KappAhl: Annual General Meeting Statement

* Automatic share redemption procedure (redemption payment: SEK 11
    per share)
  * Re-election of all five Board members
  * Instructions for Nomination Committee
  * Salary policy for management team


KappAhl Holding AB (publ) held its Annual General Meeting at 2 p.m.
on 17 December 2007 in Mölndal, Sweden.

The income statement and balance sheet and consolidated income
statement and balance sheet were adopted and the meeting discharged
Board members and the CEO from liability for the financial year.

All five Board members were re-elected in accordance with the
recommendation of the Nomination Committee. Finn Johansson was
elected chairman of the Board. The meeting elected the following as
Board members: Finn Johnsson, Amelia Adamo, Paul Frankenius, Jan
Samuelson and Pernilla Ström.

The meeting agreed to the Nomination Committee's proposal that the
fee to Board members shall amount to SEK 1,420,000 (previously SEK
1,290,000). This fee shall be divided as follows: SEK 470,000 to the
chairman and SEK 170,000 to the other members elected by the meeting
(total of SEK 680,000). The chairman of the Audit Committee shall
receive SEK 140,000 and other members of the Audit Committee shall
receive SEK 90,000 each. The chairman of the Salary Committee shall
receive SEK 30,000 and other members of the Salary Committee shall
receive SEK 10,000 each.

The Nomination Committee's proposal for instruction and working
procedure for the Nomination Committee was accepted. The Nomination
Committee shall comprise three members who shall represent the three
largest owners at the end of the month when the interim report for
the third quarter is published. The chairman of the Board shall
contact the three largest shareholders and be co-opted onto the
Nomination Committee.

The meeting voted in favour of the share split and the reduction in
share capital through an automatic share redemption procedure. This
action will result in the transfer of around SEK 825 million to
KappAhl's shareholders. The proposal means that each KappAhl share
will be split into two shares, one of which will be designated as a
redemption share in the VPC system. The redemption share will
automatically be redeemed at SEK 11 in cash. The meeting also agreed
to change the rules in the company's articles of association
concerning highest and lowest amounts for share capital and that a
bonus issue be completed without issuing new shares. The Board was
authorised to establish the record date for the share split and
rights to redemption shares. It is intended that this date shall be
16 January 2008. The record date for payment of redemption capital is
expected to be 11 February 2008 and payment of redemption capital is
expected to be 14 February 2008.

Finally, the meeting adopted the Board's proposal for a remuneration
policy for the management team. This policy includes, among other
matters, that the bonus shall be a maximum of 50% of fixed salary,
and that there shall be no severance pay on top of normal salary
during the notice period. This remuneration policy is the same as the
one adopted at the previous Annual General Meeting.

All decisions made by the meeting were supported by the required
voting majority.

For more information, please contact:
Håkan Westin, CFO, tel: +46 704 71 56 64
Annette Ravenshorst, Manager Public Relations, tel: +46 704 71 56 31


KappAhl is a leading Nordic fashion chain with approximately 3,800
employees and close to 300 stores in Sweden, Norway, Finland and
Poland. KappAhl designs, markets and sells value-for-money fashion
with a wide appeal, and focuses in particular on women aged 30 to 50
with family. The head office and distribution centre are located in
Mölndal, in the outskirts of Göteborg. In the 12 months period that
ended on 31 August 2007, KappAhl's net sales were SEK 4.5 billion and
operating profit was SEK 618 million. KappAhl is listed on the OMX
Nordic Exchange in Stockholm. Further information about the company
is available on www.kappahl.com and financial information is
available on www.kappahl.com/ir.