Agreement re Disposal of Bhs for £200m

Storehouse PLC
27 March 2000


Not for release, publication or distribution in or into the USA,
Canada, Australia or Japan


                     Storehouse plc ('Storehouse')

                    Agreement re disposal of Bhs

The Board of Storehouse announces that it has agreed heads of terms
for the disposal of Bhs to a special purpose vehicle ('Newco'),
wholly owned by Philip Green and his family, for cash consideration
of £200 million.

The disposal is subject to signing a definitive sale and purchase
agreement and will be conditional on the approval of Storehouse's
shareholders.  Storehouse has agreed that in certain circumstances it
will pay a break fee of £10 million to Newco.

The Board is no longer in discussions which are expected to result in
an offer being made for Storehouse.  A further announcement will be
made in due course.


Enquiries

Storehouse                                            0207 262 3456
Alan Smith, Chairman                                  
                                                      
Schroders (financial adviser to Storehouse)           0207 658 6000
Alan Jacobs                                           
                                                      
Cazenove (broker to Storehouse)                       0207 588 2828
Richard Wintour                                       
                                                      
Brunswick (public relations adviser to Storehouse)    0207 404 5959
Susan Gilchrist                                       
                                                      
Philip Green                                          0207 200 5910
                                                      
WestLB Panmure (financial adviser to Newco)           0207 638 4010
William Tebbit