Swedish Match enters into match business in India

12/17/1997 6:00 AM EST

PRESS RELEASE
December 17, 1997

Swedish Match enter into match business in India

Swedish Match has entered into an agreement for the acquisition - at a cost of
approxi-mately 7 MUSD - of a controlling interest in two Singaporean
investment companies, owned by the Jatia Group, which will give Swedish Match
joint management control over Wimco Limited. The two investment companies own,
in aggregate, 38.6% of the paid up equity capital of Wimco, and are the
largest shareholders in that company.

According to Wimco's latest published annual accounts (for the year ended
March 31, 1997), the company's turnover amounted to Rs 2.079 million (c. MSEK
450) and Profit after tax of Rs 93 million (c. MSEK 20). Swedish Match and the
Jatia Group will make a joint public offer for up to 20% of the shares of
Wimco to the public shareholders, in accordance with the Securities and
Exchange Board of India (Substantial Acquisition of Shares and Take-overs)
Regulation, 1997.
The agreement and the public offer are based on a price of Rs 35 per share,
corresponding to a total offer of slightly more than 5 MUSD. A formal public
announcement to this effect has been made on December 17th, 1997.

The aim of the joint venture is the development, on the Indian market, of
Swedish Match´s product range, by bringing together Wimco's existing market
presence, the local knowledge and experience of the Indian joint venture
partners and the product know-how of Swedish Match.

This venture represents the latest step in Swedish Match's endeavours to
establish itself on the World's largest fast-growing emerging markets.

The Wimco agreement has particular historic significance for Swedish Match, in
that Wimco was originally founded by Swedish Match in 1923, and remained under
its control until 1991, when its interest was divested to the present joint
venture partner.

Wimco is a public company, listed on the Bombay Stock Exchange and other
Indian stock exchanges. It is the leading manufacturer and distributor of
matches in India and, with a production capacity of some 5 billion match
boxes, is the largest single match manufacturing company in the world. It is
the only fully merchandised match producer in India, and also has one of the
most extensive distribution networks for consumer products in India.

Swedish Match is a company specialised in Matches, Lighters and Tobacco
products with a turnover of approximately MSEK 7.500. Swedish Match is a
listed company both at the Stockholm Stock Exchange and at the Nasdaq Stock
Exchange, in New York.

For additional information, please contact:

Bo Aulin, Senior Vice President, Corporate Affairs Office: 08-
658 03 64
Mobile: 070-558 03 64
Residence: 08-768 45 22

Göran Ekdahl, Vice President, Corporate Communications Office: 08-658 01
62
Mobile: 070-858 11 62
Residence: 08-768 38 22

Boel Sundvall, Vice President, Investor Relations Office: 08-658 01
73
Mobile: 070-651 39 09
Residence: 08-25 87 12