Kungsleden - update on tax rulings

The Administrative Court in Stockholm has reported rulings on two cases to which
Kungsleden is party. The Administrative Court has ruled that the Swedish Tax
Evasion Act is applicable to transactions conducted in the tax years 2004 and
2006.
In addition to the provisioning made in 2009, the company is provisioning an
additional SEK 48 m as a consequence of these rulings. Accordingly, in addition
to previously reported provisioning for tax proceedings, the company’s total
provisioning amounts to SEK 963 m, of which SEK 638 m will be charged to the
second quarter. These amounts include interest and potential tax surcharges.

Kungsleden’s opinion remains that the company has fully complied with the laws
and practice in place when submitting each tax return. In addition, Kungsleden
considers that the Administrative Court did not consider the arguments and
circumstances the company submitted in both cases, and accordingly, the company
intends to appeal these proceedings at the Administrative Court of Appeal.

Due to the rulings reported in spring 2012 and the altered practice the courts
are now following, the company has conducted a new analysis of the liquidity
effect and impact on equity of the ongoing tax proceedings. This analysis
consists of factors including new evaluations of the prospects of utilising loss
carry-forwards and new interest computations. If all cases to which Kungsleden
is party are found against Kungsleden, the adjusted total liquidity effect would
be SEK 1,390 m. This amount also includes the proceedings reported in this and
previous press releases in spring 2012, of SEK 240 m. Correspondingly,
consolidated equity would decrease by SEK 1,110 m over and above the provisioned
amount.

The timing of the effects depends on when Kungsleden’s tax cases are
definitively ruled by the courts.
For more information, please contact:

Thomas Erséus, CEO Kungsleden | phone +46 (0)8 503 052 04 | mobile +46 (0)70 378
20 24
Anna Persson, Tax Manager of Kungsleden | phone +46 (0)8 503 05222 | mobile +46
(0) 070 690 6576

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

Kungsleden AB (publ) discloses the information in this press release according
to the Swedish Securities Markets Act and/or the Swedish Financial Trading Act.
The information was provided for public release on 5 June 2012 at 10:00 a.m.

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 2012, the property portfolio comprised 317 properties with a book
value of SEK 15.5 bn. The portfolio was located in a total of 100
municipalities, mainly in southern and central Sweden. Kungsleden has been
quoted on the Nasdaq OMX Stockholm since 1999.