Interim Results

JOHN LEWIS OF HUNGERFORD PLC
INTERIM STATEMENT FOR THE SIX MONTHS ENDED
28 FEBRUARY 2002

HIGHLIGHTS

•  Revenues increased 12% to £1,512,000 (2001 - £1,350,000).

•  Loss on ordinary activities before and after taxation £143,000 (2001 - £42,000).

•  Net cash outflows from operating activities £126,000 (2001 - £133,000 inflows).

•  Unit sales growth over last year same period: Kitchens +14%: Furniture -23%.

•  One new showroom opened.

CHAIRMANS STATEMENT

Review of Operations

The last six months trading results have been disappointing. Following strong first quarter sales performance, driven
by a highly successful promotion in conjunction with Sainsburys plc, second quarter sales slowed significantly. In
addition results for the first half have been adversely affected by the carrying costs of delays in completing the
Company's new store in Muswell Hill, London that did not open until mid February 2002.

Furniture sales have declined sharply in the period against last year as a result of changes in the focus of
promotions. Furniture is generally more complicated to manufacture and requires a high input of skilled labour. Kitchen
manufacture, by contrast, requires less skilled labour and enables the Company to leverage its recent investment in new
manufacturing equipment.

As previously reported the Company has had challenges with recruitment and retention of quality sales and design staff.
Whilst by the beginning of the financial year, most designer vacancies had been filled, it takes time for new staff to
become fully trained and effective. Generally the Company has a good history with staff retention, but over the last
year or so sales performance has suffered through a combination of new openings and staff leaving for reasons
unconnected with the Company. One full time designer supported by an assistant staffs many of the Company's sales
outlets and the absence of the designer, even for a short period, has a significant negative impact on sales. Currently
the Company is experiencing increased stability in its sales staffing which together with increased investment in
training, should produce an improved sales performance.

The Company currently has to make changes in two of its sales locations.

In London we are disappointed to be losing our concession at Jerry's Home Store in the Fulham Road, which only opened
at the beginning of 2001. This is due to the closure of the host store. The concession has performed well for us since
its relocation from Liberty in Regent Street, London but will close at the end of May 2002.

To replace our London flagship presence, the Company has agreed terms (subject to contract) for a high profile site in
the Fulham Road comprising some 2,500 sq. ft. This will be a Company leased showroom giving the Company the space and
profile to build on the sales potential we have seen at Jerry's.

In Bristol the Company will be closing its concession at Debenhams of Bristol towards the end of June 2002 due to
refitting of the host store.

To replace this outlet, the Company has agreed (subject to contract) to lease a 600 sq. ft. showroom in the Clifton
area of Bristol.

We feel that both these new locations will give the Company opportunities to build on its established business in these
geographic areas.

Summary of Financial Results

Turnover for the period was £1,512,000 against £1,350,000 in the comparable period last year.

Losses before and after tax were £143,000 (2001 - £42,000).

Capital expenditures in the period were £101,000 (2001 - £210,000) representing in the main fitting out costs at the
new showroom in Muswell Hill, London.

The Company has in place overdraft facilities amounting to £400,000.

Outlook for the Future

As described above the Company has experienced a significant general slowdown in sales in recent months. In addition it
is likely that during the change over period of the London and Bristol sales outlets, sales will reduce.

These two factors combined are likely to negatively affect the results for the full year to 31 August 2002.

Notwithstanding the above your Board believes that the Company remains well positioned to grow sales and profits in
future years.

John Lewis
Chairman
15 May 2002

PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2002

                                    Unaudited     Unaudited       Audited

                                     6 months      6 months     12 months

                                        ended         ended         ended

                                  28 February   28 February     31 August

                                         2002          2001          2001

                                         £000          £000          £000

                                       1,512         1,350         3,042 
Turnover                                                                 

Cost of sales                           (626)         (641)       (1,296)
                                     --------      --------      --------
                                         886           709         1,746 
Gross profit                                                             

Distribution costs                      (274)         (155)         (508)

Administration costs                    (755)         (597)       (1,117)
                                      -------       -------     ---------

                                        (143)          (43)          121 
Operating (loss)/profit                                                  

Interest receivable                        1              1            2 

Interest payable                          (1)            -           (1) 
                                     --------      --------      --------

(Loss)/profit on ordinary                                                
activities                                                               
                                        (143)          (42)          122 
before taxation                                                          

Taxation                                   -             -           (38)
                                      -------      --------      --------

(Loss)/profit on ordinary                                                
activities                                                               
                                        (143)          (42)           84 
after taxation                                                           

Dividends                                  -             -           (55)
                                      -------       -------       -------
                                        (143)          (42)           29 
Retained (loss)/profit                                                   
                                         ====          ====          ====

Earnings/(loss) per share             (0.10)p       (0.03)p         0.06p
                                         ====          ====          ====

BALANCE SHEET
AS AT 28 FEBRUARY 2002
                       Unaudited         Unaudited           Audited      
                   28 February 2002   28 February 2001    31 August 2001  
                      £000      £000     £000     £000      £000      £000

Fixed assets                                                              
Intangible assets      30                 33                 32           
Tangible assets     2,006              1,873              1,979           
                   -------            -------           --------          
                              2,036             1,906               2,011 

Current assets                                                            
Stocks                298                176                224           
Debtors               169                106                 66           
Cash at bank and                                                          
in hand                77                 95                 85           
                   -------            -------           --------          
                      544                377                375           

Creditors:                                                                
amounts                                                                   

falling due                                                               
within                                                                    
                   (1,159)              (826)              (822)          
one year                                                                  
                   -------            -------            -------          

Net current                                                               
                               (615)             (449)               (447)
liabilities                                                               
                             -------           -------             -------

Total assets less                                                         
                              1,421             1,457               1,564 
current                                                                   
liabilities                                                               

Provisions for                                                            
liabilities and                 (36)                -                 (36)
charges                                                                   
                             -------           -------            --------
                              1,385             1,457               1,528 
Total net assets                                                          
                               =====             =====               =====

Capital and                                                               
Reserves                                                                  
Called up share                 149               149                 149 
capital                                                                   
Other reserves                    1                 1                   1 
Share premium account           825               825                 825 
Profit and Loss account         410               482                 553 
                              ------           -------             -------
Shareholders funds                                                        
- all equity interests        1,385             1,457               1,528 
                                ====              ====                ====

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2002
                                    Unaudited     Unaudited       Audited

                                     6 months      6 months     12 months

                                        ended         ended         ended

                                  28 February   28 February     31 August

                                         2002          2001          2001

                                         £000          £000          £000

Operating (loss)/profit                 (143)          (43)          121 

Depreciation                              72            44           110 

Loss/(profit) on disposal of                                             
tangible                                                                 
fixed assets                               4            (1)           (1)

(Increase)/decrease in Stock             (74)           20           (27)

(Increase)/decrease in Debtors          (103)          (38)            1 

Increase in Creditors                    118           151           143 
                                      -------       -------       -------

Net cash (outflow)/inflow                                                
                                        (126)          133           347 
from operating activities                                                

Returns on investments and                                               
                                           -             1             1 
servicing of finance                                                     

                                           -             -            (2)
Corporation tax                                                          

                                        (101)         (210)         (380)
Capital expenditure                                                      

                                         (17)          (18)          (50)
Equity dividends paid                                                    
                                      -------       -------       -------
                                        (244)          (94)          (84)
Decrease in cash                                                         
                                         ====          ====          ====
Notes:

        1. The interim accounts, which are unaudited, have been prepared under the historical cost convention using the
        accounting policies set out in the accounts for the year ended 31 August 2001.

        2. The loss per share is calculated on the loss of £143,000 after taxation and on the basis of 148,745,519
        shares in issue. The loss per share for the 6 months ended 28 February 2001 is calculated on the loss after
        taxation of £42,000 and on the basis of 148,745,519 shares in issue. The earnings per share for the year ended
        31 August 2001 is calculated on the profit after taxation of £84,000 and on the basis of 148,745,519 shares in
        issue.

        3. Copies of the 2002 interim accounts will be available to shareholders on the Company's website,
        www.john-lewis.co.uk, in due course.

        4. Copies of this announcement will be available from the Nominated Adviser: Smith & Williamson Corporate
        Finance, No 1 Riding House Street, London, W1A 3AS for one month from the date of this announcement.

        -ends-