PR no:11/13 7.00am, 5 September 2013

DIXONS RETAIL PLC ENCOURAGING START TO THE YEAR IRREVOCABLE OFFER RECEIVED IN RESPECT OF DISPOSAL OF TURKISH OPERATIONS

Dixons Retail plc, Europe’s leading specialist multi-channel electrical retailing and services company, today announces trading for the first quarter to 31 July 2013, as well as actions in respect of two non-core operations. This announcement coincides with the Group’s annual general meeting being held today.  Multi-channel businesses (UK & Ireland, Northern and Southern Europe) delivered performances in line with expectations with like for like sales up 4%.  UK & Ireland traded well, in spite of an unusually sunny July and last year’s summer of sport, as strong market share gains continued with like for likes up 6%.  Northern Europe saw good growth with like for like sales up 5% driven by further market share gains and despite a very strong performance last year.  Southern Europe continued to experience difficult market conditions as well as cooler summer weather affecting air-conditioning sales, with like for likes down 12%.  Group gross margins down 0.4% in the first quarter, driven largely by our continued drive for even better value for customers, particularly in the Nordics.  Further milestones achieved in our strategic goal to focus on our leading market positions:  Separate announcement today that we have received an irrevocable offer for PIXmania from mutares AG, a German listed industrial holding company.  Disposal of ElectroWorld Turkey to Bimeks also announced separately today.

First quarter ending 31 July 2013 Underlying Sales Total growth Total growth Like for like Sterling Local currency growth

+3% +3% +6% UK & Ireland

Northern Europe +12% +5% +5% Nordics & Central Europe Southern Europe Flat (7)% (12)% Italy & Greece

Total multi-channel +6% +3% +4%

PIXmania (32)% (37)% (28)%

Total Underlying Group +4% Flat +2%

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Sebastian James, Chief Executive, commented: “Against some very good comparables last year, and despite a July that was sizzling in the North and chilly in the South (affecting electronics and air conditioning sales respectively for that month) we have had an encouraging start to the year. Margins have held up reasonably well across the Group despite some anticipated and vigorous skirmishes in the Nordics where, I am happy to say, we have continued to grow market share.

We are continuing to improve our proposition for our customers. We are the first to offer same-day delivery across our product range to many of our customers in the UK, our multi-channel proposition is getting easier to use, we have further improved our customer advocacy results, and our pricing is ever sharper.

I am a passionate believer that Dixons succeeds where we offer our customers an integrated multi-channel proposition, where we are the market leader and that we do best when we stick to our knitting. So I am very pleased to be able to announce today that we have received an irrevocable offer for PIXmania. If this proceeds to completion PIXmania would benefit from an injection of entrepreneurial vigour and with a very solid capital base would be able to deliver on the robust business plan proposed by mutares AG.

I am also pleased that we have agreed the sale of our ElectroWorld operations in Turkey to Bimeks, one of the leading electrical specialist retailers in Turkey.

Despite some reports of improved economic conditions, we remain cautious on the state of the market for the year ahead. But with this good start, I am excited about the rest of the year and about the future for a successful and simplified Group.”

— Ends —

For further information David Lloyd-Seed, IR, PR & Corporate Affairs Director, Dixons Retail 01727 205065 Hannah Collyer, Head of Media Relations, Dixons Retail 01727 203041 Tom Burns, Helen Smith Brunswick 020 7404 5959

Investors & Analysts Conference Call and Humphrey Singer will host a conference call for Investors and Analysts at 8.00 am: Dial in number: +44 (0) 1452 555 566 Conference call ID 42638865

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Information on Dixons Retail plc is available at http://www.dixonsretail.com Follow us on Twitter @DixonsRetail

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NOTES: 1) Like for like sales are calculated based on underlying store and internet sales using constant exchange rates. New stores are included where they have been open for a full financial year both at the beginning and end of the financial period. Customer support agreement sales are excluded from all UK like for like calculations. Closed stores are excluded during the period of closure. Underlying sales are defined as excluding trading results from business exited/to be exited (including PC City Spain, Equanet, Webhallen, PLS and ElectroWorld Turkey). PIXmania like for like sales exclude sales in all exited countries and categories. 2) UK & Ireland comprises , CurrysDigital, , PC World, combined 2-in-1 Currys and PC World, Harrods concession, operations in Ireland, Dixons.co.uk (closed in October 2012), and Knowhow. 3) Northern Europe comprises the Elkjøp group and ElectroWorld in the and Slovakia. 4) Southern Europe comprises Greece () and Italy (Unieuro and combined 2-in-1 Unieuro and PC City stores). 5) Movements in the financial position, including levels of borrowings, of the Group since the last balance sheet date are reflective of the trading performance and statements outlined above. Other than this, there have been no significant changes in the financial position of the Group. 6) Certain statements made in this announcement are forward looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.

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