NINE MONTH REPORT

| Source: KappAhl Holding AB KappAhl Holding AB 

Restored inventory and reduced costs

+-----------------------------+--------+------+-------+-------+-----+------+
|                             |Quarter        |Change |Nine         |Change|
|                             |3 (March       |       |months       |      |
|                             |-May)          |       |(Sep         |      |
|                             |               |       |-May)        |      |
+-----------------------------+--------+------+-------+-------+-----+------+
|                             |2011/201|2010/2|2011/20|2010/20|
|                             |2       |011   |12     |11     |
+-----------------------------+--------+------+-------+-------+-----+------+
|Net sales, SEK million       |1 146   |1 237 |-91    |3 458  |3 766|-308  |
+-----------------------------+--------+------+-------+-------+-----+------+
|Operating profit excluding   |46      |57    |-11    |7      |219  |-212  |
|non-recurring costs, SEK     |        |      |       |       |     |      |
|million                      |        |      |       |       |     |      |
+-----------------------------+--------+------+-------+-------+-----+------+
|Operating profit/loss, SEK   |29      |57    |-28    |-93    |219  |-312  |
|million                      |        |      |       |       |     |      |
+-----------------------------+--------+------+-------+-------+-----+------+
|Gross profit margin, %       |59,1    |60,1  |       |56,5   |60,4 |      |
+-----------------------------+--------+------+-------+-------+-----+------+
|Operating margin, %          |2,5     |4,6   |       |-2,7   |5,8  |      |
+-----------------------------+--------+------+-------+-------+-----+------+
|Profit after tax, SEK million|-10     |26    |-36    |-184   |122  |-306  |
+-----------------------------+--------+------+-------+-------+-----+------+
|Earnings per share, SEK (Note|-0,04   |0,25  |       |-1,23  |0,74 |      |
|1)                           |        |      |       |       |     |      |
+-----------------------------+--------+------+-------+-------+-----+------+
|Cash flow from operating     |117     |144   |-27    |180    |192  |-12   |
|activities, SEK million      |        |      |       |       |     |      |
+-----------------------------+--------+------+-------+-------+-----+------+

  · Net sales decreased by 7.4 per cent for the quarter and 8.2 per cent for the
nine month period.
  · Costs decreased by 5.7 per cent for the quarter and 4.4 per cent for the
nine month period.
  · Inventories are back at a satisfactory level, both as regards size and
composition.
  · Non-recurring costs in the quarter consisting of provision for bonus
rewards, Note 2.

“We have succeeded in achieving a good composition of our inventories. This was
a priority task and the present normal inventory level will benefit us in
future. (…) We are looking forward to the autumn. We will then see further
results of our action plan.”

Johan Åberg, President and CEO. Read the full CEO statement in the enclosed
report.

A telephone conference will be held for analysts, media and investors today at
9.00 CET. To participate by telephone please call +44 (0)207 750 99 50 about 5
minutes before the start. The telephone conference can also be followed via a
webcast on www.kappahl.com/presentations, where the broadcast will be saved for
viewing later.

The information in this interim report is disclosed by KappAhl AB (publ)
pursuant to the Securities Market Act and/or the Financial Instruments Trading
Act. The information was submitted for publication on 29 June 2012 at 07.30 a.m.

For further information:
Johan Åberg / President and CEO, tel. 0706-09 99 73
Håkan Westin, CFO, tel. 0704-71 56 64

For pictures and other information:
Annette Björklund / Head of public relations, tel. +46 704 71 55 42,
annette.bjorklund@kappahl.com

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