RNB divests operations at NK Stockholm and NK Gothenburg

RNB divests operations at NK Stockholm and NK Gothenburg

- RNB RETAIL AND BRANDS has entered into an agreement with Åhléns AB to divest
RNB's stores at NK Stockholm and NK Gothenburg
- The purchase consideration is SEK 440 M on a debt-free basis
- An Extraordinary General Meeting to approve the divestment is scheduled to be
held on April 15, 2009


RNB RETAIL AND BRANDS AB (“RNB”) has implemented a strategic review of the
Group's structure and decided to divest the operations at NK Stockholm and NK
Gothenburg. Following a structured sales process, RNB has entered into an
agreement with Åhléns AB to divest the Group's stores at NK Stockholm and NK
Gothenburg. 
The divestment provides RNB with the possibility to focus time and resources on
the remaining core operations - Polarn O. Pyret, JC and Brothers & Sisters -
while considerably strengthening the company's financial position. The
transaction is being carried out formally through the transfer of shares in
RNB's wholly owned subsidiary Departments & Stores Europe AB. 

“Considering the prevailing economic climate, I'm delighted to be able to
present this agreement with Åhléns AB. The transaction facilitates an increased
focus on the remaining operations and particularly the ongoing restructuring of
JC, while also strengthening the company's financial position,” says Mikael
Solberg, President of RNB. 

The divestment is conditional upon approval of the Swedish Competition Authority
(Sw. Konkurrensverket) and that an Extraordinary General Meeting in RNB approves
the divestment.  

The purchase consideration amounts to SEK 440 M on a debt-free basis and is to
be paid in cash.

RNB's operations in NK Stockholm and NK Gothenburg comprise distribution of
well-known national and international fashion, clothing, accessories, jewelry
and cosmetics brands. Operations in Stockholm cover about 7,000 square meters of
floor space distributed among 32 stores and operations in Gothenburg
approximately 5,000 square meters of floor space and 20 stores. During the first
six months of the 2008/2009 fiscal year, the operations posted sales of SEK
462.3 M and operating profit of SEK 9.5 M. The comparable figures for the
2007/2008 fiscal year were SEK 899.8 M and SEK 48.6 M, respectively.

Net sales for RNB, excluding the operations at NK Stockholm and NK Gothenburg
for the first six months of the 2008/009 fiscal year, amounted to SEK 1,235.7 M,
resulting in an operating loss (excluding goodwill write down) of SEK 58.2 M for
the same period. The divestment will reduce RNB's pro forma net debt at the end
of February 2009 to approx. SEK 400 M. The transaction is expected to have a
marginal positive net effect on earnings in 2008/2009. 

Access Partners is financial advisor to RNB in the transaction.

Åhléns AB currently conducts retailing operations in Sweden, Norway and Finland
through the Åhléns department store chain, the Kicks cosmetic chain, the
Lagerhaus homeware chain and the store concept myself & friends. The company is
part of Axel Johnson AB, a family-owned company that currently holds 10.2% of
the shares and votes in RNB.

With reference to today's announcement regarding the discontinuation of parts of
the Department Stores business area and the previously announced second-quarter
Interim Report, RNB will be holding a press and analysts' conference. The
conference will be held on the company's premises at Regeringsgatan 29 today,
March 25, at 10:00 a.m.

For further information, contact: 

Mikael Solberg, PRESIDENT RNB RETAIL AND BRANDS
+46 (0)8-410 520 20, +46 (0)768-87 20 20, e-mail: mikael.solberg@rnb.se 

Gunnar Bergquist, CFO RNB RETAIL AND BRANDS
+46 (0)8-410 520 01, +46 (0)768-87 20 01, e-mail: gunnar.bergquist@rnb.se

Cecilia Lannebo, IR RNB RETAIL AND BRANDS
+46 (0)8-410 520 45, +46 (0)768-87 20 45, e-mail: cecilia.lannebo@rnb.se 



RNB RETAIL AND BRANDS AB is organized on the basis of two business areas -
Polarn O. Pyret and a distribution platform for national and international
brands. Polarn O. Pyret is a brand focused on baby and children's wear. The
distribution platform consists of two main areas, Department Stores and Store
Concepts. Department store operations are conducted via stores in the NK, Steen& Ström, Illum and Kosta oulet department stores. The store concepts comprise
JC, Brothers and Sisters.