Proposed incentive programme in Lagercrantz Group

The Board of Directors of Lagercrantz Group has decided to propose to the Annual Meeting 2006 to approve an incentive programme for managers and members of senior management in the Group. The programme comprises a maximum of 35 employees in the Group and will be based on call options on class B shares held by Lagercrantz Group. The employee will acquire the options at market value. The number of shares to be acquired at option exercise can maximum amount to approximately three (3) percent of the total number of shares outstanding (class A shares as well as class B shares). To stimulate participation, the offer will be subsidized by Lagercrantz Group. The effect on earnings per share, according to indicative valuations, is minor at full participation. The intention is that approximately 1/3 of the call options will be distributed in conjunction with the 2006 Annual Meeting, approximately 1/3 of the call options in conjunction with the 2007 Annual Meeting and approximately 1/3 of the call options in conjunction with the 2008 Annual Meeting, equivalent to approximately one (1) percent of the total number of shares outstanding per year, calculated at the time of issuance. The term of the call options will be 3.25 years, with exercise possible after three years. Other main terms and conditions for the programme will be announced in conjunction with the notice for the Annual Meeting in mid-July. Stockholm, 30 June 2006 Lagercrantz Group AB (publ)