Information about Hemtex’s incentives program

At the Annual General Meeting on September 5, 2007, a resolution was taken to introduce a long-term incentives program for senior executives within the Hemtex Group through the issue of warrants and employee stock options in Hemtex AB (publ).

Within the framework of the two programs, a total of seven senior executives acquired 120,000 warrants at market price. The average participation ratio (number of subscribed warrants in relation to maximum allocation) for the Incentives Program thus amounted to 100 percent of maximum allocation.

Also in accordance with the Annual General Meeting’s resolution, a total of 120,000 employee stock options were allotted without charge. Entitlement to exercise the employee stock options is subject to the condition that targets for consolidated earnings per share for the 2007/2008 to 2009/2010 fiscal years are achieved.

Hemtex has chosen the Black & Scholes model as the valuation method for the warrants. At October 5, the established market price paid amounted to SEK 15.80 per warrant, resulting in proceeds of SEK 1,896,000 paid to Hemtex AB during the month of October. The subscription price established after the measurement period of September 12 to 25 was SEK 151 per share. The subscription period for shares supported by paid warrants extends from June 1 up until July 31, 2010, while the subscription period for exercise of employee stock options extends up until August 15, 2010.

The maximum dilution effect for the Incentives Program is estimated to be at most 0.82 percent of the share capital (corresponding to the same dilution of voting rights), assuming full subscription of both warrants and employee stock options.

Hemtex’s executive management, consisting of seven persons, is thus participating fully in the program, about which terms and detailed information are available in the Corporate Governance section under Investor Relations on the company’s website.