Magnus Brännström replaces Sven Mattsson as new Oriflame CEO

Mattsson will quit as CEO immediately but will remain with the company during a transition period. He will also assist Oriflame's start-up preparations in China

The Board of Directors of Oriflame Cosmetics has decided to appoint Magnus Brännström as the new managing director and CEO, succeeding Sven Mattsson. In addition, a new management structure is introduced and Jesper Martinsson is appointed chief operating officer.

Oriflame Cosmetics has a long history of profitable growth. However, during its first year on the Stockholm Exchange, the company has not lived up to the expectations of the board of directors. At the same time, the development in the Oriflame markets require new leadership.

"For the last eight years, Magnus has been responsible for Oriflame's key markets in Russia and the CIS region (Commonwealth of Independent States), where he has raised sales from € 88 million to over € 330 million on an annual basis.

The experience he has gained making Oriflame one of the leading cosmetics brands in Russia makes him well suited to lead and invigorate efforts to strengthen our business", says Robert af Jochnick, chairman of the board.

"With the new management team, the board is confident that Oriflame has the right prerequisites to build on the operations that have been successful for many years and which in 2004 generated growth of approximately 10 per cent in local currency and the company's best results ever, including an after-tax profit of € 79.6 million."

"I feel very positive about the appointment of Magnus Brannstrom as CEO, and so did the financial markets this morning. Magnus has been regionally responsible for CIS & Asia for the last 5 years, so he has an in-depth knowledge about India and other countries in the region", says Thomas Ekberg, Regional Manager Asia

Magnus Brännström, 38, has been employed by Oriflame Cosmetics since 1997. Since 2001, he has served as Regional Director for CIS and Asia, prior to which he was managing director for Russia and Regional Director for CIS. Before joining Oriflame, Magnus was responsible for exports for the Swedish brewer Spendrups.

The current Regional Director for Western Europe, Central Europe and the Mediterranean, Jesper Martinsson, has been appointed to the new position of Chief Operating Officer (COO) with responsibility for all established markets. Jesper Martinsson has been employed by Oriflame since 1997.

Sven Mattsson will leave his position with immediate effect but remain with company during a transition period and will, among other things, assist with Oriflame's start-up preparations in China.

"Sven has contributed greatly to building Oriflame Cosmetics into what it is today. He has during his 17 years in leading positions, among other things, been responsible for starting up operations in 35 countries", says Jochnick. "We are very grateful for Sven's efforts, strong loyalty and his irrepressible enthusiasm and energy."

"I am both proud and happy to hand over to two of my colleagues after five years as CEO. I am now taking my responsibility as we have not lived up to the market's expectations, but I will continue to follow and support the company as a large shareholder", says Sven Mattsson. Mattsson will also step down from the Board of Directors of Oriflame Cosmetics.

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