Pre-close Trading Update

27 October 2010

Carpetright plc

Pre-close Trading Update

Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces a trading update for the 12 weeks ended 23 October 2010.

Highlights

·; Group sales declined by 5.2%, with the year on year effect of closing our operations in Poland accounting for 0.5% of this decline.

·; The Group's store base decreased by two to 7022 stores at the period end.

·; UK and Republic of Ireland sales declined by 4.6%, with like-for-like sales3 down 7.3%. A net four stores have closed, decreasing the total to 5842.

·; In local currency terms, total sales in Rest of Europe (The Netherlands and Belgium) decreased by 0.2% with like-for-like sales down 1.2%. After allowing for the movement in exchange rates, this translates to a total sales decline of 5.5%. Two stores opened in The Netherlands, increasing the total in Europe to 118 stores.

Lord Harris of Peckham, Chairman and Chief Executive, said:

"The tough trading environment in the UK and Republic of Ireland continued into the second quarter of our financial year. The further reduction in mortgage approvals along with fragile consumer confidence has produced a difficult market. We expect these market conditions to continue into 2011.

"In these challenging market conditions, we have progressed the roll out of our bed offer, opening 44 bedding departments within our existing UK estate since the start of the financial year with plans for a further 50 by the end of April 2011. We expect the full year UK margin to increase by around 30-50 basis points through a combination of price and promotional management. The focus on effective cost management has continued.

"The Group remains well placed to capitalise on opportunities when economic conditions improve."

The Group will report its interim results for the first half of its financial year on 14 December 2010.

Change to reporting

The Group wishes to provide advanced notice of a planned change to the reporting of its financial results. In light of the withdrawal from operations in Poland, which completed during the last financial year, the Group has decided to report on its continuing operations based on two principal geographic regions. These being "The UK and Republic of Ireland" and "The Rest of Europe" (comprising The Netherlands and Belgium). The move will better reflect internal operational structures and meets the objectives of IFRS8 - segmental reporting.

Previously, reporting was in three segments, "UK & Republic of Ireland", "The Netherlands" and "All other segments". The implications of the change will be communicated in detail with figures being provided on both bases at the interims results announcement on 14 December 2010.

Analyst conference call

Lord Harris will host a conference call for analysts at 8:30am

The dial in number is 0845 634 0041 with the passcode 3699068

Thereafter, for further enquiries please contact:

Carpetright plc

Lord Harris of Peckham, Chairman and Chief Executive

Neil Page, Group Finance Director

Tel: 01708 802000

Citigate Dewe Rogerson

Kevin Smith / Lindsay Noton

Tel: 020 7638 9571

A copy of this trading statement will be available on our website www.carpetright.plc.uk today from 7.00am

Notes

1. All sales figures are quoted after deducting VAT.

2. Excludes Sleepright within Carpetright locations.

3. Like-for-like sales calculated as this year's net sales divided by last year's net sales for all stores that are at least 12 months old at the beginning of our financial year. Stores closed during the year are excluded from both years. No account is taken of changes to store size or introduction of third party concessions. Sales from insurance and house building contracts are supplied through the stores and included in their figures.

4. There have been no significant changes to the Group's financial position during the period.

5. Certain statements in this report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward looking statements. We undertake no obligation to update any forward looking statements whether as a result of new information, future events or otherwise.

Appendix 1: Store portfolio