Third Quarter (March - May 2008)

  * KappAhl's net sales for the period (excluding VAT) amounted to
    MSEK 1,140 (1,106), an increase of 3.1 percent.
  * Operating profit amounted to MSEK 145 (132). Operating profit in
    the previous year was affected positively by non-recurring items
    in an amount of MSEK 3. Excluding non-recurring items, profit
    increased by 12.4 percent.
  * The gross margin amounted to 63.8 percent (62.3) and the
    operating margin was 12.7 percent (11.9).
  * Profit after taxes amounted to MSEK 112 (79), which is equivalent
    to SEK 1.49 (1.05) per share. Profit has been positively affected
    in an amount of MSEK 23 due to the termination of a financial
    lease for real estate.
  * Cash flow from operating activities totalled MSEK 221 (136).


First nine months (September 2007 - May 2008)

  * KappAhl's net sales for the period amounted to MSEK 3,519
    (3,383), an increase of 4.0 percent.
  * Operating profit amounted to MSEK 469 (435). Operating profit in
    the previous year was affected positively by non-recurring items
    in an amount of MSEK 16. Excluding non-recurring items, profit
    increased by 11.9 percent.
  * The gross margin amounted to 62.5 percent (60.8) and the
    operating margin was 13.3 percent (12.9).
  * Profit after taxes amounted to MSEK 324 (540), which is
    equivalent to SEK 4.32 (7.20) per share. Profit after taxes in
    the previous year was positively affected by tax revenue of MSEK
    270.
  * Cash flow from operating activities totalled MSEK 600 (449).


CEO's comments
During the spring, the fashion market was slightly weaker than in
previous quarters. Our ability to demonstrate continued steady
development in such a market is highly encouraging and indicates that
KappAhl has a strong offer that appeals to our customers. However,
global uncertainty may lead to caution on the part of our customers.
This makes it difficult to assess the near future, at the same time
as these conditions could also bring new business opportunities for
operations of our type. We are also pleased to be able to state that
growth from new stores will increase, as we now have contracts for 56
new stores.

For further information, please contact
Christian W. Jansson, CEO      Tel. +46 (0)70 995 02 01
Håkan Westin, CFO                 Tel. +46 (0)70 471 56 64

KappAhl Holding AB (publ), Box 303, 431 24 Mölndal.

KappAhl is a leading fashion chain with around 4,000 employees and
nearly 300 stores in Sweden, Norway, Finland and Poland. KappAhl
sells value-for-money fashion to a number of target groups - men,
women and children - but focuses particularly on women between 30 and
50. All clothes are designed by in-house designers. In 1999, KappAhl
was the first fashion chain in the world to be environmentally
certified in line with international standards. The head office and
distribution centre are located in Mölndal, in the outskirts of
Gothenburg. In the 12-month period that ended on 31 August 2007,
KappAhl's net sales were SEK 4.5 billion and operating profit was SEK
618 million. KappAhl is listed on the OMX Nordic Exchange, Stockholm.
Further information about the company is available at www.kappahl.com
and financial information is available at www.kappahl.com/ir.

The full report with tables can be downloaded from the following
link: