First Half Trading Update

GUS PLC
11 October 2001


                                                               11 October 2001


                                   GUS plc

                          FIRST HALF TRADING UPDATE


GUS plc, the retail and business services group, today issues its regular
update on trading in its main businesses.

John Peace, Group Chief Executive of GUS, said:

'GUS has made good progress in the first half. Argos has been particularly
strong, achieving 13% like-for-like sales growth.

The terrible events of 11 September in the United States have made the
economic outlook more uncertain. While it is clearly too early to assess the
full impact of these events on Experian North America and Burberry, we expect
that Argos Retail Group and Experian International will continue to make
progress.

We expect to be in a better position to update the market on trading in the
affected businesses at our interim results announcement on 29 November 2001.'



Experian

% change in sales year on year for the six months to 30 September 2001

                                                               %
                                                          Total     Underlying*

Global Experian                                              10               4

Experian UK                                                  14              11
Experian Rest of World                                       12              11
Experian International                                       13              11

Experian North America                                        8               1

*     Underlying sales growth excludes acquisitions and divestments and is at
      constant exchange rates.



Experian's worldwide sales for the first half showed a 4% underlying increase.

Experian International, which accounts for over one third of worldwide sales,
has continued to deliver double-digit sales growth during the first half in
both the UK and Rest of World. Sales were up by 11% on an underlying basis in
both regions.


Sales at Experian North America for the five months to the end of August were
up 4% on an underlying basis. This was in line with the trends of the second
half of last year. Information Solutions was up by 4% and Marketing Solutions
up by 5%.

However, sales in September were adversely impacted by the terrorist attacks
in the US, such that the underlying growth rate for sales in the first half as
a whole was reduced to 1%. Underlying sales in Information Solutions were up
by 2% and were unchanged in Marketing Solutions in the six month period.

The sales shortfall in September has negatively affected profits in the first
half from Experian North America's managed businesses. However, this has been
partly offset by the strength of FARES, its real estate information joint
venture, which had an excellent first half.

As part of the new management team's programme to increase efficiency, 340
redundancies (over 5% of the workforce) were made in July and August at a cost
of $5m, giving annualised savings of $18m.

It is too soon to assess fully the effect of recent events on Experian North
America, especially on its clients' planned spending on marketing activities.
However, activity in Information Solutions, which contributes nearly 60% of
sales, appears to be returning towards more normal levels.



Argos Retail Group

% change in sales year on year for the six months to 30 September 2001

                                                                        %

Argos*                                        -     total              17
                                              -     like-for-like      13

UK Home Shopping                                                       -3

*     These figures exclude the impact of Argos Additions and jungle.com.



Argos Retail Group has continued to benefit from strong consumer demand in its
markets in the half year.

Sales at Argos, including Argos Additions and jungle.com, increased by 24%
over the same period last year. Excluding Argos Additions and jungle, Argos'
sales grew by 17%, or by 13% on a like-for-like basis. Sales were particularly
strong in furniture, electricals, consumer electronics and white goods. Gross
margins remained firm.

Argos Direct, the delivery to home operation, traded strongly, accounting for
16% of total sales, up from 14% in the comparable period.

Sales at UK Home Shopping for the half year were 3% lower than last year.
Average spend per customer grew as the business focused on its more profitable
customers. Gross margins were broadly maintained.

Progress continues to be made on other initiatives at Argos Retail Group:

  * Argos Additions has achieved sales in line with expectations at £63m in
    the half year, following national rollout in January 2001;
  * at the end of September, the number of Argos store card customers had
    grown to 350,000, following the card's national launch in January of this
    year; and
  * e-commerce sales excluding jungle.com were £53m, three times the level
    of sales in the comparable period last year.



Reality

In the six months to 30 September 2001, sales to external customers were up by
7%. Continued expansion of demand for logistics and call centre services has
been offset by much reduced web design activity and by a withdrawal from some
peripheral activities, such as vehicle engineering.



Burberry

% change in sales year on year for the six months to 30 September 2001
                                                                           %
Total (including Spain)                                                   28
Underlying (excluding Spain)*                                             31


    *     Underlying sales growth is at constant exchange rates and excludes
    Burberry Spain, which was acquired on 30 June 2000, and discontinued
    Wholesale activities.



In the first half of the year, underlying sales at Burberry increased by 31%
over the same period last year. This reflected substantial growth in
deliveries of Autumn/Winter product to Wholesale customers. Sales in
Burberry's retail stores increased by 10% at constant exchange rates.

Burberry Spain, which was acquired on 30 June 2000, delivers its Autumn/Winter
range to wholesale customers from July to early October. Sales for this period
were about 3% ahead of last year. Burberry volumes in Japan were up strongly
in the first half.

As with other luxury goods companies, the events of September 11 are affecting
Burberry. In the period from September 11 to September 30, sales in Burberry's
retail stores (which account for about one third of reported annual sales)
were down 15% on last year at constant exchange rates and on a weakening
trend.

Although the decline in travel and tourism is impacting the luxury sector as a
whole, we expect domestic demand in Japan and Spain, which together account
for about two-thirds of Burberry's worldwide sales at retail value, to be less
affected.

It remains the Group's intention to arrange a partial IPO for Burberry by June
2002, subject to market conditions.



Future announcements

There will be an Argos Retail Group seminar on 16 October 2001. GUS will
announce its interim results on 29 November 2001. The Third Quarter Trading
Update will be on 14 January 2002.



Enquiries:

GUS      David Tyler       Finance Director          Tel: [phone]
         Fay Dodds         Investor Relations

Finsbury Rupert Younger                              Tel: [phone]
         Rollo Head


The announcement is also available on the GUS web site www.gusplc.com