Pandox AB (publ): Interim Report - three months ending March 31, 2001

Total property revenue for the first quarter of 2001 amounted to SEK 137.1 M (74.5). The operating net rose by SEK 54.3 M to SEK 113.5 M (59.2). This increase is mainly attributable to the acquisition of Hotellus, a good hotel market and a high level of valueadding activities in the hotel property portfolio. For comparable units the increase was 7 percent.

The adjusted direct yield for the period was 9.4% (9.9).

Net financial expense for the period amounted to SEK –44.5 M (-20,5).

Corporate group income, after tax, exclusive of nonrecurring revenue, for the period improved by SEK 20.8 M and amounted to SEK 41.5 M (20.7).

The Swedish Financial Accounting Standards Council’s recommendation on income tax (RR:9) is applied. In brief, the recommendation means that both deferred tax claims and deferred tax liabilities are incorporated into the accounts and that any changes in these items in the period will affect the income statement. All comparative figures in the income statement and balance sheet have been adjusted in accordance with the new accounting principle. During the period the hotel properties, Sten Stensson Sten in Eslöv and Scandic Karlshamn have been sold with a capital gain of SEK 8.7 M.

- “Pandox income and cash flow continue to improve. A high level of investments to increase cash flow as well as the fact that demand continues to grow in the majority of the markets where Pandox is represented creates favourable conditions for the future development of the company ”, says Anders Nissen, Chief Executive Officer, Pandox AB.

Outlook for 2001

Income after tax for the year 2001, excluding nonrecurring items, is expected to reach SEK 180 (157) M.

Encl: Complete interim report.

Pandox AB (publ.)

The full report including tables can be downloaded from the enclosed link.