New Banking Facility

MFI Furniture Group PLC
17 February 2006


17 February 2006


              MFI Furniture Group Plc agrees new banking facility

MFI Furniture Group Plc announces that it has agreed a new thirty-nine month
asset backed facility totalling £150,000,000, fully underwritten by Burdale
Financial Limited (a member of the Bank of Ireland group) and Lloyds TSB
Commercial Finance Limited. The facility will replace the Company's existing
revolving syndicated credit facility.

The new facility will be cross guaranteed by all of the principal members of the
MFI group and will be secured by fixed and floating charges over their assets
and those of the Company.

The Company has received clearance from the Pensions Regulator in respect of the
new financing arrangements. The Company and the trustees (the Trustees) of the
MFI Group Pension Plan and the Schreiber Fund (the Funds) have agreed that, for
so long as the new facilities remain in place, security will also be granted to
the Trustees by the MFI group. The security granted to the Trustees will consist
of a first fixed charge over the issued share capital of Howden Joinery Limited
and second ranking security over other assets charged to secure the new
facilities. The circumstances in which the security may be exercised have been
agreed between the Company, the Trustees, the Pensions Regulator and the new
lenders. The security granted to the Trustees will be released upon the new
lenders being repaid in full.

The Company will issue its 2005 preliminary results, an update on its strategic
review and current trading on 28 February 2006.

Matthew Ingle, CEO of MFI said: 'This is good news for MFI. The new facility
will allow MFI to focus on its turnaround plans for UK retail and the growth of
Howden.'


Enquiries:

Investor Relations:

Mark Robson              MFI Furniture Group            020 7404 5959
Gary Rawlinson

Media enquiries:

Susan Gilchrist          Brunswick                      020 7404 5959
Fiona Laffan
Anna Jones




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