H&M ACQUIRES THE COMPANY BEHIND CHEAP MONDAY, WEEKDAY AND MONKI

H&M ACQUIRES THE COMPANY BEHIND CHEAP MONDAY, WEEKDAY AND MONKI

H&M has signed an agreement to acquire the privately owned Swedish fashion
company Fabric Scandinavien AB that is running the store chains Weekday and
Monki. The Group also designs and sells fashion through a number of own brands,
such as Cheap Monday. The turnover for the financial year 2007/08 is expected to
reach approximately SEK 400 million. The company will be run as a stand alone
subsidiary within the H&M Group.

- We have been impressed by Fabric Scandinavien's development for a long time
and we see a potential to develop stores and concepts in other markets. By
working together we can accelerate the growth further. We can also do it in a
more efficient manner by drawing on H&M's experience and knowledge of for
example production, logistics and establishment, says H&M's CEO Rolf Eriksen.

- H&M is a fantastic company and we have found that we share the same values.
Together with H&M we will have better opportunities to truly develop our ideas
within fashion and design. H&M's knowledge of for instance production and
international expansion will be extremely valuable to us, says Fabric
Scandinavien's CEO Lars Karlsson.

The subsidiary Weekday Brands designs, produces and runs wholesale selling of
young fashion. Its largest own brand is Cheap Monday, primarily a denim line.
The idea behind Cheap Monday is fashion at good prices, something that goes well
with H&M's business idea; fashion and quality at the best price. Cheap Monday is
sold in more than 1,000 stores globally. Among the brands are also MTWTFSS
Weekday and Sunday Sun.

The store chain Weekday is an urban unisex concept with a total of six stores in
Stockholm, Uppsala, Gothenburg and Malmö. In March the first store will open
outside Sweden in Copenhagen, Denmark.

Monki is a store concept and an own brand for young females. Since the start in
Gothenburg in 2006 Monki has expanded to Stockholm, Uppsala, Malmö, Karlstad,
Sundsvall and Norrköping, amounting to a total of twelve stores. 

H&M acquires 60 percent of the shares in Fabric Scandinavien for SEK 564 million
in cash. Sellers are the founders Adam Friberg, Lars Karlsson, Örjan Andersson
and Linda Friberg. They will all continue to work within the company. In
connection with the transaction the parties entered into agreement according to
which H&M has the possibility/obligation to acquire the remaining shares in the
company within three to five years. The total turnover of the Group's business
was approximately SEK 250 million during the financial year 2006/07, with an
operating result of SEK 67 million. The expected turnover for the financial year
2007/08 is approximately SEK 400 million with continued good profitability. The
employment conditions for the 300 employees will not change as a result of the
transaction.

The transaction is conditioned by acceptance of relevant competition
authorities. SEB Enskilda has acted as financial advisor to H&M in connection
with the acquisition. 

Questions are kindly referred to the press and telephone conferences, see below.
[1] 12 months financial year from and until 30 April



INVITATION TO PRESS AND TELEPHONE CONFERENCE 6 MARCH
H & M Hennes & Mauritz AB invites to a press conference on Thursday 6 March at 
10.30. A telephone conference in English will be held the same day at 16.00.

The press conference starts at 10.30 in the Weekday store on Drottninggatan 65
in Stockholm where H&M's CEO Rolf Eriksen will present the acquisition of Fabric
Scandinavien together with its CEO Lars Karlsson. The presentation is followed
by a questions and answers session. The press conference, which is held in
Swedish, is open for journalists and analysts. 

The telephone conference will be held in English and takes place between 16.00
and 17.00. The telephone number for access is +46 (0)8 5052 0110 (Sweden), +44
(0)20 7162 0025 (England) or +1 334 323 6201 (USA). Please call in at least ten
minutes prior to the start of the conference in order to avoid a queue. 

All times are in CET.

Presentation material is available at www.hm.com under Investor Relations.

Welcome!

Contact H&M:        Telephone:      Mobile:            E-mail:
Kristina Stenvinkel,+46 8 796 39 08 +46 70 796 54 40 stenvinkel@hm.com
Head of
Communications
Annacarin Björne +46 8 796 57 57 +46 70 796 55 74 annacarin.bjorne@hm.com
Press Officer
Nils Vinge       +46 8 796 52 50 +46 70 796 52 50 nils.vinge@hm.com
Head of
Investor
Relations


Contact Fabric                                   
Scandinavien:
Lars Karlsson    +46 140 699 00                   lasse@weekday.se
CEO


Press images and information intended for journalistic purposes can be
downloaded from: 
www.hm.com 
Username: press 
Password: trend

www.cheapmonday.com/press and www.monkigirl.com
Username: cm 
Password: cinema

The information in this press release is that which H & M Hennes & Mauritz AB
(publ) is required to disclose under the Securities Exchange and Clearing
Operations Act and/or the Financial Instruments Trading Act. It was released for
publication at 08.00 (CET) on March 6th, 2008.



H & M Hennes & Mauritz AB (H&M) was established in Sweden in 1947. The company's
business concept is to offer fashion and quality at the best price. H&M is
quoted on the OMX Nordic Exchange Stockholm. Today there are over 1,500 H&M
stores in 28 countries. H&M has 68,000 employees and achieved sales including
VAT in 2007 of SEK 92,123 million. H&M has a wide product range that is divided
into a number of different concepts for women, men, teenagers, children and
cosmetics. The company's clothing collections are created by its own designers,
pattern makers and buyers. For further information visit www.hm.com.