Regent Street retailing

Retail Stores PLC
7 February 2001


FOR IMMEDIATE RELEASE
7th February 2001

                              RETAIL STORES PLC:

                  REGENT STREET REFURBISHMENT TO PROVIDE NEW

                           LIBERTY RETAIL OFFERING



Retail Stores PLC ('Retail Stores'), the Company formed to acquire the Liberty
luxury goods department store last July, and 68% owned by Marylebone Warwick
Balfour Group Plc ('MWB'), today announces a £4 million investment to retain
and refurbish its Regent Street retail space, reversing the previous
management's decision to let the space to another operator.

The Regent Street retail space closed for refurbishment on 31 January 2001 and
will re-open in late Autumn 2001.  Trading continues as usual at the adjoining
black and white 'Tudor' building where a refurbishment programme is expected
to commence next year and be completed during 2003.

Fiona Harrison, Chief Executive of Retail Stores, who took the helm last
December, has completed an initial review of the company's operations and set
short-term objectives aimed at improving and developing Liberty's retail
offer.

Harrison said: 'Retaining our presence on Regent Street is a key part of the
strategy for developing Liberty.  During the course of this year, we will be
redefining our merchandise mix throughout the store to provide existing and
new Liberty shoppers with an exciting range of products from around the world.
'

In order to focus on this primary objective, Liberty has decided to withdraw
from its Mail Order and e-commerce operations and to discontinue the high
fashion collection.  This will enable investment to be directed into a more
effective retail operation as a springboard from which the Group's longer term
objectives of creating a global luxury goods brand can be achieved.

Retail Stores is also nearing completion of its plan to generate value from
Liberty's surplus property assets.  Last August, it announced the sale of the
Foubert Estate, comprising a mixture of small retail and residential
properties on Foubert Place and Little Marlborough Street.  In addition,
unused office space within Liberty's properties has been refurbished and let
to MWB Business Exchange as serviced offices which will generate additional
annual income of £2.4 million when completed shortly.

Retail Stores also announces that it is changing its accounting year end to 30
June to coincide with that of MWB.  An interim statement for the six months
ended 31 December 2000 will be released in early March 2001.



                                    Ends.





Contact:

            Fiona Harrison, Chief Executive, Retail Stores.  Tel: [phone]

            Baron Phillips, Bankside Consultants.            Tel: [phone]