KappAhl proposes a share split and automatic share


The Board of KappAhl Holding AB (publ) ("KappAhl") has decided to
propose to the Annual General Meeting on 17 December 2007 to make a
decision about a share split and reduction of the share capital
through an automatic redemption procedure. Through the redemption
procedure a total of SEK 825 million will be transferred to KappAhl's
shareholders.

The proposal means that each KappAhl share will be split into two
shares, of which one will be a redemption share in the VPC system.
The redemption share will then automatically be redeemed against a
cash redemption payment of SEK 11. The share split and redemption
procedure will take place automatically without the shareholder
needing to take any action. The cash redemption payment is expected
to take place at the end of February 2008.

In order to carry out the redemption procedure the Board also
proposes that the provision in the Articles of Association concerning
the maximum and minimum share capital be changed and that a bonus
issue be carried out without issuing any new shares.

The proposal for an automatic redemption procedure replaces the
board's previous proposal for a cash dividend of SEK 5 per share.

Further information about the proposal will be included in the notice
to attend the Annual General Meeting, which is expected to be
published on 19 November 2007, and in the information brochure
regarding the redemption procedure, which is expected to be published
on 3 December 2007.

For further information, please contact

Christian W. Jansson, President and CEO        Tel. +46 70 995 02 01
Håkan Westin, CFO                              Tel. +46 70 471 56 64




KappAhl Holding AB (publ)
Box 303, 431 24 Mölndal, Sweden


KappAhl is a leading Nordic fashion chain with approximately 3 800
co-workers and close to 300 stores in Sweden, Norway, Finland and
Poland. We design, market and sell value-for-money fashion and focus
in particular on women 30-50 years of age with family. KappAhl's head
office and distribution centre are located in Mölndal, just outside
Gothenburg. During the financial year 2006/2007, KappAhl had sales of
SEK 4.5 billion, with an operating profit of SEK 618 million. KappAhl
shares are listed on the OMX Nordic Exchange Stockholm. Further
information about the company is available on www.kappahl.com and
financial information is available on www.kappahl.com/ir.
KappAhl proposes a share split and automatic share redemption
