Statement re Pension Plans

MFI Furniture Group PLC
14 March 2005


14th March 2005


                           MFI Furniture Group Plc

                      Statement regarding Pension Plans


Further to the announcement issued in May 2004 in relation to errors arising in
the UK pension plans, MFI Furniture Group Plc is pleased to announce that a £12
million settlement has been agreed with one of the third parties on whose advice
the Group and the Trustees of the plans relied.


The Board of MFI Furniture Group Plc continues to take advice and consider with
the Trustees the actions required to obtain recovery, if material, from any
other third parties in relation to the remaining deficit in the pension plans.
In the context of the triennial valuations taking place in April 2005, the Board
will also be discussing with the Trustees further ways of addressing the deficit
and establishing the future level of contributions.


Enquires


Gerard Hughes, Company Secretary                             020 8200 8000


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