Agreement with Mutares for Sale of Pixmania Signed

PR no:1413

Embargoed for 7.00am 27 September 2013

DIXONS RETAIL PLC

Agreement with mutares for Sale of Pixmania signed

Dixons Retail plc ("Dixons Retail"), Europe's leading specialist electrical multi-channel retailing and services company, today announces that further to the announcement on 5 September 2013 and having completed consultations with the relevant works councils, it has now signed the agreement for the sale of PIXmania S.A.S to mutares A.G, a German listed industrial holding company.

As part of its purchase of PIXmania, mutares has developed a robust plan to build on PIXmania's pure play e-commerce operations as well as to further develop its market-leading software platform. In order to support this plan, and to provide ongoing funding for PIXmania, Dixons Retail will provide approximately £59million (€69million) of ring-fenced capital. Completion of the transaction is expected to take place at the end of December 2013.

For the year to April 2013, the assets being disposed of generated retail operating losses of £31.3 million and losses before tax of £114.3 million on turnover of £397.7 million and gross assets of £48.0 million. The transaction is expected to be accretive to underlying earnings for Dixons Retail in the current financial year.

Commenting on the transaction, Sebastian James, Group Chief Executive, said:

"I am delighted that we have been able to conclude consultations with the works councils so swiftly. This is testament to the strength of the plans that mutares has for the business, and to the vision that they were able to share with our colleagues at PIXmania. I believe that the company has an exciting future, and I look forward to watching it flourish under new ownership."

Commenting on the transaction, Aurélien Fauvel, head of mutares France, said:

"I am very pleased that we are now able to proceed with this transaction following positive discussions with employee representatives. We firmly believe that PIXmania can achieve long term success and can look forward with confidence."

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

Information about Dixons Retail

Dixons Retail is one of Europe's leading specialist electrical retailing and services groups, employing 35,500 people in 14 countries. More than 100 million customers shop with us every year, online and in our c.1,100 stores.

Dixons Retail has built a successful and sustainable multichannel approach to electrical retailing. Focused on the customer, the business offers a comprehensive range of after sales services, including support from Knowhow, the UK's leading provider of technology solutions, support, expertise and repairs. Business-to-business services are provided through PC World in the UK. As market leader in the Nordics, the business enjoys a superb reputation for first class customer service, a cost effective supply chain, strong retail sites across four countries and great supply relationships.

Dixons Retails' brands include Currys, PC World and Knowhow in the UK and Ireland. Customers shop with Elkjøp, El Giganten, Giganti, Lefdal and Knowhow in the Nordic countries, UniEuro, PC City and No Problem in Italy, Kotsovolos in Greece, ElectroWorld in central Europe, and Pixmania.com across Europe. Aiming to deliver an unbeatable combination of Value, Choice and Service, the company is proud to stand shoulder-to-shoulder with millions of customers whilst delivering a truly multichannel shopping experience.

For more information about Dixons Retail plc, please visit www.Dixonsretail.com

Follow us on Twitter: @DixonsRetail

Information about mutares AG

mutares AG is an industrial holding company that focuses on acquiring companies in special situations, with the goal of providing in-depth operational support to its portfolio companies thus positioning them for long-term profitable growth. Entrepreneurship is the core of mutares' business approach. This is reflected by a clear openness for unconventional solutions as well as our strong personal engagement and reliability. mutares prefers to invest in companies that have an established and proven business model combined with a strong brand. Management and employees of mutares' portfolio companies are key to the change process in their organization as the group's success is dependent on their qualifications and engagement. Only by working together with the local teams can mutares create meaningful value.

For more information about mutares AG, please visit www.mutares.de/company/en