Trading Statement

Embargoed until January 14th 2003 at 07.00

                                                    MOTHERCARE PLC                                                     
                                                   TRADING STATEMENT                                                   

Mothercare is today providing a trading update for the third quarter being the 13 weeks to 10 January 2003.

                         28 Weeks to      13 Weeks to      41 Weeks to   

                        13 October 2002  10 January 2003  10 January 2003 
UK stores like-for-like      -2.1%            -1.1%            -1.8%      
International                +29.5%           +30.0%           +29.7%     
Direct                       +11.0%           +22.1%           +14.5%     
Group Sales                  +0.8%            +1.6%            +1.0%      
Direct comprises sales through the Mothercare catalogue and website.

Group sales in Mothercare for the 13 weeks to 10 January 2003 were up 1.6%. UK stores like-for-like sales (those stores
trading for one year or more and with no square footage change) in the same period were down 1.1%.

In the 12 weeks from 13 October 2002 to 3 January 2003 (being the end date of our most recently completed four week
accounting period), gross margins were 3.1 percentage points above the equivalent period last year reflecting a less
promotional and discounting stance. Autumn / Winter stocks have been substantially cleared in the sale and remnants
will be sold through the clearance stores.

Despite the improvement in gross margins, the lower than forecast sales during this peak trading period will result in
a trading outcome for the current year worse than expectations.

Ben Gordon, who joined the business as Chief Executive on 2 December, is undertaking a detailed operational review that
includes options for distribution.

Enquiries to:
Ben Gordon, Chief Executive                 020 7404 5959 (Tuesday only)
Mark McMenemy, Finance Director             01923 206187                

Brunswick Group Limited                                                
Susan Gilchrist/ Philippa Power             020 7404 5959