Axfood revises earnings forecast for 2005

Competition in the Swedish retail food market is intense with continued price pressure. Additional market investments are required during the autumn in order to strengthen the customer offering in our store chains and thereby boost growth. As a consequence of the competitive situation and the extended market programmes, the earnings forecast published earlier is being revised. The Board of Directors and management expect operating profit for the year to be approximately SEK 1 billion.

In the interim report for the period January – June, Axfood provided the following earnings forecast for the full year 2005: “In view of the new competitive situation, market investments will be increased in the respective store concepts. Earnings for 2005 are therefore expected to be level with the outcome for 2004, excluding goodwill amortization.” (SEK 1,148 m). For further information, please contact: Mats Jansson, President & CEO Axfood AB, +46 8-553 998 10, +46 705-69 48 11 Lars Nilsson, CFO Axfood AB, +46 705-69 66 33