FULL YEAR RESULTS 1 December 2004 to 30 November 2005

• Group turnover excluding VAT for the financial year amounted to SEK 61,262 M (53,695), an increase of 14 per cent compared to last year. With comparable exchange rates, the increase was 13 per cent. • Profit after financial items was SEK 13,553 M (11,005). Group profit after tax amounted to SEK 9,247 M (7,275) corresponding to SEK 11.17 (8.79) per share, an increase of 27 per cent. • Turnover excluding VAT for the fourth quarter increased by 13 per cent (with comparable exchange rates 9 per cent) and amounted to SEK 18,009 M (15,874). • Profit after financial items for the fourth quarter amounted to SEK 4,297 M (4,056), an increase of 6 per cent. • For the financial year 2005/2006 a net contribution of 150 new stores is planned. • H&M starts franchising operations in the Middle East. • The Group is preparing a large scale expansion within online and catalogue sales. The Netherlands will be the first country for the expansion, autumn 2006. • The Board of Directors proposes a dividend of SEK 9.50 (8.00) per share. • Sales in December increased by 14 per cent. The sales increase in comparable stores was four per cent. Contact persons: Nils Vinge, IR +46-8-796 5250 Leif Persson, CFO +46-8-796 1300 Rolf Eriksen, CEO +46-8-796 5233 Switchboard +46-8-796 5500