Swedish Match comments on the announced intention to launch an Initial Public Offering of Scandinavian Tobacco Group

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

As communicated earlier, as part of the strategic review of Scandinavian Tobacco
Group (STG), Swedish Match and the other shareholder of STG have evaluated a
potential Initial Public Offering (IPO) of the company. This evaluation has been
concluded and STG today announced the intention to launch an IPO and listing of
STG on Nasdaq Copenhagen.
Swedish Match today owns 49 percent of STG, and the remaining 51 percent is
owned by Skandinavisk Holding (ultimately owned by the Augustinus Foundation and
the Obel Family Foundation). The contemplated IPO is expected to consist of a
sale of up to 40 percent of the existing shares, on equal basis by STG’s two
shareholders.

Comment from Lars Dahlgren, President and CEO of Swedish Match:

“Scandinavian Tobacco Group was created in 2010 when Swedish Match contributed
assets to create a global leader within cigars and pipe tobacco as well as a
strong position within fine-cut tobacco. Since then, Scandinavian Tobacco Group
has worked to grow net sales, integrated a number of acquisitions and
implemented production efficiency initiatives to create a robust platform for
profitability and strong cash generation. It is now a good time to transition
into a new ownership structure for Scandinavian Tobacco Group and for Swedish
Match to further focus on its core business.”

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This release contains forward-looking information. No guarantee can be given
that these expectations will prove correct. Accordingly, the actual future
outcome could vary considerably compared to that stated in the forward-looking
information, due to such factors as changed market conditions or other factors.

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. There is no intention 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.

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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

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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 14 January, 2016 at 08.20 a.m. (CET).
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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 14,303 MSEK for the twelve month period ending 30 September 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.
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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