The Lindex shareholders will receive the full amount of SEK 44 per share in cash following renegotiated financing agreements

The Lindex shareholders will receive the full amount of SEK 44 per share in cash
following renegotiated financing agreements

Following the renegotiation of the previous preliminary credit agreements, the
Board of Directors of AB Lindex (publ) has further improved the terms for the
proposed recapitalisation. As the bank will itself take up the bond, at the same
time as the loan facility has been increased to SEK 2.5 billion, the full amount
of SEK 44 per share, or SEK 3 billion in total, will be paid in cash to the
Lindex shareholders.

”I am very satisfied with the renegotiation we have carried out with the bank.
As the bank will itself take up the bond, at the same time as it has offered us
an increased credit, we will be able to pay the full amount of SEK 44 per share
in cash to our shareholders, which they have requested”, says Conny Karlsson,
Chairman of Lindex. 

The Board of Directors intends to propose that the Extraordinary General Meeting
on 26 September 2007 will pass a resolution to carry out a recapitalisation
through a Public Recap transaction, whereby the Lindex shareholders will receive
a total amount of SEK 3 billion in cash. 

The bank financing agreement will run for a term of five years at an estimated
average interest rate of 5,75 %.

Supplementation of previous statements relating to KappAhl's offer
The Board of Directors maintains its assessment that KappAhl's offer of SEK 102
per share does not reflect the company's true value and, therefore, recommends
that the shareholders say ‘no' to KappAhl's offer. 

The Board of Directors' assessment is primarily based on its confidence in
Lindex's future development as an independent company. The combination of strong
growth, improved margins and the opportunity to create an efficient capital
structure, together with Handelsbanken Capital Markets' fairness opinion, gives
an overall picture that has resulted in the Board's recommendation. 

In accordance with the takeover rules of the OMX Stockholm Exchange, the Board
of Directors, with the statement made by the bidder in the offer document as the
starting point, shall report its opinion on the effect the offer will have on
the company, especially on employment, and its opinion on the bidder's strategic
plans for the target company. 

In the offer document, KappAhl has stated that it does not intend to carry out
any significant change of Lindex's operations and that the offer will not have
any significant effect on the conditions of employment for KappAhl's and on
Lindex's employees and company managements or on the employment in the locations
where the companies carry out operations. On Friday 21 September, the Swedish
Competition Authority also announced that there are no competition-legal
obstacles for a merger between KappAhl and Lindex. 

As a result, the Board of Directors is of the opinion that an implementation of
the offer would not have a significant effect on Lindex's employees or on the
company's current direction and strategy. 

For further information, please contact:
Conny Karlsson, Chairman of AB Lindex, +46 705 21 19 18
Göran Bille, President and CEO of AB Lindex, +46 703 44 43 04
Peter Andersson, Chief Financial Officer of AB Lindex, + 46 705 84 44 37

Lindex inspires women and their children with coordinated, high-value fashions.
Lindex is one of Northern Europe's largest fashion chains with around 350 stores
in Sweden, Norway, Finland, Czeck Republic, Estonia, Lithuania and Latvia.
Lindex's product areas are women's lingerie, women's wear, children's wear and
cosmetics.

www.lindex.com