Third quarter report for the fiscal period 2004/2005

RNB continues to expand September 1, 2004 – May 31, 2005 • Net sales amounted to SEK 697.3 M (638.8). Sales for comparable stores rose by 5.0 percent. • Operating profit totaled SEK 40.7 M (34.7). Profit after net financial items improved to SEK 36.8 M (29.5). • Profit after tax amounted to SEK 25.0 M (18.5), corresponding to SEK 1.61 (1.23) per share. • Cash flow from operating activities amounted to SEK 45.5 M (64.2). • RNB has signed an agreement regarding the expansion of operations at NK in Stockholm and Gothenburg by an additional approximately 1,300 square meters. • Polarn O. Pyret has concluded a master franchise agreement pertaining to the United Kingdom. • The RNB share will be traded on the Attract40 list as of July 1, 2005.

March 1 – May 31, 2005 • Net sales amounted to SEK 244.3 M (184.7). Sales for comparable stores rose by 0.3 percent. • Operating profit totaled SEK 8.0 M (6.3). Profit after net financial items improved to SEK 6.7 M (4.8). • Profit after tax amounted to SEK 3.5 M (2.9), corresponding to SEK 0.21 (0.19) per share. • Cash flow from operating activities amounted to SEK 19.6 M (neg: 8.1). RNB Group RNB is organized into two business areas – Polarn O. Pyret and RNB RETAIL. Portwear Retail was renamed RNB RETAIL in May 2005. Polarn O. Pyret is a brand that focuses on baby and children’s wear. RNB 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 May 31, 2005, the RNB Group had a total of 117 stores, of which 24 are operated by franchisees. RNB share on Attract40 The RNB share will be traded on Stockholm Stock Exchange’s Attract40 list as of July 1, 2005. RNB to expand operations at NK in Stockholm and Gothenburg RNB has signed an agreement regarding the expansion of operations at NK in Stockholm and Gothenburg by an additional approximately 1,300 square meters. Floor space at NK in Stockholm will be increased by slightly more than 700 square meters and through the addition of new space for the cosmetics, jewelry, accessories and underwear product areas. In Gothenburg, floor space will be increased by approximately 600 square meters through the addition of new space for ready-to-wear menswear, ladieswear and childrenswear. The new space will be deployed in stages during the period September 2005 to February 2006. Polarn O. Pyret has concluded UK master franchise agreement Polarn O. Pyret continues to expand and in June 2005 concluded a master franchise agreement pertaining to the United Kingdom. RNB concludes agreement regarding additional space at Steen & Strøm, Oslo Steen & Strøm, the leading department store in Oslo, is now undergoing the same modernization and transformation as NK implemented at the beginning of the 1990s. In conjunction with this transformation, RNB will take over large sections of Steen & Strøm’s ladieswear and menswear departments. The original agreement, which pertained to 2,100 square meters of retail space, has now been expanded by an additional 281 square meters. The ladieswear department is scheduled to open in August 2005 and the menswear department in October 2005. Acquisition of DSN On March 1, 2005, RNB acquired C/O Departments & Stores Nordic AB (DSN). DSN is the leading retailer in Sweden within the quality segment for cosmetics, lingerie and accessories, with stores in NK in Stockholm and Gothenburg. Pro forma sales for the acquired operations for the most recent fiscal year amounted to SEK 254.3 M, with a profit of SEK 25.3 M before goodwill amortization. Efforts to integrate DSN into RNB have now been completed and the actions taken will result in savings of at least SEK 10 M annually. Market and demand Retail sales for Sweden’s ready-to-wear clothing sector rose during the third quarter by 4.9 percent. Sales by comparable stores within RNB’s operations declined by 0.3 percent. Sales and earnings RNB’s net sales during the period rose to SEK 697.3 M (638.8). The acquisition of DSN had a favorable impact of SEK 55.2 M on net sales during the period. Sales in comparable stores rose during the period by 5.0 percent. The gross profit margin for the period was 50.2 percent (51.6). A higher portion of discount sales in January and February compared with a year earlier and the fact that DSN’s operations generate a lower gross margin were the factors underlying the lower overall gross margin. Operating profit for the period totaled SEK 40.7 M (34.7). Profit after net financial items amounted to SEK 36.8 M (29.5). Profit after taxes was SEK 25.0 M (18.5). Profit during the period was charged with SEK 5.0 M (3.1) for goodwill amortization. Third quarter RNB’s net sales during the third quarter amounted to SEK 244.3 M (184.7). The acquisition of DSN had a favorable impact of SEK 55.2 M on net sales. Sales in comparable stores declined during the third quarter by 0.3 percent. The gross margin during the third quarter was 50.4 percent (52.4). Operating profit for the period totaled SEK 8.0 M (6.3). Profit after net financial items amounted to SEK 6.7 M (4.8). Profit after taxes was SEK 3.5 M (2.9). Profit during the quarter was charged with SEK 2.9 M (1.0) for goodwill amortization. Polarn O. Pyret Net sales for the period totaled SEK 209.8 M (186.6). Operating profit amounted to SEK 24.3 M (14.3). At the end of the period, the number of proprietary stores was 37 (37). In addition there were 24 (18) franchise stores, of which 9 (3) outside Sweden. The establishment of Polar O. Pyret outside Sweden is proceeding as planned and during autumn 2005 it is expected that additional stores will be added. RNB RETAIL Net sales within RNB RETAIL, the former Portwear Retail, during the period totaled SEK 488.2 M (452.6). Operating profit amounted to SEK 28.9 M (26.3). At the end of the period, the number of proprietary stores was 56 (47). The acquisition of DSN is included in RNB RETAIL’s accounts as of March 1, 2005. Financial position and liquidity At the end of the quarter, consolidated total assets amounted to SEK 533.1 M, compared with SEK 351.2 M at the end of the preceding fiscal year. The increase in total assets was attributable to the acquisition of DSN. Shareholders’ equity amounted to SEK 253.8 M (130.8), corresponding to an equity/assets ratio of 47.6 percent (37.2). Shareholders’ equity rose by SEK 123.0 M during the period, including SEK 98 M as a result of the new issue in conjunction with the acquisition of DSN. Inventory on May 31, 2005 amounted to SEK 175.6 M, compared with SEK 128.4 M on the same date in the preceding year. The operations acquired from DSN accounted for SEK 47.2 M of the increase in inventories. Cash flow from operating activities amounted to SEK 45.5 M (64.2). Cash flow after investments was a negative SEK 27.8 M (positive: 56.4), with the acquisition of DSN having a negative impact of SEK 61.6 M on cash flow. Net debt amounted to SEK 126.5 M, compared with SEK 92.1 M on August 31, 2004. The acquisition of DSN was financed through the raising of a loan of SEK 80 M and a new issue of 1,600,000 shares, following a 2-for-1 split. Including unutilized overdraft facilities, the Group’s liquid funds amounted to SEK 46.3 M at the end of the period, compared with SEK 45.6 M at the end of the preceding fiscal year. Investment, depreciation and amortization Investments during the period amounted to SEK 190.4 M (6.3), of which the acquisition of DSN accounted for SEK 178.5 M. Depreciation during the period totaled to SEK 22.2 M (19.6), of which goodwill amortization accounted for SEK 5.0 M (3.1). Personnel The average number of employees during the period amounted to 484 (477). Parent Company Net sales in the Parent Company during the period amounted to SEK 0 M (186.6). After net financial items, the Parent Company reported a loss of SEK 10.3 M (profit: 10.7). Investments during the period totaled SEK 183.0 M (4.1), of which the acquisition of DSN accounted for SEK 178.5 M. 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 wholly owned subsidiary of RNB. 2-for-1 split As of May 9, 2005, the company implemented a share split, whereby the par value per share was changed from SEK 4 to SEK 2. After the split, the total number of shares in the company is 16,608,874. 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 acquisition of DSN is expected to yield positive effects on Group earnings during the fiscal year. 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 Year-end report 2004/05 October 21, 2005 Stockholm, June 23, 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