Demerger of Burberry

Burberry Group PLC
17 November 2005

                                                                17 November 2005


                                   BURBERRY GROUP PLC

                                  DEMERGER OF BURBERRY

Further to the announcement this morning by GUS plc ('GUS'), setting out details
of its plans to demerge its remaining 65 per cent. stake in Burberry Group plc
('Burberry' or the 'Group') by way of a dividend in specie, Burberry will post
shortly a circular to shareholders setting out further details of the
arrangements with respect to the proposed demerger.

Burberry will propose a series of resolutions to its shareholders, which the
independent directors* of Burberry believe would, if passed, allow the demerger
to be implemented in a more orderly way, to the benefit of the Group and its
shareholders.  Matters to be considered include approval of a demerger agreement
between Burberry and GUS relating to such issues as pension liabilities,
taxation and transaction expenses.  Accordingly, the demerger is subject to
shareholder approval from both Burberry shareholders and GUS shareholders.

Burberry will convene an extraordinary general meeting of shareholders on 12
December 2005 to consider the resolutions.

The expected timetable of principal events is set out below.
                                                                                                        2005

Latest time and date for the receipt of forms of proxy                              9.00 a.m. on 10 December
for the Burberry extraordinary general meeting
Burberry extraordinary general meeting                                              9.00 a.m. on 12 December
GUS extraordinary general meeting                                                  10.30 a.m. on 12 December
Record time                                                                         7.00 a.m. on 13 December
Expected completion of demerger and, where applicable, expected date on             8.00 a.m. on 13 December
which Burberry ordinary shares will be credited to the CREST accounts of
GUS shareholders
Expected date by which, where applicable, definitive share certificates                          23 December
for Burberry ordinary shares will be despatched to GUS shareholders

Enquiries:


BURBERRY                                                                   Telephone: [phone]
John Scaramuzza

BRUNSWICK                                                                 Telephone: + 44 (0)20 7404 5959
Susan Gilchrist
Robert Gardener
Alexandra Tweed



Information on Burberry Group plc



Burberry is an internationally recognised luxury goods brand.  It is engaged in
the design, manufacture and distribution of Burberry products worldwide,
including men's and women's clothing, accessories and fragrances through its own
retail stores and via its wholesale customers.  Burberry also licenses third
parties to manufacture and distribute products using the 'Burberry' brand.

The current executive directors of Burberry are Rose Marie Bravo, Chief
Executive and Stacey Cartwright, Chief Financial Officer.

For the year to 31 March 2005, under UK GAAP, Burberry reported turnover of
£715m and profit on ordinary activities before tax of £164.4m.  As at 31 March
2005, Burberry had consolidated gross assets of £682.2m and consolidated net
assets of £454.6m, again under UK GAAP.  This financial information is extracted
from the audited accounts for Burberry for the year to 31 March 2005.

In the six months to 30 September 2005, under IFRS, Burberry reported turnover
of £355m and profit before taxation of £78.1m.  As at 30 September 2005,
Burberry had consolidated gross assets of £673.1m and consolidated net assets of
£462.2m, again under IFRS.  This financial information is extracted from the
unaudited interim financial statements for Burberry for the six months to 30
September 2005.

Merrill Lynch International ('Merrill Lynch') and Morgan Stanley & Co.
International Limited ('Morgan Stanley') are acting for Burberry in connection
with the demerger and no one else and will not be responsible to anyone other
than Burberry for providing the protections afforded to clients of Merrill Lynch
or Morgan Stanley or for providing advice in relation to the demerger or any
other matters referred to in this announcement.

The Burberry ordinary shares have not been and will not be registered under the
US Securities Act of 1933, as amended (the 'Securities Act'), and may not be
offered or sold in the United States unless such shares have been registered
under the Securities Act, or are offered and sold pursuant to an exemption from
the registration requirements of the Securities Act or in a transaction not
subject to the registration requirements of the Securities Act.



*The independent directors being all of the directors of Burberry other than
John Peace and David Tyler (who are also directors of GUS and therefore were not
involved in the Burberry Board's consideration of matters relating to the
demerger).



END




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