New clothing venture established in the Netherlands - Björn Borg Sport

New clothing venture established in the Netherlands - Björn Borg Sport

Björn Borg is forming a new subsidiary in January 2011 to produce
fashionable athletic and functional wear together with its Dutch
distributor. The creation of a separate operation based in the
Netherlands is another element in Björn Borg's strategy to focus on its
core business, underwear, based in Stockholm.

The new company, Björn Borg Sport, is founded on Björn Borg's clothing
concept in the Netherlands, with established operations and an extensive
experience from successfully managing the licensed womenswear company
for about ten years in Holland. The collections, both men's and women's,
will primarily include sports fashion and functional sports wear. The
products will be sold to distributors in Björn Borg's current markets,
with an initial focus on larger markets.

“To further concentrate on being a world leader in underwear, we have
decided to streamline our Stockholm operations and manage Björn Borg's
apparel operations in a separate company in the Netherlands. We do this
with our Dutch distributor, which has proven successful in the
development of a growing apparel business. This new initiative will
create better opportunities for our clothing business to grow and allow
us to more clearly emphasize our main product, underwear, in the rest of
organization,” says President Arthur Engel.

Björn Borg will be the majority owner with 51 percent of the new
company, while the remainder will be owned by the current Dutch
distributor, Dutch Brand Management BV (or by a company in the same
group), and to a lesser extent by the clothing company's management and
board of directors. The CEO of Björn Borg Sport will be Sander van
Gelder, the former CEO of Puma's Benelux operations. Björn Borg AB
Director Fabian Månsson will serve as chairman. Björn Borg CEO Arthur
Engel and Vice President and International Sales Director Henrik Fischer
will be members of the board. The company will be based in Amsterdam.

During 2011, Björn Borg Sport will handle some billing regarding
shipments from the former Dutch apparel operations. This will slightly
increase consolidated sales in 2011, in the product company segment, but
without affecting earnings. The new venture is expected to raise the
Group's operating expenses by about SEK 7 million in 2011. The new
clothing operation is estimated to entail a good financial potential.

In early 2010 the footwear product area was licensed out to an
established international shoe company. Because the apparel product area
will now be managed and developed as a separate company in the
Netherlands, Björn Borg can concentrate on its core product area,
underwear, in line with its strategy.

For further information, please contact:
Arthur Engel, CEO, telephone: +46 8 506 33 700, e-mail
Arthur.engel@bjornborg.com (Arthur.engel@bjornborg.com)