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Swedish Match Acquires European Premium Cigar Brands, Hajenius and Oud Kampen, from The Burger Group


• The acquisition includes the Hajenius and Oud Kampen brands and related production machinery, as well as the Hajenius cigar shop in Amsterdam
• The acquired brands have annual sales of approximately 12 MEUR

2006-02-16, Swedish Match has agreed to purchase the premium cigar business of The Burger Group, including the Hajenius and Oud Kampen brands and related production machinery. Hajenius and Oud Kampen are sold primarily in the Netherlands, Belgium and Germany, with premier positions in the Dutch market. The Company will also acquire the Hajenius cigar shop, the most renowned cigar specialty shop in the Netherlands, located in the center of Amsterdam.

“We are very pleased with this transaction,” said Sven Hindrikes, President and CEO of Swedish Match. “Adding these brands will fit the organisation and portfolio perfectly, because the Dutch sales organisation manages already strong brands in the premium segment like Justus van Maurik and Heeren van Ruysdael, as well as longfillers. The Hajenius cigar shop is an outstanding venue to showcase premium cigars, and one of the most beautiful tobacco shops in Europe.”

Details of the purchase price have not been disclosed. The acquisition is expected to be earnings enhancing from the first year of acquisition. The transaction will be subject to the advice of the Dutch Workers Council.

FORWARD LOOKING STATEMENTS: Certain matters discussed within this press release may constitute forward-looking statements as that term is defined in the Private Securites 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 and consumption of tobacco, (2) political disturbances, (3) additional governmental regulation of tobacco or further tobacco litigation, and (4) enactment of new or significant increases in excise taxes.

Swedish Match is a unique company with its range of market-leading brands in the product areas of snuff and chewing tobacco, cigars and pipe tobacco – tobacco’s niche products – as well as matches and lighters. The Group’s global operations generated sales of 13,311 MSEK for the twelve month period ending December 31, 2005. Swedish Match shares are listed on Stockholmsbörsen (SWMA).


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