AB Lindex wins tax case

AB Lindex has won a tax case in the County Administrative Court relating to the income tax assessments for the fiscal years 2003 and 2004 regarding tax deduction for losses in Lindex’s German operation. The judgement means that Lindex is granted permission to make a deduction for Group contributions amounting to SEK 177M. The tax authority has the option to appeal the decision. Lindex has been operating in Germany since 1998 through its subsidiary, Lindex GmbH. The German operation has incurred losses which have been covered by the parent company, AB Lindex. It is for these losses that Lindex has claimed a deduction. Lindex has also claimed a tax deduction totalling SEK 705M for the income tax assessments relating to the fiscal years 1998-2002 and 2005. Lindex is still awaiting a judgement in these tax cases and a decision by the National Tax Board relating to the tax assessment for 2005. The fiscal value of the deductions will have a positive effect on the company’s profit after tax and its cash flow. An examination of how the tax deductions can be utilised will be made when the judgement has become legally binding. AB Lindex (publ) For further information, please contact: Peter Andersson, Chief Financial Officer Telephone: +46 (0)31 739 50 10 Mobile: +46 (0)705 84 44 37