RNS Number:1963S
Amer Group PLC
18 November 2003


                                                                18 November 2003

                                 Amer Group Plc
                                        
 AMER GROUP NEGOTIATES THE POSSIBILITY OF WITHDRAWING FROM ITS TOBACCO BUSINESS

Amer Group Plc is reviewing the possibility of withdrawing from its non-core
tobacco business and initiating employer/employee negotiations concerning Amer
Tobacco Ltd in Finland.

Amer Tobacco Ltd has an exclusive right to produce and sell Philip Morris
cigarettes in Finland. Transferring the license to a third party is not possible
without permission from the licensor. According to the licensing agreement, the
license can be terminated at the end of 2005 at the earliest, if not otherwise
agreed between the licensee and the licensor.

Amer Group is negotiating with Philip Morris the possibility of terminating the
license agreement prematurely. Within the framework set by the employer/employee
negotiations, the withdrawal could take place during the spring of 2004.

"Our strategy is to develop our sports equipment business and to become the
number one sports equipment company in the world. We think that now is the right
time to negotiate the possibility of withdrawing from the tobacco business",
says Mr. Roger Talermo, President and CEO of Amer Group. "We estimate that the
profitability of the tobacco business will decline due to the enlargement of the
European Union, among other reasons."

Negotiations with staff will commence on 26 November 2003 and will apply to Amer
Tobacco Ltd's entire workforce, totaling approximately 320 persons.

In 2002 Amer Tobacco reported net sales of EUR 114.4 million.

AMER GROUP PLC
Communications

Paivi Antola
Communications Manager
Tel. +358 9 7257 8306, e-mail: firstname.lastname@amersports.com
www.amersports.com

Further information (after 4 pm Finnish time):

Mr Roger Talermo, President & CEO, tel. +358 9 7257 8210
Mr Pekka Paalanne, Senior Vice President & CFO, tel. +358 9 7257 8212
Mr Max Alfthan, Vice President, Communications, tel. +358 9 7257 8216




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCUWSUROVRAAAA