Swedish Match acquires Cigars International Inc. in the U.S.

Swedish Match acquires Cigars International Inc. in the U.S.

Swedish Match AB has agreed to acquire Cigars International, Inc., a privately
held U.S. company that specializes in the direct marketing and sales of
hand-made and machine-made premium cigars and related accessories.  Cigars
International employs approximately 100 people and had sales of approximately
400 MSEK for the twelve month period ending June 30, 2007.

Cigars International, headquartered in Bath, Pennsylvania, utilizes a
coordinated multi-channel direct marketing strategy, which includes catalogs,
e-mail programs, two retail outlets, fulfillment and wholesale distribution and
an internet presence through its www.cigarsinternational.com, and
www.cigarbid.com websites. The company features an attractive product mix
including Macanudo, Romeo y Julieta, and Arturo Fuente, among many others, and
complements them with a strong mix of proprietary branded cigars and cigars sold
exclusively by Cigars International.

“We are very pleased about the growth opportunities that this transaction
represents,” said Sven Hindrikes, President and CEO of Swedish Match AB. “The
Cigars International business provide Swedish Match with a new marketing channel
in the fast growing direct marketing segment. The immediate access to an
extensive customer base allows Swedish Match to actively compete and gain a
strong position in the U.S. direct marketing premium cigar segment and expand
our portfolio of products in the global premium cigar market.”

In this transaction, Keith Meier, founder and CEO of Cigars International, and
John De Marco, Vice President and Chief Operating Officer of Cigars
International, will continue in their roles, and the company will be operated as
a complementary business to Swedish Match AB's existing U.S. operations, Swedish
Match North America and General Cigar Holdings.  

The transaction, which is subject to regulatory approval, is expected to close
during the third quarter 2007. Terms of the proposed transaction have not been
disclosed.


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Swedish Match is a global Group of companies with a broad assortment of
market-leading brands in smokeless tobacco products, cigars, pipe tobacco and
lights products. The Group's global operations generated sales of 12,470 MSEK
for the twelve month period ending June 30, 2007. Swedish Match shares are
listed on OMX Nordic Exchange in Stockholm (SWMA).

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Swedish Match AB (publ), SE-118 85 Stockholm
Visiting address: Rosenlundsgatan 36, Telephone: +46 8 658 02 00
Corporate Identity Number: 556015-0756
www.swedishmatch.com
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For further information, please contact:
Sven Hindrikes, President and Chief Executive Officer 
Office +46 8 658 02 82, Mobile +46 70 567 41 76
Lars Dahlgren, Chief Financial Officer
Office +46 8 658 04 41, Mobile +46 70 958 04 41
Lennart Freeman, Executive Vice President and President North America Division
Office +1 804 302 1778, Mobile +1 804 400 7015
Henrik Brehmer, Senior Vice President Corp. Communications
Office +46 8 658 04 52, Mobile +46 76 111 34 14
Emmett Harrison, Vice President, Investor Relations
Mobile +46 70 938 01 73