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 København V. 

For any further information, please
contact:
Karl Kristian Hvidt Nielsen, President/CEO, at +45 9684 5004