NINE MONTH REPORT 1 December 2005 – 31 August 2006

• Sales for the H&M Group excluding VAT for the first nine months amounted to SEK 48,888 m (43,253), an increase of 13 per cent. With comparable exchange rates, the increase was 11 per cent.

• Profit after financial items for the first nine months amounted to SEK 10,368 m (9,256), an increase of 12 per cent. Group profit after tax was SEK 6,998 m (6,016), corresponding to SEK 8.46 (7.27) per share.

• Sales for the third quarter excluding VAT amounted to SEK 16,754 m (15,158), an increase of 11 per cent compared with the previous year. Also with comparable exchange rates the increase was 11 per cent.

• Profit after financial items for the third quarter was SEK 3,768 m (3,324), an increase of 13 per cent.

• The increase in sales for the month of August was 15 per cent with comparable exchange rates compared to August previous year.

• Successful start of H&M’s online sales in the Netherlands.

• Online sales to begin in Germany and Austria, autumn 2007.

Contact persons:
Nils Vinge, IR +46-8-796 5250

Leif Persson, CFO
+46-8-796 1300

Rolf Eriksen, CEO
+46-8-796 5233

Switchboard
+46-8-796 5500

Information about H&M and press images are available at www.hm.com