Press release; Jul 6, 2007 5:25 PM CET

Swedish Match reaches agreement on sale of Stockholm real estate

Swedish Match has on July 6, 2007 reached an agreement to sell its real estate company which is the owner of two buildings belonging to the Tobaksmonopolet property in Stockholm. Swedish Match will remain as one of the tenants in the divested buildings.

The purchaser of the real estate is Aberdeen Property Fund Pan-Nordic and the purchase price is 995 MSEK. The closing date of the sale is scheduled to October 1, 2007.

The capital gain on the sale is estimated to be in excess of 200 MSEK and will be recorded at the close of the transaction.

In addition to the buildings involved in this transaction, two adjacent parcels of land continue to be held for sale.

Colliers International has acted as Swedish Match’s advisor in the transaction.

Swedish Match is a global Group of companies with a broad assortment of market-leading brands in smokeless tobacco products, cigars, pipe tobacco and lights products. The Group’s global operations generated sales of 12,622 MSEK for the twelve month period ending March 31, 2007. Swedish Match shares are listed on OMX Nordic Exchange in Stockholm (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
Bo Aulin, Senior Executive Advisor & Senior Vice President Corp. Communications
Office +46 8 658 03 64, Mobile +46 70 558 03 64
Emmett Harrison, Vice President, Investor Relations
Office +46 8 658 01 73, Mobile +46 70 938 01 73
Richard Flaherty, COO OTP, North America Division, US Investor Relations contact
Office +1 804 302 1774, Mobile +1 804 400 1774