Lundbergs acquires ownership interest in Stadium

LUNDBERGS ACQUIRES OWNERSHIP INTEREST IN STADIUM Lundbergs has reached an agreement with Ulf and Bo Eklöf, the owners of Stadium, regarding a private placement of Stadium shares, whereby Lundbergs will acquire a 20% interest in Stadium. The private placement will be based on the value of all of the current shares in Stadium, which amounts to SEK 1 billion, or on the debt-free value of the operations, which is approximately SEK 1.2 billion. Lundbergs will pay SEK 250 million in cash in return for 20% of the total number of new shares after the private placement. All of the Stadium shares will carry identical voting rights. The intention is to list Stadium on the stock exchange within a period of 5 - 7 years. During the past five years, Stadium has increased its sales by an average of 20% per year. During the company's current fiscal year (September-April), Stadium has shown total sales growth of more than 20%, or slightly more than 10% for comparable units. Stadium currently has 60 outlets in Sweden, of which 10 were opened during 2000 and 2001. Further expansion in Sweden is planned. Stadium opened its first outlet outside Sweden, namely in Copenhagen, in October 2000, and plans to open a number of additional new outlets in the Copenhagen region. The company's first outlet in the city of Helsinki was opened in April this year and will be followed by the establishment of two more stores in the region in September and October. Stadium currently has annual sales of approximately SEK 2.6 billion, with 2000 employees. The company's business concept is to sell products for an active life. Its range includes both "megabrands" and Stadium's own brands in the sports products and sports fashion segments. The size of Stadium outlets, which is adapted to this range, amounts to 1,000 - 1,500 square meters of retail floor space. Since the sportswear and sports products industry in the Nordic region is characterized by the existence of many small players, Stadium's concept is unique and provides considerable potential for expansion, in the Nordic region during the first stage and subsequently in other parts of Europe. Through its involvement in Stadium, Lundbergs will be able to participate actively in an exciting sector with major growth opportunities. Lundbergs has considerable confidence in Stadium's business concept and brand, as well as in the company's management. Stadium takes a highly favorable view of Lundbergs' decision to acquire an interest in the company, which is further strengthened by the fact that both companies have their roots in Norrköping. The capital that will be contributed by Lundbergs will provide Stadium with the financial resources required for continuing successful expansion of the company. Stadium's business operations will not be affected in any other respect by the new ownership structure. Norrköping, May 8, 2001 L E LUNDBERGFÖRETAGEN AB (publ) STADIUM AB Questions may be directed to: Fredrik Lundberg, President and Chief Executive Officer. Lundbergs (Tel: +46-8-463 06 00), or Ulf Eklöf, President, Stadium (Tel: +46-706-34 30 01, or +46-11-24 30 00) ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/08/20010508BIT01140/bit0002.doc http://www.bit.se/bitonline/2001/05/08/20010508BIT01140/bit0002.pdf