New dividend policy for Axfood AB

At a board meeting held today, 27 January 2005, the Board of Directors of Axfood AB adopted a new dividend policy, entailing a dividend of at least 50% of profit after tax. The previous policy was to pay an average dividend of 40% of profit after tax. Regarding the dividend for the 2004 financial year, the Board proposes to the Annual General Meeting an ordinary dividend of SEK 6.50 per share (5.50), plus an extra dividend of SEK 4.50 per share, totalling SEK 11.00 per share (5.50). The rationale for the extra dividend is Axfood’s strong financial position, with an equity ratio in excess of 37%. For further information, please contact: Göran Ennerfelt, Chairman of the Board, Axfood AB, +46-8-701 60 00 Lars Nilsson, Executive Vice President and CFO, Axfood AB, +46-8-553 99811, +46-705-69 66 33 Bodil Eriksson, Executive Vice President, Corporate Comm, Axfood AB +46-8-553 99817, +46-706-29 66 34