Axfood acquires PrisXtra

Axfood acquires PrisXtra

Axfood has today signed an agreement to acquire PrisXtra, a family-owned company
with five stores and an internet store in the Stockholm area with total annual
sales of approximately SEK 700 million.

“This is an important step for Axfood. The acquisition gives us a third store
concept in addition to Willys and Hemköp and considerably strengthens our
position in the Stockholm area with its high purchasing power,” says Anders
Strålman, CEO, Axfood. “The acquisition will provide synergies within
purchasing, IT and administration. ”

Since the start in 1991, PrisXtra has built up a strong brand and a successful
chain of stores in the Stockholm market. The company's mission is to “give all
Stockholmers the most rewarding and trendiest food experience at the lowest
price”. This is well in line with Axfood's intention to develop and operate
successful food concepts based on clear and attractive customer offerings. 

Axfood will continue to operate PrisXtra as a separate company within the Axfood
group and Magnus Lundin will stay on as the company's CEO. All employees will be
offered continued employment.

PrisXtra Förvaltning AB's financial year is September - August and preliminary
sales for the year that ended on 31 August 2007 totalled SEK 706 million. The
preliminary balance sheet total amounted to SEK 146 million and the average
number of employees was 243.

The transfer of the stores is planned for January 2008 subject to the
unconditional approval of the Swedish Competition Authority. The parties are
agreed that the purchase price will not be disclosed for commercial reasons.

“I am glad for PrisXtra's sake. PrisXtra is currently Sweden's most successful
urban concept and the sale to Axfood gives PrisXtra enormous opportunities for
future growth. It is particularly gratifying that my brothers and I have been
entrusted to continue to develop the company together with Axfood as our new
owner,” says Magnus Lundin, CEO PrisXtra.

For further information, please contact:
Anders Strålman, President and CEO Axfood AB, +46 708 37 88 37
Karin Hygrell-Jonsson, CFO Axfood AB, +46 706 62 69 70

Axfood AB conducts retail trade through the wholly owned store chains Hemköp,
Willys and Willys hemma, comprising slightly more than 220 stores, and wholesale
trade through Dagab and Axfood Närlivs. In addition, Axfood collaborates with a
number of proprietor-run stores that are tied to Axfood through agreements.
These include stores within the Hemköp chain as well as stores run under the
Handlar'n and Tempo profiles. In all, Axfood collaborates with over 500
proprietor-run stores. Axfood is listed on the Nordic Large Cap list of the OMX
Nordic Exchange. Axel Johnson AB is the principal owner, with approximately 46%
of the shares.