Fourth Quarter (June - August 2008)

  * KappAhl's net sales for the period (excluding VAT) amounted to
    MSEK 1,103 (1,090), an increase of 1.2 percent.
  * Operating profit amounted to MSEK 182 (183). Operating profit in
    the current period has been affected positively by non-recurring
    items in an amount of MSEK 31. Operating profit in the same
    period previous year was affected negatively by non-recurring
    items in an amount of MSEK 6.
  * The gross margin amounted to 61.9 (62.2) percent and the
    operating margin was 16.5 (16.8) percent.
  * Profit after taxes amounted to MSEK 113 (119), which is
    equivalent to SEK 1.51 (1.59) per share.
  * Cash flow from operating activities totalled SEK 130 (220).

Full-year (September 2007 - August 2008)

  * KappAhl's net sales for the period amounted to MSEK 4,622
    (4,473), an increase of 3.3 percent.
  * Operating profit amounted to MSEK 651 (618). Operating profit in
    the current year has been affected positively by non-recurring
    items in an amount of MSEK 31. Operating profit in the previous
    year was affected positively by nonrecurringitems in an amount of
    MSEK 10.
  * The gross margin amounted to 62.4 (61.1) percent and the
    operating margin was 14.1 (13.8) percent.
  * Profit after taxes amounted to MSEK 437 (659), which is
    equivalent to SEK 5.82 (8.78) per share. Profit after taxes in
    the previous year was positively affected by tax revenue of MSEK
    269.
  * Cash flow from operating activities amounted to MSEK 730 (669).
  * The Board of Directors proposes to pay a dividend of SEK 4.50 per
    share.


CEO's comments
KappAhl can now put another good year behind itself, and this in a
fashion market with slightly weaker demand, particularly during the
spring and summer. Our ability to demonstrate a steady development in
such a market is highly encouraging. In order to maintain profitable
growth, KappAhl is investing in expansion and now has contracts for
57 new stores, at the same time as we are evaluating the opening of
stores in a fifth country. KappAhl has a strong range, which appeals
to our customers in all countries.
However, global financial uncertainty may lead to caution in both the
short and medium term 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, as KappAhl's chosen customer groups generally have
comparatively small loans and their consumer margins are not
dependent on the stock exchange.
We have one of the industry's best gross margins, with continued
improvement during the full year and stability in the last quarter.
In consideration of the above and in accordance with KappAhl's
dividend policy, the Board of Directors proposes to pay a dividend of
SEK 4.50 per share.

Christian W. Jansson
CEO

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 2008,
KappAhl's net sales were SEK 4.6 billion and operating profit was SEK
651 million. KappAhl is listed on the OMX Nordic Exchange, Stockholm.
Further information about the company is available at
www.kappahl.com. Financial information is available at
www.kappahl.com/ir.

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