XXL

XXL ASA - Update on income tax issue

Reference is made to the IPO prospectus and the

update given in the Q4 2014 report regarding the

income tax issue which has been under review by

Skatt Øst (Norwegian tax authorities). XXL ASA has

now received a draft decision from Skatt Øst

regarding income years 2010, 2011, 2012 and 2013. In

its draft decision, Skatt Øst is proposing to

increase the Group's income with NOK 323 million

related to tax deductions for interest expenses on

loans to associated parties. In addition Skatt Øst

has proposed withholding tax of NOK 81 million and

penalty tax of 30 percent.

No final resolution has been made and Skatt Øst is

awaiting a response from XXL ASA.

XXL ASA does not agree with Skatt Øst and intends to

oppose the draft decision.

For further queries, please contact:

Tolle O. R. Grøterud, Head of Investor Relations,

XXL ASA

Tel: +47 90 27 29 59

About XXL ASA

XXL is a leading sports retailer with stores and e-

commerce in Norway, Sweden and Finland. It is the

largest and the fastest growing among the major

sports retailers in the Nordics. XXL pursues a broad

customer appeal, offering a one stop shop experience

with a wide range of products for sports, hunting,

skiing, biking and other outdoor activities. XXL's

concept is to have the largest stores with the

lowest prices and the widest assortment of products,

focusing on branded goods.

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