Stabilisation Notice

GUS PLC
19 November 2003

19 November 2003

Stabilisation Notice

Dear Sirs

Placing (the 'Placing') of 50,000,000 secondary ordinary shares of 0.05 pence
each ('Shares') of Burberry Group Plc ('Burberry' or the 'Company') held by GUS
Plc ('GUS') (with an over-allotment option of up to 7,500,000 additional
ordinary shares)

Merrill Lynch International ('MLI') notifies you that it is the stabilising
manager and may conduct stabilising activities in relation to the Shares, ISIN:
GB0031743007 and in connection with the above transaction. MLI confirms the
following:


 1. The securities to be stabilised are the Shares referred to above; no other
    associated securities are subject to stabilisation;

 2. The stabilising manager is Merrill Lynch International (contact: John Millar/
    Mark Gwynne- Telephone: [phone]);

 3. The stabilisation period is expected to commence immediately and ends on 24
    December 2003 inclusive (30 days after the Closing Date);

 4. The issue price of the Shares was set on 19 November 2003 and announced on 19
    November 2003.


Stabilisation/FSA


                      This information is provided by RNS
            The company news service from the London Stock Exchange