Effect on Tornet's Tax Situation Due to Change of Ownership, etc.


STOCKHOLM, Sweden, Jan. 28, 2004 (PRIMEZONE) -- The change of ownership in Tornet probably means that it will not be possible to make full use of tax losses for losses abroad at the level of SEK 810 million. As a consequence of this, reported deferred tax assets of SEK 230 million can no longer be reported as an asset in the balance sheet.

Revaluation has been made of temporary differences between tax value and book value for properties mainly located in Germany. This may entail future usable tax losses in the region of SEK 300 million, which will probably not be affected by the change of ownership.

The aforesaid factors will have a negative effect on Tornet's income for 2003 in the range of SEK 150 million for the loss of the deferred tax asset.

Fastighets AB Tornet is one of Sweden's major listed property companies. Its Swedish holding has a lettable area of around 2.8 million square metres and a book value of over SEK 19 billion. Almost 97 per cent of the property holdings, measured as book value, are in Sweden and mainly concentrated in Sweden's six largest cities and in Norrkoping and Karlstad. The properties are owned and managed by the subsidiaries ArosTornet, Malmstaden, MalarTornet, SkansTornet and Euro Tower.

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