... new union agreements must be signed in the near future

Targeting
approximately 3 bn SEK of  annual improvement from cost reductions
and
organizational restructuring and approximately 3 bn SEK increased liquidity
from
asset sales ~ New 3.5 bn SEK Revolving Credit Facility from Banks and
Core
Shareholders to secure financial preparedness conditional on signed
union
agreements and parliamentary approvals ~The Board unanimously supports
the plan
and recommends all employees to do the same ~ The Board will meet
again on
Sunday November 18, 2012 to decide if the conditions for the
implementation of
the plan exist
The 4 Excellence Plan, which was announced in
September 2011, is on target to
deliver approximately 5 bn SEK in EBT effect.
Despite this success, SAS foresees
the need for further improvements to secure
its long-term competitiveness. In a
challenging environment for airlines, SAS
must take decisive action to address
its cost structure, improve its capital
structure on a long-term basis, and take
steps to reduce the negative impact on
equity in 2013 due to changed pension
accounting regulations.

4 Excellence
Next Generation to improve profitability
The Board of SAS has approved the 4
Excellence Next Generation (4XNG) plan to
address the issues facing SAS. The
4XNG plan will improve EBT by approximately 3
bn SEK on an annualized basis and
improve the overall cost flexibility through:

  · New union agreements for
personnel
  · Centralization of administration functions
  · Reduction of
compensation to market levels
  · New pension terms
  · Outsourcing of Call
Centers and Ground Handling

1.5 bn SEK in improved EBT is expected to be
realized in the financial year
2012/13, with most of the remaining annualized
benefits realized in the
financial year 2013/14. The plan is self-financing and
requires no new capital.
The restructuring cost and one-off implementation
costs will be approximately
1.5bn SEK, whereof 0.9-1.0 bn SEK in financial year
2012, and will be fully
funded from expected savings.

New pension terms will
mitigate the need for new equity
As a result of the revised IAS19, that will be
applied by SAS as of November
2013, the SAS Group’s shareholders’ equity will
be reduced when all unrecognized
deviations from estimates and plan amendments
will be recognized in full in
shareholders’ equity. The 4XNG plan will result
in a transition, for the
majority of the employees, from the current defined
benefit plans to defined
contribution plans.  These changes will mitigate the
negative impact on equity
by an estimated 2.8 bn SEK, reduce defined benefit
obligations by 19 bn SEK
(58%) and reduce volatility in future earnings
resulting from changes in pension
assumptions. These pension changes, together
with the other actions announced
today, provide SAS with the confidence that it
will retain a strong equity
position.

Asset Disposal and Financing Plan to
increase liquidity
The Plan involves a commitment to complete an asset disposal
and financing plan,
which totals approximately 3 bn SEK in potential net cash
proceeds. The proceeds
will improve SAS’ internally generated financial
preparedness and allow SAS to
further reduce its financial leverage. The asset
disposal and financing plan
includes:

  · Widerøe, a subsidiary regional
airline in Norway
  · Airport realated real estate interests;
  · Ground
handling; and
  · Aircraft engines

In addition, SAS will also actively
consider opportunities to realize further
value from its financed aircraft
portfolio and other assets.

3.5 bn SEK Revolving Credit Facility conditional
on signed union agreements and
parliamentary approvals
SAS has reached an
agreement to increase its existing 3.1 bn SEK revolving
credit facility to 3.5
bn SEK and extend the term of the facility to 31 March
2015. SAS’s bilateral
facilities in the amount of 1.25 bn SEK will be cancelled
as these facilities
provide limited benefit at a significant financial cost.
This new revolving
credit facility alongside SAS’ cash resources will provide
the required
financial preparedness while it completes its asset sales and
realizes the full
benefits from its cost reduction plans.

The new revolving credit facility is
being provided by seven current lenders and
SAS’ core shareholders (The Kingdom
of Denmark, the Swedish State, the Kingdom
of Norway and KAW) on equal terms.
The availability of the new revolving credit
facility is subject to final
documentation, parliamentary approval where
required, and it is conditional on
signed union agreements that are a central
and integral part of the 4XNG
plan.

SAS has initiated discussions with its relevant unions and will initiate
a broad
communication effort towards its employees to obtain their consent to
the
changes in the union agreements within a very short time.

Comprehensive
plans create a financially strong SAS
The plans announced today are supported
by our core shareholders and enable SAS
to position itself as a strong,
financially self-sufficient airline on a long
-term basis. In connection with
the approvals of the plans, SAS has set new
financial targets.

               
                       Long term: FY 14/15
Profitability                      
           >8%
EBIT %

Financial preparedness                        >20%
Cash
& unutilized RCF / Fixed cost

Equity ratio                                 
>35%
Equity / Assets

SAS Group Investor Relations
SAS is publishing
this
information (http://se.yhp.waymaker.net/sasgroup/release.asp?id=263426)
in
accordance with the Swedish Securities Market Act and/or the Swedish
Financial
Instruments Trading Act and corresponding Danish and Norwegian
legislation. This
information was submitted for publication on November 12,
2012 at 08.00 CET.