Interim Results

Ted Baker PLC

("Ted Baker", the "Group")

Interim Results for the 28 weeks ended 11 August 2012

'Robust performance against a backdrop of challenging conditions'

·; Retail sales up 15.4% on a 12.6% increase in average retail square footage

o UK and European retail sales up 7.9% to £74.7m

o US retail sales up 53.3% to $25.6m

o Rest of the world retail sales up 58.1% to £2.8m

·; E-commerce sales up 82.4% to £6.2m

·; Planned expansion continued with the opening of:

o Our first store in Tokyo, Japan and first concessions in South Korea and the Netherlands

o New stores in existing markets on the Brompton Road, London, Fifth Avenue, New York and Harbour City, Hong Kong

·; Wholesale sales up 15.4% to £24.9m

·; Licence income up 19.2% to £3.7m

Commenting, Ray Kelvin CBE, Founder and Chief Executive, said:

"We have delivered good results in a challenging environment whilst making important investments for the long term development of the brand, including opening new stores in Tokyo and on Fifth Avenue, New York.

We are especially pleased with the positive reaction to our Autumn/Winter collections and I am delighted with the openings, since the period end, of our first store in China in Beijing and our first concessions in Germany, as we continue to build Ted's global presence.

As ever, our full year results will be dependent on trading in the important second half and we remain understandably cautious at this stage given the uncertainty in the global economy. However, we believe that we are well placed to deal with the challenges ahead."

www.tedbaker.com

www.tedbakerplc.com

Media images available for download at:

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Notes to Editors

Ted Baker PLC - "No Ordinary Designer Label"

Ted Baker is a leading global lifestyle brand distributing across five continents through its three main distribution channels: retail (including e-commerce); wholesale; and licensing.

Ted Baker has almost 300 stores and concessions worldwide, comprising of 179 in the UK, 41 in Europe, 47 in the US, 28 in the Middle East and Asia and 4 in Australasia.

Ted Baker offers a wide range of collections including: Menswear; Womenswear; Global; Phormal; Endurance; Born by Ted Baker; Accessories; Lingerie and Sleepwear; Childrenswear; Fragrance and Skinwear; Footwear; Neckwear; Eyewear; and Watches, all of which are underpinned by an unwavering emphasis on design, product quality and attention to detail.

Development of the brand

Our strategy is to become a leading global designer brand, based on three main elements:

·; considered expansion of our collections. We review our collections continually to ensure we react to trends and meet our customers' expectations. In addition, we look for opportunities to extend the breadth of collections and enhance our offer;

·; controlled distribution through three main channels: retail (including e-commerce); wholesale; and licensing. We consider each new opportunity to ensure it is right for the brand and will deliver margin led growth; and

·; carefully managed development of existing and new international markets. We continue to manage growth in existing territories while considering new territories for expansion.

Underlying our strategy is an emphasis on design, product quality and attention to detail, which is delivered by the passion, commitment and dedication of our teams, licence partners and wholesale customers ("trustees").

Chairman's Statement

I am pleased to announce a robust performance despite a backdrop of challenging conditions, which resulted in a 15.4% increase in Group revenue to £118.6m and a 10.4% improvement in profit before tax and exceptional costs to £9.4m.

The retail division performed well across all markets, with sales up 15.4% on a 12.6% increase in average retail square footage. We are delighted with the continued expansion of the Ted Baker brand, both in the UK and internationally, which included openings on the Brompton Road, London, Tokyo, Japan, Seoul, South Korea and Harbour City, Hong Kong. We also opened a store on Fifth Avenue, New York at the end of the period.

Wholesale sales were up 15.4%, reflecting continued growth in our US wholesale business and a good performance from our UK wholesale business, which includes the results of our wholesale export business.

Licence income increased by 19.2% to £3.7m as a result of a strong performance from both our product and territorial licences.

Financial Results

Group revenue increased by 15.4% to £118.6m (2011: £102.8m) for the 28 weeks ended 11 August 2012 ("the period"). The composite gross margin increased to 60.6% (2011: 59.5%), reflecting a reduction in the level of promotional activity in our retail markets compared to the same period last year.

Operating expenses excluding exceptional costs increased by 17.4% in the period to £65.9m (2011: £56.2m). Distribution costs, which mainly comprise the cost of retail stores, outlets and concessions, increased in line with expectations to £48.3m (2011: £41.2m) and as a percentage of sales increased slightly to 40.7% (2011: 40.1%). This was primarily due to our expansion into new international markets and included pre-opening costs of £0.4m (excluding exceptional rental costs discussed below) in respect of stores before they commenced trading.

Administrative expenses increased by 17.3% to £17.6m (2011: £15.0m) reflecting the growth in the US team to support our US retail and wholesale businesses and growth in other central functions to support our expansion into new international markets.

Exceptional costs of £1.6m (2011: nil), which were previously highlighted, were rental costs incurred in respect of our stores on Fifth Avenue, New York and in Tokyo, Japan for the periods before they commenced trading.

Profit before tax and exceptional costs increased by 10.4% to £9.4m (2011: £8.5m) and profit before tax was £7.8m (2011: £8.5m). Adjusted basic earnings per share excluding exceptional costs increased by 13.5% to 16.8p (2011: 14.8p) whilst basic earnings per share fell by 6.1% to 13.9p (2011: 14.8p). Adjusted diluted earnings per share rose 12.8% to 15.9p (2011: 14.1p) whilst diluted earnings per share fell by 6.4% to 13.2p (2011: 14.1p).

The effective tax rate of 25.3% (2011 full year effective rate: 27.6%) is in line with our expectations for the full financial year and reflects the reduction in the rate of corporation tax in the UK from 26% to 24% which came into effect on 1 April 2012.

The net decrease in cash and cash equivalents of £20.7m (2011: £16.5m) primarily reflected an increase in both inventories and in capital expenditure.

Total working capital, which comprises inventories, trade and other receivables and trade and other payables, increased by £12.1m to £58.4m (2011: £46.3m). This was mainly due to a £12.6m increase in inventories to £58.9m (2011: £46.3m) reflecting the growth of our business and earlier timing of stock receipts towards the end of the period. The timing of stock payments also resulted in a decrease in trade and other payables.

Capital expenditure of £12.9m (2011: £8.2m) reflected the opening and refurbishment of stores and concessions in both new and existing markets, as well as investment in some new stores and concessions due to open in the second half of the year. Further investment was also made in the infrastructure of the business to support our planned expansion. We expect full year capital expenditure to be in the region of £18m.

Dividends

The Board has declared an interim dividend of 7.9p (2011: 7.15p), representing an increase of 10.5%, which will be payable on 23 November 2012 to shareholders on the register at the close of business on 19 October 2012.

People

I would like to take this opportunity to thank all of my colleagues around the world. This strong performance and the continued successful development of our brand, both in the UK and internationally, are testament to the passion, commitment and dedication of the Ted Baker team.

Global Group Performance

Retail

We operate stores and concessions across the UK, Europe, the US and Asia and an e-commerce business based in the UK, primarily serving the UK and Europe, with a separate site dedicated to the Americas. We also have an e-commerce business with some of our concession partners.

Retail sales were up 15.4% to £93.7m (2011: £81.2m) with average retail square footage increasing by 12.6% to 264,138 sq.ft (2011: 234,564 sq.ft). Sales per square foot fell slightly by 0.3% to £331 (2011: £332).

Our e-commerce business performed very well during the period, resulting in an 82.4% increase in sales to £6.2m (2011: £3.4m). In April, we launched a mobile optimised transactional site and the response from our customers has been very positive. Our e-commerce business continues to benefit from enhancements to our UK based transactional site which took place in the second half of last year.

The retail gross margin was 64.6% (2011: 64.0%) reflecting a lower level of promotional activity in our markets compared to the same period last year.

Retail operating costs were 17.8% up on space ahead 12.6%, resulting in a slight reduction in retail operating contribution of 13.6% (2011: 14.0%). The increase in costs above the growth in space was primarily due to our expansion into new international markets and included pre-opening costs of £0.4m (excluding the exceptional rental costs) in respect of stores before they commenced trading.

Wholesale

We currently operate a wholesale business in the UK serving countries across Europe and a wholesale business in the US.

Group wholesale sales were 15.4% above the same period last year at £24.9m (2011: £21.6m) with gross margins of 45.4% (2011: 42.5%). This reflects a good performance from our UK wholesale business and continuing growth in both our wholesale export business and our US wholesale business. Part of the increase was also due to the phasing of sales between the first and second half of the year.

Underlying wholesale margins were largely unchanged but the division benefited from an increase in income arising from the supply of stock to our overseas subsidiaries which is managed through this channel.

Licence Income

We operate both territorial and product licences. Our territorial licences cover the Middle East, Asia and Australasia, through which we operate licensed retail stores and, in some territories, wholesale operations. Our product licences cover lingerie & sleepwear, perfume & fragrance, watches, footwear, eyewear, neckwear, jewellery and childrenswear.

Licence income was up 19.2% to £3.7m (2011: £3.1m) as a result of a good performance across both territorial and product licences. Notably there were good performances from our product licence partner, Debenhams, with whom we have an exclusive childrenswear collection, and B by Ted Baker, an exclusive lingerie and sleepwear collection, and our licensed footwear partner, Pentland Group. Our licensed stores in the Middle East and Asia, operated by our territorial partner, RSH Limited, also performed well during the period.

Collections

Ted Baker Womenswear delivered a very strong performance with sales up 24.5% to £66.1m (2011: £53.1m). Womenswear represented 55.7% of total sales (2011: 51.7%). Part of this growth was due to more Womenswear space added in the second half of last year and the first half of this year.

Ted Baker Menswear also performed well with sales increasing 5.7% to £52.5m (2011: £49.7m). Menswear represented 44.3% of total sales (2011: 48.3%).

Geographic Performance

United Kingdom & Europe

Sales in the period in our UK and Europe retail division were up 7.9% to £74.7m (2011: £69.2m). This good performance was delivered despite a backdrop of challenging conditions.

During the period we opened a store on the Brompton Road, London which performed well. We also opened concessions with leading department stores in Spain, Ireland and the Netherlands and are pleased with their performances at this early stage.

Average square footage rose by 6.5% over the period to 201,153 sq.ft (2011: 188,865 sq.ft). At 11 August 2012, total retail square footage was 203,989 sq.ft (2011: 193,264 sq.ft), representing an increase of 5.5%. Retail sales per square foot decreased by 2.0% from £349 to £342 reflecting the challenging conditions, particularly in Europe outside the UK.

At 11 August 2012, we operated 34 stores (2011: 34), 171 concessions (2011: 164) and 10 outlet stores (2011: 10).

Sales from our UK wholesale business increased by 11.7% to £21.0m (2011: £18.8m) due to a good performance from our UK wholesale business and continued growth in our wholesale export business. Part of this increase also reflected the phasing of sales between the first and second half of the year.

US

Sales from our US retail division increased by 53.3% to $25.6m (2011: $16.7m), which in sterling was equivalent to sales up 57.3% to £16.2m (2011: £10.3m). At the end of the period we opened a store on Fifth Avenue, New York and, at this early stage, performance has been encouraging. We are confident that this prominent store will help to raise awareness of the Ted Baker brand both in the US and internationally. We also opened further concessions through a leading department store during the period.

Average square footage rose 32.2% over the period to 54,261 sq.ft (2011: 41,034 sq.ft). At 11 August 2012, total retail square footage was up 43.8% on last year at 61,266 sq.ft (2011: 42,605 sq.ft). Retail sales per square foot rose 16.0% from $400 to $464.

As at 11 August 2012, we operated 26 concessions across the United States (2011: 7), 15 stores (2011: 13) and 3 outlet stores (2011: 2).

Sales from our US wholesale business increased by 37.8% to $6.2m (2011: $4.5m) reflecting the continued growth of the business.

Middle East, Asia and Australasia

We continue to develop the Ted Baker brand across the Middle East, Asia and Australasia, working closely with our partners in those territories to ensure the visual merchandising of the stores and the training of the teams reflects the Ted Baker culture. As at 11 August 2012, we operated a total of 31 stores (2011: 26 stores) across those territories.

Our licensed stores across the Middle East continued to perform well during the period and consequently our partners continue to seek further opportunities to expand in this region. As at 11 August 2012, we operated 7 stores across the Middle East (2011: 7 stores).

Our expansion into new international markets continued with an opening in Tokyo, Japan in February and two concessions through leading department stores in South Korea in March. These openings reflect investments for the long term development of the brand and we have been encouraged by the initial reaction to the brand and our collections in these new markets.

In June, we opened stores in the Plaza Senayan Mall in Jakarta, Indonesia, the Suria Mall in Kuala Lumpar, Malayasia and ION Mall in Singapore with our licence partner in those territories, RSH Limited. During the period two existing stores were closed and as a result, as at 11 August 2012, we operated a total of 20 stores across Asia (2011: 15).

In July, we opened a third store in Hong Kong under our own management and the brand continues to be well received in the region.

The joint venture with our Australasian licence partner, Flair Industries Pty Ltd, continues to perform in line with our expectations. As at 11 August 2012, we operated 4 stores in Australasia (2011: 4 stores).

Current Trading and Outlook

Group

The Ted Baker brand continues to perform well in an uncertain trading environment and we are encouraged by the positive reaction to our Autumn/Winter collections. We believe that we are well placed to deal with the challenges and opportunities ahead and look forward to the continuing expansion and long term investment in our business in the UK and overseas in the second half of the year.

Retail

The strong performance seen in the first half of 2012 has continued into the second half of the year. We have also continued our planned expansion into new international markets by opening our first concessions through a leading department store in Germany in September.

In Europe, we will be opening further concessions through leading department stores in Spain, Ireland and the Netherlands in the second half of the year.

In the US, we will be opening a further outlet store in Woodbury Common, New York in January as well as further concessions through a leading department store during the second half of the year. In Canada, we will be opening our first store in the Yorkdale Shopping Centre in Toronto in November.

In Asia, we opened our first store in China in September in the Park View Green Mall, Beijing and are encouraged by its performance at this very early stage. We plan to open a store in Shanghai during the second half of the year.

Wholesale

Trading in our UK and US wholesale businesses has continued in line with expectations. We anticipate Group wholesale sales for the full year being some 8% ahead of last year.

Licence Income

Our product and territorial licences continue to perform in line with expectations. Our licence partner in Kuwait will be opening a store in the Al Hamra Mall in December, whilst our other territorial licence partners continue to seek opportunities in their respective territories.

Outlook

Whilst we have made a strong start to the financial year, our results for the full year will, as always, be dependent on trading in the second half of the financial year and we remain cautious given the challenging trading environment. Our costs and financial commitments remain under control and, with our strong balance sheet, we will continue to invest in the long term development of the Ted Baker brand.

We intend to make our next interim management statement, covering the period since the start of the second half of the financial year, in mid November.

Condensed Group Income Statement

For the 28 weeks ended 11 August 2012

Condensed Group Statement of Comprehensive Income

For the 28 weeks ended 11 August 2012

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 11 August 2012

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 13 August 2011

Condensed Group Statement of Changes in Equity - Audited

For the 52 weeks ended 28 January 2012

Condensed Group Balance Sheet

At 11 August 2012

Condensed Group Cash Flow Statement

For the 28 weeks ended 11 August 2012

Notes to the Condensed Interim Financial Statements

For the 28 weeks ended 11 August 2012

1. Basis of preparation

a. Reporting entity

Ted Baker PLC is a company domiciled in the United Kingdom. The condensed interim financial statements ("interim financial statements") of Ted Baker PLC as at, and for the 28 weeks ended, 11 August 2012 comprise the Company and its subsidiaries (together referred to as the "Group").

The Group financial statements as at, and for the 52 weeks ended, 28 January 2012 are available upon request from the Company's registered office at Ted Baker PLC, The Ugly Brown Building, 6a St. Pancras Way, London NW1 0TB or at www.tedbakerplc.com.

b. Statement of compliance

These interim financial statements have been prepared in accordance with "IAS 34 Interim Financial Reporting" as adopted by the EU and the requirements of the Disclosures and Transparency Rules. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group financial statements as at, and for the 52 weeks ended, 28 January 2012. These interim financial statements were approved by the Board of Directors on 4 October 2012.

The comparative figures for the 52 weeks ended 28 January 2012 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. These sections address whether proper accounting records have been kept, whether the Company's accounts are in agreement with these records and whether the auditors have obtained all the information and explanations necessary for the purposes of the audit.

The financial information in this document is unaudited, but has been reviewed by the auditors in accordance with the Auditing Practices Board guidance on Review of Interim Financial Information.

c. Going concern

The Group financial statements for the 52 weeks ended 28 January 2012, approved by the Board on 21 March 2012, included information on the business environment in which the Group operates, including the factors that are likely to impact the future prospects of the Group, together with the principal risks and uncertainties that the Group faces. In addition, the notes to the consolidated financial statements set out the Group's objectives, policies and processes for managing its financial and capital risk and its exposures to credit, market and liquidity risk. Many of the risks and uncertainties reported are such that their potential to impact the Group's operations are inherent and remain valid as regards to their potential impact during the second half of 2012. The impact of the economic environment in which the Group's businesses operate is considered in the Chairman's Statement.

The Directors have prepared trading and cash flow forecasts for a period of one year from the date of approval of these interim financial statements. The Directors have a reasonable expectation that the Group has adequate cash headroom and expects to meet all banking covenant requirements. Accordingly, they continue to adopt a going concern basis in preparing the financial statements of the Group.

d. Significant accounting policies

The accounting policies adopted in these interim financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the 52 weeks ended 28 January 2012. Adoption of amendments to published standards and interpretations effective for the Group for the half year ended 11 August 2012 have had no impact on the financial position and performance of the Group.

2. Segment information

The Group has three reportable segments; retail, wholesale and licence income.

For each of the three segments the Group's chief operating decision maker (the "Board") reviews internal management reports on a four weekly basis.

The accounting policies of the reportable segments are the same as described in note (s) on page 54 of the Group financial statements as at and for the 52 weeks ended 28 January 2012. Information regarding the results of each reportable segment is included below. Performance for the retail segment is measured based on operating contribution, whereas performance of the wholesale segment is measured based on gross profit and performance of the licence segment is measured based on royalty income, as included in the internal management reports that are reviewed by the Board.

Segment results are used to measure performance as management believes that such information is the most relevant in evaluating the performance of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm's length basis.

Segment revenue and segment result

Wholesale sales are shown after the elimination of inter-company sales of £14,756,000 (13 August 2011: £9,816,000, 28 January 2012: £20,348,000).

3. Exceptional costs

The directors believe that the profit before exceptional items and the adjusted earnings per share measures provide additional useful information for shareholders on the underlying performance of the business. These measures are consistent with how underlying business performance is measured internally.

The exceptional profit before tax measure is not a recognised profit measure under IFRS and may not be directly comparable with adjusted profit measures used by other companies.

Exceptional costs of £1.6m (13 August 2011: £nil, 28 January 2012: £2.8m) are in respect of rent for our stores on Fifth Avenue, New York and in Tokyo, Japan for the period before they commenced trading. Exceptional costs incurred in the period ended 28 January 2012 were in respect of rent for our stores on Fifth Avenue, New York and in Tokyo, Japan for the periods before they commenced trading, but additionally included set up costs in relation to our expansion into China and a provision for bad and doubtful debts in respect of our exposure in Greece.

4. Finance income and expenses

5. Earnings per share

* Adjusted profit for the period and adjusted earnings per share are shown before exceptional costs of £1,589,000 (28 weeks ended 13 August 2011: £Nil, 52 weeks ended 28 January 2012: £2,814,000).

6. Dividends per share

The Board has declared an interim dividend of 7.9p per share (2011: 7.15p) payable on 23 November 2012 to shareholders on the register at the close of business on 19 October 2012.

7. Income tax expense

The Group's full year forecast effective tax rate in respect of continuing operations for the 28 weeks ended 11 August 2012 was 25.3% (28 weeks ended 13 August 2011: 27.4%, 52 weeks ended 28 January 2012: 27.6%).

This reduction reflects the fall in the UK corporation tax rate from 26% to 24% on 1 April 2012. The closing deferred tax assets and liabilities as at 28 January 2012 were recognised at a rate of 25% based on the corporation tax rate substantively enacted at the balance sheet date. As the further reduction to 23% was substantively enacted on 17 July 2012, the closing deferred tax assets and liabilities have been re-measured.

The proposed future reductions in the rate to 22% will be reflected when the relevant legislation is substantively enacted. We expect to see a future reduction in our effective tax rate in line with these changes although the rate will be impacted where future profits arise in overseas jurisdictions with higher tax rates than the UK.

8. Share based payments

Share options and Long Term Incentive Plans "LTIP" awards

Equity settled awards are granted to employees in the form of share options, share awards or the award of units that can convert to nil-cost options.

Share options are granted at an option price equal to the Company share price at the grant date, or at a discount of 20% in the case of SAYE share options. No consideration is payable when share awards or nil-cost options vest. The vesting period is generally between three and five years and the share options expire between three and ten years after grant. Share options and awards will also expire if the employee leaves the Group prior to the exercise or vesting date.

The terms and conditions of the grants made during the 28 weeks ended 11 August 2012 are as follows:

The basis of measuring fair value is consistent with that disclosed in the consolidated financial statements for the 52 weeks ended 28 January 2012. The range of inputs into the Black-Scholes model was as follows:

Value Creation Plan

The award of units is made under the Ted Baker 2009 Value Creation Plan ("2009 VCP"). Units have no value at grant, but subject to the satisfaction of earnings per share, share price and total shareholder return performance targets can convert and give participants the right to be granted nil-cost options at the end of the performance period.

No awards were made under the 2009 VCP in the 28 weeks ended 11 August 2012.

The charge to the income statement for 28 weeks ended 11 August 2012 for VCP awards amounted to £165,541 (2011: £208,527). Included in the charge for the period is an amount in respect of R S Kelvin, who is employed by the Company, amounting to £37,326 (2011: £37,326).

The awards made in August 2009 under the 2009 VCP will vest on 13 August 2012. Those awards will convert into nil-cost options exercisable in two tranches, 50 per cent. in October 2012 and 50 per cent. in October 2013 subject to the participants being employed by the Group at these dates. The units are expected to vest as all performance related vesting conditions have been met or exceeded.

9. Reconciliation of cash and cash equivalents per balance sheet to the cash flow statement

10. Treasury shares

The Company acquired nil treasury shares (2011: nil) and disposed of 62,471 treasury shares for proceeds of £203,734 (2011: 16,021 for proceeds of £69,132) in the 28 weeks ended 11 August 2012.

11. Related Parties

The Company has a related party relationship with its directors and executive officers.

Directors of the Company and their immediate relatives control 40% (2011: 40%) of the voting shares of the Company.

At 11 August 2012, the main trading company owed the parent company £23,490,000 (13 August 2011: £18,826,000, 28 January 2012: £30,053,000). The main trading company was owed £50,236,000 (13 August 2011: £26,662,000, 28 January 2012: £38,987,000) from the other subsidiaries within the Group.

Transactions between subsidiaries and between the parent and subsidiaries were priced on an arms length basis.

The Group has a 50% interest in a joint venture company in Australia which is also the parent company of a subsidiary joint venture in New Zealand. As at 11 August 2012, the joint venture owed £396,000 to the main trading company (13 August 2011: £498,000, 28 January 2012: £407,000). The value of sales made to the joint venture by the Group was £551,000 in the period to 11 August 2012 (13 August 2011: £412,000, 28 January 2012: £726,000).

12. Principal risks and uncertainties

The current uncertain trading environment has affected, and will continue to affect, all areas of our business. We also recognise that we will be affected by the impact this will have on our customers, partners and suppliers.

The Board recognises there are a number of risks and uncertainties that face the Group. The Board has established a structured approach to identify, assess and manage these risks and this is regularly monitored and updated by the Risk Committee. The principal risks and uncertainties are unchanged from those reported in the Group's consolidated financial statements as at and for the 52 weeks ended 28 January 2012, and are summarised below:

Responsibility statement of the directors in respect of the interim financial statements

The directors confirm that to the best of their knowledge:

·; the condensed financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as adopted by the EU;

·; the interim management report includes a fair review of the information required by:

(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first 28 weeks of the financial year and their impact on the condensed financial statements, and a description of the principal risks and uncertainties for the remaining 24 weeks of the financial year; and

(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first 28 weeks of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

The directors of Ted Baker PLC are listed on page 27 of the financial statements as at, and for, the 52 weeks to 28 January 2012.

By order of the Board

R S Kelvin CBE L D Page

Chief Executive Finance Director

4 October 2012 4 October 2012

This interim report will be sent by post to all registered shareholders. Copies will be available to the public from the Company Secretary at the registered office: Ted Baker PLC, The Ugly Brown Building, 6a St Pancras Way, London NW1 0TB.

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements. These forward-looking statements include matters that are not historical facts or are statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates. Forward-looking statements are based on the information available to the Directors at the time of preparation of this announcement, and will not be updated during the year. The Directors can give no assurance that these expectations will prove to have been correct. Due to inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward-looking statements.

Independent Review Report on the Condensed Financial Statements to the members of Ted Baker PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the interim financial statements for the 28 weeks ended 11 August 2012 which comprises the Condensed Group Income Statement, Condensed Group Statement of Comprehensive Income, the Condensed Group Statement of Changes in Equity, the Condensed Group Balance Sheet, the Condensed Group Cash Flow Statement and the related explanatory notes. We have read the other information contained in the interim financial statements and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("the UK FSA"). Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The interim financial statements are the responsibility of, and have been approved by, the directors. The directors are responsible for preparing the interim financial statements in accordance with the DTR of the UK FSA.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The condensed set of financial statements included in these interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial statements for the 28 weeks ended 11 August 2012 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.

Mike Barradell (Senior Statutory Auditor)

For and on behalf of KPMG Audit Plc, Statutory Auditor

Chartered Accountants

15 Canada Square

London

E14 5GL

4 October 2012