Amer Group received a proposal for withdrawing from tobacco

Philip Morris is offering to buy back the exclusive right Amer Tobacco Ltd holds to produce and sell Philip Morris cigarettes in Finland. According to the proposal, the license held by Amer Tobacco would terminate during the spring of 2004. In addition, the licensor would take over Amer Tobacco's own trademarks, sales and marketing functions, products in the store as well as machinery and equipment. The proposed deal excludes Amer Tobacco's factory building.

Accepting the offer from Philip Morris means that the Amer Tobacco production in Finland would end. Sales and marketing functions that are suggested to be transferred employ approximately 60 persons.

In line with the announcement dated 18 November 2003, Amer Group Plc is reviewing the possibility of withdrawing from its non-core tobacco business and has initiated employer/employee negotiations concerning the whole personnel of Amer Tobacco Ltd (320 employees) in Finland 26 November 2003.

The employer/employee negotiations as well as negotiations with Philip Morris continue.

Amer Group received a proposal for withdrawing from tobacco business