Trading Statement

Mothercare PLC
15 January 2002

For immediate release

15 January 2002


MOTHERCARE PLC
TRADING STATEMENT & WAREHOUSE UPDATE


Trading

As announced at its interim results in November 2001, Mothercare experienced
significant problems at its new warehouse in Daventry, which is owned and
operated on its behalf by Tibbett & Britten. This is now operating to the
targets set in November, but sales were badly affected by the resulting stock
availability issues which arose in the run-up to Christmas.

Total sales in the 13 weeks to 11 January were down 5.9%, or 4.0% on a
like-for-like basis. Within this, sales of the Autumn/Winter clothing ranges, a
key element of the recovery programme, continued to show positive growth, while
there was a small decline in sales of home and travel products. Toys, which
normally account for up to a quarter of total sales at Christmas compared to
11% during the rest of the year, were particularly affected by the warehouse
problems, with sales down sharply year-on-year.  Margins were flat year-on-year.

As a result of this sales performance it is anticipated that profit for the
full year will be below market expectations and is unlikely to be in excess of
£4.0 million.

Warehouse

Under the five year partnership with Tibbett & Britten, the Daventry warehouse
will continue to be the main distribution facility for Mothercare.  The use of
an additional facility to support the business, particularly through peak
periods, will continue and will now operate on a renewable one-year contract
basis at an annualised additional cost to Mothercare of £3.0 million.

Commenting today, Chris Martin, Chief Executive said:

'The warehouse problems have been a major setback for the business, but we can
now move forward once again and get Mothercare's recovery programme back on
track. The first of our new stores within the Mothercare World roll-out
programme will be opening at Bristol in March, and our new Spring ranges are
arriving in-store now.'

Enquiries:  Chris Martin                  Mothercare           01923 206 187
            Caroline Whitelegge

            Susan Gilchrist               Brunswick            020 7404 5959


End