Agreement with Iceland

Storehouse PLC
20 January 2000


               STOREHOUSE ANNOUNCES Bhs FOOD STORE ROLL-OUT

Storehouse today announced that its subsidiary, Bhs, had finalised
arrangements with Iceland Group to open an additional 10 Bhs Food Stores by
the end of March 2000.  This follows the continuing success of the Birmingham
prototype. The agreement, which will run until December 2006, includes an
exclusive arrangement with Iceland to operate food sections in Bhs stores
making way for Iceland and Bhs to open a further 90 Food Stores by the end of
2001.

The Bhs Food Store carries a range of predominantly fresh and chilled foods
providing quality, convenience and value. This joint arrangement between
Iceland and Bhs could create up to 4,000 new jobs in key high street locations
throughout the UK.

Storehouse chairman, Alan Smith, said today:

'The introduction of food is a key platform of Bhs' strategy for growth.  Bhs'
prime high street space means that we can offer Iceland an important extension
to their 760-strong portfolio of stores.  For Bhs, the introduction of a food
offer based on what today's in-town customer wants is an important step in
positioning Bhs as the value retailer on the high street.  We are looking
forward to a long and mutually beneficial relationship with our partners at
Iceland.'

Enquiries to:
Storehouse plc
Stephen Pain, Director of corporate affairs       0171 339 2577

Brunswick Group Limited
Susan Gilchrist/Victoria Sabin                    0171 404 5959