Change in owner structure at Magasin and ILLUM

Solstra Holding A/S (Solstra) has signed an agreement whereby the company acquires the Magasin and Illum department store operations, as well as the Magasin properties in Lyngby, Aarhus, Odense, and the Illum property on Østergade (Strøget) in Copenhagen. The transaction also involves the Magasin warehouse at Avedøre Holme and the building on the corner of Østergade and Købmagergade in Copenhagen. Furthermore, Solstra has an option to acquire 49.9% of the company owning Magasin's Copenhagen flagship store on Kgs. Nytorv.

Solstra is a newly established 50/50 joint venture between international investor Mr. Alshair Fiyaz, and Straumur Investment Bank ("Straumur"), the current majority owner of the Magasin and Illum operations.

Mr. Fiyaz, who over the course of the last 3 years has completed combined investments with a value of more than USD 5 billion, including equity investment in several top ranked retail and distribution businesses throughout Europe, UK and the US comments on the transaction:

"We are continuously looking into all kinds of private equity projects across Europe. We have chosen to invest in Magasin and Illum based on its compelling business concept of integrating the retail operations and the property companies. We also like the extensive business experience, dynamism and determination of purpose of the management and key people involved".

Solstra secures Magasin and Illum a stable platform for its future development. The investor consortium provides new capital to further develop existing projects and the introduction of new business opportunities.

Mr. Oscar Crohn of Straumur said: "We are very happy to have found in Mr. Fiyaz a highly experienced international investor that believes in the strategy for Magasin and Illum and secures further investment in the development of the operations and properties" he adds: "Owning the real estate will allow the owners to optimize on the utilization of the stores in a way that will also support the Magasin and Illum operations".

Solstra supports the ongoing operational and strategic initiatives and changes at Magasin and Illum and will be able to help the companies develop its retail offer further. Its position on taking over the properties will, furthermore, improve the flexibility Magasin and Illum will have in using its space effectively.

"The new investor is buying into the strategy developed by current management.  This new ownership provides us with a good platform both financially and strategically so that we can continue to build this into a sound retail business and the leading department store in Scandinavia" said Mr. Jon Bjornsson CEO Magasin du Nord A/S Th. Wessel & Vett.

Mr. Peter Zäll, CEO of Illum A/S, adds: "We are excited about the future prospects under the new ownership. For Illum bringing the operations and the real estate together and with new capital will enable us to continue to develop as the premium brand department store in Copenhagen".

SEB Enskilda Corporate Finance, the leading Nordic investment bank, has advised Solstra Holding A/S in respect to the transaction.

For further information:

Oscar Crohn

Director, Straumur Investment Bank

Phone: +45 2167 8491

Vincent de Canniere

Director, Solstice International Investment Ltd, Private Equity, investment company of Mr. Alshair Fiyaz

Phone: +41 79200 6738

This document is a translation of the original press release in Danish

Copenhagen, August 13, 2009

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