Offer of remaining stake in Lewis Group

17 May 2005

Not for release, publication or distribution in, or into the United States, Canada, Australia or Japan

GUS plc, the retail and business services group, today announces its intention to dispose of its entire remaining interest in its South African business, Lewis Group Limited (“Lewis”) of 50,000,001 Lewis shares, comprising 50% of the issued share capital of Lewis (the “Offering”). The Offering excludes the four million Lewis shares which will be transferred to the Lewis Employee Share Incentive Trust. The Offering will be implemented through a bookbuilding procedure commencing today and is expected to close on or before the close of business on 20 May 2005.

The initial public offering of Lewis was successfully completed on 4 October 2004 as part of GUS' strategy to release value for its shareholders, while enhancing the development opportunities for Lewis. The Board of GUS believes that now is the appropriate time to divest its remaining shareholding in Lewis in line with this strategy.

The proceeds from the sale will be used by GUS to reduce debt. Lewis will not receive any of the proceeds from the Offering.

John Peace, Group Chief Executive of GUS, commented:

“The plan to sell our remaining stake in Lewis is another important step in reshaping the GUS portfolio. The operational and financial performance of Lewis is strong. With its excellent management team, we believe it is well positioned for further growth.”

Enquiries

GUS

David Tyler Group Finance Director 020 7495 0070

Fay Dodds Director of Investor Relations

Finsbury

Rupert Younger 020 7251 3801

020 7251 3801 Notes to editors Founded in 1934, the Lewis group operates in Southern Africa selling furniture, household and electrical goods, mainly on credit, together with associated financial products. It trades under the ‘Lewis' brand in 400 furniture stores, under the ‘Best Electric' brand in 58 specialist electrical stores and under the ‘Lifestyle Living' brand in 17 more up-market furniture and electronic goods stores. The ‘Lewis' brand is the largest single brand by number of stores in the retail furniture industry in South Africa.

Global co-ordinator and sole bookrunner: UBS Co–lead managers: Investec and JP Morgan

Important notes This announcement has been issued by GUS plc and is the sole responsibility of GUS. UBS South Africa (Proprietary) Limited (“UBS”), Investec Bank Limited (“Investec”) and JP Morgan Securities Limited (“JP Morgan”) are acting exclusively for GUS and no one else in connection with the Offering and will not be responsible to anyone other than GUS for providing the protections afforded to clients of UBS, Investec and JP Morgan nor for providing any advice in relation to the Offering or any other matters referred to in this announcement.

This announcement is for information purposes and does not constitute an offer of, or an invitation by or on behalf of GUS plc, Lewis, UBS, Investec or JP Morgan to subscribe for or purchase any shares and may not be used for the purpose of an offer to, or a solicitation by, anyone in any jurisdiction or in any circumstances in which such offer or solicitation is not authorised or is unlawful. This announcement and the Offering do not constitute an offer in or from the United States, Canada, Australia, Japan or any other jurisdiction where the dissemination of this announcement or the making of the offer may be illegal or fails to conform to the laws of such jurisdiction.

The announcement is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(1) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Order”) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(1) of the Order (all such persons together being referred to as “relevant persons”). The offer shares have not been offered or sold nor will they be offered or sold in circumstances which have resulted or will result in an offer to the public in the United Kingdom within the meaning of the United Kingdom Public Offers of Securities Regulations 1995 and are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire any offer shares will be engaged in only with, relevant persons and where all applicable provisions of the United Kingdom Financial Services and Markets Act 2000 (“FSMA”) have been complied with. Any person in the United Kingdom who is not a relevant person should not act or rely on this announcement or any of its contents. In addition no person may communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received by it in connection with the issue or sale of any offer shares except in circumstances in which section 21(1) of FSMA does not apply.

The offer shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any securities laws of any state of the United States, and such shares are not and may not be offered or sold within the United States. The offer shares may not, directly or indirectly, be offered, sold, transferred to or delivered in the Netherlands, whether at their initial distribution or at any time thereafter, and neither this announcement nor any other document in respect of the Offering may be distributed or circulated in the Netherlands, other than to individuals or legal entities who or which trade or invest in securities in the conduct of their profession or trade (which includes banks, investment institutions, securities intermediaries, insurance companies, pension funds, other institutional investors and treasury departments and finance companies of large enterprises). This announcement does not constitute a prospectus within the meaning of Article 652a of the Swiss Code of Obligations of March 30, 1911. Accordingly, the offer shares may not be offered or distributed in or from Switzerland on the basis of a “public solicitation” and neither this announcement nor any offering material relating to the offer shares may be distributed in connection with any offer or distribution which may constitute such a solicitation.