Re Agreement

PR no:15/13

10 October 2013

DIXONS RETAIL PLC

Unieuro and marco polo form new electrical retailer GROUP for italian market

Dixons Retail plc ("Dixons Retail"), Europe's leading specialist electrical multi-channel retailing and services company, today announces that it has signed an agreement with the shareholders of SGM Distribuzione s.r.l (which trades as Marco Polo in Italy ("Marco Polo")) to form a new entity ("NewCo"), that will indirectly own both Unieuro S.p.A ("Unieuro") and Marco Polo. Rhône Capital is the controlling shareholder of Marco Polo and will become the controlling shareholder of NewCo.

Under the terms of the agreement, Dixons Retail will leave the business with €25m of cash and will invest up to €10m in the form of a loan note based on an expected closing date at the end of November 2013. Dixons Retail will own a 15% share in NewCo with the owners of Marco Polo holding the remaining 85% of the share capital. Marco Polo and Unieuro are both leading integrated multi-channel electrical retailers in Italy and the combined group will operate from 173 own stores as well as through a number of franchise partners. The transaction is subject to, inter alia, competition clearance.

For the year to April 2013 Unieuro generated losses before tax of £4.1 million on sales of £516.0 million and gross assets of £209.2 million. The transaction is expected to be accretive to underlying earnings for Dixons Retail in the current financial year.

Commenting on the transaction, Sebastian James, Group Chief Executive, said:

"This is a terrific outcome for both Unieuro and Marco Polo, as it creates a unified force that has the potential to be at the forefront of electrical retailing in this large European market. I am pleased that we remain a shareholder and that this transaction gives clarity on the long-term future for the business and for our colleagues.

For Dixons, this transaction follows our agreed disposals of ElectroWorld in Turkey and of PIXmania in France. Once completed, these changes will enable the Group to focus on those territories where we have market-leading multi-channel operations. I have no doubt that this increased simplicity and clarity will enable us to deploy our resources better and drive better value for all of our stakeholders."

Commenting on the transaction, Giancarlo Nicosanti Monterastelli, CEO of Marco Polo said:

"This agreement is the first stage of a long-term plan to create a leading integrated multi-channel retailer group in the Italian electrical market. The agreement is designed to achieve important benefits for customers, employees and suppliers. While market conditions in Italy remain challenging, the complementary channel strategy and store portfolios of the two companies will enable the new group to attract more customers across Italy and build long-term growth."

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, Helen Smith Brunswick 020 7404 5959

Information about Dixons Retail

Dixons Retail is Europe's leading specialist electrical multi-channel retailing and services company, employing 35,500 people in 14 countries. More than 100 million customers shop with us every year, online and in our c.1,100 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, Unieuro, PC City and No Problem in Italy, Kotsovolos in Greece, ElectroWorld in central 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 Marco Polo

Marco Polo is one of the leading integrated multi-channel specialist electrical retailers in Italy trading from 79 stores as well as through a number of franchise stores. Marco Polo is owned by Rhône Capital, the Silvestrini family and management.

Information about Rhône Capital and its affiliates

Rhône, established in 1996, is a global private equity firm with a focus on investments in market leading businesses with a pan-European or transatlantic presence and transformational growth prospects. Rhône has offices in London and New York and currently holds investments in a diversified portfolio of companies, including investments in the chemicals, consumer products, food, industrial, materials, mining, retail, and shipping industries.