Holding in Company

D.F.S. Furniture Company PLC
2 November 2001

                  DEALINGS BY SUBSTANTIAL SHAREHOLDERS


1)   NAME OF COMPANY

     DFS FURNITURE COMPANY PLC

2)   NAME OF SHAREHOLDER HAVING A MAJOR INTEREST

     HSBC INVESTMENT BANK PLC

3)   Please state whether notification indicates that it is in respect of 
     holding of the Shareholder named in 2 above or in respect of a 
     non-beneficial interest or in the case of an individual holder if it is a
     holding of that person's spouse or children under the age of 18



4)   Name of the registered holder(s) and, if more than one holder, the 
     number of shares held by each of them.

     SEE LIST BELOW

5)   Number of shares/amount of stock acquired.

     N/A

6)   ( N/A %) of issued Class

7)   Number of shares/amount of stock disposed

     N/A

8)   ( N/A %) of issued Class

9)   Class of security

     5P ORDINARY SHARES

10)  Date of transaction

     NOT KNOWN

11)  Date company informed

     1.11.01

12)  Total holding following this notification

     3,517,378
               
13)  Total percentage holding of issued class following this notification

     3.35%

14)  Any additional information

     N/A

15)  Name of contact and telephone number for queries

     B.TODHUNTER 01302 330365

16)  Name and signature of authorised company official responsible for 
     making this notification

     Date of Notification ..2 NOVEMBER 2001......................


LETTER TO DFS FURNITURE DATED 1 NOVEMBER 2001


Part VI Companies Act 1985

We hereby notify you in accordance with Part VI Companies Act 1985 ('the Act') 
that HSBC Investment Bank plc was as at close of business on 30 October 2001 
interested in 3,517,378 ordinary shares of D.F.S. Furniture ('the Shares'). Of 
these interests, 2,567,378 were interests of a kind described in S.208(5) of the
Act. We further notify you that on 31 October 2001, 3,367,517 represented 
interests of a kind described in S.208(5) of the Act.

Schedule 1 to this letter details, where known the identity of each registered 
holder to which this notification relates.

HSBC Investment Bank Holdings plc as HSBC Investment Bank plc's parent and HSBC 
Holdings plc, our ultimate parent company, were also interested.

LETTER FROM HSBC Investment Bank plc

                                 Schedule 1

Schedule of known registered holders of D.F.S. Furniture ordinary shares as at 
the close of business on 31 October 2001.

James Capel (Nominees) Limited                    2,000 
James Capel (Nominees) Limited - COL              119,861 
James Capel (Nominees) Limited - SPEC             30,000 
James Capel (Nominees) Limited - CHRAS            2,000

Unknown                                           3,363,517 

TOTAL                                             3,517,378