Re Joint Venture

Marks & Spencer PLC
29 August 2001


                           Issued: 29th August 2001

                     MARKS & SPENCER AND DESMONDS SET UP

                         CHILDRENSWEAR JOINT VENTURE

Marks and Spencer p.l.c. and Desmond & Sons Limited announce today that they
are creating a joint venture company to design and supply childrenswear to
Marks & Spencer stores. The new company, established in response to the unique
characteristics of the childrenswear market, will increase the speed,
efficiency, and cost effectiveness of supply between the retailer and its
manufacturers, enabling customers to benefit from more competitive pricing,
and faster access to fashionable clothes.

Roger Holmes, Marks & Spencer Managing Director of UK Retail said,
'Childrenswear is a complex, fast-moving market place that demands an
innovative approach. By joining forces with Desmond & Sons, we are pulling
together the skills and talents of retailer and supplier into a single
organisation, to deliver more fashionable high quality clothes, faster and
more competitively to our childrenswear customers.'

Under this agreement, the joint venture company will design and produce
clothing patterns and prototype garments in-house and then contract the
manufacturing to Marks & Spencer's existing childrenswear manufacturers.

Michele Jobling, Marks & Spencer Childrenswear Business Unit Director and
Managing Director of the joint venture company, said: 'Marks & Spencer has the
safest, best quality children's clothing on the market and we are the market
leader. However, our margin of leadership has been eroded by competitors over
recent years. This joint venture will provide us with the ability to
profitably grow our childrenswear operation and increase our market share.'

Desmond & Sons, a privately owned company, has been a supplier to Marks &
Spencer for 60 years. The company was chosen as the partner for the joint
venture due to its excellent design and technical skills, as well as its
expertise as a global manufacturer.

Desmond & Sons' adult clothing and all its manufacturing operations will
remain outside of the joint venture.

Denis Desmond, Chairman of Desmond & Sons, said: 'We are delighted that after
a long history of supplying Marks & Spencer we are joining with them to create
a new way of working between Marks & Spencer and its suppliers of
childrenswear.'

The joint venture company is a subsidiary of Marks and Spencer p.l.c. The
initial start-up share capital will be £6 million, £1.5 million of which will
be provided by Desmond & Sons.

Approximately 220 people overall will be employed by the joint venture
company, the majority drawn from current Desmond & Sons and Marks & Spencer
childrenswear staff. There will be approximately 120 in Northern Ireland and
80 based at the joint venture's head office in London, with the balance based
internationally.

Customers will see the first childrenswear products from the joint venture
with Marks & Spencer's 'Back to School' range in June 2002.


For more information please contact:

Marks & Spencer Corporate Press Office on 020 7268 1919 or Marks & Spencer
Investor Relations on 020 7268 4195/6594

Photos available on www.mandslibrary.com User name: press; Password: library

Notes to Editors:-

DENIS FITZGERALD DESMOND, CBE

Denis Desmond CBE has been Chairman and Managing Director of clothing
manufacturer Desmond & Sons Limited since 1970. Based at Drumahoe, County
Londonderry, Desmond & Sons have supplied childrenswear and adult clothing to
Marks & Spencer for 60 years.

ROGER HOLMES

Roger Holmes joined Marks & Spencer as Managing Director, UK Retail, in
January 2001. As head of the UK Retail Division he is responsible for 7
Business Units, operations, functional heads and UK stores. Roger joined Marks
& Spencer from the main board of Kingfisher where he was Chief Executive of
the Electrical sector.

MICHELE JOBLING

Michele Jobling has been Business Unit Director for Childrenswear since
December 2000. Michele has extensive retailing experience with companies such
as Tesco, B&Q and J. Sainsbury, and joined Marks & Spencer from Liberty plc
where she was Managing Director.