Disposal

Next PLC
26 January 2001


Date:       Embargoed until 07:00, Friday 26 January 2001

Contact:    David Keens, Finance Director
            Next plc
            Tel:  [phone]



            Richard Stables
            Lazard
            Tel:  [phone]

            
            Alistair Mackinnon-Musson
            Philip Dennis
            Hudson Sandler
            Tel:  [phone]
            E-Mail:  [e-mail]


                              NEXT PLC ('NEXT')

          DISPOSAL OF CLYDESDALE FINANCIAL SERVICES LIMITED ('CFS')

Next has completed the sale of the entire issued share capital of its
subsidiary CFS to Carnegie Holdings Limited for a total consideration of £
89.4m. CFS is engaged in the business of providing consumer credit and, as
announced by the Board when inviting offers for CFS, the provision of funded
credit for other retailers is no longer considered to be a core activity for
Next. This sale is part of the process to focus Ventura, a subsidiary of Next,
on the provision of call centre services and customer account management to
companies who wish to benefit from outsourcing these business activities.



At 31 January 2000 CFS had net assets of £0.2m and for the year ended on that
date reported pre-tax profits of £2.5m. The unaudited pre-tax profits of CFS
in the eleven months to 31 December 2000 were £2.6m.



CFS was fully funded by Next and at completion Next received repayment in cash
of intercompany loans amounting to £75.4m. The consideration for the shares
amounted to £14m, of which £10.75m was paid in cash on completion and the
balance of £3.25m was satisfied by way of a five year interest bearing loan
note guaranteed by a subsidiary of Barclays Bank plc. The intercompany loan
repayments and sale proceeds will be applied to eliminate group borrowings and
increase cash resources.



Lazard has advised Next on this transaction.


                                    -ENDS-