Kingfisher plc - China, £6.95 Million Portfolio

Date: 02 Dec 2004

Kingfisher plc, Europe's leading home improvement retailer, today announces an accelerated expansion of its B&Q business in China with the acquisition of five leasehold hypermarket stores from PriceSmart, a
privately-owned Chinese company. The total consideration for all the properties is £6.95 million payable in cash, with payment conditional on completion of the transfer of each store. The five vacant stores are expected to be converted to the B&Q format during 2005.

The acquisition will strengthen B&Q's position in the highly attractive home improvement market in China, where it is the market leader with 20 stores. The new stores will also extend B&Q's reach into cities in the West and North East of China, which had already been targeted for new openings. The new sites are in addition to the planned opening of seven to nine new B&Q stores in China during 2005/06.

Kingfisher's B&Q China operations recorded sales of £131 million in the year to 31 January 2004, up 64% on a constant currency basis. The business also moved into profit for the first time with a full year profit of £0.4 million, after all store opening costs. Kingfisher opened its first B&Q sore in China in 1999.

The PriceSmart stores being acquired are all large units of 8,000-9,000 sq m. Two stores are located in the North East, two in the West and one in the North.

Ian Cheshire, Kingfisher's chief executive, international and development, said: "Kingfisher has been performing extremely well in China, which is one of the most exciting retail markets in the world. This deal enables B&Q to accelerate its expansion there and to consolidate its position as market
leader."

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