Supreme Administrative Court tax rulings alter Kungsleden's profit estimate

Supreme Administrative Court tax rulings alter Kungsleden's profit estimate

Press Release	6 July 2009

Against the background of the press releases of 2 and 3 June 2009 stating how
Kungsleden could be affected by the Swedish Supreme Administrative Court's tax
rulings of 29 May 2009, the following information is provided.

To avoid misunderstanding, it is important to emphasise that Kungsleden is not a
party in the cases resolved in the aforementioned rulings. However, after the
tax rulings were announced, Kungsleden conducted an analysis of those
transactions the company was involved in, and that resemble those that have been
subject to trial in the aforementioned rulings. These transactions are small in
number and were completed in the years 2004-2006.

Kungsleden applies International Financial Reporting Standards (IFRS) in its
external financial reporting, with standard ‘IAS 12 Income Taxes' formalising
the reporting of income taxes. Current tax is the company's judgment of those
payments the company should make to settle its tax liability. The transactions
that Kungsleden judges may be affected by the Supreme Administrative Court's
rulings have been analysed on an individual basis and separately from ongoing
tax computations. Kungsleden's best judgment is that current tax for 2009 may be
charged with an amount of SEK 325 m due to the rulings. This amount will be
reported as a tax cost in the Interim Report for January-June 2009, which will
be published on 19 August 2009.

In addition to the above analysis, Kungsleden has received a decision from the
Swedish Tax Agency regarding transactions conducted in a similar way to the one
dealt with by what is termed the ‘Cyprus ruling', which the Supreme
Administrative Court remitted to the Council for Advance Tax Rulings for
reassessment. The Tax Agency's decision based on the ‘Cyprus ruling' implies
additional tax claims on Kungsleden of approximately SEK 200 m including tax
surcharges. However, Kungsleden will not be provisioning for these tax claims in
its interim financial statements, because it considers that the Tax Agency's
demand is erroneous.

The regulations are complex, and court interpretations of applicable sections of
law have changed significantly over the years. Kungsleden's judgment is that we
have fully observed the laws and established practice in place at the time of
these transactions, in the form of a number of advance rulings and rulings by
the Administrative Court of Appeal, the Council for Advance Tax Rulings and the
Supreme Administrative Court. And this view is shared by external experts.

Kungsleden's computations will be reviewed at the end of each reporting period
and adjusted so they reflect the company's best estimate. Actual outcomes may be
higher and lower than the current judgment.

The overall effect of the above circumstances mean that the Board of Directors'
estimate of Kungsleden's profit for calculating dividends for the full year 2009
will be reduced by SEK 325 m, to amount to SEK 975 m.

Kungsleden discloses the information in this press release according to the
Swedish Securities Markets Act and/or the SwedishFinancial Trading Act. The
information was provided for public release on 6 July 2009 at 10:30 a.m.

For more information, please contact:
Thomas Erséus, Chief Executive, tel +46 (0)8 503 05204, mobile +46 (0)70 378
2024
Johan Risberg, Deputy Chief Executive, tel +46 (0)8 503 05206, mobile +46 (0)70
690 6565

Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se

Kungsleden's strategy is to ensure sustainable high and stable returns
proceeding from its existing holding, and through acquisitions and divestments.
As of 31 March 2009, the property portfolio comprised 596 properties with a book
value of SEK 28.6 bn. The holding was located in a total of 132 municipalities,
although concentrated on the Swedish provinces of Götaland and Svealand, and the
Öresund region. Kungsleden has been quoted on the OMX Nordic Exchange Stockholm
since 1999.