HALF-YEAR REPORT 1 December 1999 – 31 May 2000

• Group turnover amounted to SEK 17,242 M (SEK 15,683 M), an increase of 10 per cent. Adjusted for exchange rate fluctuations, the increase was 16 per cent.

• Profit after financial items was SEK 1,813 M (SEK 2,049 M).

• Adjusted for negative effects of currency rate fluctuations of SEK 163 M and costs for the start-up of two new markets, the USA and Spain, of SEK 140 M, profit before tax amounted to SEK 2,116 M (SEK 2,049 M), an increase of 3 per cent.

• The start-up of three stores on the American market has by far exceeded expectations. Decision has therefore been made to double the planned number of stores in the USA, from five to ten stores, this financial year.

• Approximately 75 stores are planned to open in the USA in the next three year period.