Tax surcharge of SEK 493 million quashed by the County Administrative Court

2007-12-21

The background to this dispute is that Klövern requested
reconsideration of the tax assessment for 2003 at the end of 2003, in
connection with which Klövern requested a deduction of an additional
SEK 5 billion. This deduction concerns a loss that the company made
during the time it was an IT company.

The Tax Agency considered that Klövern was not entitled to this
deduction and also considered imposing a tax surcharge of SEK 493
million. For this reason, Klövern withdrew its request for the
deduction. Despite there no longer being any request for a deduction
to take a position on, the Tax Agency imposed a tax surcharge of SEK
493 million.

The judgment of the County Administrative Court can be appealed
against to the Supreme Administrative Court.”We are very pleased that the county administrative court has drawn
this conclusion. The judgment shows that our view was justified that
the Tax Agency cannot behave in the way that it did. What remains now
is to have our deduction of SEK 5 billion approved, says Klövern’s
CEO Gustaf Hermelin.

Klövern has also submitted a renewed request for reconsideration of
the request for a deduction of SEK 5 billion. The Tax Agency has not
approved this deduction. However, no tax surcharge has been imposed.
The issue of the deduction is at present pending consideration by the
county administrative court. This is a separate proceeding from the
matter now decided upon. The tax surcharge of SEK 493 million imposed
by the Tax Agency has not been paid nor has it been expensed, but has
been reported as a contingent liability.”We realised that the Tax Agency did not have grounds for imposing a
tax surcharge on Klövern. It is very gratifying that the county
administrative court shares this view “, say Klövern’s tax advisor
Börje Leidhammar, Wistrand advokatbyrå and Thomas Andersson,
Deloitte.

Nyköping, 21 December 2007

Klövern AB (publ)

For further information, please contact:
Gustaf Hermelin, CEO, tel +46 155-44 33 10, +46 70-560 00 00,
gustaf.hermelin@staging-wwwklovernse.wp4.triggerfish.cloud
Caesar Åfors, Chief financial officer and vice-CEO, +46 155-44 33 02,
+46 70 662 48 48, caesar.afors@staging-wwwklovernse.wp4.triggerfish.cloud

Klövern is a real estate company with a local presence that actively
develops properties in large Swedish cities. Klövern has ten
geographical units: Borås, Karlstad, Kista, Linköping, Norrköping,
Nyköping, Täby, Uppsala, Västerås och Örebro. As per 30 September
2007, the value of the properties totalled approximately
SEK 12.2 billion and the rental income on an annual basis was
approximately SEK 1,337 million. The Klövern share is listed on OMX
Nordic Exchange in Stockholm for medium-sized companies.

Klövern AB (publ), Box 1024, SE-611 29 Nyköping , Sweden* Tel +46
155-44 33 00, Fax +46 155-44 33 22.
Corporate registration no. 556482-5833 * Registered office: Nyköping
* Website: www.staging-wwwklovernse.wp4.triggerfish.cloud