KAPPAHL’S RIGHTS ISSUE FULLY SUBSCRIBED

KAPPAHL’S RIGHTS ISSUE FULLY SUBSCRIBED

This press release may not be distributed, directly or indirectly, in the United
States of America, Canada, Australia, Hong Kong, New Zeeland, South Africa or
Japan.

The new share issue in KappAhl AB (publ) (“KappAhl”) with preferential rights
for the company’s shareholders, for which the subscription period ended on 30
November 2011, has been fully subscribed. Approximately 98.9 per cent of the
shares offered have been subscribed for with subscription rights and
approximately 1.1 per cent of the shares offered have been allocated to persons
that have subscribed for shares without subscription rights. In total,
applications for subscription of shares without subscription rights have been
received corresponding to approximately 40.8 per cent of the shares offered.
Accordingly the rights issue guarantee undertakings have not been made use of.

Allotment of the shares that were subscribed for without subscription rights
have been made in accordance with the principles outlined in the prospectus that
has been prepared in connection with the rights issue and that was published on
15 November 2011. Notification regarding allotment of shares that have been
subscribed for without subscription rights will be sent to those who have been
allotted shares within short.

Through the rights issue, KappAhl receives approximately SEK 600 million before
deduction of costs related to the rights issue. The share capital will increase
by SEK 21,440,000 from SEK 10,720,000 to SEK 32,160,000 and the number of shares
will increase by 150,080,000 from 75,040,000 shares to in total 225,120,000
shares when the rights issue has been registered with the Swedish Companies
Registration Office. Trading in the new shares on NASDAQ OMX Stockholm is
expected to commence around 13 December 2011.

Nordea and Swedbank Corporate Finance are financial advisers and Setterwalls
Advokatbyrå is legal adviser to KappAhl in the rights issue.

For further information, please contact:
Johan Åberg, President and CEO, phone +46 704 71 55 22
Håkan Westin, Chief financial officer, phone +46 704 71 56 64

For pictures and other information:
Annette Björklund, Head public relations, phone +46 704 71 55 42, e-mail
annette.bjorklund@kappahl.com

KappAhl is a leading Nordic fashion chain with more than 380 stores and close to
4 900 co-workers in Sweden, Norway, Finland, Poland and the Czech Republic.
KappAhl designs, markets and sells value-for-money fashion and focus in
particular on women 30-50 years of age. During the financial year 2010/2011,
KappAhl had sales of close to SEK 5 billion, with an operating profit of SEK 222
million. KappAhl shares are listed on the NASDAQ OMX Stockholm. In 1999, KappAhl
was the first fashion chain to receive environmental management standard
certification. Further information is available at www.kappahl.com.

KappAhl AB (publ) discloses the information provided here pursuant to the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on 6 December at 09.00 CET.

IMPORTANT NOTICE

In certain jurisdictions, the publication or distribution of this press release
may be subject to legal restrictions and persons in those jurisdictions where
this press release has been published or distributed should inform themselves
about and abide by such legal restrictions.

This press release may not be published or distributed, directly or indirectly,
in or to the United States, Canada, Australia, Hong Kong, New Zeeland, South
Africa, Japan or any other country where such action is wholly or partially
subject to legal restrictions. Nor may the information in this press release be
forwarded, reproduced or disclosed in such a manner that contravenes such
restrictions. Failure to comply with this instruction may result in a violation
of the United States Securities Act of 1933 ("Securities Act") or laws
applicable in other jurisdictions.

This press release does not contain or constitute an invitation or an offer to
acquire, subscribe for or otherwise trade in shares, subscription rights or
other securities in KappAhl AB (publ). Any invitation to the persons concerned
to subscribe for shares in KappAhl AB (publ) will only be made through the
prospectus that KappAhl AB (publ) made public on 15 November 2011.

Neither of the subscription rights, the BTAs (interim shares) or the new shares
will be registered in accordance with the Securities Act or any provincial act
in Canada and may not be transferred or offered for sale in the United States or
Canada or to persons resident there or on account of such persons other than in
such exceptional cases that do not require registration in accordance with the
Securities Act or any provincial act in Canada.