HALF-YEAR REPORT 1 December 2005 - 31 May 2006

• Sales for the H&M Group excluding VAT amounted to SEK 32,134 m (28,095), an increase of 14 per cent. With comparable exchange rates, the increase was 10 per cent. • Profit after financial items for the half-year was SEK 6,600 m (5,931), an increase of 11 per cent. Group profit after estimated tax was SEK 4,455 m (3,855), corresponding to SEK 5.38 (4.66) per share. • Sales for the second quarter excluding VAT amounted to SEK 17,063 m (15,486), an increase of 10 per cent compared with the previous year. With comparable exchange rates the increase was 7 per cent. • Profit after financial items for the second quarter was SEK 3,920 m (3,623), an increase of 8 per cent. • The increase in sales for the month of May was 13 per cent with comparable exchange rates. • China to become new market for H&M in 2007. Contracts signed for one store each in Shanghai and in Hong Kong. • New store chain for women and men to be launched under a separate brand name. About 10 stores planned to open in selected markets in 2007. • Increased shoe assortment for women in about 200 H&M stores during spring 2007. Contact persons: Nils Vinge, IR +46 8 796 52 50 Leif Persson, CFO +46 8 796 13 00 Rolf Eriksen, CEO +46 8 796 52 33 Switchboard +46 8 796 55 00