Disposal

GUS PLC
28 October 2005

28 October 2005

                                    GUS plc

     Disposal of Wehkamp, its last remaining home shopping business

GUS plc, the retail and business services group, today announces the disposal of
Wehkamp, its last remaining home shopping business.

Wehkamp will be sold for about €390m (£265m) to Industri Kapital, a private
equity firm. Completion is expected in December, subject to European Union
regulatory approval. The cash proceeds receivable on completion will be used to
pay down debt.

Wehkamp, the leading home shopping brand in Holland, generated sales of €326m
(£222m) and operating profit of €33.0m (£22.5m) under IFRS in the year to 31
March 2005.

The net book value of assets at the date of completion will be approximately
€340m (£230m). GUS therefore expects to realise a gain, after costs, of about
€35m (£25m) on the transaction, which will be booked in the second half of the
current financial year.

John Peace, Group Chief Executive of GUS, commented:

'This sale leaves Argos Retail Group focused solely on general merchandise
retailing in the UK and Ireland. We believe that the transaction is in the best
interests of GUS and of the customers and employees of Wehkamp and we wish them
well for the future.'

Enquiries

GUS
Richard Ashton     Finance Director, Argos Retail Group         020 7495 0070
Stuart Ford        Investor Relations Manager

Finsbury
Rupert Younger                                                  020 7251 3801

GUS announcements are available on its website, www.gusplc.com.

Certain statements made in this announcement are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual events or results to differ
materially from any expected future events or results referred to in these
forward looking statements.



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