KappAhl's rights issue fully subscribed

Regulatory News:

KappAhl AB (STO:KAHL):

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITES STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SINGAPORE OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION OF THIS PRESS RELEASE WOULD BE SUBJECT TO LEGAL RESTRICTIONS.

The new share issue in KappAhl AB (publ) ("KappAhl”) with preferential rights for the company’s shareholders, for which the subscription period ended on 20 December 2012, has been fully subscribed. Approximately 98.75 per cent of the shares offered have been subscribed for with subscription rights and approximately 1.25 per cent of the shares offered have been allocated to persons that have subscribed for shares without subscription rights. In total, applications for subscription of shares without subscription rights have been received corresponding to approximately 51 per cent of the shares offered. Hence, the rights issue guarantee undertakings have not been made use of.

Allocation of shares that were subscribed for without subscription rights has been made in accordance with the principles outlined in the prospectus that has been prepared in connection with the rights issue and that was published on 30 November 2012. Notification regarding allocation of shares that have been subscribed for without subscription rights will within short be sent to those who have been allocated shares.

Through the rights issue, KappAhl receives approximately SEK 383 million before deduction of transaction costs. The share capital will increase by SEK 32,160,000 from SEK 32,160,000 to SEK 64,320,000, and the number of shares will increase by 225,120,000 from 225,120,000 shares to 450,240,000 shares when the rights issue has been registered with the Swedish Companies Registration Office. Trading in the new shares on NASDAQ OMX Stockholm is expected to commence around 8 January 2013.

Following the rights issue, KappAhl has completed recalculation of the 6,744,000 warrants (Series 2012/2015) KappAhl issued after a resolution at the Annual General Meeting on November 23, 2011. After conversion, each warrant entitles to subscribe for 1.58 new shares at a subscription price of SEK 4.80 per share. The warrants can thus increase the number of shares in KappAhl by a maximum of 10,621,800 and the share capital by a maximum of SEK 1,517,400.

Carnegie is acting as financial advisor and Setterwalls Advokatbyrå is acting as legal advisor to KappAhl.

KappAhl was founded 1953 and is a leading Nordic fashion chain with close to 400 stores and 4 500 co-workers in Sweden, Norway, Finland, Poland and the Czech Republic. KappAhl designs, markets and sells value-for-money fashion and focus in particular on women 30-50 years of age. In 1999, KappAhl was the first fashion chain to receive environmental management standard certification. During the financial year 2011/2012, KappAhl had sales of SEK 4,6 billion. KappAhl shares are listed on the NASDAQ OMX Stockholm. Further information is available at www.kappahl.com

KappAhl AB (publ) discloses the information provided here pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 27 December 2012 at 2 p.m.

IMPORTANT NOTICE

In certain jurisdictions, the publication or distribution of this press release may be subject to legal restrictions and persons in those jurisdictions where this press release has been published or distributed should inform themselves about and abide by such legal restrictions.

This press release may not be published or distributed, directly or indirectly, in or to the United States, Australia, Hong Kong, Japan, Canada, New Zealand, Singapore, or South Africa or any other country where such action is wholly or partially subject to legal restrictions. Nor may the information in this press release be forwarded, reproduced or disclosed in such a manner that contravenes such restrictions. Failure to comply with this instruction may result in a violation of the United States Securities Act of 1933 ("Securities Act") or laws applicable in other jurisdictions.

This press release does not contain or constitute an invitation or an offer to acquire, subscribe for or otherwise trade in shares, subscription rights or other securities in KappAhl AB (publ). Any invitation to the persons concerned to subscribe for shares in KappAhl AB (publ) is only made through the prospectus that KappAhl AB (publ) made public on 30 November 2012.

Neither of the subscription rights, the BTAs (interim shares) or the new shares will be registered in accordance with the Securities Act or any provincial act in Canada and may not be transferred or offered for sale in the United States or Canada or to persons resident there or on account of such persons other than in such exceptional cases that do not require registration in accordance with the Securities Act or any provincial act in Canada.

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