President and CEO Hans Stråberg's comments on the second quarter 2008

President and CEO Hans Stråberg's comments on the second quarter 2008

In spite of challenging conditions in the second quarter, we have delivered
improved underlying results in comparison with the same period last year,
excluding the costs for the launch of appliances in the premium segment in North
America. This is very much attributable to the continued improved results in
Asia/Pacific, Latin America and for our professional products. However, the
economic uncertainty makes it more and more difficult to predict the future.

I am satisfied with the results for our professional products, which shows an
operating margin of 12% in the quarter, compared to 8% one year ago. Latin
America continues to deliver record results and has never before experienced
such a profitable second quarter. Our operation in Asia/Pacific also improved
its results.

The biggest event during spring was the launch in North America of a completely
new product range under the Electrolux brand. This investment will give us a
strong position in the profitable premium segment. It has begun well. Our
products are today present in more than 2,000 retail outlets in the US, and we
expect to reach about 3,000 retailers by the end of the year - many more than we
had originally planned. I have obviously followed the launch closely, and it is
especially satisfying to feel the strong support we have received from our
retail partners.

Excluding the investments in the new product range under the Electrolux brand,
we managed to maintain our results in North America despite a strong decline in
demand. The launch had a negative impact on operating income for the second
quarter in the amount of SEK 230m. This gives high grades to our products, our
good relationships with our retail partners and especially to all of our team
members.

When I presented the report for the first quarter of 2008, I compared Electrolux
to a six-cylinder engine, where five cylinders are running well while the sixth
one had not quite reached its full capacity. The cylinder not up to speed is
Europe. But things are starting to happen. Evidence that last year's new product
launches are successful is that we are again taking market shares. Even though
there is a long way to go until I am satisfied with the results in Europe, we
can see that our implemented cost savings are beginning to take effect.

These savings, combined with other ongoing cost-cutting measures, make us better
prepared for the declining market we are currently experiencing. The decline
will bring about an appliance industry that is generally more price competitive.
There will also be a temporarily mix shift in the industry, with consumers
preferring low-priced products and production will suffer from lower capacity
utilization. The combination of these factors will of course impact the earnings
capacity of the entire industry.

Based on the very weak market developments we have decided to decrease our
forecast for the markets in North America and Europe. A consequence of this is
that we have changed our outlook for the full year. We normally do not quantify
our outlook for the full-year results in figures, but we have this time chosen
to make an exception to reduce the uncertainty around the results for 2008.
Based on our market view today, we expect an operating income for the full year
of 2008 of SEK 3,300-3,900m, excluding items affecting comparability.

Stockholm, July 17, 2008

Hans Stråberg
President and Chief Executive Officer


Electrolux is a global leader in home appliances and appliances for professional
use, selling more than 40 million products to customers in 150 countries every
year. The company focuses on innovations that are thoughtfully designed, based
on extensive consumer insight, to meet the real needs of consumers and
professionals. Electrolux products include refrigerators, dishwashers, washing
machines, vacuum cleaners and cookers sold under esteemed brands such as
Electrolux, AEG-Electrolux, Eureka and Frigidaire. In 2007, Electrolux had sales
of SEK 105 billion and 57,000 employees. For more information, visit
http://www.electrolux.com/press


The information in this Interim Report is that which Electrolux is required to
disclose under the Securities Market Act and/or the Financial Instruments
Trading Act. It was released for publication at 08.00 CET on 
July 17, 2008.