Björn Borg — Regulatory Filings 2011

Jan 13, 2011

Stockholm, Sweden,!13 January!2011

Press%release

New!clothing!venture!established!in!the!Netherlands!– Björn!Borg!Sport

Björn!Borg!is!forming!a!new!subsidiary!in!January!2011 to!produce!fashionable!athletic and!functional!wear together!with!its!Dutch distributor.!The!creation!of!a!separate!operation!based!in the!Netherlands!is!another! element!in!Björn!Borg's strategy!to!focus!on!its!core!business,!underwear, based!in!Stockholm.

The!new company,!Björn!Borg!Sport,!is!founded!on!Björn!Borg's!clothing!concept!in!the!Netherlands,!with! established!operations!and!an!extensive!experience!from!successfully!managing!the!licensed!womenswear! company!for!about!ten!years!in!Holland.!The!collections,!both!men's and women's,!will!primarily!include sports! fashion!and!functional!sports!wear.!The!products!will!be!sold!to!distributors!in!Björn!Borg's!current!markets, with!an!initial!focus!on!larger!markets.!

"To!further!concentrate!on!being!a!world!leader!in!underwear,!we!have!decided!to!streamline!our!Stockholm! operations!and!manage!Björn!Borg's!apparel!operations!in!a!separate!company!in!the!Netherlands.!We!do!this! with!our!Dutch!distributor,!which has!proven!successful!in!the!development!of!a!growing!apparel!business. This! new!initiative!will!create!better!opportunities!for!our!clothing!business!to!grow!and!allow!us!to!more!clearly! emphasize!our!main!product,!underwear,!in!the!rest!of!organization,"!says!President!Arthur!Engel.

Björn!Borg!will!be!the!majority!owner!with!51!percent!of!the!new!company,!while!the!remainder!will!be!owned! by!the!current!Dutch!distributor,!Dutch!Brand!Management!BV!(or!by!a!company!in!the!same!group),!and!to!a! lesser!extent!by!the!clothing!company's!management!and!board!of!directors.!The!CEO!of!Björn!Borg!Sport!will! be!Sander!van!Gelder,!the!former!CEO!of!Puma's!Benelux!operations.!Björn!Borg!AB!Director!Fabian!Månsson will!serve!as!chairman.!Björn!Borg!CEO!Arthur!Engel!and!Vice!President and!International!Sales!Director!Henrik! Fischer!will!be!members!of!the!board.!The!company!will!be!based!in!Amsterdam.!

During!2011,!Björn!Borg!Sport!will!handle!some!billing!regarding shipments!from!the!former!Dutch!apparel! operations.!This will!slightly!increase!consolidated!sales!in!2011,!in!the!product!company!segment,!but without! affecting!earnings.!The!new!venture!is!expected!to!raise!the!Group's!operating!expenses!by!about!SEK!7!million! in!2011.!The!new!clothing!operation!is!estimated!to!entail a!good!financial!potential.

In!early!2010!the!footwear!product!area!was!licensed!out!to!an!established!international!shoe!company. Because!the!apparel!product!area!will!now!be!managed!and!developed!as!a!separate!company!in!the! Netherlands,!Björn!Borg can concentrate!on!its!core!product!area,!underwear,!in!line!with!its strategy.

For!further!information,!please!contact: Arthur!Engel,!CEO,!telephone:!+46!8!506!33!700,!e^mail!Arthur.engel@bjornborg.com

The!Group!owns!the!Björn!Borg!trademark!and!its!core!business!is!underwear.!It!also!offers clothes!and,!through!licensees,!footwear,!bags,! eyewear!and!fragrances.!Björn!Borg!products!are!sold!in!around!fifteen!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!2009!amounted!to!almost!SEK!1.9!billion,!excluding!VAT,!at!the!consumer!level.!Group!net!sales!amounted!to!SEK!520!million!as! per!December!31,!2009,!with!92!employees.!The!Björn!Borg!share!has!been!listed!on!NASDAQ!OMX!Nordic!in!Stockholm!since!2007.