Weaker-than-expected trend within RNB’s JC and J-Store store concepts; Mikael Solberg appointed acting President

During the autumn 2007 season, RNB’s JC and J-Store store concepts experienced a weaker-than-expected sales trend, noting a decrease of 10% compared with the corresponding period in the preceding year. The autumn 2007 collections did not satisfy customer expectations. On the other hand, the other operations within RNB developed essentially as planned.

RNB’s President and Chief Executive Officer, Mikael Solberg, has been appointed acting President of JC, succeeding Cecilia Tufvesson Marlow, who has decided to leave the company. Mikael Solberg will take office immediately, at the same time as the process of recruiting a permanent president for JC has been initiated.

“I will now focus on securing JC’s overall concept and profile, a process that has already been initiated and is expected to be completed by the autumn of 2008,” says Mikael Solberg.

RNB’s net sales for the first quarter of the 2007/2008 fiscal year amounted to SEK 923.7 million (889.8). Operating profit for the quarter totaled SEK 81.5 million, compared with SEK 86.8 million a year earlier. Profit before taxes amounted to SEK 70.3 million (77.3). The synergies generated from the acquisition of JC had a favorable impact on earnings. However, the weak sales trend within JC and J-Store is estimated to have had an adverse impact of about SEK 30 million on earnings, compared with the year-earlier period.

For further information, contact:
Mikael Solberg, President and CEO, RNB RETAIL AND BRANDS
+46 (0)8-410 520 20, +46 768 87 20 20, e-mail: mikael.solberg@rnb.se

Göran Blomberg, CFO, RNB RETAIL AND BRANDS
+46 (0)8-410 520 99, +46 768 87 20 99, e-mail: goran.blomberg@rnb.se

Cecilia Lannebo, IR, RNB RETAIL AND BRANDS
+46 (0) 8-410 520 45,+46 768 87 20 45, e-mail: cecilia.lannebo@rnb.se