Trading Update and New CEO

MFI Furniture Group PLC
03 October 2005

3 October 2005

                            MFI Furniture Group Plc
               Trading Update and Appointment of Chief Executive
Trading

Since our last update on 8th September, trading in the UK Retail division has
deteriorated further in a volatile market place. Net orders during this short
period show a year on year decrease of 31% on both a total basis and on a same
store basis, compared to the 15% decline reported for the previous 13 weeks on
8th September.

Howden Joinery and Hygena Cuisines continue to perform well and to trade in line
with our expectations. The supply chain is performing effectively.

Historically, the remaining months of the year have relatively low sales volumes
for UK Retail. If the trend of the past few weeks were to continue for the
remainder of the year, and assuming Howden continues to trade in line with
expectations, management would expect the Group to make a small loss before tax
and exceptionals for the full year.

Financing

The Group is not in breach of any banking covenant. However, in the light of the
deterioration of retail trading conditions, management has been in discussions
with the Group's lenders regarding future arrangements. These discussions are
constructive and the board expects good progress to be made.

Management changes

John Hancock, Chief Executive Officer, has left the business with immediate
effect.

Matthew Ingle, Managing Director of the Howden Joinery business, has been
appointed as Chief Executive.  Matthew will review the Group's performance and
strategy and an announcement covering this review will be made when conclusions
are reached. Steven Round has been appointed Managing Director of UK Retail with
immediate effect.

Ian Peacock, Chairman, said, 'With his track record of building the successful
Howden business and his strong operational skills, we are very pleased that
Matthew is becoming Group Chief Executive. Matthew has over twenty years
experience selling kitchens and understands the issues faced by the Group. '

Matthew Ingle, Chief Executive, said 'This is fundamentally a good business. My
immediate concern is to maintain the strong momentum of Howden and improve the
performance of UK Retail. I am urgently reviewing the strategy of the Group and
I am determined to improve performance.'

Enquiries

Mark Robson                      Chief Financial Officer          020 8913 5350

Susan Gilchrist / Fiona Laffan   Brunswick                        020 7404 5959
Anna Jones


Notes to Editors

Matthew Ingle

  • Matthew Ingle joined MFI in 1995 and has successfully led the development
    of the Howden Joinery business over the past ten years
  • Under his leadership, in five years Howden has increased operating profit
    from £9 million in 1999 to over £100 million in 2004
  • Matthew has twenty years experience in the kitchen market, and has been on
    the board of MFI for seven years

Steven Round

  • Steven Round joined MFI in 2003, and was Commercial Director for UK Retail
    for a year before becoming head of Hygena Cuisines
  • Steven has a strong marketing background, having worked for Guinness and
    Beechams before spending 11 years at Kingfisher Plc, latterly as Managing
    Director of Woolworths General Store




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