ICA acquires ’s share in Rimi Baltic AB

Solna 10 October, 2006

ICA Baltic AB, a subsidiary of ICA AB, and Kesko Food Ltd have signed an agreement that ICA Baltic acquires Kesko Food’s 50 percent share of Rimi Baltic AB. Rimi Baltic will then become a wholly owned subsidiary of ICA AB. ICA Baltic will also acquire four properties in currently owned by Fiesta Real Estate AS, an Estonian subsidiary of Kesko.

“This deal is in line with ICA’s goal of being number one in all markets where we operate. We are already number one in Sweden, and in Norway our expansion plans are strengthening our position even further. A full ownership in Rimi Baltic increases our growth potential also in the fast growing Baltic market”, says Kenneth Bengtsson, President and CEO of ICA AB. “By integrating Rimi Baltic as a wholly owned company we will have an even stronger Nordic/Baltic organization where we will be able to realize synergies within sourcing, administration and IT”, he continues.

ICA Baltic pays Euro 190 million in cash for Kesko Food's shares and an additional Euro 50 million in cash for the four properties in Estonia.

The Baltic joint venture between the two companies was established in January 2005. Rimi Baltic operates hypermarket, and hard discount concepts with 200 stores in the Baltic countries of which 64 in Estonia, 86 in Latvia and 50 in . Rimi Baltic has approximately 9,000 employees.

In 2005, Rimi Baltic had a turnover of Euro 810 million (SEK 7,517 million) and an EBIT of Euro 1.2 million (SEK 11 million). The turnover for the first six months 2006 amounted to approximately Euro 450 million (SEK 4,216 million), an increase of 20 percent compared the same period 2005. The joint venture currently has about 16 percent of the total Baltic food market that is annually worth approximately Euro 5.2 billion (approximately SEK 48 billion).

The transaction is subject to an approval by the European Commission which is estimated to be finalized towards the end of the year. When the deal is closed, Rimi Baltic will be accounted for as a wholly owned subsidiary of ICA AB.

For further information, please contact: Kenneth Bengtsson, President and CEO ICA AB, phone: +46 8-585 502 58 ICA press hotline, phone +46 70 253 66 60

------About ICA The ICA Group is one of the Nordic regions leading companies, with around 2,200 of its own and retailer-owned stores in Sweden and Norway. The Group includes the sales companies ICA Sverige, ICA Norge and Etos. ICA also offers financial services to Swedish customers through ICA Banken. ICA owns half of the companies Rimi Baltic, with 200 stores in the Baltic countries, and Netto Marknad, with nearly 80 stores in Sweden. ICA AB is a joint venture 40% owned by Hakon Invest AB and 60% by Royal Ahold of the Netherlands. Due to shareholder agreement, neither party has control of the company and both share equal voting power. Through Royal Ahold, ICA AB is part of an international retail network. For more information, please visit http://www.ica.se