Interim Management Statement

Dunelm Group plc 29 April 2008 29th April 2008 Dunelm Group plc ("Dunelm") Interim Management Statement Dunelm, the leading out-of-town specialist homewares retailer, announces an interim management statement for the 43 weeks to 26th April 2008. Sales Sales over the 43 weeks were 12.2% greater than the equivalent period in the previous financial year, including like-for-like ("LFL") growth of 4.5%. In the 17 week period since the half year, total sales have grown by 15.0% and LFL sales by 3.9%. The Board believes that Dunelm has continued to gain market share on a LFL basis. Gross Margin Gross margin performance has remained solid and the gains reported at the half year have been sustained so far in the second half. Store Openings New superstores in Leeds and Bournemouth were opened in January, and the latest new superstore was opened in Sittingbourne on 17th April. Trading at all of these stores has exceeded expectations so far. Including these openings, the total number of superstores is 76, with a further 13 older format high street stores. No further changes to the superstore portfolio are anticipated before the end of the current financial year, but already leases have been signed for six units due to open in FY09. Will Adderley, Chief Executive, commented: "Our merchandise and our stores continue to attract customers and we are pleased with performance so far this period, although the cold weather has undoubtedly helped us. For the remaining weeks of the financial year we are up against very strong comparatives - we had LFL growth of 15.5% in the final nine weeks last year so we are cautious about the short term outlook for LFLs. Looking ahead to our next financial year, like most retailers we anticipate a challenging economic and trading background. However we have proved our resilience in the past and with the benefits of a stronger stream of new openings starting to feed through, I am confident in the prospects for our overall business performance." Dunelm will announce a trading update on 8th July 2008 and its preliminary results for the 52 weeks ending 28th June 2008 on 11th September 2008. ENDS For further information please contact: Dunelm Group plc 0116 2644 356 Will Adderley, Chief Executive David Stead, Finance Director Hogarth Partnership 020 7357 9477 Fiona Noblet Notes to Editors Dunelm is amongst the top 10 retailers operating in the £12bn UK homewares market. The Group has 89 stores, branded Dunelm Mill, of which 76 are out-of-town superstores. Dunelm employs over 5,500 full and part time staff, the vast majority of whom work in the stores. Dunelm was founded in 1979 as a market stall business, selling ready made curtains. The first shop was opened in Leicester in 1984 and over the following years the business developed into a successful chain of high street shops in the Midlands specialising in soft furnishings. The first Dunelm superstore was opened in 1991, leading to the Company's move into the broader homewares market. The superstores provide an average of 28,000 sq ft of selling space and offer an extensive range of approximately 20,000 products across a broad spectrum of categories, including bedding, curtains, gifts and seasonal items, cushions, bathroom products, kitchenware, quilts, pillows and rugs. Dunelm also specialises in offering a wide range of fabrics, made to measure curtains and a frequently changing series of special buys. The directors are passionate about ensuring that all ranges live up to Dunelm's philosophy of offering customers "Simply Value for Money". Dunelm also has an on-line store (www.dunelm-mill.com) with over 9,000 products available. Dunelm is listed on the London Stock Exchange (DNLM.L). This information is provided by RNS The company news service from the London Stock Exchange
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