Swedish Match comments on the exercise in part of the overallotment option in connection with the IPO of STG

NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN.
This announcement is not a prospectus but an advertisement and nothing herein
contains an offering of securities. No one should purchase or subscribe for any
securities in Scandinavian Tobacco Group A/S ("STG") except on the basis of
information in the prospectus published by STG in connection with the potential
offering and admission of such securities to trading and official listing on
Nasdaq Copenhagen A/S (“Nasdaq Copenhagen”).

Scandinavia Tobacco Group (STG) has announced that part of the overallotment
option in connection with the initial public offering (IPO) of STG has been
exercised. After this exercise, Swedish Match will hold1) 31.1 percent of STG.

The overallotment option granted in the IPO of STG has fallen due and STG has
announced that part of the option has been exercised. The additional number of
shares being sold in the IPO as a consequence of the exercise of part of the
overallotment option are sold at the offer price of 100 DKK per share and shall
be sold on equal basis by the selling shareholders. After settlement between the
shareholders following this exercise, Swedish Match’s shareholding in STG will
be reduced by 130,094 shares and Swedish Match will hold 31.1 percent of STG
(31,069,906 shares).

For more detailed information and a copy of STG’s press release on this subject,
please visit
www.st-group.com.

1) Through Swedish Match Cigars Holding AB.

Important notice:

Copies of this announcement are not being made and may not be distributed or
sent into the United States of America, Canada, Australia or Japan.

This communication does not constitute an offer of the securities to the public
in the United States. The securities referred to herein may be offered or sold
in the United States only (1) if registered, or in a transaction exempt from, or
not subject to, registration under the U.S. Securities Act of 1933, as amended,
and (2) by the issuer or a manager (or affiliate thereof) registered as a broker
-dealer under the U.S. Securities Exchange Act of 1934. Scandinavian Tobacco
Group A/S does not intend to register any portion of the offering of the
securities in the United States or to conduct a public offering of the
securities in the United States.

In any EEA Member State, other than Denmark, that has implemented Directive
2003/71/EC as amended (together with any applicable implementing measures in any
Member State, the “Prospectus Directive”), this communication is only addressed
to and is only directed at qualified investors in that Member State within the
meaning of the Prospectus Directive.

This communication does not constitute an offer of the securities to the public
in the United Kingdom. No prospectus has been or will be approved in the United
Kingdom in respect of the securities. This communication is being distributed to
and is directed only at (i) persons who are outside the United Kingdom or (ii)
persons who are investment professionals within the meaning of Article 19(5) of
the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
(the “Order”) and (iii) high net worth entities, and other persons to whom it
may lawfully be communicated, falling within Article 49(2)(a) to (d) of the
Order (all such persons together being referred to as “Relevant Persons”). Any
investment activity to which this communication relates will only be available
to and will only be engaged with Relevant Persons. Any person who is not a
Relevant Person should not act or rely on this document or any of its contents.

Stabilisation/FCA

The Joint Global Coordinators, the Joint Bookrunners and the Co-lead Manager and
their affiliates are acting exclusively for Scandinavian Tobacco Group A/S and
the selling shareholders and no one else in connection with the contemplated
IPO. They will not regard any other person as their respective client in
relation to the contemplated IPO and will not be responsible to anyone other
than Scandinavian Tobacco Group A/S and the selling shareholders for providing
the protections afforded to their respective clients, nor for providing advice
in relation to the contemplated IPO, the contents of this communication or any
transaction, arrangement or other matter referred to herein.

In connection with the contemplated IPO, the Joint Global Coordinators, the
Joint Bookrunners and the Co-lead Manager and any of their affiliates, acting as
investors for their own accounts, may purchase shares and in that capacity may
retain, purchase, sell, offer to sell or otherwise deal for their own accounts
in such shares and other securities of Scandinavian Tobacco Group A/S or related
investments in connection with the contemplated IPO or otherwise. Accordingly,
references in the prospectus to the shares being offered, acquired, placed or
otherwise dealt in should be read as including any offer to, acquisition,
placing or dealing by such Joint Global Coordinators, the Joint Bookrunners and
the Co-lead Manager and any of their affiliates acting as investors for their
own accounts. The Joint Global Coordinators, the Joint Bookrunners and the Co
-lead Manager do not intend to disclose the extent of any such investment or
transactions otherwise than in accordance with any legal or regulatory
obligations to do so.

Matters discussed in this communication may constitute forward-looking
statements. Forward-looking statements are statements (other than statements of
historical fact) relating to future events and anticipated or planned financial
and operational performance and can be identified by words such as “targets,”
“believes,” “expects,” “aims,” “intends,” “plans,” “seeks,” “will,” “may,”
“might,” “anticipates,” “would,” “could,” “should,” “continues,” “estimate” or
similar expressions. The forward-looking statements in this communication are
based upon various assumptions, many of which are based, in turn, upon further
assumptions. Although Scandinavian Tobacco Group A/S believes that these
assumptions were reasonable when made, these assumptions are inherently subject
to significant known and unknown risks, uncertainties, contingencies and other
important factors which are difficult or impossible to predict and are beyond
its control. Such risks, uncertainties, contingencies and other important
factors could cause actual events to differ materially from the expectations
expressed or implied in this communication by such forward-looking statements.

The information, opinions and forward-looking statements contained in this
announcement speak only as at its date and are subject to change without notice.

__________

Contacts:

Lars Dahlgren, President and Chief Executive Officer
Office +46 8 658 0441

Marlene Forsell, Senior Vice President and Chief Financial Officer
Office +46 8 658 0489

Emmett Harrison, Senior Vice President Investor Relations and Corporate
Sustainability
Office +46 8 658 0173

___________

The character of this information is such that it shall be disclosed by Swedish
Match AB (publ) in accordance with the Swedish Securities Markets Act. The
information was disclosed to the media on 11 March, 2016 at 8.45 a.m. (CET).
___________
Swedish Match develops, manufactures, and sells quality products with market
-leading brands in the product areas Snus and moist snuff, Other tobacco
products (cigars and chewing tobacco), and Lights (matches, lighters, and
complementary products). Production is located in six countries, with sales
concentrated in Scandinavia and the US. The Group’s global operations generated
sales of 14,486 MSEK for the twelve month period ending 31 December 2015. The
Swedish Match share is listed on Nasdaq Stockholm (SWMA).

Swedish Match’s vision is a world without cigarettes. Some of its well-known
brands include: General, Longhorn, White Owl, Red Man, Fiat Lux, and Cricket.
___________

Swedish Match AB (publ), SE-118 85 Stockholm, Sweden
Visiting address: Sveavägen 44, 8th Floor. Telephone: +46 8 658 0200
Corporate Identity Number: 556015-0756
www.swedishmatch.com