Trading Statement

Brown (N.) Group PLC
23 January 2003

                                                                 23 January 2003


                    N Brown Group - Christmas Trading Update


N Brown Group plc, the Manchester based home shopping, fulfilment and financial
services company, today announces a trading update for the twenty-week period
ended 18 January 2003.

Overall both group and home shopping turnover are 1% up on the same period last
year.

Home shopping sales from the main Autumn/Winter catalogues have continued the
disappointing trend referred to in our interim results announcement last
October.  To counter this we increased our marketing investment to create
additional catalogues and brochures and undertook more promotional activity.
This produced some positive results but was insufficient to offset the shortfall
in catalogue demand and it has also  impacted the net margin. Recruitment of new
customers has also been below the level expected.

Demand has been strongest from our newer titles such as Simply Be and Home
Essentials, which grew by 24% and 98% respectively but sales to our core, and
more profitable, mid-life customers have fallen by 3%.  New ranges of ladies
fashion and electricals in Autumn/Winter have performed very strongly but sales
of the traditional ranges of clothing and footwear have been below our
expectations. This mix of sales is likely to result in a 0.8% decline in our
full year home shopping gross margin rate against last year.

Additionally, in view of an estimated current funding deficit of £10m in the
group's pension fund, the Board has authorised supplementary pension
contributions of up to £1m per annum until such time as equity values recover.
This extra cost, together with the mix of sales and higher investment in
marketing, means that the Board now expects the group pre-tax profits for the
year to be approximately 5% below last year.

We launched our enlarged Spring/Summer 2003 catalogues at the beginning of
January and at this early stage they are performing in line with our
expectations.  We have continued to manage our stock levels carefully in
difficult trading conditions such that they are currently 2% below last year.

The trading performance in the second half strengthens our belief that our
decision to develop more fashionable ranges for all age groups, and refresh
those ranges more frequently, will drive growth and allow us to compete more
effectively against High Street retailers.

Zendor and First Financial, our fulfilment and financial services divisions,
continue to perform according to plan.

Alan White, Chief Executive, said:

'Whilst the trading environment throughout the Autumn continued to be difficult,
we are taking a number of steps to improve our sales.  We will provide more
fashionable ranges for all age groups and refresh the offer more frequently,
which will continue to increase our market share in home shopping and enhance
our position against the High Street competitors.'

'We remain confident about the group's long-term prospects and continue to
review every opportunity to develop our existing businesses'.

N Brown Group plc will be announcing its preliminary results for the year to 1
March 2003 on 15 May 2003.



For further information please contact:

N Brown Group plc                                         Tel: [phone]
Alan White, Chief Executive
Tim Kowalski, Finance Director

Gavin Anderson & Company                                  Tel: [phone]
Neil Bennett/Charlotte Stone

Website address: www.nbrown.co.uk



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