INTERIM REPORT, MAY 1 - JULY 31, 2005

Sales growth generates record earnings

All figures pertain to the Group unless stated otherwise. Comparisons in the interim report refer to the corresponding period in the 2004/2005 fiscal year, unless stated otherwise. This report is prepared in accordance with International Financial Reporting Standards (IFRS). - Net sales amounted to SEK 244.2 M (166.9), up 46% from the year-earlier period. The increase for comparable stores was 15% (26). - Profit after tax totaled SEK 28.1 M (9.5). Earnings per share rose to SEK 42.30 (16.00). - The Group’s net investments affecting liquidity during the period amounted to SEK 69.2 M (16.8). Cash flow after investments was negative in an amount of SEK 14.6 M (positive: 2.6). - The Hemtex Group opened two new stores during the period and also acquired 12 stores previously operated by franchise holders. For additional information For additional information, please contact Anders Jansson, President and CEO, Hemtex AB, or Tommy Svensson, CFO, Hemtex AB, + 46 33 20 69 00.