Bang & Olufsen a/s downgrades the expectations for the 2007/08 financial year

A difficult market situation is the primary reason. The recent economic
development has influenced both the US and several European markets negatively.
In general, retail sales are seen as being very unpredictable at the moment. 

On an extraordinary board meeting Friday 14 March 2008 the Board of Directors
decided to downgrade the expectations for the 2007/08 financial year. 

The estimate for the result for the financial year was last revised by the
Group at the publication of the interim report for the first half year on 9
January this year. At that point in time the new estimate was based on an
expectation of zero growth in the second half year. Based on the preliminary
figures for the third quarter, the Board of Directors and the Board of
Management no longer consider this expectation to be realistic. 
The result before tax etc. for the financial year is now expected to be
realized as follows:

DKK million          14 March 2008      9 January 2008
Net turnover:        4,250 - 4,350      4,450 - 4,550
Operating profit:    225 - 275          385 - 425
Result before tax:   200 - 250          360 - 400

The result before tax is affected by non-recurrent expenditures and a negative
change in the net effect of capitalization totaling DKK 70 mil-lion. 

On 9 January Bang & Olufsen also stated that the sales of A/V products for
December had disappointed. However, in January the development seemed to have
stabilised with a turnover on a par with last year, whereas February like
December showed a significant decline 
 
Overall the European markets have shown a decline in turnover for the third
quarter. Especially the development in the Group's three largest markets,
Denmark, the UK and Germany has been disappointing, while the development in
sales in Asia and the Expansion markets (including Russia) remains positive. 

The month of March - and thereby the start of the fourth quarter - indicates
that the turnover for the Group's A/V business will be slightly below last
year's level for the remainder of the financial year. 

The sale within the business areas Automotive (sound systems for cars) and
Enterprise (sales to hotels) continues to develop satisfactorily. 

Traditionally, Bang & Olufsen has managed the capacity costs tightly, and the
capacity costs will be adjusted to the turnover and the gross profit, which is
now expected. The effect of the adjustments will not take effect until the
coming financial year. 

The Board of Directors is committed to maintaining the high level of activity
within product development, so that the adjustments do not affect the long-term
strategic development of Bang & Olufsen. The commercialization and marketing of
the Group's well-known core products continues to have the highest priority.
For instance, during the first half year 32 new B1 shops were opened 

The interim report for the third quarter will be published Tuesday 8 April
2008. 



Jørgen Worning				Peter Thostrup
Chairman				  	Executive Vice President



Any questions concerning this announcement should be addressed to:
Executive Vice President Peter Thostrup: tel. +45 9684 5004.