Dixons Retail Sale of Central European Operations

FOR IMMEDIATE RELEASE 19 May 2014

DIXONS RETAIL PLC

Sale of central european operations

Dixons Retail plc ("Dixons Retail"), one of Europe's leading specialist multi-channel electrical retailer and services companies, today announces that it has entered into an agreement to sell the ElectroWorld operations in Central Europe to NAY a.s., a leading electrical specialist retailer in the region.

Electroworld operates 26 specialist electrical retail stores across Czech Republic and Slovakia.

Following completion, which is expected to take place during the summer, and which remains subject to certain normal conditions including competition authority clearance, Dixons Retail expects to receive a small deferred cash consideration spread over three years.

For the year to April 2014, the assets being disposed of generated losses before tax of £5.6 million on turnover of £129 million from 26 stores (including 2 franchise stores).

Commenting on the disposal, Sebastian James, Dixons Retail Group Chief Executive, said:

"I am very pleased that we have been able to secure a strong future for Electroworld who will be able to flourish as a part of the NAY Group in Central Europe. Following this transaction Dixons will be a market leader in every market in which it operates, delivering on one of our key strategic objectives."

Commenting on the deal, Mr.Peter Zálešák and Mr Ján Tomáš, co-founders of NAY, said:

"We are pleased to announce the closure of this deal with ElectroWorld. It is a big step towards achieving our goal of reaching EUR 300m of sales in Central Europe and we strongly believe it allows the development of our market leading position in Slovakia. Furthermore it achieves our longer-term development to enter the Czech market and we are delighted to do that in conjunction with such a good partner as Electroworld."

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, Nick Cosgrove Brunswick 020 7404 5959

Information about Dixons Retail

Dixons Retail is one of Europe's leading specialist electrical multi-channel retailing and services company, employing over 31,000 people in 12 countries. More than 100 million customers shop with us every year, online and in over 900 Dixons Group 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, Gigantti, Lefdal and Knowhow in the Nordic countries, Kotsovolos in Greece, ElectroWorld in central Europe and Dixons Travel in a number of airports 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 Nay

Already for 23 years, company NAY is present on the Slovak market and is in a position of the largest retail seller of consumer electronics, offering the largest assortment of global brands of white, black and information technology electronics, along with a broad portfolio of relevant services. The company began its activities in the beginning of the 90s as a distributor of global brands of electronics. Since 1992 the company began to build up its own network of retail shops. In 1998 it created a concept of large-scaled shops, under registered trademark of NAY Elektrodom, which it gradually spread all over Slovakia. Until now it operates 31 shops in 25 cities in Slovakia and employs more than 800 employees. Its loyalty club NAY EXTRA CLUB has more than 750 000 members. At present the company is building a modern multichannel access to merchandise through its e-shop www.nay.sk. During the last year the company reached a turnover of over 150 million euro and with its market share of over 15 % is NAY the leader of Slovak electronics market.

For more information please visit www.nay.sk .