Structural adjustments in IC Companys A/S

Mar 02, 2009, 14:34

STOCK EXCHANGE ANNOUNCEMENT

2 March 2009

Structural adjustments in IC Companys A/S

As previously announced in the Group’s Interim Report H1 23 February 2009 (Stock Exchange Announcement no. 7/2009) the Executive Board has launched a number of initiatives with a view to, among other things, reducing the cost base. These initiatives are partly made to enhance efficiency and flexibility in IC Companys in order to strengthen the Group’s sustainability to cyclical fluctuations, and partly to increase the capacity to exploit new opportunities.

Outsourcing non-strategic functions In the future, an external partner will be responsible for the interior shop design. As a result, the Group’s executive momentum and flexibility will be enhanced, which is paramount to the realisation of the growth required. Our partner assumes full ownership after a transition period up to 1 July 2009.

Other structural adjustments In order to increase efficiency, two minor warehouses in Poland are merged into one large that is more suitably organised. Combined, the result is a capacity increase from the beginning of April 2009 and consequently, the satellite warehouse in Herlev will be vacated. The relocation is expected to be completed 1 July 2009.

In connection with increased focus on value chain optimisation, Soaked in Luxury will be integrated in IC Companys A/S and on the shared platform. The integration will result in synergy effects, which are expected to benefit not only the brand by offering economies of scale, but also the shared platform, which in turn will draw on the insights and competences built in Soaked in Luxury. The integration is expected to be completed during the first quarter of the financial year 2009/10.

The structural adjustments mentioned in the above are part of the rationalisations announced in the Interim Report H1 2008/09. As such, they will not have any impact on the future expectations previously announced.

IC Companys A/S

Niels Mikkelsen
Chief Executive Officer

Please direct any questions regarding this announcement to

Chris Bigler
Chief Financial Officer
+45 3266 7017

Thomas Rohold
Investor Relations Manager
+45 3266 7093

This announcement is a translation from the Danish language. In the event of any discrepancy between the Danish and English versions, the Danish version shall prevail.