Swedish Match and Philip Morris International to dissolve smokeless joint venture

Swedish Match and Philip Morris International (PMI) have mutually agreed to
dissolve their joint venture agreement relating to the sale of smokeless tobacco
products outside Scandinavia and the US.

  · Swedish Match to continue to sell General snus in Canada, Russia and
Malaysia
  · Swedish Match sees good opportunities for its snus products internationally
over the longer term
The joint venture SMPM International (owned on a 50/50 basis by Swedish Match
and PMI) was established in 2009 with an aim to commercialize snus outside
Scandinavia and the US. Within the scope of the joint venture Swedish Match has
developed and produced snus products which have then been sold through the PMI
organization. Both companies have licensed trademarks to the joint venture. The
joint venture most recently has been selling snus in Canada, Russia, Israel and
Malaysia. Costs for joint venture activities have been shared 50/50.

There is a small but growing demand for snus in current joint venture markets.
The development has, however, taken longer than the parties had initially
anticipated. As a consequence the parties have mutually agreed to dissolve the
joint venture.

Swedish Match and PMI will now focus on independent strategies for the
commercialization of snus in the former joint venture territory. Trademark
licenses will revert to the original owners, and separate transitional
agreements have been signed whereby Swedish Match will supply snus products to
PMI for certain markets and PMI will perform distribution services on behalf of
Swedish Match in Canada and in Russia.

“We appreciate the hard work and efforts of all involved in the SMPM
International joint venture. We have attained valuable insights, and are pleased
to see that snus has been viewed by many outside of our core markets as a viable
alternative. We look forward to continuing to build our knowledge and work
toward further developing our snus business globally”, says Lars Dahlgren,
President and CEO of Swedish Match.

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Contacts:

Lars Dahlgren, President and Chief Executive Officer
Office +46 8 658 0441

Marlene Forsell, Senior Vice President and Chief Financial Officer
Office +46 8 658 0489

Emmett Harrison, Senior Vice President Investor Relations and Corporate
Sustainability
Office +46 8 658 0173

Richard Flaherty, President US Division, US Investor Relations contact
Office +1 804 787 5130
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The character of this information is such that it shall be disclosed by Swedish
Match AB (publ) in accordance with the Swedish Securities Markets Act. The
information was disclosed to the media on 16 July, 2015 at 1.00 p.m. (CET).
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Swedish Match develops, manufactures, and sells quality products with market
-leading brands in the product areas Snus and moist snuff, Other tobacco
products (cigars and chewing tobacco), and Lights (matches, lighters, and
complementary products). Production is located in six countries, with sales
concentrated in Scandinavia and the US. The Group’s global operations generated
sales of 13,659 MSEK for the twelve month period ending 31 March 2015. The
Swedish Match share is listed on Nasdaq Stockholm (SWMA).

Swedish Match’s vision is a world without cigarettes. Some of its well-known
brands include: General, Longhorn, White Owl, Red Man, Fiat Lux, and Cricket.
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Swedish Match AB (publ), SE-118 85 Stockholm, Sweden
Visiting address: Sveavägen 44, 8th Floor. Telephone: +46 8 658 0200
Corporate Identity Number: 556015-0756
www.swedishmatch.com