Placing of Burberry Stake

GUS PLC
19 November 2003

   NOT FOR RELEASE OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, JAPAN, SOUTH
                          AFRICA OR THE UNITED STATES

                                                                19 November 2003


                                    GUS plc

            Sale of Further Stake in Burberry Group plc ('Burberry')

GUS plc ('GUS') today announces that it intends to sell a further stake of 10%
in Burberry (the 'Placing'). This will be achieved by way of an accelerated
bookbuilt placing of approximately 50 million shares. GUS has also granted an
over-allotment option to Merrill Lynch over an additional number of shares
equivalent to 15% of the placing size.

The partial flotation of 23% of Burberry was successfully completed in July
2002, at a price of 230p. Since then, Burberry has continued to perform
strongly, exceeding market expectations at the time of the IPO. The Board of GUS
believes now is the appropriate time to improve the liquidity in Burberry shares
by reducing further its stake.

The proceeds from the sale will be used initially to reduce debt. The Board of
GUS now plans to review the possibility of returning surplus funds to
shareholders, while at the same time ensuring a strong balance sheet and credit
rating.

Sir Victor Blank, Chairman of GUS, commented:

'As its recent results demonstrate, Burberry is performing well, has a strong
management team and a clear strategy for growth. We are making more shares
available in order to improve liquidity and enable new shareholders to
participate in its future growth. With its continuing majority stake, GUS
remains a committed investor in Burberry.'

Merrill Lynch is acting as global co-ordinator and sole bookrunner for the
placing. Morgan Stanley is co-lead manager.



Enquiries

Merrill Lynch International

Bob Wigley                                        020 7628 1000

Paul Baker

Mark Brooker

Finsbury

Rupert Younger                                   020 7251 3801

Rollo Head


Further details on the transaction


The shares which are the subject of the Placing rank pari passu with Burberry's
existing ordinary shares of 0.05p each, including the right to participate in
all dividends and other distributions declared, paid or made after the date of
this announcement on or in respect of such ordinary shares. Placees will be
entitled to receive the interim dividend of 1.5p per ordinary share to be paid
on 4 February 2004.

GUS has undertaken not to sell further shares in Burberry for a period of 360
days from the date of completion of the Placing.

Bookbuilding will commence with immediate effect and is expected to close today,
19 November 2003. Merrill Lynch reserves the right to close the book at any
time.

This announcement has been issued by GUS plc and is the sole responsibility of
GUS plc. This announcement is for information purposes only and does not
constitute an offer or an invitation to acquire or dispose of any securities.
Neither this announcement nor the information contained herein is an offer of
securities for sale in the United States or in any jurisdiction in which such an
offer is unlawful. The shares which are the subject of the Placing have not been
and will not be registered under the U.S. Securities Act of 1933, as amended
(the 'Securities Act') and may not be offered or sold within the United States
absent registration under the Securities Act or an exemption from registration.
No public offering of the shares referred to herein will be made in the United
States, the United Kingdom or elsewhere.

Merrill Lynch International and Morgan Stanley Securities Limited are acting for
GUS plc in connection with the Placing and no one else and will not be
responsible to anyone other than GUS plc for providing the protections offered
to their clients nor for providing advice in relation to the above transaction.

In connection with the Placing, Merrill Lynch International will act as
stabilising manager and, as such, Merrill Lynch International or any person
acting for Merrill Lynch International as stabilising manager may, in connection
with the Placing, over-allot or effect transactions with a view to supporting
the market price of the ordinary shares in Burberry at a level higher than that
which might otherwise prevail for a limited period after the Placing. However,
there will be no obligation on Merrill Lynch International or any agent of
Merrill Lynch International to do this. Such stabilising, if commenced, may be
discontinued at any time and must be brought to an end after a limited period.


















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