Roland Nilsson, President and CEO, comments on Wedins# interim report for the second quarter of fiscal year 2003/2004 #

Roland Nilsson, President and CEO, comments on Wedins' interim report for the second quarter of fiscal year 2003/2004 - December 2003-February 2004 Focus on stores We are now seeing tangible changes in our store network from the extensive clean-up process aimed at streamlining operations in terms of organizational and brand structure. At the end of the second quarter, we took yet another important step towards becoming a more efficient retail chain. Our stores in the high- volume segment are now all operating under the Wedins brand name. During the quarter, we began to sell an extended range of accessories in our shoe stores. At the end of March, we opened three flagship stores in Stockholm, Oslo and Helsinki with a new product-display concept. In addition to the ongoing efforts to create a more efficient store structure, all large stores are being redesigned. At the end of the second quarter, slightly less than half of this program had been completed. In addition, a major staff training drive has been initiated. It is planned that all 200 or so managers will have started a company- specific ten-day training program by the end of 2004. Continued efforts for a more efficient retail chain operation An important aspect of our work to increase Wedins' long-term earnings capacity involves enhancing the efficiency of the merchandise planning, purchasing and logistics processes. This is to be based on a common IT platform that will be implemented this year. At the same time, central stock-keeping processes are being reviewed and improved. As I mentioned earlier, franchise operation is a possible alternative for cost-efficient growth. We have now drawn up a franchise concept, which I view as a scaleable strategy. Franchise options will be offered in various store locations that we deem to have the best opportunities to succeed. Change process proceeding according to plan in a weak market To sum up, I can say that our extensive change process and action program is proceeding according to plan. Our structure today is far simpler and more flexible and our costs are considerably lower than the year before. However, I must admit that I had expected slightly stronger sales, but we are in pace with the general market and consumption trend in our countries and product segments which has been particularly weak. In spite of this, we are not encumbered with excessive inventories as we enter the next quarter. In this context, it is naturally pleasing that the changed Rizzo is reporting improved sales and gross profits. Wedins' long-term turnaround project is progressing according to plan and the rate of development depends on the general economy. Our goal to achieve a sustainable net margin of 5-6 percent within the next 3-4 years stands firm. Stockholm, April 20, 2004 Roland Nilsson Wedins' store network currently comprises 123 Wedins Accent stores, 70 Wedins stores including 3 flagship stores, and 13 Rizzo stores. About 20 stores were closed for renovation during the quarter. Interim report for September 2003-February 2004 Earnings improvement continues despite weak market · Group sales amounted to SEK 506.3 million (555.1). The decline is primarily due to a planned reduction in the number of stores to 206 (228) and to an altered price mix. · Gross profit margin rose by 6.8 percentage points to 56.2 percent. · Profit before depreciation and amortization was SEK 12.2 million (-30.1). · Loss after tax amounted to SEK 18.2 million (-155.1). · Earnings per share amounted to a loss of SEK 0.09 (-20.47). · The long-term change process is proceeding according to plan. Wedins changed its fiscal year to September-August in connection with the abbreviated fiscal year January-August 2003. Comparative figures for the corresponding year-earlier period are pro forma. Stockholm, April 20, 2004 Wedins Skor & Accessoarer AB (publ) Corporate registration number 556540-1493 Roland Nilsson President and CEO For further information, please contact: Roland Nilsson, President of Wedins Skor & Accessoarer AB, tel. +46 8- 508 99 200 or +46 70-580 81 85. This report has not been reviewed by the company's auditors. Financial calendar Q3 interim report, September 2003-May 2004 July 7, 2004 Year-end report, September 2003-August 2004 October 22, 2004 "Wedins offers many people affordable fashion through a range of shoes and accessories" Wedins Skor & Accessoarer AB, Gustavslundsvägen 143, SE-167 51 Bromma Corporate registration number 556540-1493 www.wedins.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/04/20/20040420BIT00590/wkr0001.doc The full report http://www.waymaker.net/bitonline/2004/04/20/20040420BIT00590/wkr0002.pdf The full report