Swedish Match takes legal action against US Tobacco

7/22/2002 11:13 AM EST

Swedish Match today announced that its fully owned subsidiary Swedish
Match North America, Inc. ("SMNA") has filed federal civil antitrust
action in the United States District Court for the Western District of
Kentucky against U.S. Smokeless Tobacco Company ("USST") and other U.S.
Tobacco affiliated companies, seeking a permanent injunction and
alleging substantial antitrust damages resulting from USST's use of
illegal, exclusionary tactics to suppress competition, raise prices, and
stifle innovation in the United States moist snuff tobacco market.

SMNA's suit comes just 2 months after the United States Court of Appeals
for the Sixth Circuit upheld a jury verdict awarding $350 million in
damages against USST in an earlier suit brought by Conwood Company,
L.P., another competitor in the moist snuff market. Under federal
antitrust law, these damages are trebled to $1.05 billion.

SMNA's complaint alleges that it suffered damages as a result of USST's
conduct, which has continued through the period covered by the SMNA
complaint. According to testimony by SMNA executives in the Conwood
litigation, USST employed the same tactics it used against Conwood to
injure SMNA. The SMNA complaint also alleges that USST targeted the
"value priced" Timber Wolf product manufactured by SMNA to the detriment
of competition and consumers.

Despite the existence of a federal court order enjoining certain conduct
by USST SMNA believes that continuing activities of USST left SMNA no
recourse but to institute its own antitrust action in order to protect
competition in the marketplace in which it operates and to vindicate its
legal rights.

SMNA is represented by the law firms of Debevoise & Plimpton of New
York, New York and Robertson, Freilich, Bruno and Cohen of Newark, New
Jersey.

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 March 31, 2002
amounted to 13,883 MSEK. Swedish Match is listed on Stockholmsbörsen
(SWMA) and on NASDAQ (SWMAY).


For further information, please
contact:

Lennart Sundén, President and Chief offic
Executive Officer e
+46 8 658 01 75

Sven Hindrikes, Executive Vice offic
President and e
+46 8 658 02 82
Chief Financial Officer mobil
e
+46 70 567 41 76
Bo Aulin, Senior Vice President, offic
Secretary e
+46 8 658 03 64
and General Counsel mobil
e
+46 70 558 03 64

Emmett Harrison, Vice President, offic
Investor Relations e
+46 8 658 01 73
mobil
e
+46 70 938 01 73

Lin McKinnie, Vice President, Investor offic
Relations (US) e
+1 804 302 1912
mobil
e
+ 1 917 592 7670