Tornet Interim Report January-June 2004

STOCKHOLM, Sweden, Aug. 20, 2004 (PRIMEZONE) -- Fastighets AB Tornet is one of Sweden's major listed property companies. Its holding has a lettable area of approximately 2.6 million square metres and a book value of approximately SEK 19 billion. More than 97 per cent of the property holdings, measured as book value, are in Sweden and mainly concentrated in Sweden's six largest cities, Norrkoping and Karlstad. The properties are owned and managed by the subsidiaries ArosTornet, Malmstaden, MalarTornet, SkansTornet and Euro Tower.

 Interim Report January-June 2004
                                        2004:II  2003:II
 Rental income, SEK m                     1 148    1 217
 Profit after tax, SEK m                    291      764
 Earnings per share, SEK                  11.26    28.84
 Operating profit, SEK m                    673      724
 Income from property sales net, SEK m      192      244
 Income after financial items, SEK m        403      454
 Cash flow from operations, SEK m           507      539
 Shareholders' equity per share, SEK        98*      209
 Occupancy ratio area, %                   88.0     88.9
 Occupancy ratio financial, %              89.6     91.0

*After dividend of SEK 127.

Profit after tax

Profit after tax amounted to SEK 291 million (764).

Sales and acquisitions

12 properties (30) have been sold for SEK 633 million (993) with a capital gain of SEK 192 million (244). Three properties (3) have been acquired for SEK 155 million (1 004).

Events after the end of the period Since the end of the reporting period, the process of arranging refinancing for the group's loans, as announced previously, has been completed and a dividend of SEK 127 per share has been paid to shareholders, as decided by the annual general meeting.

A structured sale of the subsidiary Malmstaden, or a significant part of it, is in progress.

Since the end of the reporting period, one property has been sold for SEK 3 million, with a capital gain of SEK 1 million.

New strategy and capital structure

Tornet has decided to adopt a new strategy, as a result of which the group will divest its assets and return any capital released by such measures to shareholders.

Danderyd, 20 August 2004 Fastighets AB Tornet (publ)

For further information, please contact: Christel Armstrong Darvik, Managing Director, Fastighets AB Tornet, +46-8-544 905 02, +46-70-542 34 84

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