Financial News

GUS PLC BURBERRY PARTIAL IPO

29 MAY 2002

(Not for distribution in the United States, Canada, Australia or Japan)

GUS plc, the retail and business services group, is pleased to confirm that it plans to arrange a partial IPO for Burberry, its international luxury brand, in the coming weeks.

Reasons for an IPO
As previously set out:

• A partial IPO will establish a market value for Burberry for GUS shareholders
  
• It is a further step in focusing GUS on fewer activities
  
• It will give Burberry its own currency for growth
  
• It will build on the strong business and financial momentum within Burberry that has seen operating profits grow from £10.7m in 1999 to today's reported figure of £90.3m

Timetable
Subject to market conditions, the anticipated timetable is shown below:

John Peace, Chief Executive of GUS plc, commented:

"The plan to float part of Burberry is an important step in the strategic focusing of GUS. Through the retention of a majority stake in the business, GUS shareholders will benefit from Burberry's future growth potential while giving new investors the opportunity to participate directly in this exciting company."

Rose Marie Bravo, Chief Executive of Burberry, commented:

"Burberry is a distinctive luxury brand with a unique heritage and global recognition. The strategy we have implemented over the past few years has transformed the business. We have established a strong platform for future growth through expanding our product ranges, strengthening control of our distribution channels and expanding our geographic reach. The planned IPO gives us the opportunity to share our vision for Burberry with a wider community."

Burberry intends to list on the London Stock Exchange. The listing is expected to be effected by way of an institutional offer in the UK and internationally. Joint sponsors and joint lead managers to the Offer are Merrill Lynch and Morgan Stanley. Cazenove and UBS Warburg are acting as co-lead managers.

Enquiries

The information contained herein is not for publication or distribution to persons in the United States. This announcement does not constitute an offer of securities for sale in the United States, Canada, Australia or Japan. Shares in the Burberry Group will not be registered under the US Securities Act of 1933 and will not be offered or sold in the United States absent registration or an exemption from registration. No public offering of securities will be made in the United States.

This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any GUS plc or Burberry Group shares. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

Stabilisation/FSA

Notes to editors:

Management

Rose Marie Bravo - Chief Executive
Michael Metcalf - COO & CFO
Thomas O'Neill - President

Christopher Bailey - Design Director

History

Store portfolio

At March 2002, Burberry had 69 directly-operated retail stores and concessions worldwide. Burberry also sells products through leading specialty retailers worldwide.

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