The management of Bang & Olufsen is rolling out an overall strategy plan for
 the Group's future development and operations.
 The aim of the strategy plan is to make sure that Bang & Olufsen:
 1. Focuses on product development in order for Bang & Olufsen to concentrate
 on fewer product categories, i.e. primarily audio and video products.
 2. Builds one common digital technology platform as the future technological
 foundation for the Group's products across its product portfolio.
 3. Ensures more effective support for, and development of, Bang & Olufsen's
 dealer network by creating one general global sales organisation.
 4. Increases the number of shops in growth markets.
 5. Adjusts costs by DKK 160 million to achieve short-term profitability.
 6. Appoints a new management team for the Group.

 1. Focus on product development: Bang & Olufsen will focus on the development
 of audio and video products as well as sound systems for cars. These areas have
 traditionally driven the Group's activities and have been its most important
 turnover generator as well as contributing to the creation of the unique Bang &
 Olufsen brand across the world.

 Bang & Olufsen, therefore, will no longer develop products within categories
 such as mobile telephony, mp3 players and stand-alone systems like DVD2 and
 HDR2. The Group will also cease its involvement with new co-branded products.
 Existing products will, of course, continue to be fully supported.
 Instead, focus will be on reinforcing the Group's unique brand through the
 creation of innovative high quality audio and video products as well as sound
 systems for the automotive industry. The forthcoming digital audio product,
 scheduled for launch in November, is an excellent example of one such
 innovative product.

 With the BeoLiving concept, Bang & Olufsen offers an unrivalled concept in
 terms of total solutions for sound and picture and other technical
 installations in the home. The Group intends to develop and refine this concept
 even further into real Home Integration. This will allow users, through their
 Bang & Olufsen remote control, to control everything from sound and picture to
 curtains and air-conditioning etc, an area that is showing considerable growth
 around the world. As a natural progression, Bang & Olufsen also intends to
 focus more on solutions and products adapted to individual customers'
 requirements.
 The management will also maintain the successful development of exclusive sound
 systems for cars. Sales of these systems are seeing a highly positive
 development and have reached a stage where management regards the segment as
 part of the Group's core business.
 

 2. Build a common, digital technology platform: Through more efficient
 utilisation of existing technologies and the targetted development of one
 general, future digital technology platform, Bang & Olufsen will not only
 achieve faster, but also more efficient product development. In the course of
 two to three years, this new digital technology platform will lay the
 foundation for all newly developed Bang & Olufsen products. Until then, the
 consolidation of the current technology platforms will ensure faster and more
 efficient development of high quality products from 2009.

 3. One general global sales organisation: Bang & Olufsen will continue to
 expand its current shop concept. With immediate effect, the management will
 initiate a process aimed at creating a more efficient global sales
 organisation. Until now, the Group's seven regional sales organisations
 worldwide have operated as independent units with their own back office and
 service functions. To ensure a consistent approach and respect for the whole,
 the management is centralising global responsibilities and, as a result,
 implementing a range of efficiency measures.
 The strategy plan comprises two further main components:
 

  * The management intends to direct greater focus on the dealerships so that
 dealers with the strongest growth potential will take centre stage. Other
 dealers will also be given renewed attention when resources are available.
 There will also be focus on establishing a uniform sales system with clear
 guidelines, action plans and follow-up tools.
 * The management intends to upgrade, and, more importantly, professionalise,
 the sales system. These measures will include a further development of the
 present sales staff into an international sales team of dynamic retail
 consultants with expertise within sales promotion, based on experiences with
 the best sales promoting initiatives within the global organisation. The
 ambition is for all Bang & Olufsen shops around the world to offer their
 customers a memorable experience of sound, picture, quality, professionalism
 and service-mindedness.

  4. More shops in growth markets: The management intends to open more B1-shops
 in world markets with the strongest economic growth. Over the next two years,
 the aim is to more than double the number of B1 shops in key growth markets
 e.g. Russia and China. Other growth markets will also be subject to an
 aggressive growth policy.
 5. Cost adjustments: Bang & Olufsen is implementing a DKK 160 million cost
 reduction programme for the current financial year compared to the activities
 envisaged at the beginning of the year. The purpose is to adjust the cost level
 to the Group's new and lower turnover level of recent months. Bang & Olufsen,
 however, will remain a dynamic organisation and the Group will maintain its
 high activity levels for product development despite the adjustments.

  As part of the cost reductions, the Group has, as of today, abolished in the
 region of 300 jobs. As a result, 165 employees have been made redundant while
 the remaining positions will remain unfilled etc.
 Other elements in the savings plan include reductions in the purchase of
 external services.

 6. New management team: To secure the successful implementation of the new
 strategy plan, the Board of Directors and the Group's CEO have appointed a new
 management team which, together with the CEO, will assume responsibility for
 transforming the plan into action, rapidly, efficiently and accurately.

  Bang & Olufsen's Management Board will consist solely of President & CEO Karl
 Kristian Hvidt Nielsen who took up his position on August 1 this year.
 The management layer below the Management Board will comprise:
 * Senior Vice President, Finance & Accounting, Randi Toftlund,
 * Senior Vice President, Operations, John Bennett-Therkildsen and
 * Senior Vice President, Sales, Michael Aagaard Andersen.

  The Management team will be also be supplemented by a further two positions:
 * A high-capacity individual with expertise in international brand marketing and
 * A highly-qualified expert who can meet the challenge of taking overall charge
 of Bang & Olufsen's product development.
 Based on his qualifications and experience, President and CEO Karl Kristian
 Hvidt Nielsen will personally head up - and ensure the ongoing progress of -
 product development until the right person has been appointed.
 Seen in isolation, the strategy plan does not change Bang & Olufsen's
 expectations for the current financial year. Traditionally, the Group's
 turnover for November and December is substantially above average. This,
 combined with the recent turbulence in financial markets has increased
 uncertainties. As a result, the Group will not give an estimate for the full
 2008/09 financial year until the publication of the interim report for the half
 year on January 15, 2009.

 Karl Kristian Hvidt Nielsen
 President/CEO
 Later today, Tuesday, Bang & Olufsen will present, and comment on, the
 implemented strategy plan at a meeting for analysts and the media. The
 presentation will be in English.
 The meeting will take place at 14:00 in Bang & Olufsen's Nortern European sales
 headquarters at  Kalvebod Brygge 43, 3, DK-1560 Kobenhavn V.
 For any further information, please contact:
 Karl Kristian Hvidt Nielsen, President/CEO, at +45 9684 5004