Nelly.com's German test launch becomes permanent

Nelly.com's German test launch becomes permanent

CDON Group AB (Nasdaq OMX Stockholm: CDON) (publ.), one of the leading
e-commerce groups in the Nordic region, today announced that it will
make its presence on the German market through its leading online
fashion retailer Nelly.com permanent.

Nelly.com was test launched in Germany in May 2010 and marked the first
expansion of CDON Group outside the Nordic region. The internet store's
initial marketing campaign comprised affiliate programmes, online social
media as well as TV advertising campaigns. The test launch showed a
healthy demand for Nelly.com products in the German marketplace; hence
the decision has been made to pursue the test launch through a permanent
presence of Nelly.com in Germany. Nelly.com's German launch is expected
to be loss-making for 2011 and 2012.
Mikael Olander, President and Chief Executive Officer of CDON Group,
commented: “The test launch of Nelly.com in Germany has proven
commercially viable and we have therefore decided to make our presence
permanent in this sizable and dynamic market, which we expect to become
Nelly.com's fourth largest market by the second half of 2011.”

Facts on Nelly.com and the online retail sector
Nelly.com is the leading Nordic online fashion and beauty retailer,
aimed primarily at fashion forward 18-40 year olds. Nelly.com attracted
more than 30 million visits 2010.
The German online retail sector market was estimated at $21.6 billion in
2009[1]. The Nordic online retail sector was estimated at $9.2
billion[2].
1 Datamonitor Market Research  2 HUI Handelns utredningsinstitut and
CDON Group.

***

For further information, visit Cdongroup.com or contact:
Mikael Olander, President & Chief Executive Officer
Tel:                        +46 (0) 10 703 2000
Investor and analyst enquires:
Andreas Ericson, Head of Investor Relations
Tel:                        +46 (0) 70 080 7668
Email:                   ir@cdongroup.com        
Press enquires:
Fredrik Bengtsson, Head of Communications    
Tel:                        +46 (0) 70 080 7504
Email:                   fredrik.bengtsson@cdongroup.com