Disposal

Retail Stores PLC
2 August 2000

RETAIL STORES SELLS FOUBERT ESTATE TO SHAFTESBURY FOR £9.5M


Retail Stores Plc ('Retail Stores'), a company controlled by Marylebone Warwick
Balfour Group plc ('MWB') that recently completed its £72m takeover of Liberty
plc ('Liberty'), today announces it has exchanged contracts for the sale of the
Foubert Estate to Shaftesbury plc for £9.5m cash.

The Foubert Estate comprises a mixture of small retail and residential
properties on Foubert Place and Little Marlborough Street, London W1. The total
estate, which has been owned by Liberty for many years, generates annual rental
income of £523,000 and was independently valued by Healey & Baker at the time of
the Liberty takeover at £7.75m.

Richard Balfour-Lynn, Chairman of Retail Stores, commented: 'The sale excludes
Lasenby House and the Muji building on Carnaby Street, which will be used to
enhance Liberty's famous Tudor building. It is pleasing to have sold these
non-core properties at 23% above the valuation at the time of the takeover only
two months ago. We have always believed the Liberty property valuations were
conservative and this sale price confirms that view.

The cash surplus raised from the sale of the Foubert Estate will be invested in
Liberty. We are embarking on a multi-million pound investment programme in the
historic Tudor building on Great Marlborough Street to re-establish Liberty as a
pre-eminent international luxury brand.'

Contact:    MWB                                         Tel: [phone]
            Andrew Blurton, Finance Director, or Bruce Cave
            Bankside Consultants                        Tel: [phone]
            Baron Phillips or Joanna Fifield