Swedish Match Finalizes Acquisition of Cigars International Inc. In the US

As announced August 16, 2007 Swedish Match AB (STO:SWMA) has acquired Cigars International Inc., a privately held U.S. company that specializes in the direct marketing and internet sales of hand-made and machine-made premium cigars and related accessories.

The transaction has now been completed and will be consolidated into Swedish Match as of September 1, 2007.

Cigars International employs approximately 100 people and had sales of approximately 400 MSEK for the twelve month period ending June 30, 2007.

Terms of the transaction have not been disclosed.

For further information on Cigars International, please refer to the press release issued August 16, 2007 http://www.swedishmatch.com

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).