KappAhl buys head office and distribution centre

KappAhl buys the property that includes its head office and
distribution centre in Mölndal, on the outskirts of Göteborg. The
contract was signed on 28 May and the purchase price amounts to SEK
447 million. KappAhl has rented the premises since 2003.

KappAhl buys the property to create a stronger cash flow and secure
the important resource the premises represent for the business over
the long-term."KappAhl is a modern fashion company and for us distribution and
logistics are central for our effectiveness and profitability. This,
coupled with wanting a stronger cash flow, is why we are buying the
property," says Chief Financial Officer, Håkan Westin.

The head office includes central functions like design and
purchasing, marketing and administration. The automated distribution
centre is one of Northern Europe's most modern with nearly 60 million
garments handled annually. The buildings' total area is 48,000 square
meters. KappAhl acquires the company that owns the property.

To safeguard future growth, an adjacent, undeveloped site of 11,000
square meters has also been bought.


For more information, please contact:
Håkan Westin, Chief Financial Officer, tel. +46 70 471 56 64
Ola Thorén, Manager Public Relations, tel. +46 70 471 56 31


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 for many people - men, women and
children - but focuses particularly on women from 30 to 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, on the outskirts of Göteborg. In the
12-month period that ended on 31 August 2007, KappAhl's net sales
were SEK 4.5 billion and the 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.

KappAhl Holding AB (publ) discloses the information provided herein
pursuant to the Securities Markets Act and/or the Financial
Instruments Trading Act. The information was submitted for
publication at 07.30 on 29 May 2008.