Announcement of Open Offer

Mulberry Group PLC
06 August 2003


Mulberry Group plc
6 August 2003




                MULBERRY GROUP plc ('Mulberry' or 'the Company')
                        PROPOSED UNDERWRITTEN OPEN OFFER
              APPROVAL OF WAIVER UNDER RULE 9 OF THE CITY CODE ON
                           TAKEOVERS AND MERGERS AND
                    ADOPTION OF NEW ARTICLES OF ASSOCIATION

The board of Mulberry Group plc announced today that it is raising £3.5 million,
before expenses, by way of an Underwritten Open Offer.  A circular is being sent
to shareholders, details of which appear below.


Highlights:

  • Proposed Open Offer of 12,613,463 New Ordinary Shares at 28p per share to
    raise £3.5 million, before expenses, underwritten by Challice Limited ('
    Challice') currently a 41.5% shareholder.

  • Proposed issue of New Ordinary Shares to be made on the basis of 2 New
    Ordinary Shares for every 7 Existing Ordinary Shares held by Qualifying
    Shareholders.

  • Approval of waiver under Rule 9 of The City Code on Takeovers and Mergers
    to accommodate the increase in Challice's holding in the Company from 41.5%
    to a maximum of 56.6%.

  • Amendment of New Articles of Association to allow the maximum number of
    Directors to be increased from 7 to 10.

  • Notice of Extraordinary General Meeting to gain approval from Independent
    Shareholders.


The expected timetable of principal events is as follows:
                                                                                                      2003
Record date for Open Offer close of
Business on                                                                                       1 August
Latest time and date for splitting (to satisfy bona fide market claims
only)                                                                                  3.00 pm   27 August
Latest time and date for receipt of Application Forms and payment in
full under the Open Offer                                                              3.00 pm   29 August
Latest time and date for receipt of Forms of Proxy in respect of the
Annual General Meeting and the Extraordinary General Meeting                          10.00 am   30 August
Annual General Meeting                                                                10.00 am 1 September
Extraordinary General Meeting                                                         10.15 am 1 September
Admission and Dealings in New Ordinary Shares, commence on AIM                                 2 September
CREST stock accounts credited in respect of New Ordinary Shares                                2 September
Definitive share certificates for New Ordinary Shares despatched by                            9 September


Godfrey Davis, Chairman and Chief Executive, commented:

'The Board recommends shareholders to vote of favour of the open offer as the
money raised will ensure we are sufficiently funded to achieve our objective of
taking maximum advantage of the strengthening Mulberry brand and return to
profit. Our largest shareholder, Challice, has made its position quite clear and
fully demonstrated its confidence in Mulberry not only by confirming their
take-up of the Open Offer, but also by underwriting the whole issue.'

Mulberry will also be announcing its results for the year ended 31 March 2003
today.



For further details please contact:

WMC Communications
David Wynne Morgan                              020 7591 3999

Teather & Greenwood Limited
Christopher Hardie                             020 7426 9576
Dugald Carlean                                 020 7426 9593



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