Dixons Retail 2017 Bond Redemption announcement

7.00am, Monday, 21 July 2014

Dixons Retail plc (the "Issuer" or "Dixons")£150,000,000 8.75 per cent. Guaranteed Notes due 2017(ISIN: XS0804232337) (the "2017 Notes")

Notice of Redemption

Notice is hereby given to the holders of the 2017 Notes that, pursuant to Condition 5(d) of the terms and conditions of the 2017 Notes (the "Conditions"), the Issuer intends to redeem all outstanding 2017 Notes, in the amount of £150,000,000, on 21 August 2014 (the "Redemption Date") at (i) 100 per cent. of the principal amount of the 2017 Notes, plus (ii) accrued and unpaid interest to the Redemption Date, plus (iii) the Applicable Premium (the "Redemption Amount").

The redemption of the 2017 Notes on the Redemption Date is subject to, and conditional on, the completion of the all-share merger between the Issuer and Carphone Warehouse Group plc (the "Redemption Condition"), which is expected to occur on or around 6 August 2014. Accordingly, the 2017 Notes shall not be deemed due and payable on the Redemption Date unless, and until, the Redemption Condition is satisfied (or waived by the Issuer).

The Issuer will, no later than two Business Days prior to the Redemption Date, inform holders of the 2017 Notes: (i) whether the Redemption Condition has been (or will be) satisfied or waived by the Issuer and accordingly whether the 2017 Notes shall, or shall not, be so redeemed and (ii) the Redemption Amount (if applicable).

Unless the Issuer defaults in the payment of the Redemption Amount (if applicable), interest on the 2017 Notes shall cease to accrue on and after the Redemption Date.

Any redemption of the 2017 Notes will be in accordance with the applicable procedures of Euroclear Bank S.A./N.V. and Clearstream Banking, société anonyme.

All words and expressions defined in the Conditions shall (save as otherwise provided herein or unless the context otherwise requires) have the same meanings herein.

Dixons has also separately issued a notice of redemption with regards to the £150,000,000 8.75 per cent Guaranteed Notes due 2015 (ISIN: XS0528872830)

Dated: 21 July 2014

Dixons Retail plc