Substantial Rise in Value for Mandamus' Residential Properties

STOCKHOLM, SWEDEN


STOCKHOLM, Sweden, Dec. 12, 2002 (PRIMEZONE) -- The external year-end valuation of all Mandamus' (Other OTC:MNDMF) (Stockholm:MFAS) properties shows strong value growth during 2002. For the residential properties, which make up 86% of the property stock, the value increase is 7.5%. For the entire property stock, the figure is 7%. It has risen in value by some SEK 465m, bringing the total market value of the company's properties up to SEK 7,080m.

The market valuation indicates a write-down requirement for a number of commercial properties that have decreased in value during the year. This write-down is estimated at roughly SEK 60m, which will reduce pre-tax profit for the year. Thereafter, the approximate figure expected for pre-tax profit in 2002 is SEK 90m.

Surplus value in the property stock (the difference between the market value of the property stock and its book value) is expected to total SEK 1,365m at year-end. Net worth, including the full effective tax rate on surplus value in the property stock, is estimated at just over SEK 113 per share. Accordingly, net worth has risen by more than SEK 20 per share during 2002.

Comments from Anders Johansson, Managing Director of Mandamus

The large rise in the value of residential properties is gratifying. The upward value trend for towns close to major growth areas, which we noted last year, has continued. The property stock in Trelleborg (not far from Malmo) shows a value rise of more than 20%, while the figure for Boras (near Gothenburg) is some 10%, for example. Overall, the value trend is favourable in the metropolitan areas.

Not unexpectedly, the value of a number of commercial properties has decreased. However, these make up a very small proportion of our property stock. Although the write-down requirement of roughly SEK 60m reduces profit for the year, it does not affect cash flow.

Queries

Please address any queries to Mandamus' Managing Director Anders Johansson on phone +46-8-566 13000 or e-mail anders.johansson@mandamus.se, or Deputy Managing Director Bengt Evaldsson on phone +46-8-566 13000 or e-mail bengt.evaldsson@mandamus.se.

Mandamus is a property company that aims to own, develop and manage residential properties with a high yield, mainly in growth areas in Southern and Central Sweden, on a long-term basis. Mandamus owns properties with a book value of around SEK 5,800m, yielding an annual rental income of some SEK 900m.

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