Purchase of Focus stores

Home Retail Group Plc
11 October 2007

11 October 2007


                             Home Retail Group plc

                   Purchase of 27 Focus DIY store properties

Home Retail Group plc, the UK's leading home and general merchandise retailer,
announces that it has today signed a contract for the purchase of 27 leasehold
properties from Focus DIY. The purchase price being paid is £40m in cash.

The properties are expected to be transferred over the period up to 31 December
2007 and will then be re-fitted to the Homebase fascia over the course of
several months in readiness for the peak Spring period. No other infrastructure
and no merchandise stock are being acquired as part of the transaction. The
re-fit capital investment is expected to amount to approximately £30m. There
will also be an amount of transitional operating costs incurred from date of
transfer to commencement of trading the properties. The current estimate of the
level of these costs to be incurred in the second half of this financial year is
approximately £15m.

Commenting on the purchase, Terry Duddy, Chief Executive of Home Retail Group,
said:

'The purchase of these properties enables us to accelerate Homebase's opening
programme and the ongoing management of our store portfolio. The acquired
properties will be refitted and remerchandised with the broader Homebase offer,
as we continue to position the business as the UK's leading home enhancement
retailer.'


Enquiries

Analysts and investors (Home Retail Group)

Richard Ashton             Finance Director             01908 600 291
Stuart Ford                Head of Investor Relations

Media (Finsbury)

Rollo Head                                              020 7251 3801


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