Björn Borg

Regulatory Filings • Dec 21, 2011

Stockholm, Sweden,!December!21,!2011

Press release

Björn!Borg is launching in!China

Björn!Borg!has!decided!to!launch!the!brand!in!China. The!new!business will!be!established together!with!an! experienced!retail!partner!in!China, through!a!new!company!with!Björn!Borg!as!the!principal!owner.!The!aim! is!to!position!the brand!among the growing!legion!of!fashion>conscious!young people in!the!country.!

The!plan!is!to!establish!sales in!Shanghai during!the!second half!of 2012,!primarily!through!Björn!Borg!stores and shopAinAshops!in!large!department!stores, offering underwear,!sportswear,!footwear!and!bags.!The!plan! also!includes!eAcommerce.

"Our!expansion!into China is!another!important!step!in!paving the!way!for Björn!Borg's!future!growth.!We! believe that!Björn!Borg will!attract!a growing!middle!class that wants!strong, personal brands.!With!a! knowledgeable and!wellWconnected partner,!we!expect!good!opportunities!to build!sales!in one!of!the! world's!most!important consumer!markets,"!says Arthur!Engel,!CEO!of Björn!Borg.!

The!expansion into!China!will!be!with!a!partner!with!extensive industry experience in product!development!as! well!as!production!and!distribution.!One!of!the!owners,!Penny!York,!has previously!held!senior!positions!in the! Chinese!garment!manufacturing!and!brand!company,!Dragon!Crowd,!for!which she built up the!international! underwear brand Schiesser!in China,!with!over 500!points of!sale.

"We!look!forward!to!establishing!Björn!Borg!in!China!and!believe!that!the!brand!fits!the!Chinese!market! well,!especially!considering!the!colorful!and!trendy!design.!With!Björn!Borg's!unique!brand!profile!and!a! wellWplanned!and!longWterm!enterprise!we!see!strong!potential!for!the!brand!in!the!country,"!says!Penny! York,!future!CEO!of!Björn!Borg's!Chinese!operations.

The!parties!are!establishing a!company!for!the!Chinese!operations!in!which!Björn!Borg will!be!the!majority! owner!with!75!percent, while the!local!partner will!own!25!percent.!The!Chinese!venture!is!expected!to!have!a! negative!effect!on!Group!operating!profit!of!maximum!SEK!10 million!and!a!marginal!effect!on!revenue!in!2012. For!2013,!the!negative!effect!on!operating!profit!is!expected to!be!lower.

For!more!information,!please!contact:!!

Arthur!Engel,!CEO,!phone:!+46!8!506!33 700,!arthur.engel@bjornborg.com Fredrik!Lövstedt,!Chairman!of!the!Board,!phone: +46A708A59!54!80,!fredrik.lovstedt@bjornborg.com

The!Group!owns!the!Björn!Borg!trademark!and!its!core!business!is!underwear.!It!also!offers!clothes,!footwear,!bags,!eyewear! and!fragrances!through!licensees.!Björn Borg!products!are!sold!in!around!twenty!markets,!of!which!Sweden!and!the! Netherlands!are!the!largest.!The!Björn!Borg!Group!has!operations!at!every!level!from!branding!to!consumer!sales!in!its!own! Björn!Borg!stores.!Total!sales!of!Björn!Borg!products!in!2010!amounted!to!almost!SEK!1.7!billion,!excluding!VAT,!at!the! consumer!level.!Group!net!sales!amounted!to!SEK!536!million!as!per!December!31,!2010,!with!100!employees.!The!Björn! Borg!share!has!been!listed!on!NASDAQ!OMX!Nordic!in!Stockholm!since!2007.