First quarter report for the fiscal period 2004/2005

September 1 – November 30, 2004 · Net sales amounted to SEK 231.2 M (235.0). Sales for comparable stores rose by 8.7 percent. · Operating profit amounted to SEK 25.4 M (24.9). Profit after net financial items improved to SEK 24.1 M (22.8). · Profit after taxes amounted to SEK 17.2 M (16.3), corresponding to SEK 2.29 (2.17) per share. · Cash flow from current operations amounted to SEK 8.5 M (25.4). After investments, cash flow amounted to SEK 5.1 M (25.9). Events since the close of reporting period · RNB has signed an agreement whereby in autumn 2005 it will take over large segments of the ladies- and menswear departments of the Steen & Ström department store in Oslo, Norway. · Polarn O. Pyret has entered into a purchasing alliance with New Wave Group for the purchasing of goods in China. · Positive effects generated by the changed post-Christmas sale period at NK.

RNB Group RNB is organized into two separate business areas – Polarn O. Pyret and Portwear Retail. Polarn O. Pyret is a brand that focuses on baby and children’s wear. Portwear Retail is a platform for the distribution of national and international brands through stores within NK and for the Solo, Champagne and Saks retail store concepts. At November 30, 2004, the RNB Group had a total of 103 stores, of which 19 are operated by franchisees. RNB to take over large segments of the ladieswear and menswear departments of the Steen & Ström department store in Oslo, Norway. Steen & Ström, Oslo’s leading fashion store, is currently undergoing the same type pf modernization and transformation process that was applied to NK at the beginning of the 1990s. In conjunction with this transformation, RNB’s Portwear Retail business area will take over large segments of Steen & Ström’s ladieswear and menswear departments. In total, this relates to about 2,100 square meters of retail space, divided into some 15 separate stores. It is estimated that the ladieswear department will open during August and the menswear department during September 2005. Steen & Ström’s modernized fashion store will be officially inaugurated in October/November 2005. Polarn O. Pyret has signed a purchasing cooperation agreement with New Wave The purchasing process is a key link in the Polarn O. Pyret value chain. During autumn 2004, major focus has been devoted to improving the entire purchasing process. As part of this work, Polarn O. Pyret signed a strategic purchasing alliance with New Wave Group pertaining to purchasing in China. Taken as a whole, it is estimated that the measures currently in progress will have a significantly positive effect on earnings commencing in autumn 2005 and will have a full impact during the 2006/07 fiscal year. Market and demand During the period September to November 2004, retail sales for Sweden’s ready-to-wear clothing sector in Sweden grew by just 0.1 percent. RNB’s sales for comparable stores rose during the same period by 8.7 percent. Sales and earnings RNB’s net sales for the first quarter of the fiscal year declined by 1.6 percent to SEK 231.2 M (235.0). At the same time, the number of own stores declined to 84 (96) as a result of the restructuring work conducted during fiscal 2003/04. The gross profit margin for the period was 53.7 percent (55.1). The new business model within Portwear Retail results in a leveling off in the gross margin level between quarters. Operating profit for the quarter totaled SEK 25.4 M (24.9). Profit after net financial items amounted to SEK 24.1 M (22.8). Profit after taxes was SEK 17.2 M (16.3). Polarn O. Pyret Net sales for the quarter amounted to SEK 77.8 M (69.3). Operating profit amounted to SEK 14.3 M (9.3). At the end of the period, the number of proprietary stores in the business area was 36 (37). In addition there were 19 (16) franchise stores. During spring 2005, one new store will be reopened in Sweden, three franchise stores in Norway and one franchise store in Tallinn, Estonia. Portwear Retail Net sales for the quarter amounted to SEK 153.6 M (165.9). Operating profit amounted to SEK 16.2 M (16.2). At the end of the period, the number of own stores in the business area was 48 (59). The reduction in the number of stores was due to the implemented restructuring program. During autumn 2005, Portwear Retail will take over large segments of Steen & Ström, which will add approximately 15 stores. Financial position and liquidity At the end of the first quarter, the consolidated total assets amounted to SEK 343.9 M, compared with SEK 351.2 M at the end of the preceding fiscal year. Shareholders’ equity amounted to SEK 148.0 M (130.8), corresponding an equity/assets ratio of 43.0 percent (37.2). Inventory on November 30, 2004, amounted to SEK 137.8 M, compared with SEK 144.9 M in the preceding year. Cash flow from current operations amounted to SEK 8.5 M (25.4). Cash flow after investments amounted to SEK 5.1 M (25.9). Net debt declined to SEK 87.0 M, compared with SEK 92.1 M on August 31, 2004. Including unutilized overdraft facilities, the Group’s liquid funds amounted to SEK 53.3 M at the end of the period, compared with SEK 45.6 M at the end of the preceding fiscal year. Investments, depreciation and amortization Investments during the period amounted to SEK 3.4 M (1.0). Depreciation during the period totaled to SEK 6.3 M (6.6), of which goodwill amortization amounted to SEK 1.0 M (1.0). Personnel The average number of employees during the period amounted to 446 (507). Parent Company Net sales in the Parent Company during the period amounted to SEK 0 M (69.5). After net financial items, the Parent company reported a loss of SEK 2.3 M (9.7). Investments during the period totaled SEK 1.6 M (0.3). During the preceding fiscal year, Polarn O. Pyret’s operations were included in the Parent Company. Since September 1, 2004, Polarn O. Pyret is operated as a fully owned subsidiary of RNB. Sales in December 2004 and the beginning of January 2005 As announced earlier, the NK department store moved the start of its post-Christmas/New Year sale from December 26, 2004 to January 6, 2005. For RNB, this resulted in a significant shift in sales from December to January. The increased sales that this created in RNB’s stores at NK during January 2005 has more than offset the decrease in sales in December 2004. Combined sales in RNB for the period December 1, 2004 to January 16, 2005 for comparable stores show an increase of 11.7 percent, compared with the corresponding period in the preceding fiscal year. Future outlook Compared with the preceding fiscal year, the restructuring conducted within the Group will continue to generate positive effects on earnings during the current fiscal year. The introduction of a partnership model in Portwear Retail has also shown positive effects on the trend of sales. Taken as a whole, the outlook for the future is considered favorable and it is estimated that earnings for the current fiscal year will significantly exceed the level achieved for 2003/04. Future reporting dates Q2 interim report for 2004/05 April 8, 2005 Q3 interim report for 2004/05 June 23, 2005 Provisional year-end report 2004/05 October 21, 2005 Stockholm, January 25, 2005 RNB RETAIL AND BRANDS AB (publ) Mikael Solberg President and CEO Questions regarding this report will be answered by: Mikael Solberg, President and CEO, telephone: +46 8-670 95 95, +46-708 18 44 40 Göran Blomberg, Chief Financial Officer, telephone: +46 8-670 95 99, +46-733 97 95 99