Hakon Invest has signed an agreement to become a part owner in Cervera, a franchise chain in the glassware, porcelain, table cutlery, kitchen and home furnishings areas. The investment amounts to SEK 82.5 M.

Cervera has 53 stores, from Luleå in the north of Sweden to Malmö in the south, of which 24 are wholly or partly owned and the remainder are operated as franchises. The chain is one of the largest retailers in Sweden of gift items in the glassware, porcelain, table cutlery, kitchen and home furnishings areas.

"Cervera is a well-established glassware and porcelain chain, with a solid reputation. We foresee favorable possibilities in continuing to develop Cervera through contributing knowledge and capital and being a partner in the ongoing restructuring in the industry," says Stein-Petter Ski, Senior Investment Manager at Hakon Invest. "For Cervera, this involves sharpening its concept and profile to strengthen its market position and continuously evaluating goods supply."

"We are highly pleased to gain Hakon Invest as partner as we are entering into a more intensive growth phase. The capital contribution will be invested in its entirety in operations which is necessary as we are taking the next step in the development of Cervera for increased profitability," says Tomas Kopsch, President of Cervera. "Our retailers will be able to benefit from the knowledge and contacts of Hakon Invest, through a more efficient goods supply".

Hakon Invest is investing SEK 82.5 M in cash to receive an ownership interest of 45 percent of capital and votes in Cervera by issuance of new Cervera shares. The current shareholders are the management and some ten former storeowners, all of whom will remain owners after the transaction.

Cervera is one of Sweden's largest glassware, porcelain, table cutlery, kitchen and home furnishings retailers. An attractive and broad product range has resulted in satisfied customers and recently the Market trade magazine conducted a survey showing that the Cervera stores ranked at the top in customer appreciation. The recent structural changes on the market and industry drift also offer partly new conditions for Cervera. The company will increase the pace of establishment in the future to better meet and capitalize on these new possibilities, while at the same time the store concept is being strengthened and made more homogeneous and the efficiency of goods supply is being enhanced. The objective is to more than double Cervera's sales by 2011.

Pro forma, Cervera posted annual sales of SEK 370 M, excluding VAT, at August 31, 2006. Profit before net financial items was SEK 13 M. Including the franchise-operated stores, the Cervera chain has annual sales of about SEK 575 M, excluding VAT.

The transaction is subject to usual terms and conditions and regulatory approvals. It is planned to be completed in the fourth quarter of 2006.

Facts about Cervera
The Cervera chain was established in 1987 and is currently one of Sweden's largest glassware and porcelain retailers from well-known brand suppliers. The head office is located in Mariefred, Sweden. The President is Tomas Kopsch, a former Cervera retailer, who together with his brothers Andreas Kopsch and Mathias Kopsch purchased the Cervera concept in 2002. Earlier this year, the next important step was taken when the Kopsch families combined their stores with four other family-owned store chains and instead became owners in the Cervera holding company, which there after has 24 wholly and partly owned stores and 29 franchise stores.

Cervera has a range of about 30,000 products, of which individual stores offer an assortment of about 4,000 - 5,000 items. Cervera has a total of some 300 employees. More information is available at www.cervera.se.

For more information, contact:

Senior Investment Manager, Hakon Invest: Stein-Petter Ski, tel. +46-8-553 399 44

President, Cervera: Tomas Kopsch, tel. +46-709 67 91 51

IR Manager, Hakon Invest: Pernilla Linger, tel. +46-8-553 399 55

This press release is not for publication or distribution in or into the US, Canada, Australia or Japan.

Hakon Invest, which is listed Nordic Exchange, conducts active and long-term investment operations in retail-oriented companies in the Nordic region. Hakon Invest owns 40% of ICA AB, the Nordic region's leading retail company with focus on food. In addition, Hakon Invest owns 100% of Forma, 50% of Kjell & Company and 48% of Hemma. Further information about Hakon Invest is available at www.hakoninvest.se.