HALF-YEAR REPORT 1 december 1997 - 31 may 1998

• Group turnover amounted to SEK 12,065 M (SEK 10,179 M), an increase of 19 per cent. The sales development has been very satisfactory in all markets.

• Profit before tax was SEK 1,355.5 M (SEK 1,005.9 M), an increase of 35 per cent.

• Profit per share after estimated full tax was SEK 4.26 (SEK 3.16).

• Investments and start-up costs amounted to SEK 373.9 M (SEK 326.5 M). A total of 32 new shops were opened during the six month period, of which three in France, a market new to H&M.