Offer Update

D.F.S. Furniture Company PLC
16 August 2004


OFFER UPDATE

DFS Furniture Company plc

FOR IMMEDIATE RELEASE

16 August 2004

                             Recommended Proposals

                             for the acquisition of

                           DFS Furniture Company plc

                                     by

                          Full Circle Future Limited


Posting of Scheme Circular

The Independent Directors of DFS announce that on 6 August 2004 the High Court of Justice
of England and Wales (the 'Court') made an Order, in connection with the proposed
scheme of arrangement pursuant to section 425 of the Companies Act between DFS and the DFS
Scheme Shareholders (the 'Scheme'), that DFS may convene a Court Meeting for 11.00 a.m.
on 7 September 2004 of DFS Independent Shareholders for the purpose of considering and, if
thought fit, approving the Scheme of Arrangement. An extraordinary general meeting of DFS
has been convened for 11.15 a.m. on the same day (or as soon thereafter as the Court Meeting
has concluded or been adjourned).

As described in the Scheme Circular (as defined below), the Scheme will require the approval
of DFS Independent Shareholders at the Court Meeting, and the passing of a special resolution
by DFS Shareholders at the DFS EGM. The Scheme and associated Capital Reduction will
also require the subsequent sanction and (as the case may be) confirmation of the Court.

Both Meetings will be held at The Manor II Suite, Doncaster Moat House Hotel,
Warmsworth, Doncaster, South Yorkshire DN4 9UX.

The Scheme circular containing, inter alia, the terms of the Scheme, an Explanatory Statement
(pursuant to section 426 of the Companies Act 1985), notices of the Meetings, a timetable of
principal events, and details of the action to be taken by DFS Shareholders was posted to all
DFS Shareholders and, for information only, to participants in the DFS Share Option Schemes
on 14 August 2004 (the 'Scheme Circular').

Expected timetable of principal events:

Latest time for lodging blue Forms of Proxy for the Court Meeting               11.00 a.m. on 5 September 2004

Latest time for lodging pink Forms of Proxy for the DFS EGM                     11.15 a.m. on 5 September 2004

Voting Record Time                                                              6:00 p.m. on 5 September 2004

Court Meeting                                                                   11.00 a.m. on 7 September 2004

DFS EGM                                                                         11.15 a.m. on 7 September 2004

Last day of dealing in DFS Shares                                               23 September 2004 *

Initial Hearing Date (to sanction the Scheme)                                   24 September 2004 *

Latest time for lodging green Form of Election                                  3:00 p.m. on 24 September 2004

Reclassification Record Time                                                    5.30 p.m. on 27 September 2004 *

Scheme Record Time                                                              6.00 p.m. on 27 September 2004 *

Final Hearing Date (to confirm the Capital Reduction)                           28 September 2004 *

Effective Date of the Scheme                                                    29 September 2004 *

Delisting of DFS Shares                                                         1 October 2004 *

Latest date for despatch of cheques and the PE Certificates evidencing 
the Primback Entitlement Units                                                  13 October 2004 *


* These dates are indicative only and will depend, amongst other things, on the dates upon
which the Court sanctions the Scheme and the associated Capital Reduction and whether the Conditions are either 
satisfied or waived.

UK Listing Authority Viewing Facility

Two copies of the Scheme Circular have been submitted to the UK Listing Authority
and are available for inspection at the UK Listing Authority's Document Viewing Facility which is
situated at:

The Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Tel: [phone]

Enquiries:

Full Circle
Tel:  [phone]
Graham Kirkham
Jon Massey

Hawkpoint (Joint financial adviser to Full Circle)
Tel:  [phone]
Paul Baines
Ben Mingay

Nomura (Joint financial adviser to Full Circle)
Tel:  [phone]
Gary Wilder
Jagdeep Kapoor

Teather & Greenwood (Broker to Full Circle)
Tel:  [phone]
Christopher Hardie
Adam Pollock (Sales)

Tulchan Communications (PR adviser to Full Circle)
Tel:  [phone]
Andrew Grant
Kirstie Hamilton

Jacobs Capital (Adviser to Full Circle)
Tel:  [phone]
Alan Jacobs

Citigroup (Financial Adviser to DFS)
Tel:  [phone]
William Barter
Mark Todd

Deutsche Bank (Broker to DFS)
Tel:  [phone]
Charles Wilkinson
Rupert Green

Hudson Sandler (PR adviser to DFS)
Tel:  [phone]
Alistair Mackinnon-Musson
Philip Dennis

keithhann.com (PR adviser to DFS)
Tel:  [phone]
Keith Hann

Hawkpoint, Nomura and Teather & Greenwood, each of which is authorised and regulated in the United Kingdom by the 
Financial Services Authority, are acting exclusively for Full Circle and no one else in connection with the Proposals 
and will not be responsible to anyone other than Full Circle for providing the protections afforded to their respective 
clients or for providing advice in relation to the Proposals or in relation to the contents of this announcement or any 
transaction or arrangement referred to herein.

Citigroup and Deutsche Bank, each of which is authorised and regulated in the United Kingdom by the Financial Services 
Authority, are acting exclusively for DFS and no one else in connection with the Proposals and will not be responsible 
to anyone other than DFS for providing the protections afforded to their respective clients or for providing advice in 
relation to the Proposals or in relation to the contents of this announcement or any transaction or arrangement referred
to herein.


The Independent Directors of DFS accept responsibility for the information contained in this announcement and, to the 
best of their knowledge and belief (having taken all reasonable care to ensure that such is the case), the information 
contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of
such information.

Any term used but not defined in this announcement is as defined in the Scheme Circular.






- ENDS -


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