Cost reduction program within Small Appliances and information on costs related to GE Appliances

Electrolux initiates cost reduction program within Small Appliances and informs
on costs related to GE Appliances
Electrolux today announced measures to structurally reduce costs within the
business area Small Appliances. Operations continue to be negatively impacted by
reduced volumes in several key markets, as well as unfavorable currency
movements.

Measures to restore profitability are now being taken, including staff
reductions and downsizing of activities, mainly in the U.S., Sweden and China.
Consultations have been initiated with the Swedish Unions.

These actions are expected to reach full effect from end of 2016, with estimated
annual cost savings of SEK 120m. Costs related to the program are expected to
amount to SEK 190m.

Once the program is completed, Small Appliances will have financial flexibility
to continue to invest in profitable product categories.

Costs related to GE Appliances

As announced on December 7, 2015, Electrolux planned acquisition of GE
Appliances will not be completed as General Electric has terminated the
agreement and requested pay-out of the termination fee of USD 175m,
corresponding to approximately SEK 1,490m.

In accordance with the terms of the transaction agreement, Electrolux will today
pay the termination fee of USD 175m to General Electric. Transaction and
integration costs are expected to approximately SEK 175m for the fourth quarter
2015. In addition, the finance net for the fourth quarter will be impacted by
costs arising from the bridge facility of approximately SEK 225m.
For further information, please contact:

Catarina Ihre, Vice President Investor Relations at 46 (0)8 738 60 87

Electrolux Press Hotline, 46 8 657 65 07.

Electrolux discloses the information provided herein pursuant to the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
submitted for publication at 08.00 CET on December 9, 2015
Electrolux is a global leader in home appliances, based on deep consumer insight
and developed in close collaboration with professional users. We offer
thoughtfully designed, innovative solutions for households and businesses, with
products such as refrigerators, dishwashers, washing machines, cookers, vacuum
cleaners, air conditioners and small domestic appliances. Under esteemed brands
including Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine, the
Group sells more than 50 million products to customers in more than 150 markets
every year. In 2014, Electrolux had sales of SEK 112 billion and 60,000
employees. For more information go to www.electroluxgroup.com.