INTERIM REPORT 1 December 1997 - 31 August 1998

• Group turnover amounted to SEK 18,342 M (SEK 14,865 M), an increase of 23 per cent compared with the same period last year.

• The sales development has been very satisfactory in all markets.

• Profit before taxes was SEK 2,121.5 M (SEK 1,454.8 M), an improvement of 46 per cent.

• Profit per share after comprehensive tax allocation corresponded to SEK 6.67 (SEK 4.57).

• 36 new shops were opened in the nine month period, of which 4 in the end of August.

• H & M Rowells started mail-order operations in Denmark.