Investment Announcement

Next PLC
02 August 2004

Date:              Embargoed until 07.00am, Monday 2 August 2004

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

                   Alistair Mackinnon-Musson
                   Philip Dennis
                   Hudson Sandler
                   Tel:      [phone]
                   Email:  [e-mail]


                                    NEXT PLC


Investment Announcement

The Board of Next Plc (Next) announces that its executive directors together
with certain other senior employees have each made a personal investment in a
financial contract the success of which is based on the market price of Next
shares in four years time.  The return on this financial contract will vary
between a minimum of zero (if such share price is then £20 or less) and a
maximum of approximately 5 times the initial investment.  The maximum value will
only be achieved if the final share price is at or above £24.50 in four years
time. The final price will be determined by an averaging mechanism over the
final 3 months of the 4 year term.  At the close of business on 30 July 2004 the
official closing price of a Next ordinary share was £14.97.

These financial contracts have been entered into with an independent third party
regulated by the Financial Services Authority and are not subsidised, supported
or underwritten by Next.  For clarity, there is no present or future liability
for Next in respect of these contracts.  No interest in the company's securities
is being acquired by the directors.

Special Bonuses

In addition to the sums invested from their own resources, David Keens (Finance
Director), Christos Angelides (Product Director) and Andrew Varley (Property
Director) together with certain other senior employees have also chosen to
invest the net proceeds of a special bonus granted to them by Next in the
financial contracts.

The special bonuses were only payable to executive directors and certain other
senior employees making a personal investment and have been paid with the
approval and recommendation of the Remuneration Committee.  Simon Wolfson (Chief
Executive) has elected not to receive any special bonus as he was consulted by
the Remuneration Committee about these bonuses and therefore considered it
inappropriate to benefit from them.

Details of the amounts invested in the financial contracts and of the special
bonuses paid are set out below:

£                         Investment in    Special bonus      Tax and NI    Net special bonus Total investment
                            financial                         payable on       invested in      in financial
                         contracts from                     special bonus       financial        contracts
                          own resources                                         contracts
Simon Wolfson                500,000             -                -                 -             500,000
David Keens                  200,000          400,000          164,000           236,000          436,000
Christos Angelides           200,000          400,000          164,000           236,000          436,000
Andrew Varley                100,000          200,000           82,000           118,000          218,000
Senior Employees             480,000          960,000          393,600           566,400         1,046,400
TOTAL                       1,480,000        1,960,000         803,600          1,156,400        2,636,400

The total gross amount payable in aggregate to all executive directors and
senior employees in respect of the special bonuses amounted to £1,960,000.

Performance Requirement

The Next share price must average £20 or more over the 3 months to 28 July 2008
for there to be any return on the initial investment.  This compares with an
average share price of £14.26 over the 3 months to 30 July 2004.  This is
equivalent to an annual compound growth rate of 8.8% prior to dividends payable.
Based on the number of ordinary shares in issue, currently 262 million, this
would require an increase in market capitalisation of £1.5 billion.

In order to achieve maximum value at the share price of £24.50 the annual
compound growth rate would be 14.5% and an increase in market capitalisation of
£2.7 billion.

Corporate Governance

The Remuneration Committee of Next have approved payment of all the special
bonuses.  Certain major shareholders and the ABI have been consulted in respect
of both the investments being made in the above financial contracts and the
special bonuses being paid.  The Chairman and non executive directors of Next
have not received any special bonuses nor have they invested in the financial
contracts.  These investments have been made outside of any close period.

Technical Details

The financial contracts outlined above are bets with a four year term relating
to the price of a Warrant listed on the London Stock Exchange the price of which
is itself dependent on the Next ordinary share price.  The warrant has a maximum
value of £4.50 if the final share price of Next is £24.50 or higher in four
years time, and a minimum value of zero if the share price of Next is £20 or
lower in four years time.  The final price will be determined by an averaging
mechanism over the final 3 months of the 4 year term.  For every 95.4p
(including costs) invested in the bet the individual will receive 1 penny for
every 1 penny of value of the warrant in four years time.  For example if the
warrant is worth £2.95 the individual will receive £2.95 for every £0.95
invested, making a profit of £2.00 on that initial investment.

- ENDS -


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