Björn Borg — Earnings Release 2007

Nov 15, 2007

Growth and profitability remain at high levels

Third quarter, July 1 – September 30, 2007

• Brand sales* increased by 60 percent to SEK 657 million (409).
• The Group's net sales rose by 59 percent to SEK 148.6 million (93.4).
• The gross profit margin was 54.6 percent (46.9).
• Operating profit rose by 105 percent to SEK 49.2 million (24.0).
• Profit after tax increased by 104 percent to SEK 35.2 million (17.3).
• Earnings per share increased by 89 percent to SEK 1.42 (0.75). Calculated after dilution, earnings per share amounted to SEK 1.41 (0.74).
• Decision to establish operations in the U.S.
• Distribution agreement signed for the Björn Borg brand in Spain.

Comment from the President

Nine-month period, January 1 – September 30, 2007

• Brand sales* increased by 72 percent to SEK 1,584 million (920).
• The Group's net sales rose by 64 percent to SEK 355.1 million (216.0).
• The gross profit margin was 53.4 percent (49.6).
• Operating profit rose by 113 percent to SEK 99.8 million (46.9).
• Profit after tax increased by 110 percent to SEK 71.8 million (34.2).
• Earnings per share increased by 98 percent to SEK 2.96 (1.49). Calculated after dilution, earnings per share amounted to SEK 2.92 (1.48).

"On a rolling annual basis, brand sales have now passed SEK 2 billion, a fantastic milestone for us. Though it has mainly been our established markets that have contributed so far, we are continuing our geographic expansion, now with an agreement in Spain and the decision to establish operations in the U.S.," says Nils Vinberg, President of Björn Borg.

SEK million	July-Sept 2007	July-Sept 2006	Jan-Sept 2007	Jan-Sept 2006	Oct 2006– Sept 2007	Full-year 2006
Brand sales	657	409	1,584	920	2,067	1,404
Net sales	148.6	93.4	355.1	216.0	463.6	324.6
Gross profit margin, %	54.6	46.9	53.4	49.6	53.3	50.7
Operating profit	49.2	24.0	99.8	46.9	134.8	81.9
Operating margin, %	33.1	25.7	28.1	21.7	29.1	25.2
Profit after tax	35.2	17.3	71.8	34.2	96.1	58.5
Earnings per share, SEK**	1.42	0.75	2.96	1.49	3.95	2.55
Earnings per share after dilution, SEK***	1.41	0.74	2.92	1.48	3.92	2.53

*Estimated total sales of Björn Borg products at the consumer level, including VAT, based on reported wholesale sales

** Earnings per share in relation to the weighted average number of shares during the period restated after the split on April 27, 2007.

*** Earnings per share adjusted for any dilution effect after the split on April 27, 2007.

President's comment

We have completed another strong quarter, with solid growth and profitability we can be proud of. The fact that all our established markets continue to grow with fantastic numbers is extremely gratifying, though we realize that new markets will eventually assume the role of our growth engine.

Björn Borg is now taking another step in its development through the Board of Directors' decision to launch a small-scale introduction in the U.S. We see a launch in the U.S. market as important to our further expansion, at the same time that we respect that it is a demanding market with razor-sharp competition. It will be an exciting and tough challenge for us to take on. The distribution agreement in Spain is another important step that gives us a foothold in a major southern European market.

In the key British market, we saw positive development during the quarter in terms of both new retailers and sales. The brand has been added at several important retailers. During the fall, for example, Björn Borg departments were opened at the prestigious department store Harvey Nichols. Germany is having a tougher time, and we are evaluating how we can further develop operations there. In France, one of our new markets during the second quarter, the brand was introduced at Citadium in central Paris, and received a positive response. In Australia and Austria, distributors have quickly launched operations, and product will reach the retail level during the fourth quarter.

In October we launched Björn Borg's new website, which we see as a critical channel in our brand building and communication with target audiences. The website also launched Björn Borg's webshop, which will initially sell underwear.

We now look forward to an exciting conclusion to the year, with holiday sales we hope will meet our expectations. There is an very positive attitude in the company and the entire Björn Borg network, and we have set our sights high. At the same time we are humbled by the task ahead as we continue to grow. The strong growth of recent years gives us increasingly tougher comparative figures to match.

Nils Vinberg President

Brand sales

Estimated brand sales, i.e., sales of Björn Borg products at the consumer level including VAT based on reported wholesale sales, amounted to SEK 657 million (409) during the third quarter, an increase of 60 percent year-to-year. During the first nine months estimated brand sales amounted to SEK 1,584 million (920). On a rolling 12-month basis, brand sales amounted to SEK 2,067 million.

Growth for the clothing product area was 70 percent during the quarter compared with the same quarter of the previous year. Sales in the footwear product area were at an unchanged level year-to-year. The external product areas bags, eyewear and fragrances also noted strong growth in the third quarter, with the bags standing out thanks to year-to-year growth of 81 percent.

Growth is being generated almost entirely in established markets, with the Netherlands, Denmark and Norway growing the fastest. Sweden also had strong sales during the quarter.

New markets

The Board of Directors has decided to launch the Björn Borg brand in the U.S. A separate subsidiary will be formed in the fourth quarter to evaluate opportunities to establish the business and determine the best way to build it, either by having the Company represent itself or through an outside distributor as in other markets outside Sweden. One employee has been hired to begin this work, initially from Sweden and then from New York. Björn Borg has also signed an agreement with a distributor to launch the brand in Spain. Sales to retailers are expected to begin in the first quarter 2008.

In France, the brand has been introduced and several retailers are ready to begin sales in the fourth quarter. In Australia, the brand will be launched at the department store chain David Jones in November. Operations have also been launched in Austria, and Björn Borg products will be sold in a limited number of stores for the holiday season.

*Estimated total sales of Björn Borg products at the consumer level, including VAT, based on reported wholesale sales.

Concept stores

During the third quarter Björn Borg opened a new concept store on Götgatan in Stockholm. Further, the Dutch franchisee opened two concept stores and the Finnish distributor opened one. At the end of the period there were 33 (21) concept stores, of which 10 (7) are Group-owned. The Dutch franchisee plans to open two more new stores during the fourth quarter.

The Group's development

The Group developed very positively during the third quarter, with continued sales growth and a strong earnings improvement.

Sales

Third quarter, July-September 2007 04 05 06 07 04 05 06 07 04 05 06 07 04 05 06 07

Group sales during the third quarter amounted to SEK 148.6 million (93.4), an increase of 59 percent mainly due to continued strong sales growth in all business segments.

Nine-month period, January–September 2007

Group sales during the period amounted to SEK 355.1 million (216.0), an increase of 64 percent.

Profit

Third quarter, July-September 2007

The gross profit margin in the third quarter increased to 54.6 percent (46.9), mainly owing to the acquisition of the trademark, though also as a result of the weak U.S. dollar. On a rolling 12 month basis the gross profit margin was 53.3 percent.

Operating profit amounted to SEK 49.2 million (24.0), with an operating margin of 33.1 percent (25.7). Profit before tax improved to SEK 48.9 million (24.0) during the third quarter. The improvement is mainly due to substantially higher sales in Sweden and internationally as well as a stronger gross profit margin.

Nine-month period, January-September 2007

The gross profit margin during the period increased to 53.4 percent (49.6), largely due to the acquisition of the Björn Borg trademark, though also as a result of the weak U.S. dollar.

Operating profit amounted to SEK 99.8 million (46.9), with an operating margin of 28.1 percent (21.7). Profit before tax improved to SEK 99.5 million (47.3) during the period.

Operating expenses decreased as a share of sales to 25.3 percent, against 27.9 percent in the same period of 2006.

The number of shares outstanding at the end of the period was 24,743,984. Earnings per share amounted to SEK 2.96 (1.49) for the period January-September. Earnings per share calculated after the exercise of outstanding warrants amounted to SEK 2.92 (1.48).

Development by business segment

The Group comprises a number of companies that operate under the Björn Borg brand on every level, from product development to distribution and consumer sales in its own concept stores.

Brand and other

Sales in the Brand segment primarily consist of royalty revenue, sales of services within the Björn Borg network and intra-Group services.

Net sales for the nine-month period reached SEK 82.0 million (54.5), an increase of 50 percent.

Operating profit amounted to SEK 26.9 million (11.7) for the nine-month period. Profit has improved mainly as a result of the strong sales trend in the network, though also from the acquisition of the Björn Borg trademark.

Product development

The Group has global responsibility for development, design and production of clothing and footwear. A licensee for clothing operates in the Benelux market.

The segment's net sales amounted to SEK 214.2 million (130.7) during the nine-month period, an increase of 64 percent.

The main reason for the significant growth is the substantial increase in exports in the clothing product area. The Netherlands, Denmark and Norway are the markets that have grown the most. Sweden also reported strong growth.

Operating profit rose to SEK 34.0 million (15.4) owing to the volume increase.

Distribution

The Björn Borg Group is the exclusive distributor in the clothing product area as well as the shoe product area in the Swedish market.

Net sales in the Distribution segment rose to SEK 133.2 million (89.9) during the nine-month period, or by 48 percent. Growth is mainly due to substantially higher sales in the clothing product area.

Operating profit rose to SEK 29.0 million (11.8), mainly due to higher sales, though also to an improved margin in the footwear product area.

Retail

The Björn Borg Group owns and operates eight concept stores in the Swedish market that sell clothing, shoes, bags and fragrances. Moreover, Björn Borg operates two factory outlets.

Net sales in the Retail segment amounted to SEK 41.2 million (26.9) during the nine-month period, an increase of 53 percent. The increase for comparable stores was 17 percent.

Operating profit amounted to SEK 9.9 million (8.0).

Intra-Group sales

Intra-Group sales amounted to SEK 115.6 million (86.1) during the nine-month period.

Seasonal variations

The Björn Borg Group is active in an industry with seasonal variations. Sales and earnings vary by quarter. With the current product mix, the second quarter is generally the weakest in terms of profit. See the figure on quarterly net sales and operating profit on page 3.

Investments and cash flow

Cash flow from operating activities in the Group amounted to SEK 46.2 million (31.3) for the nine-month period. The changes in working capital are mainly attributable to an increase in accounts receivable resulting from strong growth.

Total investments in tangible and intangible non-current assets amounted to SEK 13.8 million (3.7) during the period, the large part of which is attributable to the construction and renovation of concept stores as well as a new headquarters in Stockholm.

Changes in financing activities are mainly due to new share issues, the dividend and the repayment of loans. The increase in cash & cash equivalents amounted to SEK 75.4 million (22.7) for the nine-month period.

Financial position and liquidity

The Björn Borg Group's cash & cash equivalents (net cash balance) amounted to SEK 135.0 million (80.8) at the end of the period. In addition, the Group has unutilized bank overdraft facilities of SEK 132.5 million. The equity/assets ratio was 65.0 percent (65.0).

Commitments and contingent liabilities

Due to the repayment of loans, pledged assets have decreased by the equivalent of SEK 60,2 million compared with December 31, 2006. For further information, see note 24 on page 47 of the annual report 2006.

Personnel

The average number of employees in the Group during the nine-month period was 72 (49), of whom 44 are women.

Events after the balance sheet date

There are no significant events to report following the balance sheet date.

Annual general meeting

The Annual General Meeting of Björn Borg will be held in Stockholm on Monday, 10 April 2008.

Parent Company

Björn Borg AB (publ) is primarily engaged in intra-Group activities. In addition, the Company owns 100 percent of the shares in Björn Borg Brands AB and Björn Borg Footwear Holding AB.

The Parent Company's net sales for the third quarter 2007 amounted to SEK 10.2 million (8.5) and largely related to intra-Group activities. During the nine-month period the Parent Company's net sales amounted to SEK 22.1 million (18.2). Profit before tax amounted to SEK –3.7 million (0) for the third quarter and SEK –16.2 million (–5.2) for the nine-month period.

Cash & cash equivalents amounted to SEK 12.1 million (0.9). During the nine-month period investments in tangible and intangible non-current assets amounted to SEK 6.1 million (0.3) and largely related to the renovation of new office space.

Significant risks and uncertainties

In its operations, the Björn Borg Group is exposed to risks and uncertainties, which are described in the listing prospectus for the Björn Borg share on the OMX Nordic Exchange dated April 23, 2007. For further information, refer to pages 4-5 in the prospectus (available in Swedish only). No additional risk factors besides those described there are anticipated for the remainder of 2007.

Transactions with related parties

During the year transactions have been completed on market terms with the former associated company Anteros Lagerhantering AB as well as Klockaren Fastighetsförvaltning i Varberg AB. For more detailed information, see note 11 on page 42 of the annual report 2006.

Accounting principles

This interim report has been prepared in accordance with the Annual Accounts Act and IAS 34. The accounting principles applied during the period are the same as in 2006, which are described on pages 35–38 of the annual report. The interim report is abbreviated and does not contain all the information and disclosures in the annual report. The interim report should therefore be read together with the annual report 2006.

Outlook 2007

It is not the Company's policy to issue earnings forecasts.

Audit report

This interim report has been reviewed by the Company's auditors. Their review report can be found on page 9.

Income statement

The Group in summary

SEK thousands	July-Sept 2007	July-Sept 2006	Jan-Sept 2007	Jan-Sept 2006	Oct 2006– sept 2007	Full-year 2006
Net sales	148,597	93,442	355,091	216,018	463,627	324,555
Cost of goods sold	-67,522	-49,579	-165,314	-108,832	-216,550	-160,068
Gross profit	81,075	43,863	189,777	107,186	247,077	164,487
Distribution expenses	-21,311	-12,674	-58,484	-38,087	-72,422	-52,024
Administrative expenses	-7,813	-5,145	-23,329	-15,975	-29,742	-22,388
Development expenses	-2,712	-2,052	-8,147	-6,254	-10,104	-8,211
Operating profit	49,239	23,992	99,817	46,870	134,809	81,864
Net financial items	-318	18	-309	383	-1,156	-464
Profit before tax	48,921	24,010	99,508	47,253	133,653	81,400
Tax	-13,698	-6,723	-27,750	-13,063	-37,602	-22,915
Profit for the period	35,223	17,287	71,758	34,190	96,051	58,485
Profit attributable to minority interests	–	–	–	–	–	–
Profit attributable to Parent Company's shareholders	35,223	17,287	71,758	34 190	96,051	58,485
Earnings per share, SEK	1.42	0.75	2.96	1.49	3.95	2.55
Earnings per share after dilution, SEK	1.41	0.74	2.92	1.48	3.92	2.53
Number of shares	24,743,984	22,959,776	24,743,984	22,959,776	24,743,984	23,207,376
Weighted average number of shares	24,743,984	22,959,776	24,261,716	22,924,664	24,291,128	22,954,076
Effect of dilution	309,114	418,496	300,526	226,304	210,334	127,524
Weighted average number of shares after full dilution	25,053,098	23,378,272	24,562,242	23,150,968	24,501,462	23,081,600

* Björn Borg has three outstanding incentive programs based on warrants in Björn Borg AB; option schemes 2005, 2006:1 and 2006:2.

For more detailed information, see page 41 of the annual report 2006.

Balance sheet

The Group in summary

	Sept 30		Sept 30 December 31
SEK thousands	2007	2006	2006
Non-current assets
Goodwill	13,944	13,944	13,944
Trademarks	187,532	–	187,532
Other intangible assets	1,004	1,000	950
Tangible non-current assets	17,169	3,898	6,331
Financial non-current assets	–	45	45
Total non-current assets	219,649	18,887	208,802

Current assets
Inventories	24,492	21,117	22,036
Current receivables	86,843	51,763	58,194
Cash & cash equivalents	134,974	80,796	59,544
Total current assets	246,309	153,676	139,774

Total assets	465,958	172,563	348,576
Equity and liabilities
Equity	302,903	112,111	138,054
Non-current liabilities	68,274	1,597	112,606
Accounts payable	27,516	18,189	20,691
Short-term provisions	–	2,900	2,900
Other current liabilities	67,265	37,766	74,325
Total equity and liabilities	465,958	172,563	348,576

Change in equity

The Group in summary

	Jan-Sept	Jan-Sept	Full-year
SEK thousands	2007	2006	2006
Opening balance	138,054	82,851	82,851
Incentive programs	12,737	1,804	1,804
New share issue	98,500	421	2,069
Dividend	-18,241	-7,155	-7,155
Minority interest in equity	95	–	-
Profit for the period	71,758	34,190	58,485
Closing balance	302,903	112,111	138,054

Cash flow statement

The Group in summary

	July-Sept	July-Sept	Jan-Sept	Jan-Sept	Full-year
SEK thousands	2007	2006	2007	2006	2006
Cash flow from operating activities
Before change in working capital	52,578	24,029	88,211	43,306	83,192
Change in working capital	-30,267	-1,969	-41,974	-11,996	-14,689
Cash flow from operating activities	22,311	22,060	46,237	31,310	68,503
Cash flow from investing activities	-6,914	-3,156	-13,804	-3,665	-113,758
Dividend	–	–	-18,241	-7,155	-7,155
Incentive programs/new share issue	–	–	-111,238	2,226	3,874
Change in loans	–	–	-50,000	–	50,000
Cash flow from financing activities	–	–	42,996	-4,929	46,719
Cash flow for the period	15,397	18,904	75,430	22,716	1,464
Cash & cash equivalents at beginning of period	119,577	61,892	59,544	58,080	58,080
Cash & cash equivalents at end of period	134,974	80,796	134,974	80,796	59,544

Key figures

Group

SEK thousands	July-Sept 2007	July-Sept 2006	Jan-Sept 2007	Jan-Sept 2006	Oct 2006– sept 2007	Full-year 2006
Gross profit margin, %	54.6	46.9	53.4	49.6	53.3	50.7
Operating margin, %	33.1	25.7	28.1	21.7	29.1	25.2
Profit margin, %	32.9	25.7	28.0	21.9	28.8	25.1
Return on capital employed, %	15.1	21.6	31.1	42.5	52.7	45.0
Return on average equity, %	16.0	17.7	65.0	35.1	46.3	53.0
Net profit for the period	35,223	17,287	71,758	34,190	96,053	58,485
Earnings per share, SEK*	1.42	0.75	2.96	1.49	3.95	2.55
Earnings per share after dilution, SEK**	1.41	0.74	2.92	1.48	3.92	2.53
Numbers of shares	24,743,984	22,959,776	24,743,984	22,959,776	24,743,984	23,207,376
Weighted average number of shares**	24,743,984	22,959,776	24,261,716	22,924,664	24,291,128	22 ,954,076
Effect of dilution	309,114	418,496	300,526	226,304	210,334	127,524
Weighted average number of shares after dilution	25,053 ,098	23,378,272	24,562,242	23,150,968	24,501,462	23,081,600
Equity/assets ratio, %	65.0	65.0	65.0	65.0	65.0	39.6
Equity per share, SEK	12.24	4.88	12.24	4.88	12.24	5.95
Investments in intangible assets	–	1,000	225	1,000	187,756	188,531
Investments in tangible assets	6,914	2,156	13,534	2,665	16,411	5,542
Depreciation for the period	-1,262	-281	-2,790	-835	-3,285	-1,329
Average number of employees	72	49	72	49	75	52

* Earnings per share in relation to the weighted average number of shares during the period restated after the split on April 27, 2007. ** Earnings per share adjusted for any dilution effect after the split on April 27, 2007.

Summary by segment

Group
	July-Sept	July-Sept	Jan-Sept	Jan-Sept	Oct 2006–	Full-year
SEK thousands Net sales	2007	2006	2007	2006	sept 2007	2006
Brand and other
External sales	14,604	9,655	37,312	20,730	43,256	26,673
Internal sales	19,671	14,934	44,703	33,804	63,503	52,604
	34,275	24,589	82,015	54,534	106,759	79,277
Product development
External sales	67,180	34,947	163,074	87,730	211,746	136,403
Internal sales	15,726	18,817	51,125	43,006	76,284	68,166
	82,906	53,764	214,199	130,736	288,030	204,569
Distribution
External sales	47,974	36,452	113,498	80,621	152,093	119,216
Internal sales	9,866	5,143	19,736	9,254	26,056	15,574
	57,840	41,595	133,234	89 ,875	178,149	134,790
Retail
External sales	18,839	12,388	41,206	26,937	56,532	42,263
Internal sales	–	–	–	–	–	–
	18,839	12,388	41,206	26,937	56,532	42,263
Eliminations	-45,263	-38,894	-115,564	-86,064	-165,843	-136,344
Net sales	148,597	93,442	355,091	216,018	463,627	324,555
Operating profit
Brand and other	19,750	7,064	26,869	11,694	39,350	24,175
Product development	8,103	5,025	34,017	15,389	41,633	23,006
Distribution	13,671	6,515	29,033	11,813	38,573	21,353
Retail	7,715	5,388	9,898	7,974	15,253	13,330
Operating profit	49,239	23,992	99,817	46,870	134,809	81,864

Quartely data

Group

SEK thousands	Q3 2007	Q2 2007	Q1 2007	Q4 2006	Q3 2006	Q2 2006	Q1 2006	Q4 2005
Brand sales	656,750	414,043	513,345	483,273	409,305	217,998	292,643	206,898
Net sales	148,597	87,844	118,650	108,537	93,442	48,368	74,209	51,247
Gross profit margin, %	54.6	55.6	50.4	52.8	46.9	56.8	48.3	58.7
Operating profit	49,238	19,188	31,390	34,994	23,991	7,874	15,005	12,739
Operating margin, %	33.1	21.8	26.5	32.2	25.7	16.3	20.2	24.9
Profit after financial items	48,920	19,139	31,448	34,147	24,010	8,145	15,098	13,622
Profit margin, %	32.9	21.8	26.5	31.5	25.7	16.8	20.3	25.8
Earnings per share, SEK	1.42	0.57	0.96	1.06	0.75	0.26	0.47	0.42
Earnings per share after dilution, SEK	1.41	0.56	0.94	1.04	0.74	0.26	0.47	0.42
Number of stores at end of period	33	29	26	24	21	18	17	17
of which own stores	10	9	9	8	7	6	6	6

Income statement

Parent Company in summary

SEK thousands	July-Sept 2007	July-Sept 2006	Jan-Sept 2007	Jan-Sept 2006	Oct 2006– sept 2007	Full-year 2006
Net sales	10,200	8,468	22,073	18,201	33,089	29,217
Cost of goods sold	-1,497	-1,966	-3,086	-3,361	-4,005	-4,280
Gross profit	8,703	6,502	18,987	14,840	29,084	24,937
Distribution expenses	-8,112	-4,270	-22,678	-13,035	-24,963	-15,320
Administrative expenses	-3,120	-1,642	-8,722	-5,014	-9,601	-5,892
Development expenses	-1,248	-657	-3,489	-2,005	-3,841	-2,357
Operating profit	-3,777	-67	-15,902	-5,214	-9,321	1,368
Net financial items	53	-23	-278	2	-450	-170
Profit before tax	-3,724	-90	-16,180	-5,212	-9,771	1,198
Tax	1,043	25	4,531	1,459	2,571	-500
Profit for the period	-2,681	-65	-11,649	-3,753	-7,200	698

Balance sheet

Parent Company in summary
SEK thousands	Sept 30 2007	2006	Sept 30 December 31 2006
Non-current assets
Tangible non-current assets	6,214	379	465
Shares in Group companies	54,497	54,497	54,497
Total non-current assets	60,711	54,876	54,962
Current assets
Receivables from Group companies	136,153	55,584	115,402
Current receivables	5,743	691	1,170
Cash & cash equivalents	12,062	930	36,167
Total current assets	153,958	57,205	152,739
Total assets	214,669	112,081	207,701
Equity and liabilities
Equity	162,059	78,971	85,243
Untaxed reserves	5,955	5,955	5,955
Non-current liabilities, credit institutions	–	–	40,000
Due to Group companies	28,256	11,859	51,961
Accounts payable	10,289	2,485	3,885
Short-term provisions	–	2,900	–
Other current liabilities	8,110	9,911	20,657

About the Björn Borg Group

The Group owns the Björn Borg trademark and currently has operations in five product areas: clothing, shoes, bags, eyewear and fragrances. Björn Borg products are sold in over ten markets, of which Sweden and the Netherlands are the largest. Operations are managed through a network of product and distribution companies that are either formally part of the Group or independent companies with licenses for product areas and geographical markets. The Björn Borg Group has operations at every level from branding to consumer sales in its own concept stores. Total sales of Björn Borg products in 2006 amounted to approximately SEK 1.4 billion at the consumer level. Group net sales amounted to SEK 325 million in 2006, with 64 employees. Björn Borg has been listed on First North since December 2004. The Company was listed on the OMX Nordic Exchange Mid Cap list on May 7, 2007.

Total equity and liabilities 214,669 112,081 207,701

Definitioner

Gross profit margin Net sales less cost of goods sold divided by net sales.

Operating margin Operating profit as a percentage of net sales.

Profit margin Profit before tax as a percentage of net sales.

Equity/assets ratio Equity as a percentage of total assets.

Return on capital employed Profit after financial items plus financial expenses as a percentage of average capital employed.

Return on equity

Net profit according to the income statement as a percentage of average equity. Average equity is calculated by adding equity at January 1 to equity at December 31 and dividing by two.

Earnings per share

Earnings per share in relation to the weighted average number of shares during the period.

Earnings per share after dilution

Earnings per share adjusted for any dilution effect.

Brand sales

Estimated total sales of Björn Borg products at the consumer level, including VAT, based on reported wholesale sales.

Upcoming information dates

The year-end report 2007 will be released on February 13, 2008. The interim report January–March 2008 will be released on May 7, 2008.

Björn Borg AB (publ) Stockholm, November 15, 2007 Nils Vinberg Member of the Board, President and CEO

Review report

Introduction

We have reviewed the interim report for Björn Borg AB (publ) for the period January 1 – September 30, 2007. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Focus and scope of the review

We conducted our review in accordance with the Standard on Review Engagements (SÖG) 2410, Review of Interim Financial Information Performed by the Independent Auditors of the Entity. A review consists of making inquiries, primarily to persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden RS and other generally accepted auditing practices in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed on the basis of an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared in accordance with IAS 34 and the Annual Accounts Act and, for the Parent Company, in accordance with the Annual Accounts Act.

Stockholm, November 15, 2007 Deloitte AB

Authorized Public Accountant Authorized Public Accountant

Håkan Pettersson Tommy Mårtenssom

For further information, please contact:

Nils Vinberg, President and CEO Tel: +46 8 506 33 700 or +46 708 631101 nils.vinberg@bjornborg.com

Björn Borg AB Götgatan 78 SE-118 30 Stockholm www.bjornborg.com

Björn Borg discloses the information in this report pursuant to the Swedish Securities Markets Act. The information was submitted for publication at 07.30 CET on 15 November 2007.