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Dixons Group PLC (DXNS)

Dixons Group PLC

Acquisition
Dixons Group PLC
27 November 2001

For immediate release

Tuesday 27 November 2001

Dixons Group plc


DIXONS ACQUIRES 24% OF ITALY'S LEADING INDEPENDENT ELECTRICAL RETAILER AND AN
                        OPTION TO ACQUIRE THE BALANCE


Dixons Group plc ('Dixons') today announces that it has bought 24.34% of the
issued share capital of UniEuro S.p.A. ('UniEuro') for Euro103 million 
(£64 million) cash. It also has an option to acquire the balance of 75.66% for 
Euro 425 million (£264 million). This 75.66% is owned by the management of 
UniEuro and a consortium of JP Morgan, Rhone Capital LLC and SOFIPA.

UniEuro is the leading independent and the most profitable retailer of
consumer electronics and domestic appliances in Italy. It is growing strongly
and currently has the second largest market share. It trades from 61
predominantly out-of-town superstores concentrated in the north west and north
east of Italy. Total selling space is 88,400m(2).

The stores sell a mixture of high technology consumer electronics, personal
computers, domestic appliances, photographic equipment, communication products
and related services. The proposition is focused on competitive prices,
customer service and new technology.

UniEuro's sales in the year to 31 December 2000 were Euro377 million 
(£234 million) and operating profit was Euro40 million (£25 million). This
represented a 33% growth in sales and profit on the previous year. The
business is growing strongly with sales in the 10 months to 31 October 23%
ahead of the same period in the previous year and with like-for-like sales
+11%.

UniEuro is expected to enhance Dixons' earnings from the date of acquisition.

The option to buy the remainder of the issued share capital of UniEuro can be
exercised at Dixons' discretion at any time before 2 July 2003. The price for
the remainder of the issued share capital under the exercise of the option is
fixed at Euro425 million (£264 million).

This transaction will bring a fast-growing and profitable business into the
Dixons Group and consolidate Dixons' position as the number one electrical
retailer in Europe. This two stage transaction will enable Dixons to continue
to pursue its international strategy whilst limiting the exposure for Dixons
shareholders at a time of heightened global uncertainty.

UniEuro has well-developed plans for future growth including a significant
increase in the number of stores in new regions of Italy. The combination of
Dixons and UniEuro will benefit from enhanced sourcing and buying
opportunities and a two-way transfer of ideas and best practices.

In the period before Dixons exercises its option Dixons will be represented on
the UniEuro board and management committee.

Commenting on the transaction, John Clare, Group Chief Executive of Dixons,
said:

'Italy is one of the top four electrical retail markets in Europe. This is a
great opportunity for Dixons.

'In UniEuro Dixons has found its ideal partner for Italy. It has a strong
management team, exceptional retail execution skills, a track record of strong
growth, solid profitability and exciting plans for the future.

'We also expect UniEuro to make a substantial contribution to the development
of the next generation of stores and business processes for our European mixed
electrical business.

'The acquisition will bring substantial benefits to the shareholders,
employees and customers of both Dixons and UniEuro.'

Oscar Farinetti, CEO of UniEuro, said:

'We are very enthusiastic about the partnership with Dixons. It will enable us
to accelerate significantly our already ambitious growth plans.

'Dixons' culture and its ways of working are similar to those of UniEuro. We
are very much looking forward to working together. '

                                     ENDS


A briefing for analysts only will be held today (Tuesday 27 November) at 11am
at the Chartered Accountants' Hall, Moorgate Place, London, EC2P 2BJ. Please
use the entrance at 11 Copthall Avenue (off London Wall), London EC2P 2BJ.

More Information:

Dixons Group plc:
                                                          
Ian Livingston, Chief Financial Officer,                  ++44 (0) 20 7499 3494
                                                          
Lesley Smith, Group Director Corporate Affairs,           ++44 (0) 20 7499 3494


Weber Shandwick Square Mile:
                                                          
Kevin Smith / Becky Haywood                               ++44 (0) 20 7601 1000


Schroder Salomon Smith Barney:
                                                          
Ian Hart                                                  ++44 (0) 20 7986 7200
                                                              
Marco Forasassi Torresani                                     ++39 02 8648 4216










Notes for editors:

UniEuro will be reported in Dixons Group's consolidated accounts as an
associated undertaking.


About Dixons Group plc

Dixons Group plc is one of Europe's largest specialist retailers of consumer
electronics and domestic appliances. It has over 1,250 stores across the UK,
the Republic of Ireland, the Nordic region, Spain and France. It trades as
Dixons, Currys, PC World and The Link in the UK and the Republic of Ireland,
as Elkjop and El Giganten in the Nordic region and as PC City in Spain and
France. It specialises in the sale of high technology consumer electronics,
personal computers, domestic appliances, photographic equipment, communication
products and related services at and after the point of sale.
Exchange rates: Euro1.61 = £1, ITL1936.27 = Euro1
Space:          1m(2) = 10.76ft(2)
Operating       earnings from ordinary activities before interest, tax and
profit:         amortisation

                of goodwill.







                                                                                
                                                                                
Data provided by FE. Care has been taken to ensure that the information is correct, but FE neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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