STOCKHOLM, Sweden, Jan. 28, 2003 (PRIMEZONE) -- In reference to today's article in Dagens Industri about Skandia's guarantee liability in connection with the sale of American Skandia, Skandia would like to make the following comments.
The sales agreement for American Skandia contains various guarantee commitments which are customary for a transaction of this type. In the press release on December 20, 2002 announcing Prudential's acquisition of American Skandia, reference was made to the standard representations and warranties included in the agreement. As regards to procedures in a court of law, the duration of the guarantee commitment is four years. The maximum guarantee amount is limited to USD 1 billion. In other words, the significance of Dagens Industri's article is that the commitment is limited in terms of time and amount.
Since unlimited guarantee commitments do occur in the U.S., the issued guarantees can be considered to be relatively favourable for Skandia.
It also deserves mention that to date, American Skandia has not been involved in any processes whose outcome would have entailed any guarantee claims. The company is currently party to a class action suit. In Skandia's opinion this is clearly without merit.
For further information, please contact:
Harry Vos, Head of Investor Relations tel. +46-8-788 3643 This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: www.waymaker.net/bitonline/2003/01/28/20030128BIT00270/wkr0001.doc www.waymaker.net/bitonline/2003/01/28/20030128BIT00270/wkr0002.pdf