Capital Reconstruction

Next PLC
07 October 2002


NEXT plc

Proposed Capital Reconstruction of NEXT plc ('NEXT')


On 12 September 2002, the Board of NEXT announced that, in order to obtain the
flexibility to accelerate future returns of cash to shareholders, it intended to
effect a capital reconstruction by way of a scheme of arrangement to introduce a
new listed holding company, NEXT Group Plc.  The capital reconstruction will
create additional distributable reserves from which share repurchases can be
made when it is earnings enhancing and in the interests of shareholders
generally.

Today, the Board of NEXT announces that shareholders have been sent a circular
setting out in full the details of the proposed scheme of arrangement of NEXT
and subsequent reduction of capital of NEXT Group Plc.  The scheme of
arrangement is subject to and conditional upon, inter alia, shareholder approval
at a Court Meeting and an Extraordinary General Meeting (both of which will be
held on 1 November 2002) and the sanction of the High Court.

Copies of the listing particulars relating to NEXT Group Plc can be obtained,
free of charge, from Lloyds TSB Registrars (0800 783 3544).


For further information please contact:

NEXT

Simon Wolfson, Chief Executive                       Tel: [phone]
David Keens, Group Finance Director                  Tel: [phone]

LAZARD

Marcus Agius                                         Tel: [phone]
Jonathan Dawson                                      Tel: [phone]

Lazard & Co., Limited ('Lazard'), which is regulated in the United Kingdom by
the Financial Services Authority, is acting for NEXT plc and NEXT Group Plc and
no-one else in connection with the scheme of arrangement referred to above (the
'Scheme') and the listing of the ordinary share capital of NEXT Group Plc (the
'Listing') and, accordingly, will not be responsible to anyone other than NEXT
plc and NEXT Group Plc for providing the protections afforded to clients of
Lazard nor for providing advice in relation to the Scheme or Listing or any
other matters referred to herein.



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