The acquisition price, including acquisition costs, for the hotel property Mr. Chip amounts to MSEK 124. Operating net, on a twelve month basis, is estimated to MSEK 11, resulting in a yield of 9.0 percent. Mr. Chip is part of the northern Stockholm hotel market that presently has an occupancy of about 67 percent. The hotel is strategically located in Kista, one of the most expansive areas

Mr. Chip Färögatan 9 Kista, Sweden

The hotel property Hotell Hogvakten is acquired for MSEK 18.5, inclusive of acquisition costs. Yield is estimated to 9.0 percent. Hotell Hogvakten is part of the Helsingborg city hotel market that presently has an occupancy of approximately 61 percent. The hotel has 42 rooms and is located in central Helsingborg, adjacent to the Radisson SAS Grand Hotel hotel property, also owned by Pandox.
 

As a result of the acquisitions, Pandox income before tax, on a twelve month basis, will increase by MSEK 2.6, equalling SEK 0.10 per share. Cash flow per share increases by SEK 0.16.      Pandox has now acquired two hotel properties and sold three in 2001. The transactions contribute to successively increase the quality of the hotel property

Anders Nissen Chief Executive Officer