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<h1 class="style1 main"><strong>Svoboda, Collins L.L.C. Sells Stake in Cigars International, Inc. to Swedish Match AB </strong></h1>
<p class="main style1"><strong>CHICAGO, IL – August 31, 2007</strong> – Svoboda, Collins is pleased to announce that it has sold all of its interests in Cigars International, Inc. to Swedish Match AB. Svoboda, Collins recapitalized Cigars International in partnership with the founders in July 2004. </p>
<p class="main style1">“Cigars International’s multi-channel platform generated significant interest by private equity and strategic buyers,” said Alex Miller, Managing Director at Svoboda, Collins. “The acquisition allows Swedish Match AB to actively compete in the U.S. direct marketing premium cigar segment. Cigars International represents an outstanding transaction for Svoboda, Collins, and all of the shareholders. We also appreciate the support of our lending partners, Fifth Third Bank and MFC Capital Funding.” </p>
<p class="main style1">According to Keith Meier, founder and CEO of Cigars International, “We have enjoyed our partnership with Svoboda, Collins. Together we grew revenue and profits significantly, completed a strategic acquisition and built the management infrastructure necessary to achieve the next phase of growth.”</p>
<p class="main style1">Headquartered in Bethlehem, Pennsylvania, Cigars International, Inc. (www.cigarsinternational.com) is a leading direct marketer of cigars and related products through a multi-channel platform including catalogs, websites, retail locations, and wholesale distribution. </p>
<p class="main style1">Svoboda, Collins L.L.C. (www.svoco.com) is a Chicago-based private equity firm with over $200 million of committed capital. Founded in 1998, Svoboda, Collins identifies in, and helps build excellent businesses in its targeted business niches: value-added distribution, consumer products and business services. </p>
<p class="main style1">Swedish Match AB (www.swedishmatch.com) is a global group of companies with a broad assortment of market leading brands in smokeless tobacco products, cigars, pipe tobacco, and lights products. The group’s global operations generated sales of 12,622 MSEK for the twelve month period ending March 31, 2007. Swedish Match shares are listed on OMX Nordic Exchange in Stockholm (SWMA). </p>
<p class="main style1">For general release inquiries, contact Alex Miller at (312) 267-8754.</p>
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