SIX MONTH REPORT 1 December 2006 – 31 May 2007

• Sales for the H&M Group excluding VAT for the first six months of the financial year amounted to SEK 36,822 m (32,134), an increase of
15 per cent. In local currencies, the increase was 18 per cent and in comparable stores 6 per cent.

• Profit after financial items for the first six months was SEK 8,545 m (6,600), an increase of 29 per cent. Group profit after tax was
SEK 5,768 m (4,455), corresponding to SEK 6.97 (5.38) per share.

• Sales for the second quarter excluding VAT amounted to
SEK 20,050 m (17,063), an increase of 18 per cent compared with the previous year. In local currencies, the increase was 20 per cent and in comparable stores 7 per cent.

• Profit after financial items for the second quarter was SEK 5,134 m (3,920), an increase of 31 per cent.

• Expansive quarter. Successful launches of H&M in four new countries and of the store chain COS. The expansion of online and catalogue sales in the Netherlands and of shoes has surpassed expectations.

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