Press release; Jun 20, 2006 5:13 PM CET

Swedish Match launches EUR 300 mln Eurobond issue

The 7-year EUR 300 million bond of Swedish Match AB (publ), rated Baa1
(stable) from Moody’s and A- (stable) from Standard & Poor’s, is now priced and launched under the Company's EMTN (Euro Medium Term Note) program. Due 28 June 2013, the bond pays a fixed coupon of 4.625% and has a reoffer price of 99.894 to give a spread of 60 basis points over the 7-year mid-swap.

Joint Bookrunners for this transaction were ABN AMRO NV and SEB Merchant Banking.

Swedish Match is a unique company with its range of market-leading brands in the product areas of snuff, cigars, pipe tobacco and chewing tobacco – tobacco’s niche products – as well as matches and lighters. The Group’s global operations generated sales of 13,295MSEK for the twelve month period ending March 31, 2006. Swedish Match shares are listed on Stockholmsbörsen (SWMA).

Swedish Match AB (publ), SE-118 85 Stockholm
Visiting address: Rosenlundsgatan 36, Telephone: +46 8 658 02 00
Corporate Identity Number: 556015-0756

For further information, please contact:
Lars Dahlgren, Chief Financial Officer
Office +46 8 658 04 41, Mobile +46 70 958 04 41
Magnus Heimburg, Group Treasurer
Office +46 8 658 01 12, Mobile +46 708 870 196