AGM Statements

MFI FURNITURE GROUP PLC 
23 September 1999


MFI  Furniture Group Plc, the UK's largest retailer and manufacturer
of kitchen and bedroom furniture, will today hold its Annual General
Meeting  at  11.00am  at the Chartered Accountants'  Hall,  Moorgate
Place, London EC2.  Prior to the formal business of today's meeting,
Derek  Hunt, Chairman and John Hancock, Chief Executive will  inform
shareholders of progress in the business.

The  full text of their statements to be made at the Annual  General
Meeting are as follows.

Derek Hunt will state :
At  the  time of our preliminary results announcement on 9 July,  we
said  that trading in the ten weeks since the start of our financial
year  on  25 April was disappointing.  UK retail sales orders  on  a
like  for like basis for continuing products were running 12%  below
the  previous  year.  Overall,  group sales  excluding  discontinued
products were running 4% down on the previous year.

Since  then  there  has been some improvement and  UK  retail  sales
orders for continuing products are 7% down in the first 21 weeks  of
the  financial year compared to the same period last year.  UK trade
sales are 55.8% up which is a like for like increase of 23.9%.  This
fully  justifies  our  decision to accelerate  the  UK  trade  store
opening  programme.  Sales in France and Spain are 14.7% up,  which,
on  a  like  for  like basis, is a pleasing 12% up.   Overall  group
turnover in the first 21 weeks of the financial year on a continuing
basis  is  now  level  with  last  year  and  the  margin  is  being
maintained.

Although  cautioned by the recent rise in interest rates, there  are
still  many  things  that we can do to improve  the  efficiency  and
underlying  performance of the business.  In particular,  there  are
benefits  to  be  gained by further integrating  the  manufacturing,
distribution  and retail divisions as one company.  In  addition  to
the measures we are taking there are some signs to indicate that  we
are  now  beginning to see the benefit of the recent improvement  in
the  housing market.  John Hancock will now tell you more about this
and his other objectives.

John Hancock will state :
In  my  report to shareholders that starts on page 4 of  the  annual
report  I  referred to 4 main issues - the management team,  product
development,  the need to re-focus the culture of  the  company  and
disposals.   I  would  now like to bring you up  to  date  with  the
progress  that  has  been made.  Firstly I  indicated  the  plan  to
strengthen  the  board in a number of areas to enhance  the  board's
ability  to run the group as a single company.  As you know, Michael
Williamson was appointed to the board last month to take on the role
of finance director. I am pleased to announce that Gordon Macdonald,
previously director of human resources development at Safeway,  will
be joining the MFI board as group services director. In the next few
days,  Mark Horgan formerly franchise director of Mars Confectionery
Europe  will  also be joining us as group marketing  director.  They
will  also serve on the group management executive board, the  small
team  responsible  for  managing and developing  the  group  as  one
business.

The  new  team  is in place and is fully committed to  a  vertically
integrated manufacturing / distribution / retail group.  However, we
all  recognise that, in order to maximise the benefits that this can
provide,  we  must change the culture of the group so that  it  runs
effectively  as one company.  This process has already  started  and
although  it will take time we will, in due course, see the benefits
of  improved  service to our customers and reduced costs.   We  have
continued  to  monitor the distribution system and  have  identified
several  measures that can be introduced in the next  2  years  that
will both improve efficiency and reduce costs.

Our  aggressive product development programme is continuing on  time
and  within budget.  I am pleased to report that most of the  6  new
kitchen  ranges  are  significantly outperforming  the  ranges  they
replaced.  The new home to office range of home office furniture has
been  very  well  received and although it is still  early  days  it
clearly  vindicates  our  decision to make  a  major  investment  in
product  development despite difficult market conditions.   All  the
remaining new product will be fitted in all our 186 stores  in  time
for the start of the winter sale.

In  the  annual  report I told shareholders that  we  were  actively
seeking new routes to market and to increase the utilisation of  our
manufacturing capacity.  In August we launched the MFI website  with
on-line  shopping for some of our products and we are continuing  to
look for other opportunities.

In  July  we reported that, following a revaluation, the group's  UK
freehold  and  long leasehold properties had been valued  at  £300m.
Since  then,  we  have  sold one home delivery  centre  and  are  in
negotiation to sell 3 others which together with 2 others yet to  be
sold  will,  when completed, generate about £25m.  Over the  last  2
weeks we have received offers, subject to contract, for MFI to  sell
and  then  lease back some of our retail properties  for  a  sum  in
excess of £100m.  This completes the property disposal programme and
will enable us to continue the momentum to focus on the objective of
improving  the performance of the core business.  It also  gives  us
greater  freedom  to concentrate our efforts to enhance  shareholder
value.

For further information contact:

Derek Hunt, Chairman - Tel.  [phone]
John Hancock, Chief Executive - Tel.  [phone]
Michael Williamson, Finance Director - Tel.  [phone]
Charlotte Elston, Brunswick - Tel.  [phone]