Clas Ohlson: Interim report 1 May 2010 – 31 July 2010

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1st quarter

 * Sales totalled SEK 1,324 M (1,288), up 3%

* Operating profit amounted to SEK 115 M (141), down 18%.

* Profit after tax amounted to SEK 84 M (101), down 17%

* Earnings per share amounted to SEK 1.32 (1.56), down 15%

Events after the end of the reporting period

* Sales in August totalled SEK 480 M (446), up 8%

CEO Klas Balkow comments:

“Sales growth during the quarter was impacted by a lower rate of expansion among new stores in our domestic markets. Furthermore, sales during the summer did not reach the same strong figures as in the year-earlier period in comparable units. We are once again increasing our store expansion and expect to open 17 to 22 stores during the current financial year, of which 15 stores will open before Christmas.

“Since growth in our domestic markets was relatively low, the Group’s earnings were weaker than in the year-earlier period, which is due to our current investments in the UK market. The weak retail trend in the UK is creating opportunities for us to expand in attractive store locations. We now have seven stores in the UK and plan to open another six to ten stores during the current financial year.”

Analyst and media conference

An analyst and media conference will be held today, Wednesday 8 September at 10 a.m. (CET). For participation, please visit www.financialhearings.com

For more information, please contact:

Klas Balkow, CEO and President, Clas Ohlson AB: +46 (0)247-447 55

John Womack, Director of Information and IR, Clas Ohlson AB: +46 (0)247-444 05

Clas Ohlson AB is a Swedish chain store that sells, amongst other things, hardware, electrical, multimedia, and home and leisure products. It is the largest hardware chain in Scandinavia. The company was founded in 1918 by the technically-minded Clas Ohlson (1895–1979), as a mail order business based in the Swedish village of Insjön, Dalarna. Initially, only manuals and technical literature were sold. He opened his first shop in Insjön in 1926 and there are now stores throughout Sweden, as well as in Norway and Finland. In 2008, the company opened its first store in the United Kingdom, in Croydon, south London. There are now stores at the Arndale Centre in Manchester, at The Harlequin in Watford, in Kingston upon Thames, Reading, Liverpool and Leeds.