Acquisition & Trading Update

Kingfisher PLC
27 April 2005

EMBARGOED UNTIL 0700 HOURS
Wednesday 27th April 2005


        Kingfisher plc announces acquisition in China and trading update

Kingfisher plc today announces accelerated expansion of B&Q China with an
agreement to buy OBI Asia Holding Ltd, the holding company for OBI's majority
equity interest in its Chinese operations. The purchase price is undisclosed.

B&Q China is already the market leader in the fast-growing Chinese home
improvement market where it currently operates 22 stores and had 2004/05 sales
of £212 million and retail profit of £5 million, after the costs of a rapid
store opening programme.

OBI is the second-largest western home improvement retailer in China with 13
stores and a further five due to open in 2005. Net assets with a fair value of
around £85 million are included in the purchase, subject to final completion.

The addition and conversion of OBI's stores will significantly accelerate B&Q
China's growth to around 50 stores trading within the next 12 months, more than
doubling current store numbers.

The transaction is subject to local and national government approvals and is
anticipated to complete later this year.

Trading update

Given the proximity of this announcement to the end of the first quarter on 30
April 2005, Kingfisher is providing a brief trading update ahead of its formal
quarterly results announcement on 26 May 2005.

Trading has continued to be weak since Kingfisher last updated the market at the
time of its preliminary results announcement on 17 March. The trading
environment continues to be very tough for UK retailers with consumer spending
increasingly impacted by higher taxes, debt costs and inflation. Poor spring
weather and an early Easter presented additional challenges for Kingfisher's UK
and French consumer businesses. Official statistics confirm that household goods
markets have been particularly slow in the UK and France.

As a result, Kingfisher expects to announce broadly flat total sales for the
quarter to 30 April 2005 compared with the previous year. Sales at B&Q UK and
Castorama France are expected to decline, offset by continued growth at Brico
Depot in France.

Kingfisher's other businesses in Europe and Asia continued to grow, with the
exception of Castorama Poland which continues to be affected by higher VAT
imposed in May 2004 and strong sales comparisons with the prior year.

On a like-for-like basis, Kingfisher's overall sales are expected to decline
around 6% in the first quarter. Continuing focus on margin and costs is not
expected to be enough to offset weaker sales, with the result that reported
retail profit for the first quarter is expected to decline by around 15%.

Commenting on the announcements today Gerry Murphy, Chief Executive, said:

'The acquisition of OBI China will help double the size of B&Q's operations in
China, in terms of sales and store numbers, within 12 months. OBI China also
adds to B&Q China's existing 5,000 strong team a further 2,000 experienced staff
and an excellent local management team.  China is a tremendous opportunity for
Kingfisher and this move underlines our commitment to, and belief in, the
Chinese market and our own Chinese management team.

'The weakening trends experienced by UK retailers in the last quarter of 2004
seem to have continued into 2005. Whilst it is too early to judge the full year,
it is clear that demand is weak in the UK and any sales growth will be hard won
in very competitive markets.

'Kingfisher will continue to offer customers great products and prices whilst
investing for long-term growth and driving improved returns for shareholders.
Our scale and international diversity are key strengths in these tougher times,
and we are pleased to announce a significant step forward in China.'

Enquiries:

Ian Harding, Group Communications Director                 0207 644 1029

Nigel Cope, Head of Communications                         0207 644 1030


Notes to editors:

Kingfisher is Europe's leading home improvement retailer and the third largest
in the world, with over 600 stores in nine countries in Europe and Asia.
Kingfisher operates the B&Q format in Asia, where it is the market leader in
China (22 stores) and Taiwan (19 stores).  The first B&Q store in South Korea is
due to open later this year.

OBI Asia Holding Ltd is part of OBI, the German DIY retailer, which has stores
in European markets such as Germany, Austria and Poland. OBI is a division of
Tengelmann, a privately owned German retailing group with interests in
supermarkets, DIY stores and textiles.



                      This information is provided by RNS
            The company news service from the London Stock Exchange