Press release 03 July 2008
Ministry of Finance
Ministry of Enterprise, Energy and Communications

Swedish Government sells Vasakronan for a value of SEK 41 bn

Today, the Swedish Government decided to sell the property company Vasakronan to AP Fastigheter. The total value is SEK 41.1 bn. An agreement was signed earlier today.

Minister for Local Government and Financial Markets Mats Odell commented: "Today we can present a deal that is good for Vasakronan and for Swedish households. AP Fastigheter is a solid long-term owner, which made an offer that after an overall assessment is the best and represents the higher price of the two final offers. This transaction also means that the AP Funds (Swedish National Pension Insurance) improve their investment profile, benefiting current and future pensioners."

Ahead of the deal, Sweden's National Property Board and Government-owned corporation Specialfastigheter AB have acquired certain properties of national interest from Vasakronan, which will remain in Government ownership.

Vasakronan's Board of Directors believes that the combined entity will create a high-quality property company in international terms with significant development potential. Moreover, the deal has a strong business logic, according to a statement from the Board.

The council that evaluates disposal of shares in companies with Government ownership has issued a statement confirming that the disposal is made on business terms.

Key transaction highlights:

• AP Fastigheter is acquiring Vasakronan in a deal that values the properties at SEK 41.1 bn;
• The buyer is assuming net debt and other commitments valued at a total of SEK 16.5 bn;
• The equity value is SEK 24.6 bn including interest from 1 January 2008 until the date ownership is transferred, which is scheduled for 1 September;
• The Swedish Government is selling the shares of Civitas Holding AB, which is the parent company of Vasakronan AB;
• The Government intends to utilise the proceeds to amortise public debt;
• The acquisition is fully financed through shareholders' equity and a number of Nordic banks;

The buyer will be handling the Swedish Competition Authority's examination of the transaction.

JP Morgan has acted as exclusive financial adviser to the Swedish Government. Advokatfirman Cederquist and
Öhrlings PricewaterhouseCoopers have been the legal and accounting advisers.

A press conference with Mats Odell will be held at Rosenbad, Bella Venezia, at 11.15 a.m. AP Fastigheter's Chief Executive Fredrik Wirdenius will also be at the press conference. A valid press card is necessary to attend the conference, which will also be streamed from the Government's website, www.regeringen.se