DEMERGER UPDATE

Kingfisher PLC
5 June 2001


EMBARGOED UNTIL 0700 HOURS
5 JUNE 2001







             KINGFISHER CONFIRMS DEMERGER AS BEST SEPARATION ROUTE



Kingfisher plc today confirms the demerger of its General Merchandise
businesses, Woolworths, Superdrug and the Entertainment operations, into a
separately quoted public company as its chosen separation route. The demerger
remains on track for delivery in the second quarter of Kingfisher's financial
year. Plans to sell the freehold property assets of the General Merchandise
businesses are also progressing.

Following last year's announcement of Kingfisher's intention to demerge,
several potential trade and venture capital buyers approached the Group with
alternative proposals. Today's announcement marks the cessation of
negotiations with potential purchasers in favour of the demerger option.

Commenting on the decision Sir Geoffrey Mulcahy, Group Chief Executive, said:
'Achieving best value for Kingfisher shareholders has been a prime
consideration throughout our approach to the separation. Having diligently
assessed all the options, the Board is now confident that a demerger is the
best solution for shareholders, employees and the long term success of the
businesses'.

He added: 'These businesses are now in good shape to prosper as a stand alone
UK-listed company with a dedicated management team focused on future success.
Kingfisher has consistently invested and innovated for the future including
Superdrug's shift into health and beauty and new formats such as Big W and
Woolworths General Store. Investment has also been made in the existing store
base and the infrastructure of the core brands. We believe that current
Kingfisher shareholders should have the opportunity to benefit from this'.

                                   - ends -







Notes to Editors


*     After the demerger Kingfisher plc will be Europe's leading home retailer,
      operating principally through its two international businesses in Home
      Improvement and Electrical & Furniture. Around 55% of the Group's
      turnover will arise outside of the UK. The company will employ more than
      80,000 people in over 1,300 stores across 16 countries and will include
      some of the best-known retail brands in Europe including B&Q, Castorama,
      Comet, Darty and BUT.

*     The General Merchandise businesses operate in the UK home and family
      markets with leading positions in entertainment, confectionery, toys and
      health and beauty. The new Group will employ more than 50,000 people in
      over 1,600 stores across the UK and will comprise some of the best-known
      brands in UK retailing including Woolworths, Superdrug, MVC and Streets
      Online, as well as the UK's leading distributor of CDs, DVDs and videos,
      Entertainment UK.


For further information:
Media Enquiries
Andrew Mills, Director of Corporate Affairs                [phone]
Jonathan Miller, Head of Public Relations                  [phone]
Gail Lavielle, Director of Corporate Communications        [phone]

Tom Wyatt - Financial Dynamics                             [phone]

Broker and Institutional Enquiries
Ian Harding, Director of Investor Relations                [phone]
Graham Fairbank, Head of Corporate Communications          [phone]
Kingfisher plc                                             + 44 (0) 20 7724 7749
Kingfisher Website                                           www.kingfisher.com