Interim Management Statement

PR no:29/12

7.00am, 10 May 2012

DIXONS RETAIL PLC

Full year trading statement

Sales ahead of expectations with a strong end to the year

Dixons Retail plc, Europe's leading specialist electrical retailer and services company, today announces trading for the 16, 28 and 52 weeks ended 28 April 2012.

·; Group underlying total sales were flat and like for like sales were down 3% in the full year.

·; Encouraging end to the year with Group like for like sales up 5% in the final quarter.

·; Good performances in UK & Ireland and Northern Europe, trading ahead of their markets, and ending the year strongly with like for likes up 8% and 10% respectively in the final quarter.

·; Italian and Greek business impacted by continued difficult economic environments.

·; PIXmania's financial performance particularly impacted this year by supply issues following natural disasters, consumer declines in core markets and transition to a new operating model.

·; Continued strong growth in multi-channel:

·; Multi-channel sales up 30% in the second half and up 16% in the full year.

·; Internet sales now represent 18% of Group sales.

·; Group gross margins down 0.3% in the full year.

·; Gross margins flat in the UK in the full year, in line with strategy.

·; Northern Europe gross margins down 0.5% in the full year but recovering to flat in the second half.

·; Full year Group underlying profit before tax expected to be between £65 million to £70 million which is towards the top end of expectations.

·; Strong cash and working capital management resulting in year-end net debt expected to be approximately £110 million.

Sebastian James, Chief Executive, commented:

"Our overall Group performance across the year has been slightly better than we anticipated. We saw a strong end to the year particularly in the UK and Nordics, and it is good to see the work that we have been doing to improve the ranging and service bearing fruit as more customers are choosing us over our competitors. However, in Southern Europe our businesses have been impacted by the weaker economic environments and issues in the Eurozone.

We have made significant strides in the way we operate over the last four years and we know that we have a clear role, shoulder-to-shoulder with our customers as we help them to navigate the increasingly complex world of technology. We are seeing the benefits of this through our growing market shares and significantly improving customer satisfaction scores. Our award winning KNOWHOW service brand is celebrating its first anniversary and is delivering a real difference for customers, performing ahead of our expectations and delivering services that our competitors are finding hard to match. We are never satisfied that we are good enough though, and remain determined to make our business better, every single day, for our customers. By doing this we are confident that we will deliver a multi-channel business that is sustainable in a world where consumer shopping behaviours are constantly evolving.

The consumer environment remains uncertain in many of our markets and we continue to plan cautiously and manage costs aggressively. Overall, though, our business is in a strong position for the year ahead and we are looking forward to an exciting summer of sporting activities and celebrations."

Dixons Retail plc will announce preliminary results for the 52 weeks ended 28 April 2012 on 21 June 2012.

- Ends -

For further information

David Lloyd-Seed, IR & Corporate Affairs Director, Dixons Retail 01727 205065

Mark Webb, Head of Media Relations, Dixons Retail 01727 205019

Tom Burns, Nick Cosgrove Brunswick 020 7404 5959

Investors & Analysts Conference Call

Sebastian James and Humphrey Singer will host a conference call for Investors and Analysts at 8.30am:

Dial in number: +44 (0) 1452 580 111

Conference call ID 77627366

A replay facility will be available after the call using the following details:

Dial in number: +44 (0) 1452 550 000

Conference call ID 77627366#

Information on Dixons Retail plc is available at http://www.dixonsretail.com

Total sales movements in Sterling and local currency

NOTES:

1) Like for like sales are calculated based on stores that have been open for a full financial year both at the beginning and end of the financial period and are calculated using constant exchange rates. Customer support agreement sales are excluded from all UK like for like calculations. Operations that are subject to closure have sales excluded as of the announcement date. Stores closed for refurbishment are excluded during the period of closure. All PIXmania pick up store sales are included in like for like sales.

2) UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, combined 2-in-1 Currys and PC World, operations in Ireland, Dixons.co.uk, DSGi Business and KNOWHOW. Like for like sales exclude DSGi Business.

3) Northern Europe comprises the Elkjøp group, Czech Republic (ElectroWorld), Slovakia (ElectroWorld) and Dixons Travel Denmark.

4) Southern Europe comprises Greece (Kotsovolos), Italy (Unieuro, combined 2-in-1 Unieuro and PC City stores and Dixons Travel Italy), and Turkey (ElectroWorld).

5) 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.