KappAhl's rights issue fully subscribed

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITES STATES,
AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SINGAPORE OR SOUTH AFRICA OR
ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION OF THIS PRESS RELEASE WOULD BE
SUBJECT TO LEGAL RESTRICTIONS.

The new share issue in KappAhl AB (publ) (“KappAhl”) with preferential rights
for the company’s shareholders, for which the subscription period ended on 20
December 2012, has been fully subscribed. Approximately 98.75 per cent of the
shares offered have been subscribed for with subscription rights and
approximately 1.25 per cent of the shares offered have been allocated to persons
that have subscribed for shares without subscription rights. In total,
applications for subscription of shares without subscription rights have been
received corresponding to approximately 51 per cent of the shares offered.
Hence, the rights issue guarantee undertakings have not been made use of.

Allocation of shares that were subscribed for without subscription rights has
been made in accordance with the principles outlined in the prospectus that has
been prepared in connection with the rights issue and that was published on 30
November 2012. Notification regarding allocation of shares that have been
subscribed for without subscription rights will within short be sent to those
who have been allocated shares.

Through the rights issue, KappAhl receives approximately SEK 383 million before
deduction of transaction costs. The share capital will increase by
SEK 32,160,000 from SEK 32,160,000 to SEK 64,320,000, and the number of shares
will increase by 225,120,000 from 225,120,000 shares to 450,240,000 shares when
the rights issue has been registered with the Swedish Companies Registration
Office. Trading in the new shares on NASDAQ OMX Stockholm is expected to
commence around 8 January 2013.

Following the rights issue, KappAhl has completed recalculation of the 6,744,000
warrants (Series 2012/2015) KappAhl issued after a resolution at the Annual
General Meeting on November 23, 2011. After conversion, each warrant entitles to
subscribe for 1.58 new shares at a subscription price of SEK 4.80 per share. The
warrants can thus increase the number of shares in KappAhl by a maximum of
10,621,800 and the share capital by a maximum of SEK 1,517,400.

Carnegie is acting as financial advisor and Setterwalls Advokatbyrå is acting as
legal advisor to KappAhl.

For further information, please contact:
Johan Åberg, President and CEO, phone +46 706 09 99 73, johan.aberg@kappahl.com
Håkan Westin, Chief Financial Officer, phone +46 704 71 56 64,
hakan.westin@kappahl.com

For other information, please contact:
Annette Björklund, Head Public Relations, phone +46 704 71 55 42,
annette.bjorklund@kappahl.com

KappAhl was founded 1953 and is a leading Nordic fashion chain with close to 400
stores and 4 500 co-workers in Sweden, Norway, Finland, Poland and the Czech
Republic. KappAhl designs, markets and sells value-for-money fashion and focus
in particular on women 30-50 years of age. In 1999, KappAhl was the first
fashion chain to receive environmental management standard certification. During
the financial year 2011/2012, KappAhl had sales of SEK 4,6 billion. KappAhl
shares are listed on the NASDAQ OMX Stockholm. Further information is available
at www.kappahl.com

KappAhl AB (publ) discloses the information provided here pursuant to the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on 27 December 2012 at 2 p.m.

IMPORTANT NOTICE

In certain jurisdictions, the publication or distribution of this press release
may be subject to legal restrictions and persons in those jurisdictions where
this press release has been published or distributed should inform themselves
about and abide by such legal restrictions.

This press release may not be published or distributed, directly or indirectly,
in or to the United States, Australia, Hong Kong, Japan, Canada, New Zealand,
Singapore, or South Africa or any other country where such action is wholly or
partially subject to legal restrictions. Nor may the information in this press
release be forwarded, reproduced or disclosed in such a manner that contravenes
such restrictions. Failure to comply with this instruction may result in a
violation of the United States Securities Act of 1933 ("Securities Act") or laws
applicable in other jurisdictions.

This press release does not contain or constitute an invitation or an offer to
acquire, subscribe for or otherwise trade in shares, subscription rights or
other securities in KappAhl AB (publ). Any invitation to the persons concerned
to subscribe for shares in KappAhl AB (publ) is only made through the prospectus
that KappAhl AB (publ) made public on 30 November 2012.

Neither of the subscription rights, the BTAs (interim shares) or the new shares
will be registered in accordance with the Securities Act or any provincial act
in Canada and may not be transferred or offered for sale in the United States or
Canada or to persons resident there or on account of such persons other than in
such exceptional cases that do not require registration in accordance with the
Securities Act or any provincial act in Canada.