The Lindex Board of Directors recommends that the shareholders say ‘no' to KappAhl's offer and proposes a new capital structure

3 September 2007
This press release may not be made public or be distributed in USA, Australia,
Canada, Japan or South Africa. 

The Lindex Board of Directors recommends that the shareholders say ‘no' to
KappAhl's offer and proposes a new capital structure

On 13 August 2007, KappAhl Holding AB published an offer to Lindex's
shareholders to acquire all outstanding shares in Lindex, for payment in cash,
at a price of SEK 102 per share.

In its statement on 22 August, The Board of Directors recommended that Lindex's
shareholders should not accept KappAhl's offer as the Board of Directors is of
the opinion that the offer of  SEK 102 per share does not reflect the full value
of the company.

The Board of Directors will propose an Extraordinary General Meeting to initiate
a recapitalisation whereby shareholders are allocated SEK 3 billion, equivalent
to approximately SEK 44 per share, in cash and listed bonds.

The recommendation of the Board of Directors' is mainly based on the following
considerations:
•	The strategic decisions made by Lindex just over two years ago have been
successful.
•	Lindex's repositioning on the market, and the streamlining of the organisation
and flow of goods have resulted in rising margins.
•	The business in Germany has been closed down.
•	Excluding Germany, the EBITA margin during the fourth quarter is expected to
exceed 14 per cent. 
•	Excluding Germany, the total sales during the fourth quarter are expected to
increase by 10 per cent and sales in like-to-like stores is expected to increase
by 7 per cent.
•	The gross margin for the fourth quarter, excluding Germany, is expected to
exceed last year's levels.
•	A strong platform for increased profitability and growth has subsequently been
built.
•	The Board of Directors and the Executive Management foresee annual growth (in
sales) of 6-9 per cent over the next two years.
•	As a result of an analysis of the company's capital requirement and the
opportunities brought about by the new Companies Act, the Board of Directors has
decided to recommend an Extraordinary General Meeting to pass a resolution to
assign to the Executive Management the mandate to recapitalise the structure
whereby shareholders will receive SEK 3 billion, equivalent to approximately SEK
44 per share, in cash or listed bonds. 

”The Board of Directors believes in the future development of Lindex as a stand
alone company. Increased growth and improved margins combined with the potential
of making Lindex's capital structure more efficient are the basis for our
recommendation to shareholders to say no to KappAhl's bid” says Conny Karlsson
Chairman of Lindex. 

The Board of Directors' opinion will be presented at a press conference at
Salénhuset at 10 am. The press conference is held in English and there are
possibilities in following the conference on the Internet and/or by telephone,
and to ask questions. Further information details are posted below.

More detailed information is attached to this press release.


For more information, contact
Conny Karlsson, Chairman			Telephone: 	+46 (0)705 21 19 18
Göran Bille, President and CEO		Telephone: 	+46 (0)703-44 43 04
Peter Andersson, Chief Financial Officer	Telephone:	+46 (0)705-84 44 37

Invitation to press conference September 3, 2007

Location:	Salénhuset, sal Forum, Norrlandsgatan 15, Stockholm

Time:		10.00 am

Participants:	Conny Karlsson, Chairman
	         Göran Bille, CEO and President
	         Peter Andersson, CFO

Phone number to the  UK: +44 (0)20 7162 0125 
press conference:	   US:+1 334 323 6203 	     Sweden: 08 5052 0114

A recording of the press conference will be available through the above phone
numbers 24 hours after the press conference. 

Web address to the live webcast 
of the press conference:	www.lindex.com

Download of document:	The presentation will be available on www.lindex.com from
09.00

IMPORTANT NOTICES

This document is not and does not constitute an offer to buy, or solicitation of
an offer to sell, any securities in AB Lindex or Lindex Holding AB. This
document is not being issued or released, directly or indirectly, in or into the
United States, Australia, Canada, Japan, or South Africa (each, a “Restricted
Jurisdiction”), by use of mail or by any means or instrumentality (including
without limitation, facsimile transmission, telephone and the internet) of
interstate or international commerce, or any facility of a national securities
exchange, of any Restricted Jurisdiction. Any persons receiving this press
release should observe these restrictions and should not, subject to certain
exceptions, mail or otherwise distribute, forward or transmit it in, into or
from any Restricted Jurisdiction. 

This announcement contains forward-looking statements. These statements are not
guarantees of future performance and are subject to inherent risks and
uncertainties. Forward-looking statements may be identified by the fact that
they do not relate strictly to historical or current facts and include, without
limitation, words such as “may”, “will”, “expects”, “believes”, “anticipates”,
“plans”, “intends”, “estimates”, “projects”, “targets”, “forecasts”, “seeks”,
“could”, or the negative of such terms, and other variations on such terms or
comparable terminology. Forward-looking statements include, but are not limited
to, statements about the expected future business of Lindex. These statements
reflect Lindex' board's and management's current expectations, based upon
information currently available to them and are subject to various assumptions,
as well as risks and uncertainties that may be outside of its control. Actual
results could differ materially from those expressed or implied in such
forward-looking statements. Any such forward-looking statements speak only as of
the date on which they are made and Lindex shall be under no obligation to (and
expressly disclaims any such obligation to) update or alter such forward-looking
statements whether as a result of new information, future events or otherwise,
except to the extent legally required.