One million snus-users in Sweden will face new tax increases on snus The Swedish Government budget proposal, to be presented on September 20, 2007, is expected to include a new tax increase on tobacco products including snus, which is proposed to be SEK 2,70 for 24 g (pouch) and SEK 5,63 for 50 g (loose). The numbers include VAT and the increase is expected to be effective as of January 1, 2008. In the light of the recent tax increase in January 2007, where the tax increased by SEK 3,69 for 24 g and SEK 7,69 for 50 g snus, including VAT, the new tax proposal was unexpected. Swedish Match is currently analyzing the situation and will take all necessary actions in order to protect and improve profitability in the Swedish market. ____________ 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 12,470 MSEK for the twelve month period ending June 30, 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 www.swedishmatch.com ____________ For further information, please contact: Lars Dahlgren, Chief Financial Officer Office +46 8 658 04 41, Mobile +46 70 958 04 41 Henrik Brehmer, Senior Vice President Corp. Communications Office +46 8 658 04 52, Mobile +46 76 111 34 14 Emmett Harrison, Vice President, Investor Relations Office +46 8 658 01 73, Mobile +46 70 938 01 73
One million snus-users in Sweden will face new tax increases on snus
| Source: Swedish Match AB