Burberry IPO Price

GUS PLC
11 July 2002

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



                                                                    11 July 2002



                               BURBERRY GROUP PLC

                 ANNOUNCEMENT OF OFFER PRICE OF 230P PER SHARE



Burberry Group plc (Burberry) today announces an offer price of 230p per share
for its initial public offering. At this price, the company will have a market
capitalisation of £1.15bn.

Rose Marie Bravo, Chief Executive of Burberry, commented:

'We are pleased with the response to the partial flotation of Burberry in such
challenging stock market conditions.

Burberry has strong business momentum with multiple growth opportunities by
product, channel and region. We look forward to creating further value for both
our new and existing shareholders.'



Additional information

The number of shares in issue at listing (prior to any exercise of the
over-allotment option) will be 500,000,000. 112,359,600 new ordinary shares have
been allocated to institutions and other individuals under the Global Offer,
representing 22.5% of the issued share capital of Burberry. In addition,
Burberry has granted Merrill Lynch International, as stabilisation manager, an
over-allotment option for 30 days to purchase up to a further 16,853,940 new
ordinary shares to meet over-allotments, if any, in connection with the Global
Offer.

The shares will be listed on the London Stock Exchange under the symbol BRBY.L.
Conditional dealings are expected to commence at 8am tomorrow on the London
Stock Exchange. Admission to the Official List of the UK Listing Authority and
commencement of unconditional dealings are expected to take place on 18 July
2002.

GUS plc (GUS), which retains a 77.5% stake in Burberry (assuming no exercise of
the over-allotment option), has agreed not to dispose of any additional shares
in Burberry for a period of at least 180 days following Admission of the
Burberry shares to the London Stock Exchange.

The net proceeds of the offer will be used by Burberry to repay in part
inter-company borrowings from GUS, leaving Burberry with a net cash balance of
approximately £10m. GUS will use the proceeds from Burberry to repay short-term
bank borrowings.



Enquiries

Burberry
Rose Marie Bravo                 Chief Executive                   0207 968 0000

Mike Metcalf                     CFO and COO

Matt McEvoy                      Investor Relations

GUS
John Peace                       Group Chief Executive             0207 495 0070

Fay Dodds                        IR Director

Finsbury
James Murgatroyd                                                   0207 251 3801

Abigail Wyatt

Merrill Lynch
Bob Wigley                       Investment Banking                0207 628 1000

Rupert Hume-Kendall              Equity Capital Markets

Morgan Stanley
Vanessa Whyte                    Global Retail and Luxury Goods    0207 425 5000
                                 Group
John Porter                      Equity Capital Markets



This announcement does not constitute or form part of an offer, or solicitation
of an offer to purchase or subscribe for any GUS plc or Burberry Group plc
shares. Prices and values of, and income from, shares may go down as well as up.
Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser. Stabilisation/FSA.

This announcement is not for publication, distribution or release in the United
States, Canada, Australia or Japan. This announcement does not constitute or
form part of an offer or solicitation of an offer to purchase or subscribe for
securities in the United States, Canada, Australia or Japan.

Shares in Burberry Group plc have not been and will not be registered under the
US Securities Act of 1933 as amended and have not and will not be offered or
sold in the United States absent registration or an exemption from registration.
No public offering of securities is being made in the United States.

The contents of this announcement, which has been prepared by and is the sole
responsibility of Burberry Group plc, has been approved by Merrill Lynch
International and Morgan Stanley & Co. International Limited solely for the
purposes of section 21 of the Financial Services and Markets Act 2000. Merrill
Lynch International and Morgan Stanley & Co. International Limited can be
contacted as stated above.

Merrill Lynch International and Morgan Stanley & Co. International Limited are
the Joint Sponsors and Merrill Lynch International and Morgan Stanley Securities
Limited are the Joint Global Co-ordinators and Joint Bookrunners for the Global
Offer. Each of Merrill Lynch International, Morgan Stanley & Co. International
Limited and Morgan Stanley Securities Limited are acting for Burberry Group plc
and GUS plc in relation to the Global Offer and no one else and will not be
responsible to anyone other than Burberry Group plc or GUS plc for providing the
protections afforded to their respective clients, nor for providing any advice
in relation to the Global Offer, the contents of this document or any
transaction or arrangement referred to herein.



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