to smoke," said Lennart Sundén, President and CEO of
Swedish Match. "By this move we are broadening the scope of our core
business," he said.

-"While it has long been a central objective of Gum Tech to enter the
non-tobacco nicotine market, we are especially pleased that this
partnership contemplates entering this market on a worldwide basis,"
stated Gary Kehoe, President and Chief Operating Officer of Gum Tech.

Promotion and distribution of the products are expected to begin in 2001.

Swedish Match is an international group with its head office in Stockholm.
The company manufactures a broad range of tobacco products within the OTP
(Other Tobacco Products) category, with smokeless tobacco as its core
business along with cigars and pipe tobacco, as well as matches and
lighters. The products are sold in approximately 140 countries. Sales for
the twelve month period ending March 31, 2000 amounted to approximately
9,600 MSEK. Swedish Match is listed on OM Stockholm Stock Exchange (SWMA)
and on NASDAQ (SWMAY).

FORWARD LOOKING STATEMENTS: Certain matters discussed within this press
release may constitute forward looking statements as the term is defined
in the Private Securities Litigation Reform Act of 1995. Although
management believes that its financial expectations are based on
reasonable assumptions, it can give no assurance that its expectations
will be achieved. The following factors, among others, could cause the
Company's financial performance to differ materially from that expressed
in such statements: (1) changes in consumer preferences resulting in a
decline in the demand for nicotine containing products, (2) an increase in
the price of raw materials, (3) additional governmental regulations, (4)
litigations, and (5) enactment of new or significant increases in existing
excise taxes.

For further information, please contact:
Lennart Sundén, President and CEO +46 8 658 01 75
(office)
Sven Hindrikes, Executive Vice President and CFO +46 8 658 02 82
(office)
+46 70 567 41 76
(mobile)
Bo Aulin, Senior Vice President, +46 8 658 03 64
(office)
Secretary and General Counsel +46 70 558 03 64
(mobile)
Emmett Harrison, Vice President, Investor Relations +46 8 658 01 73
(office)
+46 709 38 01 73
(mobile)