HEMTEX FIRST-QUARTER REPORT, MAY 1, 2006 – July 31, 2006

Increased profit and strong cash flow

First quarter (May 2006 – July 2006) • Net sales amounted to SEK 299.8 M (244.2), up 23% from the year-earlier period. The increase for the Group’s comparable stores was 1% (15). • Profit after tax totaled SEK 31.3 M (28.1). Earnings per share before dilution rose to SEK 1.12 (1.06). • Operating cash flow after investments amounted to SEK 42.6 M (neg: 14.6). • The Hemtex Group opened three stores and acquired three stores during the quarter. • On September 1, two stores that were previously owned by franchisees were taken over. • During the autumn, an additional 24 stores will be integrated into the Group.