H & M HENNES & MAURITZ AB INITIATES A LONG-TERM INCENTIVE PROGRAM FOR ALL EMPLOYEES

H & M HENNES & MAURITZ AB INITIATES A LONG-TERM INCENTIVE PROGRAM FOR ALL
EMPLOYEES

- The Stefan Persson Family donates 1 billion SEK

To show appreciation to all the employees contributing to H&M's success, the
Board of Directors of H & M Hennes & Mauritz AB (H&M) proposes an incentive
program in which all employees in all countries are included on the same basic
principle. The purpose of this incentive program is to encourage and acknowledge
employees' long-term involvement. The program is intended to further strengthen
H&M as an attractive employer, which will also benefit future recruitment during
H&M's major global expansion.

The program will be initiated through a donation consisting of 4,040,404 H&M
shares, at a current estimated value of one billion SEK, from the Stefan Persson
Family to a newly established Swedish foundation, Stiftelsen H&M Incentive
Program. The donation is to be allocated to H&M employees over time. In
addition, it is intended that H&M will make annual contributions to the
foundation, with an amount equivalent to ten percent of the increase in dividend
in relation to the previous year's share dividend. The program is to commence in
2011 provided a resolution is adopted at the Extraordinary General Meeting on
October 20, 2010.

- The idea is to create a long-term incentive program which is the same for all
employees. The program is also a way of generating further involvement. Our hope
is that H&M will continue to develop well and that the employees will be able to
benefit from H&M's value growth in the same manner as a shareholder, says Stefan
Persson, Chairman of the Board in H&M.

All employees in the H&M Group in all countries are included in the incentive
program on the same basic principle, on the basis of the amount of time worked
in the company, regardless of position or salary level. The number of years the
employee has previously worked will be included in the qualification period
which is five years, unless local regulations stipulate otherwise. The basic
principle is that payment begins when the employee turns 62. However, it will be
possible to choose to receive payment of the employee's portion already after
ten years of employment, although no earlier than 2021. The donation and the
annual contributions will be administered by the foundation, Stiftelsen H&M
Incentive Program, and invested in H&M shares. This holding shall, however,
never constitute more than five percent of the total number of shares in H&M.

As H&M operates in many different countries, there may be certain local
deviations as a result of differing laws and regulations concerning, for
example, tax and employment, to which the program must adhere.

Contact persons:
Kristina Stenvinkel					
Head of Communications				
Telephone: +46 8 796 3908				 
E-mail: stenvinkel@hm.com

Nils Vinge
Head of Investor Relations
Telephone: +46 8 796 5250
E-mail: nils.vinge@hm.com
 
Press pictures and background information for editorial use can be down loaded
from www.hm.com 

The information in this press release is that which H & M Hennes & Mauritz AB
(publ) is required to disclose under Sweden's Securities Market Act. It was
released for publication at 08.00 (CET) on September 7, 2010.

H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on
NASDAQ OMX Stockholm. The company's business concept is to offer fashion and
quality at the best price. In addition to H&M, the group includes the brands
COS, Monki, Weekday and Cheap Monday as well as H&M Home. The H&M Group has
around 2,000 stores in 37 markets. In 2009, sales including VAT were SEK 118,697
million and the number of employees was around 76,000. For further information,
visit www.hm.com.